Behavioural Insights Pilot Project – Licence Plate Sticker Renewal
Information and findings from a behavioural science insights pilot project conducted by the Ontario Ministry of Government and Consumer Services and the Treasury Board Secretariat’s Behavioural Insights Unit, in collaboration with the Behavioural Economics in Action at Rotman Centre (BEAR), to increase the number of online licence plate sticker renewal transactions.
Executive summary
In August 2013, Ontario became the first province in Canada to allow citizens to renew their driver’s licences online.
Providing modern government services online reflects the growing expectations of Ontarians, who are connected to the Internet more than ever before. It also reflects the government’s commitment to deliver more efficient and cost-effective services. But simply offering online services is not enough. In fact, many online government services continue to be underused.
With the discrepancy between the public’s interest in digital tools and low uptake of online government services, ServiceOntario wanted to help close the gap using behavioural insights. This is a tool that can help influence people’s behaviour and create positive change using the principles of behavioural economics, psychology and social marketing.
In Spring 2014, the team from Treasury Board Secretariat partnered with ServiceOntario and the Rotman School of Management’s Behavioural Insights in Action Research Cluster to pilot the use of behavioral insights to boost the use of online government service.
Together, we set out to test licence plate sticker renewal through ServiceOntario – the public face of Ontario government service. Of the 43 online services offered by ServiceOntario, licence plate sticker renewal was selected because it was a high-volume transaction with persistently low uptake of online service. Through extensive research, the five most likely barriers to renewing licence plate stickers online were identified:
- the renewal form
- lack of awareness of online services
- privacy concerns with online transactions
- perceived delay in obtaining renewals
- people’s comfort with their habit of renewing in person
With that research in hand, cost-free solutions were developed that could be integrated into SeviceOntario’s existing processes. Our goal was simple: to increase the number of online transactions by changing the content of the renewal forms.
The team designed an experiment that tested three interventions based on the principles of behavioural insights. These solutions were then scientifically evaluated through a randomized controlled trial. We statistically analyzed the results of this trial to determine which solution could have the biggest impact in shifting transactions online.
The trial was a great success. We shifted over 13,000 licence plate sticker renewals online during our eight-week pilot. In addition, our pilot saved the government approximately $28,053 by reducing the number of in-person transactions in favour of online transactions. Based on these results, we can estimate that implementing the most successful intervention would shift an estimated 284,941 more transactions online annually, with a cost savings of $612,196.
The behavioural insights team succeeded in increasing online renewals while working with the existing system to make cost-free changes. This report provides an overview of the project, including our method and results. It also highlights the benefits of applying behavioural insights to deliver effective and cost-efficient policies and programs.
Introduction
Government of Ontario online services
In Canada, more than 84% of households are connected to the Internet
As citizens become increasingly familiar with the ease, convenience and security of online transactions, their expectations for online government services has also grown. In a recent survey, 84% of Canadians expressed interest in accessing government services online
For example, between January 2013 and December 2013, out of the services with online availability, only 10.1% of driver and vehicle services, such as licence plate sticker renewals, and 17.6% of health card transactions were performed online. Almost all of the remaining transactions were conducted in person at ServiceOntario Centres.
The Commission on the Reform of Ontario’s Public Services, led by Don Drummond in 2012, recognized the low uptake of online services as a missed opportunity for savings.
Understanding the process
In order to test the value of behavioural insights for shifting government service transactions online, we needed to identify a particular service to test. Of the 43 online services offered by ServiceOntario, licence plate sticker renewal was ideal because it is a high-volume transaction with low rates of online adoption.
For example, in 2013 just 10.4% of the 6.5 million licence plate sticker renewals were conducted online. Moreover, online renewal of licence plate stickers has experienced only modest improvements to adoption rates since it has become available. From 2010 to present, multiple marketing campaigns have increased online renewal rates by an average of 1.4% per calendar year.
The cost of in-person licence plate sticker renewals was also a significant factor, with online renewals costing considerably less per transaction. Each year, the Government of Ontario spends about $35,754,000 providing in-person licence plate sticker renewals.
Online transactions over time
| Months\Years | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|---|---|---|---|---|
| January | n/a | 6.61% | 7.06% | 10.24% | 12.65% |
| February | n/a | 6.33% | 6.90% | 10.56% | 12.77% |
| March | n/a | 5.52% | 6.39% | 10.53% | 12.46% |
| April | 4.59% | 5.79% | 6.70% | 9.59% | n/a |
| May | 5.03% | 5.48% | 6.30% | 9.40% | n/a |
| June | 4.87% | 3.77% | 8.19% | 8.11% | n/a |
| July | 4.91% | 6.33% | 10.11% | 10.06% | n/a |
| August | 5.14% | 6.55% | 10.51% | 13.25% | n/a |
| September | 5.19% | 6.48% | 11.10% | 10.87% | n/a |
| October | 5.20% | 6.37% | 9.71% | 11.07% | n/a |
| November | 4.93% | 6.29% | 9.37% | 10.45% | n/a |
| December | 4.19% | 5.31% | 8.75% | 10.09% | n/a |
Identifying the barriers
Licence plate stickers expire annually or bi-annually on the birthday of the vehicle owner. Ninety days prior to the expiry date, vehicle owners are mailed a pressure-sealed renewal form that they can fill out and take to a ServiceOntario centre.
Through extensive research, the Behavioural Insights team identified the five most likely barriers responsible for the gap between the public’s interest in – and use of – online government services.
- The form. The form predates the online renewal system and is designed to be filled out by hand. By sending people a pen-and-paper form, you increase the likelihood that they will complete that form, even if there are other more efficient channels. In addition, once someone has spent five minutes completing a form, they are more likely to submit it in person, rather than duplicate their efforts by entering the same information online.
- Lack of awareness. If people do not know that a service exists, or where to find that service, then they cannot use it.
- Privacy concerns. People may be deterred from using an online service if they do not feel it protects their privacy. In fact, 54% of Canadians indicated that privacy protection is their greatest concern when it comes to government online services
footnote 5 . - Perceived delay. ServiceOntario research indicates that people may have the false impression that renewing online causes a delay, because – unlike renewing in person – they do not immediately receive their licence plate stickers. This impression is false because there is instant confirmation of an online transaction that acts as temporary validation of the licence plate sticker.
- The force of habit. Behaviour is often informed by strong habits that may have been formed over years. Even if Ontarians want to renew their licence plate stickers online, they may fail to act on their intentions simply out of force of habit.
footnote 6
The pilot
Designing the interventions
After gaining a better understanding of the licence plate sticker renewal process and conducting our research, we designed three interventions based on the established principles of behavioural insights. Our goal was to increase the number of online transactions by simply modifying the messaging that accompanied the renewal forms.
- Salience: People have limited attention, which is naturally drawn to more prominent features in the environment. In Condition 1, we simplified and highlighted key information with colour to increase the likelihood that it would be seen and processed.
- Multidimensional motivation: People can have multiple motivations for a particular behaviour, but sometimes those motivations may conflict (e.g., the convenience of online services versus the insecurity of online services). In Condition 2, we reminded people of the benefits and security of using online services.
- Loss aversion: People tend to be more motivated by avoiding losses than by achieving gains. In Condition 3, we reminded people of the time they would lose by not renewing their stickers online.
Evaluating the interventions
To evaluate the effectiveness of the interventions, the Behavioural Insights team conducted a randomized controlled trial. The trial took place over eight weeks and involved over 600,000 licence plate sticker renewal notices. Each week during the trial, vehicle owners not requiring emission testing were sent a different version of the renewal form. During the control weeks, the standard notice was sent to vehicle owners to establish a baseline of online and in-person renewals.
Timing and measurement
626,212 vehicle owners were mailed notification materials during this pilot.
| Week | Dates | Notification |
|---|---|---|
| 1 | December 30 – January 03 | Control |
| 2 | January 06 – January 10 | Condition 1 |
| 3 | January 13 – January 17 | Condition 2 |
| 4 | January 20 – January 24 | Condition 3 |
| 5 | January 27 – January 31 | Control |
| 6 | February 03 – February 07 | Condition 1 |
| 7 | February 10 – February 14 | Condition 2 |
| 8 | February 17 – February 21 | Condition 3 |
Analyses were conducted by the Behavioural Insights Unit and Behavioural Economics in Action Research Cluster at Rotman (BEA@R).
Condition 1: introduced new messaging on the exterior of the forms that was highlighted with colour
Our senses are constantly bombarded by stimuli. To avoid getting distracted, we often filter out much of the environment so that we can focus on what is relevant to our goals. Therefore, people are likely to focus only on things that stand out, rather than reading everything in correspondence. To increase the likelihood that people will pay attention to a piece of information, it should be simple and standout, so it can be quickly understood.
Previous Messaging on Exterior of the Renewal Form
Condition 1: Changes to messaging on exterior of the renewal form
Condition 2 added five reasons why vehicle owners might be motivated to renew their licence plate stickers online
People often have multiple motivations for engaging in a particular behaviour. Through this condition, we set out to remind people of the benefits and address their reservations regarding online renewal. Condition 2 reminded vehicle owners that using online service is a way to avoid travel time, avoid lineups and access 2 4/7 at-home convenience. It also addressed two reservations people might have, including online safety and instant confirmation of sticker renewal. In addition, Condition 2 used the same highlighted messaging as Condition 1.
Previous Messaging on Centerfold of the Renewal Form
Condition 2: messaging on centerfold of the renewal form
Condition 3 reminded vehicle owners of the time they would lose if they did not renew their licence plate stickers online
This tapped into one of the most prominent findings in behavioural economics: losses loom larger than gains
Condition 3: messaging on centerfold of the renewal form
Results
The pilot project was very successful. All three conditions led to significant increases in the number of online transactions. In total, during the eight-week pilot, 13,057 more licence plate stickers were renewed online because of the interventions.
Figure 1 shows that all three conditions significantly increased the number of online transactions compared to the standard notice (control). However, the best performing intervention (Condition 2) increased online renewals by 4.3% compared to the control, and it also performed better than the other two interventions.
This pilot was cost-free. What’s more, it saved the government approximately $28,053 by reducing the number of in-person transactions in favour of online transactions during the trial. Based on these results, we can also calculate that the most successful intervention (Condition 2) would shift an estimated 284,941 transactions online annually, with associated cost savings of $612,196.
Figure 2 displays another benefit of the interventions: timely renewals of licence plate stickers. All three interventions led to a significant reduction in the number of late renewals. And again, Condition 2 produced the largest improvement.
Although increasing timely renewals was not an objective of this pilot, this is a valuable bonus outcome. Timely renewals produce a more constant revenue stream for the government and reduce enforcement costs. While we don’t know which of the stickers that were not renewed during this pilot will eventually be renewed, the chances that a vehicle owner will neglect to renew their licence plate sticker completely will only increase as time goes on.
Conclusion and recommendations
The results of the trial demonstrate that this pilot was a tremendous success. The trial did not cost anything to conduct and resulted in cost savings for the government. Equally important, the trial proved that Behavioural Insights can be a useful tool to shift more government service transactions online.
There are more opportunities for greater results down the road, as the overwhelming majority of Ontarians have the ability and interest to make use of online services.
In this pilot, we successfully addressed three of the five barriers that were deterring people from making use of online services:
- First, we improved awareness of the existence and location of online service by highlighting the web address for online sticker renewals.
- Second, we helped to allay security concerns by comparing this service to online banking.
- Third, we corrected the false notion that online renewals delay the process by informing people they are truly instant.
Through our pilot, we fulfilled our goal to increase online renewals. Despite these successes, we did not address the largest barrier to online renewal of licence plate stickers – the form itself.
While some vehicle owners may not know that they can renew their licence plate stickers online, and others may be concerned about the security of sharing private information online, nearly all vehicle owners have renewed their licence plate stickers in ServiceOntario centres in the past. That means almost all vehicle owners are in the habit of renewing their licence plate stickers in person, and the annual form serves as a cue that reinforces that automatic behaviour.
Based on our results, we have recommended that Condition 2 be fully implemented. In addition, we recommend that the main section of the form be redesigned to maximize the number of people who renew their licence plate stickers online.
Given the success of this pilot, we are confident that behavioural insights will continue to be a valuable tool for shifting more transactions online, and we are optimistic that greater results can be achieved.
Questions and inquiries
A more detailed description of this research has been published in the Behavioural Science and Policy Journal. To learn more about behaviour sciences research insights in Ontario email us with your questions and comments.
Footnotes
- footnote[1] Back to paragraph Statistics Canada (2012). Canadian Internet Use Survey. Retrieved from Canadian Internet Use Survey, 2012
- footnote[2] Back to paragraph PricewaterhouseCoopers (2014). Canadian consumers shopping in stores and online, but expect the ‘Total Retail’ package. There’s no question that the Internet has become a standard channel through which Ontarians communicate, make purchases and access services.
- footnote[3] Back to paragraph PricewaterhouseCoopers (2012). Next generation of eservices: Enhancing service delivery in the Canadian public sector. (PDF - 6122KB, 24 Pages)
- footnote[4] Back to paragraph Commission on the Reform of Ontario’s Public Services (2012). Recommendation 16-2. For good reason – each online transaction costs a fraction of the same transaction conducted in-person at a ServiceOntario centre. Because many of these services are high-volume, the government has a significant opportunity to save money by shifting more transactions online.
- footnote[5] Back to paragraph Verplanken, B., Aarts, H., van Knippenberg, A., & Moonen, A. (1998). Habit versus planned behaviour: A field experiment. British Journal of Social Psychology, 37(1), 111-128.
- footnote[6] Back to paragraph United Kingdom. Institute for Government. (2010, March). Mindspace: Influencing behavior through public policy.
- footnote[7] Back to paragraph United Kingdom. Institute for Government. (2010, March). Mindspace: Influencing behavior through public policy.
- footnote[8] Back to paragraph Kahneman, D. & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-292.