From forms to porn banners, how behavioral economics can optimize user experience? by DigitasLBi strategic planning Des formulaires aux bannières porno: comment l'économie comportementale peut optimiser l'exp. utilisateur - par les planneurs de DigitasLBi

1. Behavioraleconomics
WHAT IT IS AND HOW IT COULD HELP US DO OUR JOB BETTER

2. 1
HELLO THERE!
HERE’S A QUICK QUESTION:
HAVE YOU EVER WONDERED…

3. … WHY THE TRAFFIC LIGHTS
CHANGE TO RED ONLY WHEN YOU
ARE IN A HURRY?

4. … WHY WE ARE MORE AFRAID TO DIE IN A PLANE CRASH THAN OF AN
ASTHMA ATTACK ?

5. … WHY WE OFTEN REMEMBER
THE “GOOD OLD DAYS”?

6. IT’S BECAUSE OUR OPINIONS & BEHAVIOURS SOMETIMES
RELY ON IRRATIONAL MECHANISMS
( ALSO CALLED “COGNITIVE BIAS” IN A MORE FANCY WAY)

7. BEHAVIOURAL ECONOMICS CAN HELP US UNDERSTAND THEM

8. A GOOD EXAMPLE OF THESE IRRATIONAL MECHANISMS:
VISUAL ILLUSIONS

9. ARE THESE TABLES THE SAME LENGTH?

10. ARE THESE TWO SQUARES THE SAME COLOR ?

11. THEY’RE PROOF THAT OUR BRAINS SOMETIMES MAKE IRRATIONAL
JUGEMENT MISTAKES

12. 2
CASE STUDY:
DAN ARIELY –
PRICING THE ECONOMIST
Predictably irrational, 2007

13. TWO GROUPS WERE OFFERERED TO SUBSCRIBE TO ‘THE ECONOMIST’
… BUT WERE SHOWN DIFFERENT SUBSCRIPTION FORMS
GROUP 1 GOT THIS FORM: GROUP 2 GOT THIS FORM:

14. TWO GROUPS WERE OFFERERED TO SUBSCRIBE TO ‘THE ECONOMIST’
… BUT WERE SHOWN DIFFERENT SUBSCRIPTION FORMS
GROUP 1 GOT THIS FORM: GROUP 2 GOT THIS FORM:
THREE OPTIONS
ECONOMIST.COM SUBSCRIPTION 59$
PRINT SUBSCRIPTION 125$
PRINT & WEB SUBSCRIPTION 125$
ONLY TWO OPTIONS
ECONOMIST.COM SUBSCRIPTION 59$
PRINT & WEB SUBSCRIPTION 125$

15. RESULTS
GROUP 1: GROUP 2:

16. GROUP 1
84% CHOSE THE MORE EXPENSIVE
PRINT & WEB SUBSCRIPTION
GROUP 2
ONLY 32% CHOSE THE MORE EXPENSIVE
PRINT & WEB SUBSCRIPTION
RESULTS

17. EXPLANATION
GROUP 1
‘THE ECONOMIST’ ADDED THE EXPENSIVE 125$ “PRINT ONLY” OPTION
FOR GROUP 1 TO COMPARE AGAINST
IT MADE THE 125$ “PRINT+WEB” APPEAR AS A GOOD DEAL
THEREFORE SUBJECTS “FORGOT” THE CHEAP 59$ OPTION

18. EXPLANATION
GROUP 2
WHEREAS GROUP 2 WEREN’T BIASED BY THE BAD DEAL
THEREFORE THEY MADE A MORE RATIONAL CHOICE

19. CONCLUSION
THIS IS CALLED ANCHORING
THE TENDENCY TO RELY ON & BE INFLUENCED BY A KEY PIECE OF INFORMATION
(« THE ANCHOR ») WHEN MAKING DECISIONS

20. 3
WHY ARE WE SO IRRATIONAL?

21. IT’S NOT A MATTER OF INTELLIGENCE

22. IT’S MORE ABOUT LAZYNESS ACTUALLY…

23. THE BRAIN WANTS TO SAVE TIME & ENERGY WHEN MAKING A DECISON

24. HOW?

25. BY FOLLOWING HABITS
40% of our daily actions are routine

26. BY LETTING OTHERS CHOOSE FOR US
The more we doubt, the more we follow other people’s choice : it’s called social validation or Bandwagon effect

27. 950G
BY TAKING SHORTCUTS
« Jumbo sizes are always a better deal »
650G

28. 950G
650G
Actually, Jumbo sizes are often more expensive

29. DON’T WORRY, SOMETIMES THE BRAIN IS OK TO USE A LOT OF ENERGY

30. LAZY
BRAIN
ACTIVE
BRAIN
TIME IMPORTANCE INFORMATION IMPLICATION

31. LAZY
BRAIN
ACTIVE
BRAIN
IMPLICATION
IMPORTANCE
INFORMATION
TIME
BUY A CAR
CHOOSE HOLIDAYS
INVEST MONEY

32. NOT
INVOLVING
INSIGNIFICANT
LITTLE
INFORMATION
URGENT
GET YOUR LOCK REPARED
BUY BREAD
PICK-UP MILK AT THE
SUPERMARKET
LAZY
BRAIN
ACTIVE
BRAIN

33. WE DON’T WANT TO ADMIT WE ARE TOTALLY IRRATIONAL

34. BECAUSE WE ARE IN A PERMANENT CONFLICT WITH OURSELVES
CONFLICT
COGNITIVE
DISSONANCE
=
NEED TO
POST-RATIONALISE
« I said I would start
exercising »
« I’ll start next Monday»
«You only live once! »
« Today is a special day »
« But I really want to
eat ALL THIS »

35. BECAUSE WE THINK THINGS WORK TH IS WAY
WHAT WE DO
(BEHAVIOR)
WHAT WE THINK
(OPINION)
WHAT WE DO
(BEHAVIOUR)
WHAT WE THINK
(OPINION)
ENVIRONMENT
WHEN THEY ACTUALLY WORK THIS WAY

36. 4
HOW TO RESIST?

37. BY IDENTIFYING THE MOST FREQUENT
JUDGMENT MISTAKES WE MAKE

38. HERE ARE SOME OF THEM:

39. THE ILLUSORY CORRELATION BIAS
Creating illogical correlation between two events
THE EXPERIMENT
Chapman & Chapman (1967) showed students a list of 12 pairs of words based on 7
different words. Each pair only appeared once in the list.
They were asked how many times each pair had appeared:
IN REAL LIFE:
• PowerPoint seems
to crash only when
I’m working on a
very important deck
• Traffic lights change
to red when I’m in a
hurry
Tiger
Egg
Caravan
Tiger
Egg
Caravan
Tiger
Egg
Caravan
Tiger
Egg
Caravan
Water
Lion
Bacon
Thermometer
Water
Lion
Bacon
Thermometer
Water
Lion
Bacon
Thermometer
Pairs that seemed correlated
(e.g. tiger+lion, egg+bacon) were
mentioned more frequently -
even though they appeared
only once

40. THE AVAILABILITY HEURISTIC
Tending to overestimate the importance of an event/fact if we remember it
THE EXPERIMENT
Tversky & Kahneman, 1974
IN REAL LIFE
- We are more afraid to die
in a plane crash than of
an asthma attack,
because we hear more
about plane crashes on
TV
- We overestimate food
scandals because we
remember most the few
ones involving our
favorite fast-food chains
If a random word is taken from an English text, is it more likely that the word will start with K
or that it will have K as the third letter?"
<
>
70% said start with a K 30% said K as the third letter
Most English-speaking people were immediately able to think of many words that start with the letter
K (kangaroo, kitchen, kale), but it took a more concentrated effort to think of any words that had K as
the third letter (acknowledge, ask).
Results indicated that participants overestimated the number of words that started with the letter K:
In reality, there are twice as many words that have K as the third letter than words starting with K !

41. THE CONFIRMATION BIAS
Interpreting information in a way that confirms our preconceptions
Discrediting information that does not support our views
IN REAL LIFE
- Smokers believe studies
showing smoking isn’t
that risky
- We read and remember
more articles about ideas
we agree with
- When it comes to politics,
we think the other camp
is ALWAYS WRONG
THE EXPERIMENT
Lord, Ross & Lepper (1979)
GROUP 1
(AGAINST DEATH PENALTY)
GROUP 2
(FOR DEATH PENALTY)
“THE STUDY hasn’t been
conducted properly and isn’t
convincing”
STUDY
SUPPORTING
DEATH
PENALTY
STUDY
OPPOSED TO
DEATH
PENALTY
“THE STUDY hasn’t been
conducted properly and isn’t
convincing”
STUDY
SUPPORTING
DEATH
PENALTY
STUDY
OPPOSED TO
DEATH
PENALTY
STUDY EVALUATION

42. SEE ALSO…
BARNUM/FORER EFFECT
FALSE MEMORY
CONTRAST EFFECT
FRAMING EFFECT
FUNDAMENTAL ATTRIBUTION ERROR
CONJUNCTION FALLACY
FALSE CONSENSUS BIAS
SELF-SERVING BIAS
LOSS AVERSION
IMPOSTOR SYNDROME
…

43. 5
HOW DOES THIS APPLY TO DIGITAL
MARKETING?

44. INTERFACE DESIGN,
WEB DESIGN,
SOCIAL MEDIA STRATEGIES,
…

45. BY LEVERAGING THEM IN THE RIGHT WAY,
IT’S POSSIBLE TO INFLUENCE USERS’
DECISIONS AND ACTIONS

46. WHAT TO LEVERAGE ?
1. LIMIT CHOICE
2. LEVERAGE SOCIAL PROOF
3. LEVERAGE RECIPROCATION
4. USE THE SCARCITY PRINCIPLE
5. LEVERAGE COMMITMENT
6. SET UP A PROGRESSION DYNAMIC
7. TALK ABOUT SEX (OH YEAH BABY!)
Inspired by “Behavioural economics and digital marketing”
by Vyshnavi Doss , 2012

47. 1. LIMIT CHOICE
Instead of implementing every single social network
plug-ins to encourage content sharing, use only the ones
relevant – e.g. Facebook & Twitter first on Mashable
In a supermarket, study shows:
24 types of beers:
3% purchase
9 types of beers:
30% purchase

48. 2. LEVERAGE SOCIAL PROOF
Amazon set up the standards of cross-sell
based on other customers purchase
Linkedin emailing strategy is based on social
proof. It invites you to do what your professional
network has also done

49. 3. LEVERAGE RECIPROCATION
RockCorps produces some of the hottest gigs in the
music calendar. Here’s the deal: You can’t buy a ticket.
You can’t win a ticket. You have to earn a ticket. The
user has to give 4 hours of his/her time to the
RockCorps community to get a concert ticket in return.
One of the things that prevents lead gen content from going viral is that
anyone wanting to access it has to fill out a form. Pay with a Tweet is a
service that lets visitors access lead gen content without having to “pay”
for it by giving up any personal information on a form - all they have to
do is share it with their own networks or Facebook, Twitter or LinkedIn.

50. 4. USE THE SCARCITY PRINCIPLE
“The last
reservation at
this price
happened five
minutes ago”
“Hurry up, only
1 seat left at
this price”

51. How to make you quit smoking?
ECONOMICS:
CONSUMERS ARE RATIONAL
PSYCHOLOGY/ADVERTISING
PEOPLE REACT TO THEIR
EMOTIONS
BEHAVIOURAL ECONOMICS:
PEOPLE ARE PREDICTABILY
IRRATIONAL
Prohibitive pricing for
cigarettes
Provoke fear and guilt Pledge to give up smoking in a
digital public place eg. Facebook
5. LEVERAGE COMMITMENT

52. 6. SET UP A PROGRESSION DYNAMIC
VS
Regular one piece form with many
boxes in a single interface
The goal-gradient effect: the smaller the goal, the
closer and more reachable it seems
Linkedin
profile
registration
Dropbox: rewarding
step-by-step sign in

53. 8. TALK ABOUT SEX (OR AT LEAST SHOW SOME)

54. 8. ALSO WORKS FOR:
FOOD

55. 8. ALSO WORKS FOR:
DANGERS &
ACCIDENTS

56. We have an “old” brain: the reptilian complex. It used to be responsible for instinctive behaviours to ensure
human survival. The reptilian complex basically asks itself three questions:
CAN I EAT IT?
WHY?
CAN I HAVE SEX WITH IT?
CAN I DIE BECAUSE OF IT?

57. WHY?
We have an “old” brain: the reptilian complex. It used to be responsible for instinctive behaviours to ensure
human survival. The reptilian complex basically asks itself three questions:
THAT’S WHY WE ARE STILL INEVITABLY
ATTRACTED TO PICTURES OF SEXY
MEN/WOMEN,
MOUTH-WATERING FOOD
OR DANGERS/ACCIDENTS…
IT’S OUR OLD BRAIN REACTING

58. OK, THIS LAST EXAMPLE HAS NOTHING TO DO
WITH DIGITAL MARKETING…

59. OR MAYBE IT DOES…

60. 6
CONCLUSION

61. NOPE, THE DECISIONS WE MAKE ARE NOT RATIONAL
THIS IS NOT A SCIENCE, IT’S JUST AN ALTERNATIVE WAY TO ANALYSE CONSUMER
BEHAVIOUR
AND CONSUMER BEHAVIOUR IS A BIG CHALLENGE FOR THOSE WORKING
TO BUILD USER-FRIENDLY EXPERIENCES ONLINE

62. THANKS
HOPE YOU LIKED IT!