Conversion
Mere Exposure Effect
We like things more as they become more familiar to us
22 students were shown a range of graduate yearbook photographs a varying number of times for 2 seconds each. They were then asked how much out of 7 they liked each person.
Results showed that the more times they’d seen a given graduate photo, the more they liked them.
Expose the unknown within the known.
Create trust for new, unfamiliar products by sample-bundling with existing products. UK supermarket, Waitrose did this expertly when it first introduced kiwi berries, managing consumer unfamiliarity by bundling a small free sample with large packs of trusted blueberries.
This approach is known as a Foot In The Door.
Exposure first. Behavior change second.
Reduce people’s Risk Aversion by taking a staged approach to rolling out new ideas or policies.
Instead of starting by looking to change behavior, just expose people to some introductory aspect of it, using the Spacing Effect to spread experiences out across time and environment.
Let the new become the familiar for a while before making more advanced requests of people.
Overcome your own Confirmation Bias...
...by exposing yourself to new viewpoints. Though you may not agree with all you hear, you'll develop a skill to see common ground in an increasingly-polarized world.
The persuasiveness of your opinions with others with whom you disagree will be strengthened by empathically considering their views alongside your own.
Pricing
Boundary Pricing
We're more likely to upgrade if the base price feels closer
378 people were were split into two groups and offered two coffees, small and large, with prices either $0.95 and $1.20 or $1 and $1.25.
Results showed that people were 55.5% likely to upgrade to a large coffee when the small was $1 than when it was $0.95 (28.9%). Average coffee sale prices were also higher in the boundary condition ($1.14 vs $1.02).
Offer upgrades? Use boundary pricing.
If you offer more than one product option at different prices, boundary pricing can help improve the rate of upgrades.
This is because, next to a price set just below a boundary (e.g. $95), increasing a base price to just above ($105) makes the upgrade option ($135) appear cheaper and less of a painful step up.
It's because of the way we encode numbers, chunking them into broader numerical categories to infer value. This increases willingness to upgrade and therefore spending.
Works with multiple upgrade options
As long as the prices all sit within the same price boundary, the effects persist for product ranges with more than two options. This was shown with further studies on purchases of apartments and cars, which both offered multiple upgrade options.
Maximise upgrade range by setting your base price around a more round numerical amount (e.g $10,000 vs $11,000).
This will allow you to offer upgrade options that sit within a broader, albeit the same price boundary ($10000-19000 vs $11000-11999).
Present options together, not sequentially
The effects of boundary pricing disappear when the options are shown separately (different screens / post-purchase), relying upon the user's memory in some way.
Ensure that users can easily see the value of upgrading, by showing the base price next to the upgrade.
Note that impact also reduces when the upgrade option sits in a higher boundary ($205) than the base ($105).
Conversion
If-Then Plans
If in this scenario, we then plan to do that, we'll more likely reach our goals
Over 27,000 Israelis were mailed a self-administering Colorectal Cancer test kit. The kit either included an “if–then” leaflet with instructions of when, where, and how to perform the test or a standard leaflet with no such planning instructions (control group). They were then asked 2 and 6 months later whether they took the test.
71.4% of the If-then plan recipients took the test compared to 67.9% of the control group meaning If-Then plans resulted in 6.6% more of participants taking the test.
Whether designing for yourself or for others, here's how to make an easy, effective If-Then Plan:
First, define the goal.
If for you, it might be to exercise more. If for others, it might be to reduce an organisation's water waste. What existing behaviour are you looking to reduce or reinforce? Alternatively, what new, aspirational behaviour might you be looking to foster?
Identify your "If" context
This will become the future cue or environment that we'll recognise. It'll provide a clear, detectable moment to do something, even if you're busy or tired. Pick scenarios that are encountered often (E.g. on a daily basis, like an office lobby) to boost effectiveness.
E.g. "If/when I'm waiting for the elevator…"
Choose a behavioural "then" response
This is the specific behaviour that will get you closer to the goal you defined. The easier it is to recall and do, the more it will be done. For instance, what small, relevant and easy-to-recall behaviour can I do IF I'm waiting for the elevator?
E.g. "I will take the stairs"
Planning these steps out in advance and defining exactly how one should respond in the situation creates a strong, repeatable link between seeing and doing.
E.g. "If I have to wait for the elevator, then I will take the stairs"
Note: If designing for others, to ensure it'll be easy and fits within the context you're designing for, consider roleplaying it out before you roll it out. Role before you roll, if you will.
Inform, do not instruct.
A vivid, relatable and subtly persuasive image or message will be more effective to change consumer behaviour, whereas instructing them could be met with reactance. Remove this threat to personal freedom by giving consumers more autonomy when they make decisions.
Ideally, If-Thens should be defined at least in part by the person themselves. However, there are creative workarounds; companies could set and share strategic goals, with employees writing their own If-Then Plans to help achieve such goals.
Product Development
Afterlife Effect
We recycle more when shown what the product will become
• The Afterlife Effect states that if people are more explicitly shown what the products they are being asked to recycle will become, they will recycle more.
• It's driven by a mix of inspiration, a short story being told and a sense of closure from feedback as to what will happen if they choose to recycle.
• Producers should invest more time in closing this narrative loop to create the aha moment that compels people to recycle.
• The Afterlife Effect can be used to drive new circular economy partnerships and even rewards for the most environmentally-conscious consumers.
Did you know that since plastic was invented in 1907, a staggering 91% of the 8.3bn tonnes produced since has not been recycled (Geyer, Jambeck, and Law 2017)?
It's true that certain companies such as PepsiCo and Evian have already committed to 100%-recycled manufacture by 2020 and 2025, respectively. But more generally, we're still a long way off; plastics recycling actually fell in recent years from 9.5 to 9.1% (U.S. Environmental Protection Agency [EPA] 2018a).
How then might we use our understanding of behavioral economics to improve the policies of government, industries and companies and speed up this process?
So far, a lot of behavioral research has been done on the more negative side of persuasive messaging to affect decisions to recycle (Bilandzic, Kalch, and Soentgen, 2017) which, though effective on some, can come across as coercive and trigger angry reactance in others, reducing its effectiveness (Griskevicius, Cantu, and Van Vugt 2012).
Despite the doom and gloom that surrounds the bigger question of our collective future, how instead might behavioral economics appeal to a more positive, inspirational side of our decision-making?
Well, some brilliant new research has just been released showing us how. It's called the Afterlife Effect, part of a growing trend of more positive behavioral nudges that you'll start to see a lot more of in future.
The researchers propose a new, positive way of increasing recycling that focuses on the story of what happens to old products after they've been recycled and what they turn into.
What lies at the core of these stories told? Inspiration, defined as an awareness of a new idea or concept that we didn't know before, so-called "aha moments" ("Oh, so that's what the cups become!"), followed by a new-found motivation to act on it ("That's so cool. It's great to see the impact of my recycling").
This short story provides a powerful, positive and understandable feedback loop as to why we should recycle.
Let's take a look at the research that demonstrates this concept to see the effect on people's recycling.
111 people were split into two core groups (a control and a product afterlife condition) and asked to perform a 'mind-clearing task' of doodling on a sheet of paper.
All were then shown one of three advertisements for product recycling (shown below) and asked to rate it for how likely they'd be to recycle.
They were then asked to clean away their desks, putting their paper either in a recycling container or the trash.
The results fascinatingly showed that those that saw the control with no afterlife information recycled their paper 51% of the time, whereas those in the Afterlife condition recycled 80% of the time! A staggering increase.
The researchers also wanted to see what impact the Afterlife Effect would have on click-throughs on a real advertising campaign.
They worked with clothing company Madewell, who were running a jeans recycling campaign at the time, where old jeans would be turned into household insulation.
Two Google Adwords variants were set up to test to see if the effect held both with and without the Afterlife Effect applied.
After running the campaign for 5 days, the researchers found that click-throughs were significantly higher (26%) for the Afterlife ad over the control (18%), even without any optimization!
The paper lists a further four studies that show the impact of the Afterlife Effect on decision-making.
In summary, given the urgency to act, there is a strong motivation to find new ways to help people to change their environmental consumer behavior.
Using storytelling, feedback loops and triggering inspiration in people can act as a much more positive and powerful motivator for behavior change that won't trigger negative reactions.
• The Afterlife Effect states that if people are more explicitly shown what the products they are being asked to recycle will become, they will recycle more.
• It's driven by a mix of inspiration, a short story being told and a sense of closure from feedback as to what will happen if they choose to recycle.
• Producers should invest more time in closing this narrative loop to create the aha moment that compels people to recycle.
• The Afterlife Effect can be used to drive new circular economy partnerships and even rewards for the most environmentally-conscious consumers.
Did you know that since plastic was invented in 1907, a staggering 91% of the 8.3bn tonnes produced since has not been recycled (Geyer, Jambeck, and Law 2017)?
It's true that certain companies such as PepsiCo and Evian have already committed to 100%-recycled manufacture by 2020 and 2025, respectively. But more generally, we're still a long way off; plastics recycling actually fell in recent years from 9.5 to 9.1% (U.S. Environmental Protection Agency [EPA] 2018a).
How then might we use our understanding of behavioral economics to improve the policies of government, industries and companies and speed up this process?
So far, a lot of behavioral research has been done on the more negative side of persuasive messaging to affect decisions to recycle (Bilandzic, Kalch, and Soentgen, 2017) which, though effective on some, can come across as coercive and trigger angry reactance in others, reducing its effectiveness (Griskevicius, Cantu, and Van Vugt 2012).
Despite the doom and gloom that surrounds the bigger question of our collective future, how instead might behavioral economics appeal to a more positive, inspirational side of our decision-making?
Well, some brilliant new research has just been released showing us how. It's called the Afterlife Effect, part of a growing trend of more positive behavioral nudges that you'll start to see a lot more of in future.
The researchers propose a new, positive way of increasing recycling that focuses on the story of what happens to old products after they've been recycled and what they turn into.
What lies at the core of these stories told? Inspiration, defined as an awareness of a new idea or concept that we didn't know before, so-called "aha moments" ("Oh, so that's what the cups become!"), followed by a new-found motivation to act on it ("That's so cool. It's great to see the impact of my recycling").
This short story provides a powerful, positive and understandable feedback loop as to why we should recycle.
Let's take a look at the research that demonstrates this concept to see the effect on people's recycling.
111 people were split into two core groups (a control and a product afterlife condition) and asked to perform a 'mind-clearing task' of doodling on a sheet of paper.
All were then shown one of three advertisements for product recycling (shown below) and asked to rate it for how likely they'd be to recycle.
They were then asked to clean away their desks, putting their paper either in a recycling container or the trash.
The results fascinatingly showed that those that saw the control with no afterlife information recycled their paper 51% of the time, whereas those in the Afterlife condition recycled 80% of the time! A staggering increase.
The researchers also wanted to see what impact the Afterlife Effect would have on click-throughs on a real advertising campaign.
They worked with clothing company Madewell, who were running a jeans recycling campaign at the time, where old jeans would be turned into household insulation.
Two Google Adwords variants were set up to test to see if the effect held both with and without the Afterlife Effect applied.
After running the campaign for 5 days, the researchers found that click-throughs were significantly higher (26%) for the Afterlife ad over the control (18%), even without any optimization!
The paper lists a further four studies that show the impact of the Afterlife Effect on decision-making.
In summary, given the urgency to act, there is a strong motivation to find new ways to help people to change their environmental consumer behavior.
Using storytelling, feedback loops and triggering inspiration in people can act as a much more positive and powerful motivator for behavior change that won't trigger negative reactions.
111 people were split into two groups and asked to perform a mind-clearing task of doodling on a sheet of paper.
People who were shown the afterlife information (doodled paper being recycled into a new paper or a guitar) were more likely to recycle their paper than those who were not given this information (control).
Close the loop with a simple, inspiring story.
Consumers value the powerful stories told by products made from recycled material (Kamleitner, Thuerridl, and Martin 2019).
Get people to think about the transformative effects of turning old products into new ones with a story.
For instance, UK retailer Marks & Spencer is now rolling out a scheme where you can recycle any plastic in-store to be turned into shop fixtures and playground equipment for schools. They could use the box to show off the intended afterlife to inspire customers, as shown here.
If you sell a physical product, how can you build in and communicate the story of its afterlife?
Positivity is persuasive!
We are seeing a growing trend away from negative interventions (Moller, Ryan, and Deci 2006) with new research showing that positive, inspirational nudges can be more effective in motivating behavior change!
Although triggering Loss Aversion, for instance, can be effective, you may see greater results with a positive nudge.
How might you use inspirational nudges over negative, shaming ones in an environmental context?
Make it timely.
Organisations and Governments can also do a better job of motivating recycling at the point of disposal with the Afterlife Effect.
Recycling rates will be increased if we can see, at the point of disposal, what our efforts will turn into.
Consider tie-ups with complementary products / brands.
Though Nespresso recycle the aluminium from their coffee pods, they currently have no Afterlife Effect in place.
They could alternatively use recycled materials to make some of the complementary metal-based products on their site and gift them to those with a decent level of recycling.
Conversion
Salience
Our choices are determined by the information we're shown
What info we decide to surface visually has a powerful effect on peoples’ decisions. The same is also true for what we choose to hide.
For instance, if I wanted to design a work environment where people ate more fruit, I could buy bananas and apples but store them in the fridge, out of view.
But this would have what we call “low salience”, or a low likelihood of being seen.
Instead, to boost fruit consumption further, we’d want to increase Salience.
So now, instead of hiding the fruit in the fridge, we put it in large colourful bowls in central, highly visible areas of the office in eye line and within arm’s reach.
Now the fruit have “high salience” and are much more likely to be eaten.
Note that this also has second order effects; more salience from the fruit bowls means more people eating fruit, creating a powerful salience cycle.
What do you want people to do more or be more aware of? How can you increase its salience next to other things?
Another strategy is to remove other things around it to increase salience in relative terms. So in the fruit example, we might want to remove the coffee machine to give the bowls greater salience.
What info we decide to surface visually has a powerful effect on peoples’ decisions. The same is also true for what we choose to hide.
For instance, if I wanted to design a work environment where people ate more fruit, I could buy bananas and apples but store them in the fridge, out of view.
But this would have what we call “low salience”, or a low likelihood of being seen.
Instead, to boost fruit consumption further, we’d want to increase Salience.
So now, instead of hiding the fruit in the fridge, we put it in large colourful bowls in central, highly visible areas of the office in eye line and within arm’s reach.
Now the fruit have “high salience” and are much more likely to be eaten.
Note that this also has second order effects; more salience from the fruit bowls means more people eating fruit, creating a powerful salience cycle.
What do you want people to do more or be more aware of? How can you increase its salience next to other things?
Another strategy is to remove other things around it to increase salience in relative terms. So in the fruit example, we might want to remove the coffee machine to give the bowls greater salience.
Over 10 days, millions of people using online ticket marketplace Stubhub were put into two groups, where 15% ticket fees were either made salient up front during ticket browsing, or hidden until checkout.
Results found that for those with delayed salience of the fee, revenue increased by 21%, with a quarter of this due to higher priced tickets being bought.
What is seen is what is done
Surfacing key information in a timely fashion can prompt us to do more of what we aspire to. For instance, Amazon have redesigned their Kindle so that when it's not in use, the screensaver becomes the cover of the book you're currently reading. This acts as a salient reminder to read as one notices the Kindle throughout the day. We can use the same approach to boost healthy eating, having a bowl of fruit on the kitchen table over one filled with salty cashews. What do you want users to do more of? How do you want them to feel? What unique or delightful features can you surface that will help inspire action and make Tiny Habits that much more likely to form?
More knowledge isn't necessarily better
There's a trade-off between what's presented to us now and making good decisions for our future. For instance, cryptocurrency exchange Coinbase choose to omit the % gained or lost from one's investments. Research shows that if they instead showed this, people may incorrectly sell coins that have increased in value, while keeping coins that have dropped in value, known as the Disposition Effect.
Differentiate by removing information
Whereas knowledge can be power, it can also demotivate. For example, weight loss scales Shapa does away with the number telling you how much you weigh, instead providing 5 colour bands denoting averaged performance. Omitting the number shifts us away from short term fluctuations in weight that can lead to feelings of failure causing us to give up. What information or options could you hide that could otherwise lead users to short term or harmful outcomes? What can you remove that could confuse or overwhelm?
Delayed salience can trigger shock
Also consider the ethical implications of hiding key information, as in the study above. In this case, any reactance felt will be relative to the proportion of the extra fees incurred, customer expectations, industry norms and how frequent the transaction is. Hidden fees on more regular transactions like grocery shopping will be subject to higher levels of reactance than one-offs like a car purchase. There is an art to surfacing such painful information at the correct time in order to generate a sale. Try adding an explanation of why the fee exists to reduce drop-off, like Airbnb do.
Product Development
Sunk Cost Bias
We’re unable to let go of our past bad investments, even if it makes sense to do so
108 people were told they were the head of an airline that was either 90% complete on a $10m plane project, or shown an equivalent $1m proposal to research and develop this plane. In both cases, a competitor had created a similar plane of superior quality.
In either case, should they still invest the $1m? Those in the 90% sunk cost condition were far more likely to keep on spending than those who had yet to invest anything.
Remind consumers of past personal efforts or the amount of time spent with the brand to increase feelings of a sunk cost. Reframing past efforts as incomplete or as ongoing progress will also induce the effect and assist sales.
Test your product ideas sooner using a more agile product methodology. This will minimize time, cost and effort wasted on unproven potential failures to which you will become increasingly attached, especially if you’re personally accountable for their success.
Take 15 mins for mindfulness practice - focusing on the present moment and less on the past and future - to increase your resistance to the Sunk Cost bias. (Hafenbrack et al., 2013). Check out the Headspace app.
Conversion
Zeigarnik Effect
Incomplete tasks weigh on our minds until done
47 subjects were given around 20 small, manual tasks to complete, one at a time. Experimenters randomly interrupted completion of half of these tasks. After, subjects were asked to recall as many tasks as possible.
There was a 90% higher recall of incomplete and interrupted tasks than those completed.
Make important task completion frictionless. If customers leave your site without finishing their order, make it effortlessly easy to get that completion feeling, such as allowing for completion with a single click, tap or swipe.
Focus on completion’s emotional release. Providing reward incentives for task completion actually demotivates consumers. Instead, remind them not just of the product they’ve not yet bought, but of the feelings that this ‘purchase task’ will unlock.
Make known campaigns incomplete and interactive. Greater familiarity with an advert increases consumer ability to complete an interrupted ad message. Active participation also boosts ad memory (Heller, 1956). So if your popular campaign’s reaching its end, consider a special second follow-up version that allows for active participation in completing the ad message.
Conversion
Status Quo Bias
We tend to stick with our previous choices, even if the alternatives might be better
850,000 teachers' retirement plans were assessed. Each teacher's main decision was to divide their pension between two funds: one low risk (bonds) and one high risk (stocks). They could switch between the two at no cost.
Results found that despite the massive differences in rates of return between the two funds, only 20% ever switched from their initial fund allocation.
What's the status quo in your situation?
Build a strategy around identifying and removing the practical and emotional switching costs that are preventing change.
Make it exciting!
It isn't enough to just remove the barriers. Offer a Contrasting view of the net gain of the change, painting a clear, positive picture with a personalized Goal Prime showing them how their life will be better.
Make it effortless.
Use Foot In The Door with a Tiny Habit to help users take the first positive step.
Identify and work with a group of 'change-makers'; those with some Authority who are most ready to adopt and embrace change.
Share their positive Stories with others more averse.
Check your Defaults.
You’re setting them everywhere, sometimes without thinking. These strongly influence the status quo. What new behavioral goal are you looking to foster in your users? Update your defaults to suit.
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