Presenting Smart Choices Online
Written by Amaresh
One of the areas that our analytics center is working on is developing applications, which exploit the concepts of Behavioral Economics (BE), in a business context. We are looking specifically to develop a process to optimize a company’s online channel using BE concepts.
A recent WSJ (subscription required) article on Hewlett Packard mentions an interesting example which touches on two of the concepts we are exploring in our work.
1. Reducing the number of less relevant choices from websites
2. Reducing the uncertainty in a transaction process
For direct PC sales, where Dell remains dominant, Mr. Bradley reviewed customer survey data that showed H-P had too many PC models on its Web site, and reduced the number to 10 from 15. In January H-P cut the time it takes to reach a sales rep by phone to 22 seconds from 50 seconds. H-P increased its share of direct PC sales world-wide to 12.3% in the first quarter from 9.2% a year ago, according to Gartner.
We earlier posted about this topic here.