Behavioural Insights for Gas Safety NUDGING UP COMPLIANCE DRIVING DOWN COSTS Anna O’Halloran – O’Halloran Consultants Ltd anna@ohalloranconsultancy.co.uk
Who are we? O’Halloran Consultants Collaborative Change 30 years experience in social housing, including time as a Housing Inspector at the Audit Commission and as Director of Consultancy at CIH. Well aware of the regulatory and VFM Behaviour change specialist, requirements around the award winning, working in thorny issue of compliance, health and now housing and supported many organisations to improve.
PROPERTY ACCESS: THE HIDDEN COST £493,690,890 Failed access will cost our sector nearly half a billion pounds over the next 10 years * * Survey of AGSM members carried out in 2014
PROPERTY ACCESS: THE HIDDEN COST AGSM ESTIMATES * Cost per Difficult Cost per difficult property properties properties Properties Yearly Cost 5000 £67,911 £13.58 1350 £50.30 10000 £135,822 £13.58 2700 £50.30 15000 £203,732 £13.58 4050 £50.30 20000 £271,643 £13.58 5400 £50.30 25000 £229,554 £9.18 6750 £34.01 Model ¡based ¡on ¡sector ¡averages: 80% ¡on ¡gas 10.5 ¡month ¡service ¡programme 73% ¡first ¡time ¡access ¡rate http://www.agsm.uk.com/agsm-gas-access-waste-estimator/how-much-does-access-cost-you-2-2/
PROPERTY ACCESS: THE HIDDEN COST HYDE GROUP ESTIMATES * Compliance costs £40 per property per year • This doesn’t include the cost of the gas • safety check itself The Hyde Group manage 25,000 properties. • This equates to over £1 million per year. • The Hyde Group (2014), Exposing the Hidden Cost of Gas Compliance,
Behavioural Insights for Gas Safety OLD PROBLEM NEW SOLUTION
BEHAVIOURAL INSIGHTS When citizens were told that most people pay their tax on time, payment rates significantly increased.
BEHAVIOURAL INSIGHTS When citizens were told that most people pay their tax on time, payment rates significantly increased. £210m of revenue brought forward in 2012/13 alone.
BEHAVIOURAL INSIGHTS When people who were late with court fine received reminder text messages, payments went up by 28%
BEHAVIOURAL INSIGHTS When people who were late with court fine received reminder text messages, payments when up by 28% £30m per year in saved revenue 150,000 bailiff interventions
BEHAVIOURAL INSIGHTS Drivers reported having driven around 10% more miles when they signed their name before filling in an insurance form, rather than after.
BEHAVIOURAL INSIGHTS Drivers reported having driven around 10% more miles when they signed their name before filling in an insurance form, rather than after. $97 extra per policy
BEHAVIOURAL INSIGHTS Nudging your way …to reduced rent arrears 9 randomised controlled trials. What happens if we… Change the colour of our envelopes? • Refer to residents as ‘tenants’, rather than ‘customers’? • Tell tenants in arrears how many people in their area have a • clear account? Include a picture of the tenants home in their arrears letters? • Get tenants to sign their payment arrangements • Start thanking tenants for keeping / achieving a • clear account?
BEHAVIOURAL INSIGHTS Nudging your way …to reduced rent arrears Significant impacts on: How many people pay. • How much they pay. • How quickly they pay. • Tenant engagement. • Sticking to agreements. •
BEHAVIOURAL INSIGHTS
Behavioural Insights for Gas Safety Our ambition To design and deliver a groundbreaking project that will: ¤ Deliver easier, more timely compliance & reduced costs ¤ Create learning that will impact the entire sector ¤ Provide the perfect complement to the Gas Access Campaign ¤ Build capacity in the use of behavioural insights ¤ Position participants at the forefront of the gas safety agenda
Behavioural Insights for Gas Safety A GROUND BREAKING PROJECT
EVIDENCE-BASED BEHAVIOUR CHANGE COST TENANT TENANT INTERVENTION RIGOROUS MODELING SEGMENTATION INSIGHT DESIGN EVALUATION
EVIDENCE-BASED BEHAVIOUR CHANGE COST TENANT TENANT INTERVENTION RIGOROUS MODELLING SEGMENTATION INSIGHT DESIGN EVALUATION BEHAVIOURAL SCIENCE COST MODELLING How much does failed access cost us and how much could we save?
EVIDENCE-BASED BEHAVIOUR CHANGE COST TENANT TENANT INTERVENTION RIGOROUS MODELING SEGMENTATION INSIGHT DESIGN EVALUATION BEHAVIOURAL SCIENCE TENANT SEGMENTATION Which tenants tend to pose the biggest problem when it comes to failed access?
EVIDENCE-BASED BEHAVIOUR CHANGE COST TENANT TENANT INTERVENTION RIGOROUS MODELING SEGMENTATION INSIGHT DESIGN EVALUATION BEHAVIOURAL SCIENCE TENANT INSIGHT Why do tenants fail to allow access? What are the barriers and incentives to gaining timely access?
EVIDENCE-BASED BEHAVIOUR CHANGE COST TENANT TENANT INTERVENTION RIGOROUS MODELING SEGMENTATION INSIGHT DESIGN EVALUATION BEHAVIOURAL SCIENCE INTERVENTION DESIGN Design and launch an intervention to impact on timely access rates, using behavioural insights
EVIDENCE-BASED BEHAVIOUR CHANGE COST TENANT TENANT INTERVENTION RIGOROUS MODELING SEGMENTATION INSIGHT DESIGN EVALUATION BEHAVIOURAL SCIENCE RIGOROUS EVALUATION Measure impact through a robust, large-scale randomised controlled trial (RCT).
What’s in it for you… Key deliverables for participants: 1. Easier, more timely compliance 2. Reduced costs 3. Capacity building 4. Positioning
…. and for the industry: Key deliverables for the industry: 1. Insight: National segmentation, based on 30+ providers’ data 2. Insight: National qualitative research study 3. Evidence: Suite of tested, cheaper and effective interventions to draw from 4. Relationships: Engagement with tenants 5. Empowerment: Tenants taking responsibility 6. Savings: Overall reduction in cost and increased access
‘Insight’ (Limited to 35 participants) £1999 ¤ Data analysis to create segmentation model ¤ Attendance at full day behavioural insights workshop ¤ Access to online resource for entire project. ¤ Free access to finale conference
3 levels of participation ‘Impact’ (Limited to 10 participants*) £4999 ¤ Bespoke workshops to re-design entire compliance pathway ¤ Participation in individual and national RCT ¤ Qualitative research (2 focus groups each) ¤ Additional consultancy support * Organisations who have completed the Insight phase
Optional bolt-on Cost modelling (open to all) £3999 Activity-Based Costing ¤ Workshop to model activities and routines ¤ Development of full cost model ¤ Consultancy to support integration
Timescales ¤ Project launch at AGSM Annual Conference in Spring 2016, with participants. ¤ Completion by Spring 2017, with results shared at AGSM Conference.
Interested…? http://www.corgitechnical.com/nudging-up-compliance/ Steven Johnson 07719 242 795 steven@collaborativechange.org.uk Corgi Technical Services: 01256 548040 enquiries@trustcorgi.org Anna O’Halloran: 07912 110 078 anna@ohalloranconsultancy.co.uk 30
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