Name:

Location:

Date:

FIELD GUIDEBehavioral Research

& Design

I made up my mind...that I would never try to reform man - that is much too difficult. What I would do was to try to modify the environment in such a way as to get man moving in preferred directions.

R. Buckminster Fuller

4

© GRID Impact, 2014

Design with, not for.

5

Table of Contents

Behavioral Design 6

Building EmpathyGroup Work Guidlines 10Brainstorming 11Scenario Mapping 14Personas 15Insight Development 16

Designing Solutions I: Process Mapping

Report Findings 20Mapping Overview 24Process Mapping exercise 26

Designing Solutions II: Form

Prototyping Complaints Form 30Rapid User Testing & Role Play 32

Designing Solutions III:FSP Reporting

Cluster Activity 36

AppendixReferences 40

6

What is Behavioral Research & Design?

Our process combines insights from behavioral economics and principles from human centered design to uncover human motivations and biases, allowing us to design products and services that people will like, choose and actually use.By better understanding the drivers underlying current behaviors, this process leads to more informed predictions of how people will behave when faced with new decisions in the future.

Human Centered Design is driven by the needs, desires and context of the people for whom we design.

HumanCentered Design

BehavioralEconomics

Behavioral economics uses insights from psychology and neuroscience to help explain human behavior

7

Behavioral Design Process

Understanddraw insights

and collaborate

Examinelisten, observe,

refine

Designbrainstorm and

create

Experimentget feedback and

iterate

share and learnDisseminate

8

Empathy is the mental habit that moves us beyond thinking of people as laboratory rats or standard deviations...We build these bridges of insight through empathy, the effort to see the world through the eyes of others, understand the world through their experiences, and feel the world through their emotions. Tim Brown

9

Building Empathy

10

Respond with “Yes, and…” instead of “no, but...”

Leave titles at the door

Listen actively

Speak from experience instead of generalizations

Do not be afraid to respectfully challenge one another by asking questions

The goal is not to agree, it is to gain a deeper understanding

Design Guidelines

When working in groups:

11

Tips for brainstorming & ideation:

Quantity over quality

Build ideas off of each other

Think laterally

Start with people and their experiences

Don’t reinvent the wheel

Forget about good

There are no bad ideas

Keep it simple

Collaborate

Play

Yes, and... (combine and extend ideas)

If you don’t write it down, it didn’t happen

12

Customer’s Story

Notes:

13

14

Documenting User Research and Experience

actionattempted actions, in sequential order

experienceevents that occur, in sequential order

emotionhow does this make the user feel?

implicationwhat does the difference between the action and experience create?

step 1 step 2 step 3 step 4

Scenario Mapping

On post-its, write out all of the actions the customer took in the story, along with the corresponding experiences, emotions and implications. Each category should have a different color post-it.

Instructions:

15

Persona Development

thinksfeels

saysdoes

To create a more in-depth user profile, write out what she is thinking, feeling, doing and saying in the story.

Instructions:

16

Take some of the observations and learnings from scenario mapping and turn them into insights. Did any behavioral barriers stand out? Try plugging them into these sentences:

Customers should be able to file complaints easily and with quick resolution but [behavioral barriers] is/are preventing them from doing so.

Insight Development

Insights lead us from behavioral observations to opportunities for intervention.

Instead of [intended outcome], customers [alternative action], which reveals that [behavioral barriers].

Instructions:

17

1. observations

2. insights

3. implications

4. opportunities

Use this chart to transform observations into design opportunities. 1. Write in the obervation.2. What is the insight you learned from this observation? (use insights from previous page.)3. What does this mean in the larger context of the problem? How can this insight impact the future?4. Imagining these implications, can you find any opportunities for interventions?

Instructions:

18

There will be a great rise in their spirits if one can change the way they think, so instead of having their heads in the one idea of ‘What is going to happen to me?’ they may think, ‘What action am I going to take?’

Xenophon

19

Designing Solutions I: Process Overview Visual

20

Key Findings from Report:Insights

Two fundamental actions underlie a successful disputes and recourse system:

A customer must submit a complaint when she has a negative experience with a financial product or a financial service provider.

She must persist in the process (whatever her role is) until her complaint is resolved in a satisfactory way.

Four broad insights that can influence complaints and dispute resolution policy in Ghana:

1. Customers may not think of submitting a complaint in the first place.

Many customers have a sense that losing money through “system” problems, absconding of funds, or failed institutions is part of the normal experience with FSPs.

Complaints mechanisms are not always salient to customers at the right times or places.

21

2. Even if customers think to submit a complaint, they may be deterred by psychological or situational issues.

Customers often do not complain because they don’t think their complaints will be resolved in their favor.

Even if customers submit a complaint, they may have to follow up at a later date.

3. If customers complain but their complaint is not immediately addressed, there are a number of reasons they may not escalate their complaint or otherwise persist in the complaints process.

Ghanaian customers have a mental model of banking as a personal relationship. This has two components: customers prefer interactions with actors they have a personal relationship with, and they prefer those interactions (especially those with a negative focus) to be face-to-face.

4. Low-income customers do not think that Bank of Ghana accepts customer complaints, and their perception of Bank of Ghana is nuanced.

These customers have heard of BoG and trust BoG, but they do not understand its functions or purpose, and do not know that it accepts complaints. They also perceive BoG as intimidating and distant, which lowers the likelihood that they would submit a complaint to BoG.

22

Key Findings from Report: Design Ideas

1. Develop official complaints channels that are highly salient and which reduce the hassle of submitting an initial complaint.

One easy change would be ensuring that all printed documents given to customers – transaction receipts and statements, for example – could include reminders about complaints channels.

2. A caveat about multiple channels.We suggest many different options for channels, but in general it is a misconception that more choice is always better. Too many choices can lead to indecision about which channel to use, and reduce the likelihood that any mechanism is chosen.

3. Following up on complaints.We heard that often customers are asked to come back to the branch to follow up on a complaint, but many do not. Ideally, the financial institutions should bear responsibility to follow up on the complaint, because customres are likely to procrastinate or forget.

4. Additional marketing for complaints channels to change the mental model of banking.

Marketing done by apex bodies or BoG – not tied to a particular FSP – could also increase the salience and perceived efficacy of formal complaint channels.

23

5. Actively Solicit Complaints.

Proactively reaching out to customers can provide a good test of whether incoming complaints are widely representative of customer experiences – or whether some types of complaints are going unrecorded.

6. Customer-facing language should acknowledge that the complaint is being taken seriously and also include stories of past resolutions.

7. The relationship of FSPs to Apex Bodies to BoG.Ideally, the process by which a customer could submit and follow-up on a complaint with an FSP would be streamlined within the financial sector and all three groups of institutions involved in the complaints and dispute resolution system would compliment one another.

8. Process and Record of Complaints.

Incoming complaints to any institution should be logged and categorized for resolution and record-keeping.

24

Different Types of Mapping

The Story of Stuff storyofstuff.org

Systems Map

Process MapShows each step in the system clearly and efficiently.

Map out the entire feedback loop of the system.

laurakadamus.com

25

Doctor Visit Process

User Journey Map

Stakeholder MapList out all of the stakeholders, connecting them by the different roles they play or which aspects of the problem they work on.

List each aspect of the user’s experience, noting crucial decision points and the different paths they could take.

laurakadamus.com

laurakadamus.com

26

Process Mapping

Using the data from the report and insights gathered from scenario mapping, work in groups to draw out the process of filing and escalating customer complaints.

Instructions:

Start with this rubric,

but remember you are not required to stick to it!Build sections off of it, draw pictures and make connections.

27

28

If I had 20 days to solve a problem, I would take 19 days to define it.

Albert Einstein

29

Designing Solutions II: Form

30

Prototyping Complaints Forms

A standardized form for is necessary for filing complaints because ________________________________________________________________________________________________________________________

This form needs to _________________________________________________________________________________________________________________________

Step 1: Fill in the following sentences to clarify objective.

Do you remember an exceptionally good customer service experience? What made it so good? Can you incorporate it into your design?

Instructions:

31

How is trust maintained as the complaints system becomes more formal?

Do more serious complaints need to be handled differently?

Should mobile money complaints be handled differently?

Can you think of any other barriers to entry?

Does the form come with a reference guide for FSP representatives to use when helping customers fill it out?

Do customers keep a copy of the form?

How will the FSP representative follow up after the form is filed?

Is there adequate space for comments?

Is it suitable for customers with a range of literacy?

Are the directions clear?

Step 2: Make prototypes of a new complaints form, keeping in mind the following questions.

32

Role Play

New designs need to be tested in the field, with users, to see what works and what doesn’t. In workshops there isn’t always time for proper field testing, so exercises like role play can act as quick prototypes to test designs. That said, there is no replacement for feedback you get from testing with real users.

Step 1: Take a situation card. One member from each team will play the customer and the other will play the FSP representative.

Step 2: In character, play out a scenario where the customer fills out the form.

Step 3: Take 5 minutes to individually reflect on what worked and what didn’t.

Step 4: Switch roles to test out the other form.

Step 5: Individually reflect to prepare for the group share-back.

Instructions:

33

34

To design is to communicate clearly by whatever means you can control or master.

Milton Glaser

35

Designing Solutions III: FSP Reporting

36

Clustering Activity

Step 1: Working individually, write as many answers to these questions you can think of, one idea per post-it.

Step 2: The workshop facilitators will collect post-its and put them up on the wall, grouping similar ideas together.

Step 3: Decide on headings that capture the theme of each cluster on the wall and label them.

Step 4: Group discussion and share-back.

What does the Bank of Ghana need to know from FSPs about complaints?

What do they want to know?

Instructions:

37

TSA Brainstorm Cluster Activity servicedesigntools.org

38

You don’t have to be an expert to have a good idea.

John Stinson

39

Appendix

40

References for Further Learning

Adams, Paul, and Stefan Hunt. 2013. “Encouraging Consumers to Claim Redress: Evidence from a field trial.” Occasional Paper No. 2. United Kingdom: Financial Conduct Authority. April.

Anagol, Santosh, Cole, Shawn Allen and Sarkar, Shayak, 2012. “Understanding the Incentives of Commissions Motivated Agents: Theory and Evidence from the Indian Life Insurance Market.” Harvard Business School Finance Working Paper No. 12-055.

Barr, Michael and Sendhil Mullainathan. 2008. Behaviorally Informed Financial Services Regulation. Washington, D.C.: New America Foundation. October.

Bell, Catherine, and Jeanne M. Hogarth. 2010. “Better deals on wheels: The effects of financial education on car buying.” Community Dividend. Minneapolis: Federal Reserve Bank of Minneapolis. April.

Bennhold, Katrin. “The Ministry of Nudges.” New York Times. December 8, 2013. Page BU1.

Berg, Gunhild and Bilal Zia. 2013. “Harnessing Emotional Connections to Improve Financial Decisions: Evaluating the Impact of Financial Education in Mainstream Media.” Policy Research Working Paper 6047. Washington, D.C.: World Bank. April.

Bertrand, Marianne, Sendhil Mullainathan, and Eldar Shafir. 2004. “A Behavioral-Economics View of Poverty.” American Economic Review, 94(2): 419-423.

Bertrand, Marianne, Dean Karlan, Sendhil Mullainathan, Eldar Shafir, and Jonathan Zinman. 2010. “What’s Advertising Content Worth? Evidence from a consumer credit marketing field experiment.” The Quarterly Journal of Economics, 125(1): 263-205.

Bertrand, Marianne, and Adair Morse. 2010. “Information Disclosure, Cognitive Biases and Payday Borrowing.” University of Chicago Booth School of Business Research Paper No. 10-01. January.

41

Beshears, John, James J. Choi, David Laibson, and Brigitte C. Madrian. 2013. “Financial Inertia Among Low-Income Individuals—Plan carefully when setting 401(k) defautls.” www.retirementmadesimpler.org. February.

Brune, Lasse, Xavier Gine, Jessica Goldberg, and Dean Yang. 2013. “Commitments to Save: A Field Experiment in Rural Malawi.” October.

Carter, Susan Payne, Paige Marta Skiba, and Jeremy Tobacman. 2010. “Pecuniary Mistakes? Payday borrowing by credit union members.” Pension Research Council Working Paper 2010-32. November.

Chapman, Megan and Rafe Mazer. 2013. Making Recourse Systems Work for Base of the Pyramid Consumers. Focus Note 90. Washington, D.C.: CGAP. December.

Choi, James J., John Beshears, David Laibson, and Brigitte C. Madrian. 2012. “Default Stickiness among Low-Income Individuals.” October.

Cifuentes, Rodrigo. 2013. Tasas de descuento, aversión al riesgo y decisiones financieras según la EFH. Presentation at CGAP-ASBA-BID Workshop on Consumer Lending. Washington, D.C. March 13.

Collins, Daryl, Jonathan Morduch, Stuart Rutherford, and Orlanda Ruthven. 2009. Portfolios of the Poor: How the World’s Poor Live on $2 a Day. Princeton: Princeton University Press.

Collins, Daryl, Nicola Jentzsch and Rafe Mazer. 2011. “Incorporating Consumer Research into Consumer Protection Policymaking.” Focus Note 74. Washington, DC: CGAP. November.

Collins, Daryl, and Julie Zollman. 2011. “Financial Capability and the Poor: Are We Missing the Mark?” FSD Insights. Nairobi, Kenya: FSD Kenya.

Datta, Saugato and Sendhil Mullainathan. 2012. “Behavioral Design: A New Approach to Development Policy.” CGD Policy Paper 016. Washington DC: Center for Global Development. November.

Drexler, Alejandro, Greg Fischer and Antoinette Schoar. 2012. “Keeping it Simple: Financial Literacy and Rules of Thumb.” May.

42

Erta, Kristine, Stefan Hunt, Zanna Iscenko, and Will Brambley. 2013. “Applying Behavioral Economics at the Financial Conduct Authority.” Occasional Paper No. 1. United Kingdom: Financial Conduct Authority. April.

Fernandes, Daniel, John G. Lynch, Jr. and Richard G. Netemeyer. 2013. “Financial Literacy, Financial Education and Downstream Financial Behaviors.” Management Science. September.

Gine, Xavier, Dean Karlan, and Muthoni Ngatia. 2013. “Social Networks, Financial Literacy and Index Insurance.” Working paper. January.

Gine, Xavier, Cristina Martinez, and Rafe Mazer. 2014. “Financial (dis)Information: Evidence from an audit study in Mexico.” World Bank Group Working Paper. Washington, D.C.: World Bank Group. March.

Gine, Xavier, Cristina Martinez, and Rafe Mazer. Forthcoming. “Making Disclosure Work for Consumers: Evidence from a shopping experiment in Mexico.” Washington, D.C.: World Bank.

Hastings, Justine and Lydia Tejeda-Ashton. 2008. “Financial Literacy, Information, and Demand Elasticity.” National Bureau of Economic Research Working Paper No. 14538. December.

Kempson, Elaine. 2012. “Recourse and Dispute Resolution.” Presented at Behavioral Economics and Financial Consumer Protection: From Research to Policymaking. Washington, D.C. June 13.

Mazer, Rafe, Xavier Gine and Cristina Martinez. Forthcoming. “Mystery Shopping for Financial Services Toolkit.” Washington, D.C.: CGAP.

Mullainathan, Sendhil, Markus Nöth and Antoinette Schoar. 2012. “The Market for Financial Advice: An Audit Study.” National Bureau of Economic Research Working Paper No. w17929.

Mullainathan, Sendhil and Eldar Shafir. 2013. Scarcity: Why having too little means so much. New York: Times Books.

McKay, Claudia and Yanina Seltzer. 2013. “Designing Customer-Centric Branchless Banking Offerings.” Washington, D.C.: CGAP. December.

Mowl, Amy Jensen and Camille Boudot. “Barriers to Banking: Early results from an audit study in India.” Forthcoming.

43

Reserve Bank of India. 2014. “Report of the Committee on Comprehensive Financial Services for Small Business and Low Income Households.” Reserve Bank of India. January.

Watters, Ethan. 2013. “We Aren’t the World.” Pacific Standard Magazine. February 25. www.psmag.com.

World Bank. 2013. Financial capability surveys around the world: Why financial capability is important and how surveys can help. Washington, D.C.: World Bank. August.

World Bank. Financial Literacy Website. www.finlitedu.org. Accessed February, 2014.

44

Alexandra FiorilloPrincipal, GRID Impactalex@gridimpact.org

+1.917.273.4561skype: alexfi24

45