Case Studies

A healthcare company saved over $50 million after making a small change to its health rewards program 


We are all motivated by incentives, but incentives can be tricky. In some cases, small changes to the incentive structure can have a dramatic impact on the organization’s goals.

We helped a healthcare company save $50 million while maintaining the healthy behavior of the members by making a small change in its rewards program. 

A charitable organization dramatically increased the number of funds raised and number of donors with a simple change in message

Not all fundraising messages are equal; different messages elicit different behavior from donors. Often, charities receive initial funding to kick off charitable campaigns.

We helped an organization test a new use for these initial funds, using the funds to cover all the charity’s overhead costs, freeing up public donations to go directly to the cause. Compared with a control group, the new campaign raised 188% more donations.

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A California winery increased profits by 11% after discovering that higher prices actually increased rather than lowered demand



Sometimes, raising prices leads to higher demand (and, surprisingly, may also lead to more satisfied customers).  

Basic economics tells us that lowering the price will increase demand for our products, but in some cases this is wrong. Experimentation allows us to observe how consumers react to prices, and sometimes this leads to unexpected results.

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A large amusement park increased profits and consumer satisfaction after learning that allowing customers to pick their own prices for souvenir photos brought in more profit than fixed prices
 

We helped an organization create a situation we termed “Shared Social Responsibility” through a combination of pay-what-you-want with a charitable donation.  By combining PWYW with charity, the organization raised significantly more funds for the charity compared with their standard practice of donating a portion of the regular purchase price.  And, more surprisingly, the PWYW with charity resulted in higher profits than the regular fixed prices.

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A large hotel chain found a way to increase the level of towel reuse by guests 

The majority of people in the United States consider themselves to be environmentally conscious, but often this sentiment doesn’t carry over into their actions.  Using psychological insights, we helped a large hotel chain identify a way to increase the level of environmentally-friendly behaviors by guests, leading to a potential multi-million dollar impact for the hotel.  

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An online automotive marketplace dramatically increased the effectiveness of consumer incentives 

Sometimes, a small change to the structure of an incentive can have a large impact on its effectiveness. Drawing on insights from behavioral economics, we helped an automotive marketplace change buyers’ perceptions of their dealer-to-consumer incentives, making them more effective at no additional cost.