Nudge Case Study: Increase Sales of Products with Shorter Expiration Dates for Sevan's B2B Customers
The fictional case study was conducted according to the framework provided in the course material and instructions.
Read the instructions here.
LD1008 – Applied Behavioral Science and Learning: Nudging and Decision Making " (4.0 hp/credits)
Step 1: Create a Behavioral Challenge
The first step in the study was to identify and define the central behavioral challenges Sevan faced with regard to food waste. This laid the foundation for focusing efforts where the potential for positive change was greatest.
Question 1: Behavioral Challenges
Three overarching challenges were identified:
B2B E-commerce (Short Dates)
How can we get B2B customers visiting our e-commerce platform to actively seek out, discover, and purchase products with shorter expiration dates, even if they are not specifically looking for these items, by communicating their benefits (e.g., price, environmental benefit) in an attractive and easily accessible way during the order placement process?
Retail Stores (Short Dates)
How can we get retail consumers visiting physical stores to choose Sevan products with shorter dates over the regular assortment, through clear and engaging communication about price and environmental benefits at the shelf?
Internal Employee Engagement
How can we get Sevan employees to actively identify and promote products with short dates to minimize waste and optimize inventory levels?
Question 2: Potential for Change
The challenges were evaluated based on user motivation and the company's ability and opportunity to influence behavior. This provided a score for prioritization.
The chart shows the total score (Motivation x Ability & Opportunity) for each behavioral challenge.
Question 3: Project Goal Based on Potential for Change
Challenge (a) "Increase sales of products with short dates on the website (B2B)" has the highest overall potential (Score: 56) and is assessed to have the highest measurability in a controlled digital environment.
Chosen Behavioral Challenge:
"How can we get B2B customers visiting our e-commerce platform to actively seek out, discover, and purchase products with shorter expiration dates, even if they are not specifically looking for these items, by communicating their benefits (e.g., price, environmental benefit) in an attractive and easily accessible way during the order placement process?"
Concrete Project Goal:
Step 2: Understand the User's Reality
To design effective nudges, a deeper understanding of B2B customers' current behaviors, drivers, and barriers regarding short-dated products in the e-commerce environment was required.
Question 4: Data Collection Methods
Two primary methods were used to collect data:
📊Analysis of Transaction Data and System Logs (Quantitative)
Collection and systematic analysis of data directly from Sevan's B2B e-commerce platform. This includes order history, interaction data with proposed nudges, and customer segmentation data.
Rationale: Crucial for objectively measuring sales increase, provides quantitative data on purchasing behavior and user interaction, enables A/B testing.
🗣️Qualitative Interviews with B2B Customers
Conducting semi-structured interviews with a selection of B2B customers (e.g., purchasing managers) who use the e-commerce platform. Questions focus on their perception of short-dated products, motives, experiences, concerns, and suggestions.
Rationale: Helps understand the *why* behind actions, provides insights into attitudes, perceived utility, barriers, and motivating factors for considering short-dated products.
Question 5: Behavioral Insights, Barriers, Motivators & Decision Situations
Potential Behavioral Insights:
- Clear price reduction and highlighting the "save food" aspect (environmental benefit) may have the highest conversion.
- Customers might be hesitant due to fear of poor quality or products not reselling in time.
- Time savings (not having to look for offers) and a feeling of doing a good deed against food waste can be strong motivators.
❗Barriers:
- Concerns about shelf life (quality, remaining sales days).
- Perceived irrelevance to their business.
- Unclear presentation on the website.
- Not being aware that such products are offered.
👍Motivators:
- Clear economic benefits (significantly reduced price).
- Contributing to reduced food waste/environmental benefit.
- Opportunity to offer special deals to their own customers.
- Quickly adding relevant products without having to search.
🎯Effective Decision Situations for Nudging:
- When customers are looking for bargains.
- When they have almost completed their order (receive a "last chance" reminder).
- When they are actively trying to reduce their costs.
Step 3: Create Behavioral Interventions (Nudges)
Based on insights into the users' reality, several potential nudging interventions were developed. These were then evaluated to select the most promising one. The selected nudging tools are based on the definitions outlined by Lemoine, et al. (2019).
Question 6: Potential Nudging Interventions
🏷️1. Short Date Campaign Area on the Website
Create a prominent, easily accessible website section for short-dated products, featuring clear images, large price reductions, "best before" dates, and "save food" messaging.
Nudge Tools:- Frame the information ("Deal of the week," "Save food, save money")
- Change the placement (prominent, accessible)
- Make the effect visible (savings, days left)
💡2. Popup with Time-Limited Offer
When a customer nears order completion, a discreet popup suggests adding selected short-dated products at an attractive discount, emphasizing it's a time-limited opportunity.
Nudge Tools:- Get feedback ("last chance" offer)
- Frame the information ("Exclusive offer," "Last chance to save")
- Get attention/Salience (popup at critical point)
♻️3. Environmentally Positive Confirmation at Checkout
When a short-dated product is added or is in the cart at checkout, display a positive message confirming their contribution to sustainability (e.g., "Thank you for saving food!").
Nudge Tools:- Give feedback (immediate positive confirmation)
- Frame the information (emphasis on environmental/ethical aspect)
Question 7: GAME Evaluation and Prioritization
The nudge interventions were evaluated according to the GAME framework (Genomförbar (Actionable), Användarfokuserad (User-oriented), Mätbar (Measurable), Etisk (Ethical)), as defined by Lemoine, et al. (2019).
Nudge Intervention | G | A | M | E |
---|---|---|---|---|
1. Short Date Campaign Area on the Website | Medium | High | High | High |
2. Popup with Time-Limited Offer | High | Medium | High | Medium |
3. Environmentally Positive Confirmation at Checkout | High | High | Low | High |
Prioritization: "Short Date Campaign Area on the Website" (Nudge 1) appears strongest with a good balance of actionability, user focus, measurability, and ethics. "Popup with Time-Limited Offer" (Nudge 2) also has high potential but requires careful design.
Step 4: Chosen Behavioral Intervention & Study Design
Based on the evaluation, the "Short Date Campaign Area on the Website" (Nudge 1) was chosen for implementation and testing. A detailed design and a concrete study plan were formulated.
Question 8: Choice of Behavioral Intervention - "Short Date Campaign Area on the Website"
Purpose: To create a clear and attractive digital "store within a store" for products with short dates, where B2B customers can easily discover and purchase these items with price and environmental benefits.
Concrete and Specific Design:
Placement and Interface:
- Main section/Category: A separate, prominent main category in website navigation (e.g., "Short Dates – Save Food!" or "Sevan's Bargain Corner") with a unique icon/color.
- Homepage/Landing page: A large, dynamic banner or dedicated section highlighting current "top bargains" from short-dated assortment, changed regularly.
- Product pages (Related content): On relevant regular product pages, a small link/icon: "Also available with a short date – Save X SEK!".
- Shopping cart: A discreet box in the shopping cart or at checkout reminding about "selected bargains with short dates you might have missed."
Visual Design & Mock-ups:
Use clear "SALE" labels, large percentage discounts, "Save Food" icons, and clear "Best before" dates or "X days left" indicators.
Original Price: 50 SEK
Now: 35 SEK (Save 30%!)
Best Before:
Time remaining until best before date.
Don't Miss Out!
Check our Short Date Bargains for extra savings!
Interaction flow:
- Easy navigation to the short-date section.
- Clear filters and sorting options (by product category, % discount, days left).
- Ability to see a clear history of when short-dated products were last restocked.
Tonality and Communication:
- Positive and value-based: "Maximize your profit!", "Make an effort for the planet!", "Smart purchases with short dates."
- Transparent: Clear information about best-before dates and exact price reductions.
Technical aspects:
- Connection between inventory management and e-commerce to identify and add products.
- Frontend development for new section, banners, dynamic elements.
- Mechanism for automatic pricing based on date.
Success Metrics (beyond increased sales):
- Number of visitors to the "Short Date" section.
- Click-through rate on banners/links to short-dated products.
- Average number of short-dated products per order.
- Proportion of customers repeatedly buying from short-dated assortment.
- Reduction of internal waste for products past best-before date.
Question 9: Description of Measurement
The effect of the "Short Date Campaign Area on the Website" nudge will be measured through:
1. Total sales volume (SEK and units) of "short date" products.
2. Proportion of orders containing at least one "short date" product.
(Measured via backend order data)
1. Traffic to the new section (views, clicks) and interaction rate.
2. Impact on total waste of short-dated products in stock.
(Measured via platform logs and inventory data)
Roll out new section and related links/banners on the e-commerce platform.
Randomly selected test group (exposed to nudge) vs. Control group (existing interface).
Question 10: Hypothesis
The hypothesis is that the "Short Date Campaign Area on the Website" nudge will lead B2B customers in the test group to increase their purchase frequency and volume of these products.
Specific Expectations (vs. Control Group, 3 months):
A positive, measurable effect on the total waste of short-dated products in stock is also expected.
⚠️Potential Confounding Factors:
1. Internal Inventory Management & Availability
- Variations in availability of short-dated products.
- Inefficient logistics for restocking the new section.
2. Competitors' Pricing/Campaigns
- Aggressive competitor campaigns on similar products.
- Specific "save food" initiatives by competitors.
These factors can make it difficult to isolate the specific effect of the nudge.
References
Lemoine, et al. (2019) Nudging i praktiken : så gör organisationen det lätt att göra rätt Vol 1. Stockholm: Natur & Kultur.