Product Development
Goal Priming
When we’re reminded of our aims, we're more motivated to reach them
The food choices of 89 people both dieting and not dieting were analyzed in a cafe. Diners were given a menu with either information highlighting low-calorie options or not (the control).
Results showed that dieters primed with the reminder of their future goal consistently made healthier food choices than unprimed dieters.
Who is the target group?
They could be people who are motivated to protect the environment, improve productivity at work or improve the quality of their lives. Note: they must have already stated a desire for this goal. Your prime will merely aim to nudge their existing Commitment to meeting their own aspirations.
Where can you trigger these long-term motivations?
As well as environment, timing also matters, so make sure that you do so very close to the actual decision point, i.e. at the start of a meeting, at the ordering counter or on the inside of a restroom door.
Boost with the Spacing Effect.
What's the specific behaviour that you're allowing them to perform to help move them towards their long term goal?
It has to be obvious and easy to do, such as clearly identifying an eco-friendly substitute, bolting on a salad or opting for an equally-priced, dairy-free option.
Loyalty
Limited Access
We place greater value in things when there are barriers placed around them
310 US Amazon Prime customers were split into 2 groups, either on a free trial or on a paid membership. They were then queried about attitudes towards and value perceptions of Prime and its benefits.
Those on the paid subscription reported greater loyalty, perceived value and exhibited a higher monthly spend than those who were on the free trial.
This is driven by two core effects:
1) Sunk Cost Bias where we seek to justify past, non-recoverable costs (of membership access) with our current actions (more spending), even when it’s not in our best interests.
2) A desire to remain consistent with our past commitments - “I’m a Prime customer now.”
Create a members club. Putting a price on entry heightens our analysis of the benefits of joining in a way that we wouldn’t if it were free. Limiting access to certain products or benefits can signal higher perceived quality (Zeithaml, 1998) and an increased willingness to buy.
Amazon entice with convenience (‘free’ one-day shipping), priority (30-min Early Access Lightning Deals) and exclusive choice (a vast music, video and book library). What benefits would your own customers pay for? What feelings can gaining access promote?
Conversion
Scarcity
We value things more when they’re in limited supply
There’s a reason this Nugget is #1 in our library.
The concept of Scarcity lies at the core of economics, and greatly influences perceptions of value, status and our competitive desire to attain certain items over others.
Unfortunately, it's also one of the more poorly-applied concepts out there, along with Defaults and Loss Aversion.
Mastering quantity scarcity
An airline stating that there's
“Only 3 seats left” may well be using accurate data and not simply using faux-scarcity to artificially suggest that there's less supply of seats than there actually is.
However, from the user's perspective, the buildup of mistrust around the use of scarcity means cynicism is higher, so one must be careful with information presented.
Similarly, hotel websites telling you that “30 other people are looking at this item” engineer stress to compel people into action without changing supply yet highlighting demand in a manipulative way.
Instead, use quantity scarcity to focus on the craft and high quality of what you're selling.
Make your scarcity feel valuable, not stressful.
Mastering time scarcity
Ensure that any time restriction is highlighted primarily for the purpose of maintaining the quality of your product or service, and not merely to cause stress that could be avoided.
As an example, use time scarcity to launch unique or experimental products that are only available within a particular window (say a week, month or season).
This use of time scarcity is positive and encourages brand exploration, used creatively to highlight your unique value.
There’s a reason this Nugget is #1 in our library.
The concept of Scarcity lies at the core of economics, and greatly influences perceptions of value, status and our competitive desire to attain certain items over others.
Unfortunately, it's also one of the more poorly-applied concepts out there, along with Defaults and Loss Aversion.
Mastering quantity scarcity
An airline stating that there's
“Only 3 seats left” may well be using accurate data and not simply using faux-scarcity to artificially suggest that there's less supply of seats than there actually is.
However, from the user's perspective, the buildup of mistrust around the use of scarcity means cynicism is higher, so one must be careful with information presented.
Similarly, hotel websites telling you that “30 other people are looking at this item” engineer stress to compel people into action without changing supply yet highlighting demand in a manipulative way.
Instead, use quantity scarcity to focus on the craft and high quality of what you're selling.
Make your scarcity feel valuable, not stressful.
Mastering time scarcity
Ensure that any time restriction is highlighted primarily for the purpose of maintaining the quality of your product or service, and not merely to cause stress that could be avoided.
As an example, use time scarcity to launch unique or experimental products that are only available within a particular window (say a week, month or season).
This use of time scarcity is positive and encourages brand exploration, used creatively to highlight your unique value.
146 people were asked to rate identical cookies that were either presented in a jar as scarce or in abundance. They were then asked how likely they would be to want to eat a further cookie.
When scarce, the cookies were rated as more desirable and having a higher value. They were also seen as more valuable when going from an abundant state to scarce than when always scarce.
Scarcity comes in 4 flavors:
Quantity, Time, Access & Rarity.
Control quantity.
To increase perceived value of your product, release it in smaller and diminishing quantities, emphasizing its finite nature.
Restrict time.
When the clock is ticking and we’re overwhelmed, we take mental shortcuts that speed up decision-making.
Motivate customers by emphasizing the limited time remaining in which to act.
Limit access.
Restricting access to your products or services will increase desire and perceived value. Do this selectively for certain features and / or customer segments.
For instance, you might want to design valuable, unique rewards that are only unlocked for very special efforts on the part of the customer.
Experience
Autonomy Bias
We have a deep-seated need to control our situations
88 students were told about an exercise training camp and split into 2 groups: either having a choice about the four fitness programs on offer or having one randomly assigned. They were then asked to rate their anticipated satisfaction of the program out of 9.
Those given some autonomy reported higher levels of anticipated satisfaction than those who weren’t.
Choice = autonomy = certainty.
For instance, giving people a choice to still use the old version of your software platform for a given timeframe will reduce anxiety and uncertainty.
Product type matters.
People desire autonomy for pleasure purchases (i.e. vacations) more than for practical ones (i.e. business trips).
Place more focus on the former in order to maximise feelings of control and consumer satisfaction (Botti & McGill, 2011).
Change behavior with the ‘4As’.
Feeling that any change originated from within is vital.
Ask about the behavior, advise them impartially of the facts and of better routes, but that they must make their own choice.
If keen to change, assist them to make a commitment to do so by a given date, and arrange a follow-up to support this behavior change.
Experience
Fast & Slow Thinking
We make knee-jerk spontaneous decisions that can cause regretful damage
Whilst we all like to think we make rational, optimal decisions, sometimes, our impulses get the better of us.
In an attempt to preserve our cognitive capacity, we make what’s called fast, reactionary “System 1” judgements.
These might not be very good at all for us.
Let me explain.
Consider you’re stressed out after a long day, and launch your favourite social media app to unwind. You see someone sharing a wild conspiracy theory that you know to be untrue.
You’re angry, and quickly write out a frustrated comment that criticises this person, using strong language that would offend.
At this point, hitting “send” would cause a lot of damage you can’t come back from.
This is where our slower “System 2” thinking becomes vital.
Here, reflective thought is the order of the day. It’s more cognitively-expensive to think about what the deeper implications of hitting “send” would be. However, now would be a good time to do so.
Social media apps are increasingly providing us opportunities to do just this. Banks could do the same. “Are you sure you want to withdraw all your savings?”
Providing users a “cooling off period” for impactful moments now can allow for better decisions that help us more in our future.
Whilst we all like to think we make rational, optimal decisions, sometimes, our impulses get the better of us.
In an attempt to preserve our cognitive capacity, we make what’s called fast, reactionary “System 1” judgements.
These might not be very good at all for us.
Let me explain.
Consider you’re stressed out after a long day, and launch your favourite social media app to unwind. You see someone sharing a wild conspiracy theory that you know to be untrue.
You’re angry, and quickly write out a frustrated comment that criticises this person, using strong language that would offend.
At this point, hitting “send” would cause a lot of damage you can’t come back from.
This is where our slower “System 2” thinking becomes vital.
Here, reflective thought is the order of the day. It’s more cognitively-expensive to think about what the deeper implications of hitting “send” would be. However, now would be a good time to do so.
Social media apps are increasingly providing us opportunities to do just this. Banks could do the same. “Are you sure you want to withdraw all your savings?”
Providing users a “cooling off period” for impactful moments now can allow for better decisions that help us more in our future.
2,064 male students from 9 schools in Chicago were enrolled in a two-year-long program that encouraged system-two slow thinking on how to manage situations of conflict.
Participation in the program reduced total arrests by 35% and violent crime arrests by 50%.
Add a little friction.
We constantly weigh up effort vs rewards, so seeing one long sign-up form can lead us to make a fast system-one decision not to do so.
A process that’s Chunked, features reflective Goal Primes and clearly shows the product benefits will work better.
Provide warnings for damaging decisions.
Instagram have launched "comment warning", live-analysing a comment and notifying of potential offense, without removing the Autonomy to post. This allows for reflection and avoids Reactance.
Build in reflective periods for big decisions.
Knee-jerk, short-term decisions can harm our longer-term goals. E.g., financial firms can help us make smarter decisions about withdrawing all our savings by building in a reflective delay, especially when such decisions conflict with our prior Commitments and goals.