How new coffee machines (and office design) raised revenues by $200 million

Abstract

Spaces have a huge impact on our psyche. The office is a space where many of us spend a majority of our working time. It makes sense that they should be perfectly optimized to make us bring our best to work. But are they?

Past work has shown that the effectiveness of office design can be assessed in terms of density, social nature, and proximity of people.1 To improve on these metrics, offices are increasingly  networked, shared, and multipurposed spaces that redefine boundaries and improve overall performance. 

Recognizing this, a pharmaceuticals company used physical design change to nudge employees toward increased communication.1 They found that when their salespeople increased interactions with co-workers from other teams by 10%, also known as increased exploration, their sales also grew by 10%. Capitalizing on this, the pharmaceuticals company replaced their small and frequent coffee machines with fewer, larger ones. This resulted in increased co-worker exploration and a sales increase by 20%, or $200 million, by the following quarter.

WANT TO WORK TOGETHER ON A RELATED PROBLEM?

Effective interventions start with a nuanced understanding of how decisions are made. Our mission is to help large organizations be better and do better, using behavioral science.

Learn about what we do

Sources

  1. Waber, B., Magnolfi, J., & Lindsay, G. (2014, October 1). Workspaces that move people. Harvard Business Review. https://hbr.org/2014/10/workspaces-that-move-people
  2. Schneider, J., & Hall, J. (2011, April 1). Why most product launches fail. Harvard Business Review. https://hbr.org/2011/04/why-most-product-launches-fail
  3. BlueNovius.(2018, May 23). Pharma sales reps are struggling – Here’s why. https://www.bluenovius.com/healthcare-marketing/pharma-sales-reps-struggling/
  4. Flanagan, A. E., & Tanner, J. C. (2016). A framework for evaluating behavior change in international development operations (IEG Working Paper 2016/No. 2). Independent Evaluation Group. https://openknowledge.worldbank.org/bitstream/handle/10986/25872/110890-WP-PUBLIC.pdf?sequence=1

About us

We are the leading applied research & innovation consultancy

Our insights are leveraged by the most ambitious organizations

Image

I was blown away with their application and translation of behavioral science into practice. They took a very complex ecosystem and created a series of interventions using an innovative mix of the latest research and creative client co-creation. I was so impressed at the final product they created, which was hugely comprehensive despite the large scope of the client being of the world's most far-reaching and best known consumer brands. I'm excited to see what we can create together in the future.

Heather McKee

BEHAVIORAL SCIENTIST

GLOBAL COFFEEHOUSE CHAIN PROJECT

OUR CLIENT SUCCESS

$0M

Annual Revenue Increase

By launching a behavioral science practice at the core of the organization, we helped one of the largest insurers in North America realize $30M increase in annual revenue.

0%

Increase in Monthly Users

By redesigning North America's first national digital platform for mental health, we achieved a 52% lift in monthly users and an 83% improvement on clinical assessment.

0%

Reduction In Design Time

By designing a new process and getting buy-in from the C-Suite team, we helped one of the largest smartphone manufacturers in the world reduce software design time by 75%.

0%

Reduction in Client Drop-Off

By implementing targeted nudges based on proactive interventions, we reduced drop-off rates for 450,000 clients belonging to USA's oldest debt consolidation organizations by 46%

Notes illustration

Eager to learn about how behavioral science can help your organization?