Consumer protection

Our Nudge is a highly visible change/cancellation alert for mobile phone contracts that consumers can easily set up online on a comparison portal. Depending on the desired reminder frequency, they are reminded in due time by e-mail to cancel their mobile communications contract, to look at their usage behavior and data consumption, and thus, in the best case, to close a new and better contract.

What does the topic mean?

 First and foremost, consumer protection is intended to effectively protect people as consumers of certain services and goods.

Goal of the nudge

With our Nudge, we want consumers to consider changing their mobile phone contract in due time and on an ongoing basis. By setting up a change alert, they should be reminded in advance to cancel their old contract - this can save good money! In addition, they should be reminded to review their own usage behavior in order to choose the best possible new contract.
Needs Analysis
Changing behavior
Consumers change their contracts too rarely and thus remain with the conditions at which they concluded a contract in the past. Mobile communications contracts often become more expensive after the minimum contract term has expired.
Usage/usage behavior
Consumers often choose contracts that are significantly higher than their own consumption of data volume and minutes on the phone.
Cause Analysis
Status quo bias
The fact that people prefer to keep things the way they are.
Time inconsistency
A decision made one day is forgotten the next. At first, the benefits of changing contracts seem clear, but then current deprivations, such as the effort of searching for information, outweigh the benefits.
Laziness
People are too lazy to bother switching contracts now.
Attitude-Behavior Gap
Is the gap that exists between people's values and attitudes and their actual behavior. The difference between what people say and what they actually do.

Target Group

All consumers who own a smartphone and use comparison portals at least occasionally - that's around 60% of Germans aged 25 and over.

Added value of the nudge

Money savings/expense reduction
Regularly switching mobile phone contracts can result in potential savings of around €400 per year.
Checking your own consumption
Those who regularly review their own usage patterns can switch to the right contract for him or her. This helps to reduce expenses.