Ergon Be
HOW DOES BEHAVIOURAL ECONOMICS BENEFIT BUSINESS? Behavioural economics has been making big inroads into old business challenges. A Gallup study (2015) found that companies who apply the principles of behavioural economics outperform their peers by 85% in sales growth and more than 25% in gross margin. In South Africa, there is a growing interest in the use of behavioural economics to build better businesses. Adrian Gore (CEO of Discovery) states: “Behavioural economics gives us the ability to grow strongly, organically and to try to keep our growth rate at the 20% level, even in a difficult environment. The science is equally effective in addressing internal customers, as it is in creating value for external customers. Many companies have designed behavioral economics initiatives to increase customer satisfaction, facilitate change management, improve communication and enhance conflict resolution and diversity programs.
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