Aviva has today launched a book entitled New Thinking, which is designed to help advisers facilitate better conversations with their clients in the post RDR world. Written by one of the UK’s leading behavioural scientists, Professor Paul Dolan of the London School of Economics, and best-selling business author Steve Martin, the book will help advisers understand how Behavioural Science can help engender more successful conversations for both the customer and the adviser.
New Thinking uses the mnemonic MINDSPACE which describes nine of the most robust effects that can be employed to influence behavioural change. By drawing on additional insights gleaned during a number of focused interviews with financial advisers, the book offers practical suggestions and insights on how advisers can use MINDSPACE to more effectively talk about fees with both new and existing clients.
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Effect |
Definition |
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Messenger |
We are heavily influenced by who communicates information to us |
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Incentives |
Our responses to incentives are shaped by predictable mental shortcuts such as strongly avoiding losses, hyperbolic discounting and mental accounting |
|
Norm |
We are strongly influenced by what others do |
|
Defaults |
We ‘go with the flow’ of pre-set options |
|
Salience |
Our attention is drawn to what is novel and seems relevant to us |
|
Priming |
Our acts are often influenced by subconscious cues |
|
Affect |
Our emotional associations can powerfully shape our actions |
|
Commitments |
We seek to be consistent with our public promises, and reciprocate acts |
|
Ego |
We act in ways that make us feel better about ourselves |
In addition to the book, Aviva has also produced a series of bite sized videos which deal with the individual elements of MINDSPACE. Advisers can also use this activity towards the unstructured element of their CPD.
Andy Beswick, intermediary director at Aviva, said:
"We know that many advisers are concerned about how best to communicate the changes brought about by RDR to both new and existing clients. This is especially the case with charging, as getting it right is absolutely key.
"We have worked closely with Professor Paul Dolan and Steve Martin, who are both experts in behavioural science, to come up with clear guidance and practical support for advisers as they tackle this transition.
"In the wider context, understanding customer's individual needs is more important than ever. New Thinking also offers ideas to help advisers develop deeper relationships to ensure the right outcomes for their clients."
Professor Paul Dolan, London School of Economics, said:
"Behavioural Science is attracting significant and growing interest in business. It teaches us how we can influence the day-to-day behaviour of people through subtle changes in the way we behave and interact with them.
"Using both Aviva's and our expert knowledge we've produced a series of insights as well as practical tips, to help advisers have more successful conversations with both new and existing clients."
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