Get a Leg Up on Program Performance Through Behavioral Economics

March 19, 2014 | By Mike Ryan

Incentive planners are always looking for an advantage—a way to strengthen their business case and optimize outcomes. That’s an area in which we shine. In addition to leveraging proprietary incentive technology, Madison incorporates the science of behavioral economics to help our clients get more motivational value from their employee recognition and sales incentives programs.

Behavioral economics is not pop-psychology. It’s a discipline devoted to understanding why people do the things they do. Remember people are not calculating machines. They are both rational and emotional beings, and they are heavily influenced by the world around them. They rely on values, social networks, past experiences and their personal assessment of risk and reward when interpreting incentive offers.  Not surprisingly, when filtered through these lenses, behavioral economics can have a huge impact on your program’s success.