How Fiat Got Passengers To Use Seat-Belts – Strategy With RS

Friends, how many of us have sat in the back seat of an Uber / Ola & put on your seat belt? I guess very few…

But we all know that it is in our interest to buckle up even when we are sitting in the back seat. Research indicates that wearing a seat belt can reduce the risk of death by 75% in case of an accident. But the unfortunate tragedy is that 92% people do not buckle up.

If you were a car manufacturer or a cab company & wanted your passengers sitting in the back seat to buckle up – what would you do?

Fiat decided to address this issue. Research done indicated that people hailing cabs are always armed with a smart phone / device & are perpetually in search of free Wi-Fi.

Fiat leveraged this insight to incentivize to back seat passengers to buckle up – to access the Wi-Fi free a passenger had to buckle up!

Result: A steep increase in number of passengers who started buckling up

Bottom-line:

1. People will change their behaviour when it adds value to their lives.

2. This strategy approach is known as – ‘do well by doing good’. Many companies are adopting this approach to gain competitive advantage.

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rajesh-srivastava-insideiim

 

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here

Comments

2 comments

Harveen Singh Johar

This is good. I have been trying to implement this within family and friends but the success rate is quite low than what I want to be. Maybe, I can try the free music only with seat belts. As a backseat crash survivor I know the importance of this. My fathers friend, a well known personality, Mr Bhatti was one of the unfortunate one. However, I have seen that most of the cabs don’t have rear seat belts. They r pushed away when after market seat covers are installed so that the tight fitted seat cover looks are not spoiled. I have ridden in uber Meru and ola, yet to see this being implemented as a safety measure by them.

Rajesh Srivastava

Harveen thanks for sharing your personal experence with all of us.

To get people to change their behaviour, you have to speak to their ‘self interest’. Only then can you bring about a ‘permanent’ change in there behaviour. I ma sharing a video link … please view it .. it will give you an insight into this strategy:
https://www.youtube.com/watch?v=aY0RXNuJoBg