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THE ART AND SCIENCE OF
APPLYING BEHAVIORAL
ECONOMICS TO DIGITAL
HEALTH DESIGN
Amy Bucher, Ph.D.
Steven Schwartz, Ph.D
AGENDA
Our story
What is behavioral economics, anyway?
And where do people go wrong?
How do you effectively pull behavioral economics into design?
Designing for the person
Designing for the journey
Questions and conversation
WHO WE ARE AND WHY WE’RE
HERE
Amy Bucher, Ph.D.
Steve Schwartz, Ph.D.
WHAT IS BEHAVIORAL
ECONOMICS, ANYWAY?
And where do people go
wrong?
HUMAN BEINGS ARE NOT
RATIONAL.
ECONOMICS
MAKE SENSE,
BUT THEY
DON’T
EXPLAIN OUR
REAL WORLD
BEHAVIOR
THE DUAL PROCESS MODEL
Cold Brain Hot Brain
HEDONISTIC BIASES
Simplicity vs.
complexity
Information in
context
Bounded
willpower
Loss aversion
WE ARE EMOTIONAL AND
BIASED TOWARD THE
NOW.
ADVENTURES IN APPLYING
BEHAVIORAL ECONOMICS TO
DIGITAL HEALTH
BADGES & STATUS
BADGES & STATUS
BADGES & STATUS
Endowed Progress Withering
PENALIZING
NON-
PARTICIPATIO
N
Ex: Health
insurance
deductibles
Institutes the
undermining
effect
Tie incentives to
the right
outcomes for
maximum
efficacy
FIXED-SCHEDULE
BILLING
Taking advantage of the
discounting effect and the
sunk cost fallacy
Getting “stuck” in one
course of action limits
other possibilities
CONSISTENCY
& THE
DISCOUNTING
EFFECT
Pros and cons of
personalization
Reinforcing
identities that no
longer work
The role of
experimentation and
tolerance for errors
WHY
BOTHER?
Recommended minutes of
moderate or high intensity
exercise per week
1500
Carl’s typical minutes of
moderate or high intensity
exercise per week
450
Ironman Dan’s typical
minutes of moderate
or high intensity
exercise per week
MISPLACED ANCHORS
APPLYING BEHAVIORAL
ECONOMICS BETWEEN
DIFFERENCES
BETWEEN DIFFERENCES ARE:
The qualities and
characteristics that make
people different from each
other
BETWEEN DIFFERENCES INCLUDE:
Personality characteristics (OCEAN)
Experiences and acquired learnings
Skills and talents
Individual circumstances like
relationships, work status, housing
situation, etc.
TOOLS FOR UNDERSTANDING
Personas
Behavioral archetypes
Psychographic profiles
Data-based segments
MEET MARY ELLEN
BMI – 32
Recently diagnosed with hypertension
Had gestational diabetes with all 3 of her
kids
Was diagnosed with Type 2 diabetes after
the birth of her youngest
Has moderate depression, which came on
gradually
MEET MARY ELLEN
46 years old
Works part-time in an auto shop as an
office manager
Primary caregiver for her 3 kids, ages 6-
14
Tech savvy
MEET SARAH
BMI – 32
Recently diagnosed with hypertension
Had gestational diabetes with all 3 of her
kids
Was diagnosed with Type 2 diabetes after
the birth of her youngest
Has moderate depression, which came on
gradually
MEET MARY ELLEN
Uses multiple devices each day; a work
laptop, a shared family desktop, her iPhone,
and a family iPad where she plays games at
night.
Has low confidence in her ability to
understand the science of her health, so she
relies on her doctors to tell her what to do
and is not likely to do her own research
Because she had gestational diabetes that
went away after giving birth, she doesn’t feel
too worried about this diagnosis
With 3 busy kids, she spends most of her
non-work hours attending to their needs
rather than her own
Mary Ellen is organized and conscientious
about her work and her kids, but can’t seem
to find that same level of investment in her
own health. This makes her feel ashamed.
MEET SARAH
After 20 years with T2D, she knows how to
manage it well. Sarah stays on top of new
advances in T2D thanks to her good friend who
is a physician and regular conversations with
her own care team, including her therapist.
She works as a sculptor so doesn’t go online
much as part of her job. She has a smartphone,
but uses it mainly to talk and look at photos of
her grandkids.
Now that her kids are grown, Sarah has more
time in the evenings to indulge her own
hobbies and needs. She’s willing to spend
some extra time on her health.
After having T2D for so long, Sarah knows that
new behaviors will be hard at first. She’s used
to structuring very deliberate plans to make
sure healthy changes stick, and feels confident
based on some of her past successes.
APPLYING BEHAVIORAL
ECONOMICS WITHIN
DIFFERENCES
WITHIN DIFFERENCES
ARE:
The ways in
which the same
person might
behave or react
differently in
different
situations
WITHIN DIFFERENCES CAN COME
FROM:
Resource availability
History, knowledge, and experience
Newbie, seasoned player, expert
Discovery, onboarding, scaffolding, endgame
Contextual variables
Environment
Role requirements
Other people
DETERMINING CRITICAL WITHIN
DIFFERENCES
Your toolkit might include:
Journey map
Experience map
Use case
Timeline or list of critical milestones
CASE STUDY: DIABETES
MANAGEMENT Type 2 diabetes
can be:
Highly complex to
manage
Expensive and time-
consuming
Life-long
Scary
Different for
everyone
CASE STUDY: DIABETES
MANAGEMENT
What are some of the critical milestones for a person with Type 2
diabetes?
Diagnos
is
Treatme
nt
Decision
Choosin
g
Devices
Learnin
g SMBG
& Meds
Setting
Goals
with
HCP
How To
Handle
Sick
Days
Figuring
Out Diet
&
Exercise
Sharing
Your
Diagnos
is
Find An
Educato
r
Calibrati
ng
Treatme
nt
Dealing
With
Travel &
Holiday
s
Find
Your
Speciali
sts
Logging
Data
Assembl
e Your
Kit
CASE STUDY: DIABETES
MANAGEMENT
And what might a typical day look like?
Wake
Up
Brea
kfast
Work
out
Lunc
h
Dinn
er
Bed
Time
WorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWork
Sarah
Work
Snac
k
Wake
Up
Brea
kfast
Dinn
er
Bed
Time
WorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWork
Mary Ellen
Famil
y
Time
Snac
k
Snac
k
Snac
k
Famil
y
Time
Famil
y
Time
Famil
y
Time
Famil
y
Time
Famil
y
Time
Famil
y
Time
Famil
y
Time
Erran
ds
Erran
ds
Erran
ds
BUILDING AN
INTERVENTION
In-the-moment
feedback
Badges!
And the badges
expire if you don’t
keep it up!
Compare everything the
user does against
guidelines
Reinforce the user’s
identity as someone who
takes good care of her
health
In-the-moment
feedback
Badges!
And the badges
expire if you don’t
keep it up!
Compare everything the
user does against
guidelines
Reinforce the user’s
identity as someone who
takes good care of her
health
Wake
Up
Brea
kfast
Work
out
Lunc
h
Dinn
er
Bed
Time
WorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWork
Sarah
Work
Snac
k
Wake
Up
Brea
kfast
Dinn
er
Bed
Time
WorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWork
Mary Ellen
Famil
y
Time
Snac
k
Snac
k
Snac
k
Famil
y
Time
Famil
y
Time
Famil
y
Time
Famil
y
Time
Famil
y
Time
Famil
y
Time
Famil
y
Time
Erran
ds
Erran
ds
Erran
ds
How do we design for
both???
In-the-moment
feedback
Badges!
And the badges
expire if you don’t
keep it up!
Compare everything the
user does against
guidelines
Reinforce the user’s
identity as someone who
takes good care of her
health
User determines
feedback frequency
Badge milestones
based on user EXP
level, and make
them more resistant
to expiry for
veterans
Users collaborate to
select appropriate goals
Language is consistent
with history and
experience
DESIGN DECISIONS PRIORITIZE:
Understanding a user’s baseline status
Calibrating guidelines and feedback to
their level
Offering users choice to optimize their
experience
Acknowledging individual differences as
appropriate
A PROCESS FOR DESIGNING WITH
BEHAVIORAL ECONOMICS
1. Identify behaviors to change and desired outcomes
2. Document who will use your intervention and when
they will use it
3. Determine opportunities to baseline and personalize
4. Create visual artifacts to help your team visualize
between and within differences at the same time
(e.g. journey map + personas)
5. Map behavioral economics techniques to elicit the
desired behavior from the specific user at the right
milestones
BEST PRACTICES FOR DESIGNING
WITH BEHAVIORAL ECONOMICS
Think about systems, not rules  not
what these tactics are, but why they work
Put heuristics into context:
Person
Situation
Take advantage of personalization tactics
Technology
Targeting
CONCLUSIONS AND
CONVERSATION

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