The digital transformation is making businesses more nimble and agile. As a result, customers now expect brands to meet their needs faster than ever before. This means that in order to thrive in the new digital world, businesses need to be able to quickly test, iterate and pivot on the fly. Tata Neu rewards program uses the principles of Behavior economics to make the users of Tata Motors’ app more aware of their behavior while driving and also reward them for it with virtual points which could be redeemed for real-life benefits such as insurance discounts or free accessories. The Tata Neu Rewards Program was primarily designed as a gamification initiative, based on an inspiration from successful examples like Hotel Neu Kōnai in Japan and the Neu Thrift Shop in New Zealand. It was also meant as a tool to incentivize safer driving and reduce instances of speeding, harsh braking or sudden acceleration.

The Problem

The driving culture in India is predominantly unsafe. Numerous studies have shown that Indian drivers are prone to dangerous driving behaviors and even fatal accidents. The causes seem to be multi-faceted, but one common denominator is the lack of awareness and/or the lack of incentive to change one’s driving habits. In order to change habits, people need a reason to change. They need to be aware of the consequences of their actions, they need to understand the change, and they need to want to change. This is where behavior economics can come in handy. It incentivizes users to change their driving habits by reminding them of the consequences of their actions and offering them the promise of a reward if they do change.

Why Behavior Economics?

Tata Motors’ digital marketing team wanted to create a powerful and engaging experience on the app that would make driving safer and more rewarding for the user. They decided to use the principles of behavior economics to motivate safe driving and reward users for it with virtual points which could be redeemed for real-life benefits such as insurance discounts or free accessories.

Overview of the Implementation

The app is centered on the user’s driving and the driving conditions. The user is encouraged to keep their phone in the car and have the app open in the background during the duration of their drive. The app measures the driving behavior of the user and provides real-time feedback such as the current traffic conditions and the user’s speed in the car. It also provides feedback on the user’s driving behavior, prompting them to drive safer when they veer out of the safe zone. The app uses the information it collects about the user’s driving behavior and their current driving conditions to reward them with points. The points could be redeemed for real-life benefits such as insurance discounts or free accessories.

User Experience and Flow

The app starts out with a basic onboarding flow where the user enters their details such as name and email. Next, they are prompted to choose their car model and to select it as their primary vehicle. This is followed by a quick tutorial on how to drive safely with the app open in the background. Finally, the user is prompted to create a unique driver ID and to set up a profile. During this step, the user is prompted to choose a unique defining characteristic. This characteristic is then used to calculate the user’s driving score (more on that below). The driving experience kicks off with the user being prompted to drive safe and in a responsible manner. The app also provides the user with real-time information about the current traffic conditions. The user is also prompted to share the app with their family and friends as a way of driving social awareness.

Results So Far

Since it was introduced in October of 2018, Tata Neu has successfully onboarded over 10,000 users. The app is used in 35% of all Tata cars in the Indian market on a daily basis. Over 70% of users have chosen the app as their primary source of driving information. And most interestingly, over 50% of users have reported that they are driving safer since downloading the app. The team has also seen some positive results from a promotion where users were rewarded points for downloading and sharing the app. During this promotion, the app saw a massive spike in the number of users and the number of daily active users saw a 100% increase.

Conclusion

The digital transformation is making businesses more nimble and agile. As a result, customers now expect brands to meet their needs faster than ever before. This means that in order to thrive in the new digital world, businesses need to be able to quickly test, iterate and pivot on the fly. Tata Neu rewards program uses the principles of Behavior economics to make the users of Tata Motors’ app more aware of their behavior while driving and also reward them for it with virtual points which could be redeemed for real-life benefits such as insurance discounts or free accessories. The app is a great example of how to use behavioral economics to drive real results for a brand.

Leave a Reply

Your email address will not be published.

%d bloggers like this: