Conversion
Serial Position Effect
We better remember the first and last items in a list
468 people were randomly assigned to one of ten groups and shown a website list of ten hotels, each with the hotels in a different order. They were then asked to choose one.
Regardless of their group, more people chose hotels placed at the start and end of the list.
Position matters.
Why? Initial options are prioritized in our memory (Primacy effect). Then, we see a pattern, switch off in the middle and only at the end do latter options held in short term memory (Recency Effect) influence the decisions we make, so put your best stuff at each end.
End on a high.
Advertisers promoting benefits of their product should combine recency with the Peak-End Rule, finishing with a significant or unique feature to enhance recall, conversion and seal the deal with a positive Surprise.
Order = opportunity.
For ecommerce or aggregation sites, consider monetizing product positioning for the start and (paradoxically) end of your lists. Alternatively, design for and highlight conversion fairness with random ordering.
Conversion
Default Effect
We tend to accept the option pre-chosen for us
Faced with a set of options, when we’re not sure what’s the “right” choice, Defaults offer a helpful guide.
They help people avoid expending vast amounts of cognitive energy to decide between what could be a large number of options.
This is especially the case for those who don’t know much about the products or services, where Default options can take away the fear of getting that first decision wrong.
They're also a powerful remedy to any potential Analysis Paralysis, and are particularly helpful when making multiple choices one after the other.
Consider that you’re buying a computer, with a range of possible customisations to various parts.
If there were no default choices set, we’d quickly become overwhelmed with what was the right choice in each step.
If you have complicated product ranges or customisations, are you setting helpful Defaults? If you are, think hard about whether these need improving to reduce effort further.
But also, a word of warning.
Defaults can be terribly misused to force people into decisions that they don’t want.
Take people down the wrong path and you’ll quickly trigger Reactance; an angry feeling where people will want to reclaim their independence, often doing the opposite of what you Default them to.
Ensure that your Defaults have peoples’ own intentions in mind and don’t deviate too far from what people would do of their own choosing.
What Defaults are you setting? How can these be improved to help smooth out decision-making and guide people to better outcomes, either for themselves (e.g. helping them save more money) or for the wider group (e.g. defaulting meeting times to 15 minutes instead of 30).
Defaults are set everywhere. They’re powerful and have a big influence on behavior with little effort.
Faced with a set of options, when we’re not sure what’s the “right” choice, Defaults offer a helpful guide.
They help people avoid expending vast amounts of cognitive energy to decide between what could be a large number of options.
This is especially the case for those who don’t know much about the products or services, where Default options can take away the fear of getting that first decision wrong.
They're also a powerful remedy to any potential Analysis Paralysis, and are particularly helpful when making multiple choices one after the other.
Consider that you’re buying a computer, with a range of possible customisations to various parts.
If there were no default choices set, we’d quickly become overwhelmed with what was the right choice in each step.
If you have complicated product ranges or customisations, are you setting helpful Defaults? If you are, think hard about whether these need improving to reduce effort further.
But also, a word of warning.
Defaults can be terribly misused to force people into decisions that they don’t want.
Take people down the wrong path and you’ll quickly trigger Reactance; an angry feeling where people will want to reclaim their independence, often doing the opposite of what you Default them to.
Ensure that your Defaults have peoples’ own intentions in mind and don’t deviate too far from what people would do of their own choosing.
What Defaults are you setting? How can these be improved to help smooth out decision-making and guide people to better outcomes, either for themselves (e.g. helping them save more money) or for the wider group (e.g. defaulting meeting times to 15 minutes instead of 30).
Defaults are set everywhere. They’re powerful and have a big influence on behavior with little effort.
161 people were told that they’d just moved to a new US state and that here, the default was (or wasn’t) to be an organ donor. They were then asked to accept or change this donation status.
Results showed that only 42% donated when the default was to opt out, but 82% when defaulted to opt in.
Defaults are powerful. They’re chosen because consumers take mental shortcuts (especially when tired) and because there’s implied trust that they’re the ‘right’ choice. Defaults also act as a reference point against better or worse options. (Dinner et al., 2011).
Defaults can be set around anything: from the standard package you offer to new subscribers, to the pre-set top-up amount for your mobile wallet, to whether each order of pizza should come with salad. Each default can dramatically affect conversion levels and behavior.
Get the balance. Ensure your defaults feel natural and in line with consumer aspirations. The more extreme the default you set (i.e. defaulting to the most expensive option), the more effort consumers will expend weighing up the cognitive / emotional costs of not choosing the default, impacting their experience and reducing overall trust.
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.