Product Development
Analysis Paralysis
Our capacity to process information and make decisions reduces with each made
42 people were either asked to make 35 'A or B' choices that would inform the design of an educational course they were attending, or instead to just read the course material. Both were then tasked with solving math puzzles and were timed until they gave up.
Those who had to make the choices beforehand persisted for less time on the puzzles and also got fewer right.
Protect your decision capacity.
Prioritize your day around and take breaks before making harder decisions. For example, restaurant inspectors can reduce errors by scrutinizing sites at higher risk of failure at the start of the day (Ibanez & Toffel, 2017).
Create product contrast.
When no option in a set offers a distinct advantage from the others, we're most at risk of not choosing at all (Dhar, 1997). How can you improve your choice architecture to offer variety that actually makes deciding easier?
Order matters for revenue.
Prospective Audi owners given a high number of customization options early on more readily accepted, higher-priced defaults in later steps (Levav, 2010). Though be careful not to trigger Reactance by pre-selecting defaults that are seen as too expensive.
Conversion
Curiosity Effect
We're driven to seek missing info that closes our knowledge gap
105 people were shown an online promotional offer, with the final offer value of 40% revealed either immediately or only at checkout.
Those in the extended curiosity condition were more likely to buy with the promotion than those who were told of the offer value immediately.
…curiosity will always be effective.
A recent campaign by Cancer Research UK to fill missing letters of the second-most common cause of cancer led to a 22% increase in its awareness.
How can you use curiosity to drive a desire to learn about a new product or important message?
Create positive curiosity.
Vacation company srprs.me let you choose the number of people, dates and continent. You then get a scratch card to reveal your destination…but only at the airport!
Use to convert free to paid.
Popular dating app Bumble uses curiosity to drive conversions. People who’ve already liked you are shown, but with their faces pixelated and no further information shown. Users are then prompted to buy BumbleBoost to close the information void.
Conversion
Foot In The Door
Making a small commitment now makes us more likely to agree to a greater one later
88 household individuals were split into three groups and asked to either wear a badge supporting a charity, asked to wear one along with another family member or not to wear at all. That same evening, all groups were then asked for a financial donation to the charity.
Those who were first asked the small request were far more likely to go on and donate money than those who weren’t.
Start with a question promoting reflection on one’s values. Their answers will create a desire to be consistent with their beliefs.
Have people perform a small related action. e.g. People who put a small “Drive carefully” sign in their window are more likely to follow the instruction than those who merely say they will. Frame it as a social norm.
Prime the ‘helpful’, ‘cooperative’ ‘supporter’ with positive feedback prior to a future request.
Make the target request a continuation of the initial one. The more similar the activity, the greater success. Also balance your request sizes. If the initial request is too big, people won’t do it, never getting to the target request. But too-small tasks will widen the gulf between the two.
Experience
Measurement Paradox
We enjoy experiences less when we track them
With the rise of wearable devices, personal quantification is easier than ever. It's not a surprise that self-tracking has a large adherence in a competitive, comparative culture where the individual is constantly improving his performance in every possible measure.
But it has a cost.
One of the responsibilities of product creators is to understand and examine the resultant behaviours that modifications to the product design will trigger. By adding certain features or changing their salience, you will inevitably change the behavioural dynamics.
It’s well studied that external rewards undermine intrinsic motivation, but now we know that the act of tracking can also impact it by reminding us of the output, making the activities seem like work. Thus, not everything that can be measured should be measured.
Peter Drucker said “What gets measured gets managed, even when it’s pointless to measure and manage it, and even if it harms the purpose of the organization to do so”.
It’s a warning from the father of management that it’s not often taken to heart, and this study reminds us of it.
With the rise of wearable devices, personal quantification is easier than ever. It's not a surprise that self-tracking has a large adherence in a competitive, comparative culture where the individual is constantly improving his performance in every possible measure.
But it has a cost.
One of the responsibilities of product creators is to understand and examine the resultant behaviours that modifications to the product design will trigger. By adding certain features or changing their salience, you will inevitably change the behavioural dynamics.
It’s well studied that external rewards undermine intrinsic motivation, but now we know that the act of tracking can also impact it by reminding us of the output, making the activities seem like work. Thus, not everything that can be measured should be measured.
Peter Drucker said “What gets measured gets managed, even when it’s pointless to measure and manage it, and even if it harms the purpose of the organization to do so”.
It’s a warning from the father of management that it’s not often taken to heart, and this study reminds us of it.
95 university students spent the day leisurely walking. In the measurement group they were given the choice to wear a pedometer. In the control group, everyone used a sealed shut pedometer. Afterwards, they rated how much they enjoyed walking.
Measuring led participants to walk more but decreased how much they enjoyed it – even for those who chose to be measured.
Consider what you want your users to feel.
While measurement may improve performance, it comes at the expense of enjoyment. By adding a measurement option, the behaviour will feel like work instead of fun.
Understand why users engage in an activity when deciding whether to measure it.
Sometimes the benefit of achieving more may outweigh the cost of users enjoying the experience. Does the end you’re looking to achieve justify the means of measuring its progress?
Switch the motivation type by becoming pro-social and giving meaning to the measurement.
For example: If you reduce your calories, you could send the equivalent of those excess calories to someone in need of food.
Prior data can set reference points that demotivate us
Our personal motivation can suffer in the face of prior data, setting unhelpful reference points about future expected efforts.
For instance, consider the following: "I can see that I ran 10k 3 times in a row, so if I don't run 10k this time, I feel that I'm doing worse. But I just don't feel like I can do 10k today, so I won't go at all."
However, in absolute terms, you're doing more in total by doing any more running at all, whether that's 1k, or even 100m, so you're best off ignoring the data and doing *something*.
A good counterbalance to this is to focus instead on the *experience* that running provides. This removes the quantifiable reference point and frees us to just enjoy the act for what it is. And who knows, maybe we'll end up running longer than 10k in the process!
Loyalty
Reciprocity
We’re hardwired to return kindness received
We call Reciprocity the glue that binds us as a society.
No surprise then that it’s a powerful tool to help people make decisions that are both pro-social and a win-win.
When the Behavioural Insights Team were asked by the UK Government to increase the rates of job-seekers turning up to interviews, they applied the principle of Reciprocity to boost rates.
They changed the text message being sent out from:
“You’ve been booked an interview at Tesco on Friday at 10am”
to:
“Dave,
I’ve booked you an interview at Tesco on Friday at 10am.
Good luck.
Roxy”
This shift from a passive tone of voice to an active tone, where Roxy had done something kind for you (and you then wanted to reciprocate by turning up), increased attendance from 10% up to a whopping 27%.
We call Reciprocity the glue that binds us as a society.
No surprise then that it’s a powerful tool to help people make decisions that are both pro-social and a win-win.
When the Behavioural Insights Team were asked by the UK Government to increase the rates of job-seekers turning up to interviews, they applied the principle of Reciprocity to boost rates.
They changed the text message being sent out from:
“You’ve been booked an interview at Tesco on Friday at 10am”
to:
“Dave,
I’ve booked you an interview at Tesco on Friday at 10am.
Good luck.
Roxy”
This shift from a passive tone of voice to an active tone, where Roxy had done something kind for you (and you then wanted to reciprocate by turning up), increased attendance from 10% up to a whopping 27%.
407 pedestrians in Brittany, France were approached by a young woman and asked to complete a survey. Before the request, half were offered candy and the other half were not.
The results found that people - especially women - were far more likely to reciprocate and answer the survey after receiving a gift than when not.
Act first.
Find ways to initiate reciprocity with consumers. Merely asking those satisfied to go tell their friends will work (Söderlund et al., 2015).
Make it a ‘common habit’.
When we’re told that a behavior is a social norm shared by others, we’re more likely to reciprocate. Households in USA and India consume significantly less electricity when told that their neighbors are consuming less (Sudarshan, 2014). In the long-term, any consistent, successful behaviors will be adopted as the default for others.
Do it in person.
Reciprocation appears to be more powerful when requests from strangers are made face to face rather than online. This is due to the persuasive impact of immediacy that physicality affords, the higher levels of digital suspicion and the sheer number of emails people receive (Meier, 2016).
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.
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