By now, you may have seen and been entertained by this very cool Swedish video. If not, click on this link and spend a minute being amazed.
<click!>The Piano Stair Case <click!>
Tom Hanks and and Robert Loggia danced "Heart & Soul" and "Chopsticks" on the store's large floor piano.
What a great idea! Not just because it brings back memories the FAO Schwartz scene in the movie “Big,” but because it illustrates an imporatant Behavioral Economics principal. Delight = Compliance.
The problem with standard, text-book economics is that it assumes that people always act in a rational manner, and always make choices that are best for them in the long run. We know this isn’t true. If it were, we’d all be thin, we’d all have plenty of money in the bank for retirement, and we always would have prepared in advance for that mid-term exam.
In fact, we know that people tend to rationalize not doing the right thing. In this case, people know it would be better to take the stairs because it would give them exercise, save electricity, etc. But, in most cases, people take the elevator or escalator because it’s easier.
The genius in the video is making taking the stairs delightful, and, therefore people comply.
I have a former colleague from the bookfield that’s making a motivational speaking career out of getting people to, “Take the Stairs!” Check out his blog.
http://takethestairs.wordpress.com/
The same principle was recently applied to banking. A credit union in Michigan was having trouble getting people to save money, so they instituted a lottery! The idea was to give people a chance to win a prize for every $25 they invested in a Certificate of Deposit. The bank paid for the prizes by giving a lower interest rate on the CDs. Now, a truly rational person would never make this deal because the odds of winning don’t justify the lost interest. However, the promotion is a huge success. People like the short-term thrill of a lottery chance, so it makes the idea of saving money more palatable. Check out the full story.
http://online.wsj.com/article/SB124786612839159989.html
So, the bottom line is if you want someone to do something, find a way to make it fun!
