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Behavioural Design Week: Baptiste Tougeron

By | All, behavioural design week, Behavioural Science

Our final keynote speaker at Behavioural Design Week 2021 was Baptiste Tougeron. As a Google Research Manager, he is responsible for ad effectiveness. During his session, he presented the most read whitepaper of Google worldwide: Decoding decisions. He talked about the messy decision process and how behavioural science can supercharge the attractiveness of brands. A must-see if you work in branding, marketing and advertising.

Behavioural Design Week: Baptiste Tougeron

Purchase decision-making is not a linear process. Between the purchase trigger and the purchase, customers are exposed to much information, like reviews or social media. The Google research team tried to uncover how customers process all this information and make decisions between the purchase trigger and the purchase itself. The call it “The messy middle”.

Baptiste Tougeron: Our key take-aways

Key-take away 1: Organise the messy middle:
Between the purchase trigger and the purchase, we can identify two ’mental modes’. The Exploration Mode and the Evaluation Mode.

While the Exploration Mode expands our consideration set, the Evaluation Mode narrows down our options. People oscillate through these two mental modes, repeating them as often as they need to make a purchase decision. These two mental processes can run simultaneously or apart, but they are two distinctive processes.

Key Take-Away 2: Supercharge the brand with cognitive biases
Now that there is some order in the messy middle, we need to know how shoppers process the information. During the process of Exploration and Evaluation, cognitive biases shape their behaviour and influence their choice. In the research, six cognitive biases are prioritised:

  1. The Power of Free
  2. Social Norms
  3. Authority Bias
  4. The Power of Now
  5. Category Heuristics
  6. Security Bias 

Important conclusions to keep in mind:

  • Ensure brand presence, simply showing up can impact customer decision making when they are exploring and evaluating. (This is called the Mere Exposure Effect)
  • Intelligently (and responsibly) employ behavioural science principles to influence the decision-making process
  • Close the gap between trigger and purchase.

Baptiste Tougeron: Quotes to remember

“Purchase decision-making is not a linear process”.

“I would like to think of the messy middle as a big spaghetti plate”.

“The cool thing about behavioural science, if you put the theory into practice in different countries, the brain remains to work very similarly.”

“We are not done. We still have to explore ‘exposure’ and ‘experience’, so lookout for new research and results in 2022”.

“Playing with the six cognitive biases is not easy. You cannot choose to supercharge your brand just like that. Some biases you can influence yourself, others need to be acquired”.

Baptiste Tougeron: Further reading

Want to know more about untangling the messy middle? Make sure to read the white paper by Google, which can be found here.

Hungry for more Behavioural Design Week?

Please make sure to check out our other videos of other 2021 Keynote speakers on Behavioural Design Week: Tim Versnel on designing behaviour for sustainability and Matt Wallaert on applying behavioural science to organisations.

Also, you can find all the videos of the keynotes of Behavioural Design Fest 2018 and Behavioural Design Fest 2019; watch and re-watched here to upgrade your Behavioural Design knowhow and to boost your inspiration.

 

Want to learn how to apply behavioural science yourself?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 1500+ people from 45+ countries in applied Behavioural Design. Or book an in-company program or workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful frames to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Academy brochure here, contact us here or subscribe to Behavioural Design Digest at the bottom of this page. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

Behavioural Design Week: Tim Versnel

By | All, behavioural design week, Behavioural Science, Sustainability

Tim Versnel is not only a senior Behaviour Design Lead and trainer at SUE, but foremost he is genuinely driven to unlock the powers of behavioural science to make this world a better place. Especially, designing behaviours for a sustainable future is what makes his heart tick, with an energetic and uplifting beat, that is. It’s a breath of fresh air to listen to Tim’s positive take on what we as humankind can achieve in changing the behaviours to secure a sustainable future. It simply needs a different approach which he explains in his Keynote. You will end with the idea that sustainability will make our lives better instead of worse. Be ready for a change, in point-of-views and your future!


Behavioural Design Week: Tim Versnel

Are you are worried about climate change but are overwhelmed by the apocalyptic future scenarios that tend to stifle your behaviour instead of boosting behaviour change? Well, fasten your seatbelts for an hour in which Tim’s talks about sustainability optimistically and confidently. And not just talks about it but showcases how behavioural science can open up a new way of thinking that will get sustainability done. He makes a solid case why the shock and awe tactic isn’t working but foremost proposes an alternative that will make us proud of what we can do to save this precious planet we all call home.

Tim Versnel: Our key take-aways

Tim showcases how behavioural science can get sustainability done. It simply needs a pivot. According to Tim, it takes three things:

  1. Talk about sustainability in an optimistic and confident way
  2. Help create products and services that are sustainable and make life better
  3. Use your social reward powers to encourage positive choices

Why what we are doing now is not working
He makes a case that we are currently acting on an implicit assumption that doesn’t hold:

Realisation of severity -> sense of guilt/shame/fear -> motivation to change behaviour -> change of behaviour

This shock and awe tactic is just a motivation strategy. There is a big gap between what we intend to do and what we do. We also see this in sustainability. The motivation to change behaviour translating into behaviour is doubtful at best. Especially, evoking negative emotions is not an effective strategy to motivate change. It may encourage you to act once, but research has shown that it decreases the chance of more sustainable behavioural change.

What can lead to behaviour change promoting sustainabilty
Tim makes a plea that we need to change the direction of our collective imagination. Let’s start harnessing that one force of nature we know so well; humans’ drive to make their own life better right now.

The core of our approach should be innovation-driven by empathy. People will sell climate action to themselves if we make them better products that help them fulfil their jobs-to-be-done. For most of us, that is not living a sustainable life. But for example, eating great food or driving somewhere fast. That’s why beyond burger is such a success: It is not fulfilling the wish to live sustainably; it fulfils our need to eat great food and reap the benefits of not eating meat such as meat sweats.

A different perspective on climate change
How might we make life even more incredible is a much more exciting design briefing than how might we stop life from being disastrous? Let’s get used to the idea that sustainability will make our life better, not worse. Not eventually, but right now.

 

 

Tim Versnel: Quotes to remember

The shock and awe tactic is not working. If we need to change the behaviour of billions of people we need a different approach that isn’t driven by guilt.

Let’s stop saying we have to stop climate change. Let’s start saying we get to be the generation that gets sustainability done.

The core of our work should be innovation driven by empathy.

For most people sustainability isn’t a critical job-to-be-done and that’s ok. By innovating with empathy at its core we can design products and services that are sustainable and solve annoying pains of current offers.

People will sell climate action to themselves if we make them better products that help them fulfill their jobs-to-be-done.

Let’s get used to the idea that sustainability will make our life better not worse. Not eventually, but right now.

Tim Versnel: Masterclass How to make sustainability simple

Want to truly learn how to apply behavioural science to shape choices and behaviours promoting sustainability? Tim will be teaching an exclusive online one-day masterclass ‘How to make sustainability simple’ on the 9th July 2021. Seats are limited (16); if you are interested in joining, you can reserve a spot for two weeks before turning it into a booking. If you want to do so, send us an email, and you’re on the list. Booking has been opened 1st May, and spots are running out. Here is some more information on the masterclass: UK version and Dutch version (direct download).

Tim will teach the masterclass in English in MS Teams unless we have all Dutch speaking participants. Do you want to enrol a group of 8 or more people in this masterclass? Then the masterlcass can also be taught in Dutch. Please contact us, if you want more information on this (in-company) edition of the masterclass.

Tim Versnel: Book as Keynote speaker

Would you like Tim to give this Keynote for your own team or at your own event. You can book him as Keynote speaker at a fee of € 1500, excluding VAT and travel expenses. Want to know more about the possibilies or customisation of the Keynote, please contact us.

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Tim Versnel: Further reading

As said, Tim is truly passionate about unlocking the powers of Behavioural Design to design behaviours that promote a sustainable future. he has written a very interesting blog post on the subject, explaining why motivating people for climate change is problematic. He will be writing a blog post series, so be sure to subscribe to our newsletter at the bottom of the page to not miss out on his fascinating thoughts.

Furthermore, Tim is city counseller at the city of Rotterdam representing the Dutch Liberal Party. Together with the former campaign leader of the Dutch Liberal Party (VVD), home secretary, Minister and chairman of the Dutch liberals in the cabinet, Klaas Dijkhoff, he co-authored the book ‘Alles komt Goed‘ (everything will be fine). A conversation in a book well worth reading (only Dutch).

 

 

Hungry for more Behavioural Design Week?

Please make sure to check out our other videos of other 2021 Keynote speakers on Behavioural Design Week: Matt Wallaert on running behavioural change projects within organisations and Baptiste Tougeron on using behavioural science for more effective advertising.

Also, you can find all the videos of the keynotes of Behavioural Design Fest 2018 and Behavioural Design Fest 2019; watch and re-watched here to upgrade your Behavioural Design knowhow and to boost your inspiration.

 

Want to learn how to apply behavioural science yourself?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 1500+ people from 45+ countries in applied Behavioural Design. Or book an in-company program or workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful frames to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Academy brochure here, contact us here or subscribe to Behavioural Design Digest at the bottom of this page. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

Behavioural Design Week: Matt Wallaert

By | All, behavioural design week, Behavioural Science

Matt Wallaert was the first but certainly not the least Keynote speaker on Behavioural Design Week 2021. If there is one book we would recommend you to read, it is Matt’s book ‘Start at the End’, an insightful piece in the practice of Behavioural Design. As the world’s first Chief Behavioural Officer, Matt talks about his four steps of running successful behavioural change projects. In this blog post, you’ll find his talk and some of the pearls of wisdom we took from it.


Behavioural Design Week: Matt Wallaert

The first speaker on Behavioural Design Week was most certainly not the least. If you are looking for an hour filled with inspiration on applying behavioural science within your organisation, this is the keynote you don’t want to miss. In a wave of unstoppable energy, Matt shares the four steps needed for running a successful behavioural change project. He shares the don’t and don’ts combined with lots of humour—Matt shares how you can genuinely apply behavioural science. Learn from Matt’s experiences and get practical guidelines to get into the action yourself.

Matt Wallaert: Our key take-aways

Matt explains there are four steps in a behavioural change project:

Behavioural strategy
What is the desired behaviour? What do you want people to do? Translate this into a Behavioural Statement with clear OKRs (Objectives and Key Results), so you can make people accountable; it is not one person’s task to run a successful behavioural change project. Everyone’s job is behaviour; everything can be linked to behaviour.

Behavioural Insight
Our job is to build a bridge between a world that is and a world that isn’t. We need to understand which bridge to build. Why is this a desirable outcome? Why don’t we already have this outcome (bottlenecks)? You need to look for emerging patterns and need cross-validation. I see this in qualitative research; do you also see this through your quantitative lens.

Behavioural Design
We start imagining interventions. All we do is changing the pressures or the environment and making behaviour easier or harder to do.

Behavioural Impact Evaluation
You need to measure the impact of your interventions. However, we are in applied behavioural science, not academic, behavioural science. You have to have some basic fluidity about the probability. In academia, p can be less than .5. This holds not true in business. If we can find a solution that can save some people’s lives, well, that’s a win. Maybe not scientifically significant, but essential.

Matt Wallaert: Quotes to remember

Science is a process, behaviour is an outcome.

Everyone’s job is behaviour, everything can be linked to behaviour.

Accountability allows for autonomy.

Our job is to build a a bridge between a world that is and a world that isn’t.

You need cross validation. Take a qualitative belief and validate it quantative.

We are not in academic behavioural science but in applied behavioural science.

 

Matt Wallaert: Further reading

If Matt’s talk inspired you, please make sure to pick up his book ‘Start at the End: How to build products that create change’. We finished reading it in one fellow swoop, and it has become one of our favourite readings.

Hungry for more Behavioural Design Week?

Please make sure to check out our other videos of other 2021 Keynote speakers on Behavioural Design Week: Tim Versnel on designing behaviour for sustainability and Baptiste Tougeron on using behavioural science for more effective advertising.

Also, you can find all the videos of the keynotes of Behavioural Design Fest 2018 and Behavioural Design Fest 2019; watch and re-watched here to upgrade your Behavioural Design knowhow and to boost your inspiration.

 

Want to learn how to apply behavioural science yourself?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 1500+ people from 45+ countries in applied Behavioural Design. Or book an in-company program or workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful frames to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Academy brochure here, contact us here or subscribe to Behavioural Design Digest at the bottom of this page. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

Behavioural economics 101: We’re only human.

By | All, Behavioural Science

Behavioural economics, maybe you have asked yourself once or twice, what’s all the fuss about? Why is everybody talking about us not being rational and capable of making good decisions all of a sudden? Is Behavioural Design something you should add to your competence gamma, and if yes, why so? This is a short introduction to behavioural economics. Meant to bring you up-to-speed with what everybody seems to be talking about right now in a simple way. In fact, I could summarise what’s in it for you in one sentence: 

If you want more control over successful outcomes, you have to understand you are dealing with humans, not econs. 

 

behavioural Design

The difference between economics and behavioural economics

Okay, I admit this sounds vague without any background. Basically, it comes down to a difference in paradigm on decision-making between economics and psychologists that gave birth to a beautiful cross-over between the two: behavioural economics (also known as behavioural psychology). What is it all about?

Let’s start with a problem we have probably all faced. Many new products, ventures, policies or innovations of any kind fail because they don’t take a deep understanding of human decision-making into account. They are inside-out, not inside-in driven. Therefore, innovations are often technological high-end, make things more cost-effective or offer different unique selling points, but they don’t start at the end. How do people choose for your offering? What psychological effects does pricing have? What’s, is the impact of social influence? Does the way we display products or frame policies affect decision-making? Which unconscious psychological forces influence our decision-making? Do those forces make objective sense?

According to an economist, the answer is:

  • Decision-making is rational.
  • People make a cost-benefit analysis.
  • The utility is a critical driver of any choice we make.

However, if you have ever had any regret after purchase or not making a purchase, you know that economist rule out one crucial factor: emotion. Emotions from within and emotions attached to what we think others think or expect from us. We are not 100% rational (or econs); we are filled with emotions and sometimes make decisions that are a far cry from most optimal for ourselves or our future.

Behavioural economics puts emotions into the equation

Bounded rationality: critical concept of behavioural economics

Furthermore, economists propose people always have all information at hand to make informed decisions. But is that true? First of all, we are bombarded with information all day long via multiple channels and media. No sane person can process all this rationally. Secondly, do we truly have all information to make informed decisions, for example, about our future? This is where we really have to make crucial decisions, after all. Buying an ice cream is not so hard but deciding upon your mortgage or pension plan is a whole different ballgame. Do you have all the information at hand to make a 100% rational decision here?

For example, do you know exactly your income level in 5, 10 or 15 years? Do you know what the inflation ratio will be in the same periods? Do you know what your health level will be like? Will you be able to work full-time, part-time or be out of work?

Rationality requires completeness of information, computational abilities, consistency in decision-making and cognitive skills (ability to think through a problem unemotionally). No human scores 100% on all these factors. So, what do we do when faced with a decision? We rely on short-cuts and social cues in our context and past experiences. We are only human, after all.

Taking the human, so-called bounded-rational part of us into the decision equation is what behavioural economics is all about.

Behavioural economists have researched and unlocked these human tendencies for years. Behavioural Designers take this behavioural science to design environments that help shape positive behaviours and choices of people. In fact, by using the exact science and combining it with design and creativity, we can create tangible products, services, policies, or organisations that help people make better decisions for their health, wealth and happiness.

Behavioral Design is applied behavioural economics.

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Behavioural economics: a game of choice architecture

One final note: How can we design environments that shape positive behaviours and better choices? Often, we think we need disclosure. Make sure you provide people with all the required information to help them make their informed decision. Unfortunately, that again is an econ approach to matters. Even if you help people with the information they need for a particular decision, we as humans often don’t use it. Most of the times, we know what is good for us but don’t act upon it.

For example, we all know exercising is good for us, and I guess we have all made a plan to do some form of exercise one day or the other, but most of us either started and stopped or are still procrastinating. This is known as the planning-action gap or intention-action gap. This is not new, of course, as we see in general three tools being applied to get humans into action:

  1. Restrictions (you cannot buy alcohol under the age of 18)
  2. Incentives (if your child attends school five days a week, you will get more child support)
  3. Selling (convincing people by telling them about benefits or USPs)

Behavioural Designers use another tool: choice architecture. We take humans and a deep understanding of their decision-making processes as a starting point to design a context that triggers better choices and behaviours. We do it using our SUE | Behavioural Design Method©, a highly structured, practical approach to turn human insights into strategies and ideas that influence better choices and shape positive behaviours. Basically, turning the breakthrough science of human behaviour into practical applications. What this results in, you can check out on our cases page.

Summary: What’s behavioural economics all about

For now, I just want to wrap it up with the three things to remember when designing better choices and behaviours:

  1. You are dealing with humans, not econs
  2. Humans use cues in their context to make decisions
  3. You need to be aware of the intention-action gap

Taking these three principles as starting point already jumpstarts you in thinking as a behavioural designer. And understanding what all the fuss about behavioural economics is about (and how important it is to get a grip on success).

 

Astrid Groenewegen

Want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 40+ countries in applied Behavioural Design. Or book an in-company program or workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful frames to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Academy brochure here, contact us here or subscribe to Behavioural Design Digest at the bottom of this page. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

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Mental accounting: How money works in our brain

By | All, Behavioural Science, Financial Behaviour

Did you know we treat money differently depending on where it comes from, where it is kept, or how we label it? In this blog post, I want to introduce you to the concept of mental accounting. A fascinating psychological phenomenon affecting many of our financial behaviours, such as the way we spent and save money or value things for which we’ve paid money. Understanding more about mental accounting could help us design better financial decisions and behaviours. And understand why some people seem to make financial decisions that don’t always seem to make sense or be in their best interest.

Mental accounting: How humans violate the economic theory

Why mental accounting is so fascinating is that it simply explains why 1 euro isn’t always 1 euro. From an economic theory perspective, this might sound foolish. The value of 1 euro and another euro on the same day is equal. We have a whole international money rate system in place that can tell you the exact worth of your euro at any precise point in time. In four digits. Also, economists believe that it shouldn’t matter if you have a 100-euro banknote or five 20-euro banknotes. It is the same amount of money, and you will spend it the same way; after all, they are exchangeable. However, psychological research has shown that humans often violate this rational approach to money. 

This works may be easiest explained by an example described in the landmark paper of Richard Thaler (1), the author of the influential book ‘Nudge‘ and a Nobel prize laureate. Let’s say you have bought a ticket to a concert and it cost you 50 euros. You made your way to the concert venue, you have dressed up nicely, you have arranged a babysitter, and if you say so yourself: you look good. You are more than ready for the evening out that you have anticipated for weeks. You get to the entrance, reach into your pocket to find out that you have seemed to have lost your ticket. After going through all the stages of grief: denial, pain, anger, depression, acceptance, finally, hope kicks in as you see the ticket booth is still open. You quickly head over to the ticket booth to find out you don’t get your ticket reimbursed but have to pay another 50-euro for a new ticket, which is luckily still available.

Okay, same scenario, but just a bit different. You want to see that same concert, again you dress up nicely, sprayed on a bit of cologne because it is a special night out, after all, the same babysitter is there to attend to your kids, and you head over to the concert venue. When you go over to the ticket booth to buy yourself a ticket, you realise the 50-euro banknote you had put in your pocket to pay for the ticket fell out. After almost panicky going through all your pockets, reality sinks in. The 50 euros are gone. Luckily, the time tickets are still available; you have to get out another 50 euros to buy the ticket. 

The interesting question is would you do so in both situations? From an economist perspective, the exact same situation: You have lost 50 euros, and you have to pay another 50 euros to attend the concert. So, there shouldn’t be a difference in the decision you make. However, Thaler’s research found that people in the first scenario are far more likely not to buy a second ticket, whereas people in the second scenario do. 

If you lose cash, it turns out you’re willing to buy a ticket. If you lose a ticket, you do not want to buy a second ticket.

Mental accounting: What is it, and how do people do it?

Mental accounting explains this story. What is mental accounting? It is the idea that people tend to label money. And the moment you label money differently, it gets spent differently. 

People tend to label money. And the moment you label money differently, it gets spent differently.

 So, how do people mentally account? Well, there are several different ways in which people put money into different psychological categories: 

  1. You could mentally account by purpose. You can allocate money to a specific product or service, or objective. This is what happened with the concert ticket. It was assigned to the concert, losing the ticket felt we had lost out on the concert in our mental account. You think you are already in the ‘red’. You are not going to make it worse by spending even more money on the same product. But allocating money to savings is another way to mentally account by purpose.
  2. You could mentally account by time. You could say I will spend X amount per week or budget that many euros each month.
  3. You could mentally account as a function of how you have earned money. If you have put in many hours of hard work to make your money, you will spend it differently if you have earned it by winning a lottery. 

Want to learn how to shape
financial and other behaviours?

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Mental accounting: The sunk cost effect

Let’s take a look at another way mental accounting influences our behaviour. Let’s get back to the concert. Let’s say you have the ticket, only this time there is a difference in how you acquired that ticket. In the first scenario, you have prepaid for it; in the second scenario, the ticket was a gift. Imagine this situation, on the evening of the concert, there is this raging blizzard storm, and the concert is a two-hour drive away from your home. Would you go to the concert in both scenarios? If you would rationally think about it, you wouldn’t go in both situations. It is much safer to snuggle up comfortably on your couch. However, most people who have prepaid the ticket will make an effort to drive a few hours through a blizzard storm to attend a concert that they (only) paid $20 for. This is caused by a phenomenon known as sunk cost fallacy

If people have spent effort, time or money on something, they will commit to the behaviour related to it; otherwise, they feel they lose out.

The moment you spend money to consume something in the future, our sunk cost effect of mental accounting kicks in. The moment you prepay, you have a deficit in your account. If you cannot consume, then you have to close your account in red. It’s like making a loss. People don’t like making losses, so they rather get what they paid for than perhaps make a better decision not to consume something. For example, if people spent 60 euros on a four-course dinner, but they are already full at the third course, most of them will eat dessert anyway. I paid for it! It feels like a loss not to go or not finish all your plates.

Another example made famous by Richard Thaler is about a man who joined a tennis club and paid a $300 membership fee for the year. After just two weeks of playing, he develops a case of tennis elbow. Despite being in pain, the man continues to play, saying: ‘I don’t want to waste the $300.’ (2)

The sunk cost effect becomes a huge motivator of consumer behaviour.

However, the intensity of the sunk cost effect isn’t always the same; it depends on how closely the cost and benefit are connected. Let me give you an example of how this works. Let’s say you love skiing and you have booked yourself a trip to the French Alps. You got yourself a four-day ski pass giving you access to all the ski lifts for the four days at the costs of € 160. You enjoyed the first three days, and then all of a sudden, the weather conditions change dramatically: Big snows, fog, heavy winds. No skiing conditions that will bring joy. The same scenario, but now you have bought four separate tickets of € 40 with which you can hit the slopes for four days. In which situation would you go out skiing on the fourth day?

This was researched (3), and it showed that people who bought the one ticket would be more prone to stay in. However, the people who had four separate tickets were far more inclined to go out and ski anyway. They felt the €40 burn in their pocket (cost) and want to experience the benefit (skiing). The all-inclusive ticket is, in fact, a form of price bundling. This leads to a ‘decoupling’ of costs and benefits. The effect being it reduces someone’s attention to sunk costs and decreasing a consumer’s likelihood of consuming a paid-for service. In other words,

Price bundling affects the decision to consume.

Now, it becomes interesting how we can use these insights to design for better choice and positive behaviour.

Mental accounting: Using it for better decision-making

Being aware of the human tendency to engage in mental accounting and being affected by the related sunk costs effect can help us develop behavioural interventions that can help people make better decisions. I want to end this blog post with an example of how this might work. 

A lot of people find it challenging to spend less money than intended. You can make this easier for them by partitioning. How does it work? Let me illustrate this with a real-life example that took place in India. In India, there are quite some low-income households with very little spare cash. Salaries are often paid in cash, making it very easy for family providers to spend it, for instance, in the bar, after a hard days’ work. Still, people also needed money for the children’s upbringing, for example. 

Those households typically earned 670 rupees per week (£6,60 or $11,20), and most families only managed to put aside 5 rupees per week (0,75%) (4). The intervention they did is divide the money into envelopes before handing it over to the beneficiary and partitioning it beforehand. It increased the savings rates to 4% (27 rupees per week)(5). What made it even more successful is putting a visual reminder on the envelopes. So, for example, a picture of their children on the envelope contained money for their upbringing.

You could also use this for yourself. We are also more reluctant to spend money we have already mentally allocated for savings. You can distribute very physically, like the envelopes, but think about labelled jars in which you divide your household money. Viviana Zelizer, a sociologist at Princeton, calls this ‘Tin Can Accounting’ (6). The more digitally savvy translation of this is the digital saving buckets many banks offer nowadays, in which you can allocate your savings to specific goals. It will be harder to withdraw money from an ‘ultimate wedding dress’ or ‘summer family holiday’ bucket than from a general savings account.

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to help you design better decisions?

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Summary

We, as humans, often make very emotional decisions when it comes to money. It largely depends on how we have earned, labelled or how our money is kept, how we will treat money and how we value what we bought with the money. This largely influences our behaviour. A euro isn’t always a euro, and a dollar not always a dollar. It may sound illogical, but it will make perfect sense once you understand the concepts of mental accounting and the sunk cost effect. We need to take these psychological phenomena into account if we want to help people make better decisions.

 

Astrid Groenewegen

Want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 40+ countries in applied Behavioural Design. Or book an in-company program or workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful frames to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Academy brochure here, contact us here or subscribe to Behavioural Design Digest at the bottom of this page. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

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How to design a choice: The art of choosing

By | All, Behavioural Science

Can we design a choice? In most societies, if there is one value we hold dear, it is our freedom of choice. Having autonomy is a concept that directly speaks to our core as human being. Suppliers of goods and services understand this and have submerged us in an economy of choice that can match everyone’s individual needs. It fits our need for autonomy like a glove. It allows us to be in the driver seat of our own lives. But is it? Is it true? Does abundance help us make better decisions? Does more choice equal more satisfaction? The answer is no. So, the question is: How we can master the subtle art of choosing to shape better decisions and positive behaviours?

How to design a choice: The paradox of choice

Something interesting is going on which choice. It is a paradox, a concept cornered by Barry Schwartz. He describes the paradox of choice as follows:

‘Learning to choose is hard. Learning to choose, well, is harder. And learning to choose well in a world of unlimited possibilities is harder still, perhaps too hard.

So, what does this implicate? Is less indeed more? Well, yes and no. In most cases, too many options to choose from isn’t in our best interest. This has to do with our bounded rationality. We, as human beings, cannot make every decision in our daily lives wholly rational or, better put, with focused attention. There are too many decisions for us to deal with to do so.

Just think about your morning. From the moment you heard your alarm go off, you had to decide to turn it off or snooze. You had to decide to stretch or do another roll-over on your side right into that comfy spot that has the perfect temperature; You had to decide to get up or sleep in for just a little bit longer. You had to decide to get dressed right away or get your first coffee in PJ’s first. You had to decide to have coffee indeed, or did you decide to have something else? Or did you decide to go pee first? I have not even begun to talk about the decision to check your phone, turn on the radio, heating or toaster yet. Or the decision to combine all of these with checking your to-dos of the day. And your day has only just started.

These examples all may seem trivial, but they’re not. It is estimated that your brain has to compute about 35.000 decisions a day, from minor ones to bigger ones. Your brain cannot process all of them consciously or with extensive thought; It would simply crash. Therefore, a lot of our decisions are made automatically and unconscious. As Nobel laureates Kahneman and Tversky have discovered, we have two operating systems in our brain: A deliberate and an automatic one. And the automatic one has the upper hand, which is a good thing. It simply shows our brain is wired to help us navigate as with as little effort as possible through life.

How to design a choice: The phenomenon of choice overload

Now back to too many options to choose from. Why does it work against us?

First of all, having too many options causes apathy simply as it requires too much cognitive activity. This can lead to decision fatigue or even not making any decision at all. This phenomenon is called choice paralysis (also referred to as choice deferral).

There is a cognitive bias related to this phenomenon called regret aversion. When people anticipate regret from a choice, they tend to not act at all. This can have severe consequences. A meta-analysis has shown that people’s behaviour to accept medical treatments is influenced more to avoid regretting making the wrong choice than it is influenced by other kinds of anticipated negative emotions. Therefore, when designing a choice, you have to be aware that the number of options you present to someone also enhances the probability of choice regret. Which in return enhances inertia. In the mentioned example, this has shown to seriously impact behaviour concerning health.

Secondly, when we have more options to choose from, we tend to make worse decisions as we tend to rely even more on our system 1 cues, which can be biased. Examples are our tendency to stick to defaults, recommendations, or reliance on peer choices. Have you ever said in a restaurant: I am having what he/she is having’? Well, probably this was caused by option overload on the menu. Research showed what happens if there are either six or thirty food options on a menu. In the first case, people tend to choose for themselves. In the second case, they choose what their partner chooses.

Thirdly, we tend to make more conservative choices to minimise the potential for regret.

And finally, the more options to choose from we have, the less satisfied we are with the choice we did make. The more options, the more we feel we ‘missed out on.’ In his book, Schwartz described two experiments. One in which people had to choose between 20 varieties of jams and another could choose between six models of jeans. The experiment showed that the more choices people had, the less satisfied they were with their final choice. This matches Sheena Iyengar’s research, professor at the Columbia Business School and author of ‘The Art of Choosing’, which taught us that:

‘The existence of multiple alternatives makes it easy for us to imagine alternatives that don’t exist. And to the extent that we engage our imaginations in this way, we will be even less satisfied with the alternative we end up choosing. So, once again, a greater variety of choices actually makes us feel worse.

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What works to design a choice: Bounded choice

So, what works then to design choice in a way it shapes positive behaviours? Next to the concept of bounded rationality, there is the concept of bounded choice (which I prefer to call bounded options as you may have guessed). Let’s look back at the paradox of choice again. It shows that having too many choices has been associated with feelings of unhappiness.

 

A greater variety of choices actually makes us feel worse.’

But on the other hand, it works the other way around too, and on the more positive side of things:

Limiting the number of options can lead to more satisfying choices.

Researchers did a meta-analysis comparing 99 scientific studies on choice overload. They found that choice reduction is most effective when:

  1. When people want to make a quick and easy choice
  2. When the product is complex
  3. When it’s difficult to compare alternatives
  4. When consumers don’t have clear preferences

Before we design a choice: Ethical considerations

From an ethical point of view, it is good to make a distinction between options and choice. We feel it can be a very effective Behavioural Design to help someone make better decisions by limiting an option, but you shouldn’t forbid a choice. So, in fact, you design choice by working with options. This is the essence of nudging. Let me illustrate the difference with an example.

Limiting the number of options or take out some options altogether has, for example, proven to be very beneficial in helping people who are struggling with being overweight. One very effective way to fight this is to change eating habits. A lot of interventions have been developed and tested to help people change their eating patterns. From adapting food labels to more affective nudges, for example, by promoting the taste instead of a particular food’s healthiness. From a meta-analysis, aggregating data from almost 96 behavioural experiments on successfully promoting healthy eating, the most effective intervention turned out to change the plate and cup size Taking an option (in this case, large 16 oz. cups) helped people eat less and still feel satisfied. Although you take away options with this intervention, you don’t take away the freedom of choice. People always have the choice to go for a refill or buy a second portion. Only, it turned out not many people do. By simply reducing options, you make it easier for people to change their behaviour.

Just one more argument against limiting freedom of choice (instead of options). We, as humans, are wired to want a sense of control and closely tied to this sense of control is our need for freedom and autonomy. If you do forbid a choice, you may, therefore, very well encounter adverse effects. People might start avoiding, ignoring or counterarguing. This is also why warnings backfire. We don’t like to be told what to do. It crosses our innate need for freedom. And if people are pushed into doing something, they push back. How many times did you change your mind or behaviour in your adult life because someone demanded you to do so? My parents and teachers still had that influence on me, but in daily life when we want to influence people, we need to allow for agency.

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Designing a choice: Behavioural change interventions

Time to turn human understanding into practice. What can we do to help people make better decisions and be more satisfied? I want to show you five behavioural intervention strategies to design for better choices:

Limit or remove options
Terminate products or services that are not doing well.

Organise options
Make categories or ease people into choosing from more options.

Frame options
Present information to someone in a way choosing becomes easy.

Help people to understand their personal preferences
Helping them limit options to the ones that fit them.

Offer expert advice
This way, people can ask a specialist to help them choose, outsourcing the decision.


Limit or remove options
How far you should limit options depends on the behaviour you are designing. If you want someone to click on a button on your website, it is better to have one clear option. If you want someone to pick a health regimen, it works to have three options, with your preferred option positioned in the centre, as people tend to gravitate to the middle. If you want someone to buy a specific product, it works to show two options of which the left product (in Western countries) is a decoy that is priced much higher than your target product. This higher-priced product will act as a mental anchor that makes people feel your product is a perfect deal. These are best practices from behavioural science, but it is always a matter of experimenting with what works best in your situation. One thing remains the same for every situation: Less is always more when shaping decisions and behaviour. 

Organise options
However, you can make people more capable of choosing from more options. You just have to do it gradually. A research team at a German car manufacturer ran an experiment with the manufacturer’s online car configurator. Potential clients using the configurator had to choose from 60 different options to configure their entire car. Every option again consisted of sub-options. For instance, to pick your car colour, you had 56 colours to choose from, picking your engine also four options and so on. It seemed logical to have people select an ‘easy option first. For example, colour is something that most people have a set preference for. And then move to the ‘harder’ options like the engine. The experiment made half of the customers go through the configurator from many options (e.g., colour) to fewer options (e.g., engine type). The other half from fewer options to many options. The researchers found that they ‘lost’ the second group: They kept hitting the default button or aborted the process. The first group hung in there. They had the same information and the same number of options, only the order in which the information was presented varied. 

If you start someone off easy, you can teach them how to choose.

Frame Options
Sometimes option reduction is a matter of framing. In other words, thinking about how to present information to someone. Maybe you have kids, and well, most kids aren’t big on eating veggies. Mine isn’t, anyway. We, as parents, often tell our kids: ‘Eat your peas’. You’ll probably have more success if you give your kids a sense of control, designing the options a different way. ‘Do you want to eat your peas or carrots first?’ It can also work in our professional life. Let’s say you are in negotiation with a talent you like to attract your team or organisation. Make sure you frame your negations in a way options are limited but still allow for autonomy. To make it more real: Often, negotiations come down to challenging the salary offer. Suppose you give someone the option to get awarded a higher salary, but you tie a condition to it. For example, sure, you can have a higher salary X, but it implies X fewer days off. Your candidate still has freedom of choice, but at the same time, you framed your offer as bounded options. Thus, prevented setting the stage for a limitless salary/bonus battle, nitpicking over secondary employment conditions. ‘It’s either this or that kind of framing.

Identify personal preferences
We have seen that when we experience option overload, we tend to rely on system 1 cues such as following the choices of others. If you can help someone identify their personal preferences, you can rule out a lot of options. This is why shopping bots or online filters really help us navigate through options. Once you have set your preference, you only get to see a selection of all available options.

Offer expert advice
A different way to reduce options is to outsource the decision process to an expert. In this case, we can learn from the healthcare domain. If you have a condition that can be solved with treatment A, B or C, most people follow their doctor’s advice for a specific treatment. He rules out some options for you. What if we could also provide trusted experts in other domains? If you know, you can rely on an exercise, nutrition, finance, education expert? That would save you a lot of option researching and go down a rabbit hole of endless possibilities. You could simply follow the lead of a trusted specialist.  

To conclude, there is, in fact, an art to choosing. If you start to understand a bit more about the workings of the human mind this will give you far more control over successful outcomes. You can choose to be more successful, in fact. How’s that for a change? Doesn’t it spark your sense of freedom?

 

Astrid Groenewegen

 

 

References (alphabetical):

Brewer, N. T., DeFrank, J. T., & Gilkey, M. B. (2016). Anticipated regret and health behavior: A meta-analysis. Health Psychology, 35(11), 1264-1275.

Cadario, R., & Chandon, P. (2019). Which healthy eating nudges work best? A meta-analysis of field experiments. Marketing Science.

Chernev, A., Ulf Böckenholt, Joseph Goodman (2016). Corrigendum to choice overload: A conceptual review and meta-analysis. Journal of Consumer Psychology, Volume 26, Issue 2, April 2016, Pages 333-358.

Chernev, A., Böckenholt, U., & Goodman, J. (2015). Choice overload: A conceptual review and meta-analysis. Journal of Consumer Psychology, 25(2), 333-358.

Iyengar, S., & Lepper, M. (2000). When choice is demotivating: Can one desire too much of a good thing? Journal of Personality and Social Psychology, 79, 995-1006.

Iyengar, Sheena (2010). The Art of Choosing: The Decisions We Make Every day – What They Say About Us and How We Can Improve Them. Hachette UK.

Johnson, E. J., Shu, S. B., Dellaert, B. G.C., Fox, C. R., Goldstein, D. G., Häubl, G., Larrick, R. P., Payne, J. W., Peters, E., Schkade, D., Wansink, B., & Weber, E. U. (2012), Beyond nudges: Tools of a choice architecture, Marketing Letters, 23, 487-504.

Schwartz, Barry (2004). The Paradox of Choice: Why More Is Less, Ecco.

Thaler, R. H., & Sunstein, C. R. (2008). Nudge: Improving decisions about health, wealth, and happiness. Yale University Press.

 

Photo by Clay Banks

Want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 40+ countries in applied Behavioural Design. Or book an in-company program or workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful frames to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Academy brochure here, contact us here or subscribe to Behavioural Design Digest at the bottom of this page. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

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BJ Fogg model explained

By | Behavioural Science

Excerpt: this is a reference page on which you can find an explanation of the Behavior Model as developed by professor BJ Fogg who founded the Standford Persuasive Tech Lab. His model shows that it takes three elements to be present at the same time: motivation, ability and a prompt (formerly know as a trigger) to be able to change behaviour. It’s such an elegant and easy to understand model that we use it on a daily basis to come up with solutions that will lead to positive behaviour.

 

BJ Fogg model

On this page, we want to give you an introduction to  BJ Fogg’s Behavior Model. Professor Fogg is one of the grounding fathers of the scientifical research in behavioural psychology. Maybe you have heard of the concept persuasive technology or even persuasive design. The BJ Fogg Behaviour model is a smart and easy-to-use tool in this field of expertise. It explains which three buttons you need to push to be able to persuade someone into doing something. Or as BJ Fogg explains it himself three elements that have to be present at the same time to change behaviour: motivation, ability, and trigger.

Advocate in using behavioural psychology for the positive

Important side note to this is that BJ Fogg is a very strong advocate of using insights into human psychology for the positive. And so are we. Our founding mission is to unlock the power of behavioural psychology to nudge people into making positive choices in work, life, and play. Behavioural psychology or behavioural design is a very powerful tool for changing people’s behaviour, let’s all use it for helping people to engage in better behaviour.

This isn’t so much an article, but more a reference page that you can consult whenever you want to know more or reread about the BJ Fogg model. To make your life a bit easier we have created page sections, so you can easily jump to a particular subject that is of particular interest to you. We also have included links into this page to more detailed information if you want to dive a bit deeper. The page sections:

BJ Fogg Behavior Model explained
Prompts
Motivation
Ability

BJ Fogg Behavior Model explained

We love working with the Behavior Model because of its elegance. There’s a lot of research on behavioural psychology, and there are a lot of models on behaviour change out there, but things can get pretty complicated. BJ Fogg has made understanding what triggers people to change behaviour very simple. This makes his model very easy to use on a daily basis. What does the model look like?

Bottom line is this: Behavior = motivation x ability x prompt. NB. Formerly BJ Fogg called prompts, triggers that’s why you see them used both. The lastest is prompts. When the desired behaviour does not happen, at least one of those three elements is missing. The most important implication of this is that using the Fogg Behavior Model (FBM) as a guide; you can quickly identify what stops people from performing behaviours that you seek. Also known as the desired behaviour.

If a sufficient degree of motivation to perform a behaviour is matched with the ability to do that behaviour, all that is then needed for the behaviour to occur is a trigger. Illustrated in the model as the activation threshold. Triggers placed on the right-hand side of the threshold will lead to behaviour change, triggers to the left will probably show no behaviour change.

Three simple questions to ask

What makes the model so easy to use in practice, is that anytime you want to understand better why behaviour isn’t happening, all you have to do is ask yourself three simple questions to spot what is lacking for behaviour change to happen:

  1. Is someone motivated enough?
  2. Does someone have the capabilities of performing the desired behaviour?
  3. Did we remind them/ask them to perform the desired behaviour?

Let’s discuss an example. Think about quitting smoking. If someone doesn’t want to stop smoking (low motivation). You can trigger him all you want, but nothing will happen, as quitting smoking is very hard to do (low ability). You’ll end up on the lower right side of the model. If someone is very highly motivated to quit smoking. It is still very hard to do (low ability). So, you should think about how you could make it easier for this person (higher ability). An answer could be by thinking about baby steps. Making the desired behaviour easier by breaking up the desired behaviour in easier to perform steps.

For example, putting a button (prompt) on a stop smoking website to easily order free ‘stop smoking patches’ (easy to do, or higher ability). Someone can quickly start with sticking on these patches. And from there on you can persuade him or her to do something harder (example reducing the number of cigarettes smoked on a day).

In the next sections, we will explain the separate elements of the model in some more depth, starting with triggers.

Fogg on Prompts

A prompt is easily put a cue or call to action that causes someone to perform a certain behaviour. A prompt should be noticeable and actionable. In other words, you should be able to spot the prompt (could be with one of all your senses), and you should know what to do when seeing the prompt. A very known prompt is a traffic light. You see it. We all know we have to stop when the light is turned red. And we know we can drive when the light is green.

Another trigger that probably sets yourself in action multiple times a day is that little red notification on your mobile. You see it, and you know what to do: check your email.

But if someone comes up to you and reaches out his hand to you, that’s a prompt too. You see it, and you know it is meant for you to shake his hand.

What’s important to remember is that if you want to change behaviour, you have to prompt the behaviour. Without a prompt, someone can be very motivated and have the ability to perform the behaviour, but there’s simply no call to action.

BJ Fogg used to have a beautiful expression; he says that our job as a behavioural designer is ‘to put hot triggers in the path of motivated people.’ Which brings us nicely to the next section: motivation.

 

Fogg on Motivation

There are a lot of theories of motivation out there, most of them explain how motivation is the key concept needed to change attitude, which then leads to behaviour change. What is so interesting about behavioural psychology is that it has unravelled the fact that it works the other way around. People tend to change their attitudes to be consistent with the behaviour they have performed. In other words, if you can trigger certain behaviour, you can change attitudes.

This has everything to do with our brains constantly working hard for us to lower our cognitive overload. And being consistent is one of the mechanisms that help us do that. If you’d like to get some more in-depth insights into the workings of our brain in decision making, make sure to check out our post about system 1 and 2 thinking of Kahneman.

When motivation is high, you can get people to do hard things

But let’s get back to motivation as used in the BJ Fogg model. Motivation in his model is also not about changing attitudes; it is all about changing behaviour. As a person, you can be highly motivated or low motivated. BJ Fogg has identified three core motivators. But the key idea to remember for now is that when motivation is high, you can get people to do hard things. But once motivation drops then people will only do easy things.

Just think about a situation you might have found yourself in. Have you ever had the intention to eat all day healthily? You’re highly motivated to do so. And then it is 4 pm. You start to get hungry. Someone comes in a puts a bowl of potato chips just within your arm’s reach, and your motivation starts to drop. Before you know it you catch yourself eating the chips. It was made so easy; you have performed the behaviour without you even discussing it with your motivation anymore. But the same goes if someone had put a bowl of cucumber slices near you. You would have eaten the cucumber. Nothing to do with your motivation, but with easy to do things.

Start with the ability

Dr Fogg himself recommends to always start with making the desired behaviour easier instead of starting at motivation. Our brain prefers simplicity, which brings us to ability. But do you want to really grasp the concept of motivation? In this post, we tell you all about motivation as researched by BJ Fogg. We use Cialdini’s persuasion principles to boost ability.

Fogg on Ability

To perform the desired behaviour, a person must have the ability to do so. That seems obvious, of course. But designers of persuasive experiences sometimes assume people have more ability than they do.

There are two paths to increasing ability. You can train people, giving them more skills, more ability to do the target behaviour. That’s the hard path. The better path is to make the target behaviour easier to do. BJ Fogg calls this simplicity. In his model, he sometimes replaces ability with simplicity. By focusing on the simplicity of the target behaviour, you increase ability. There are six simplicity factors:

1. Time

If a target behaviour requires time and we don’t have time available, then the behaviour is not simple.

2. Money

For people with limited financial resources, a target behaviour that costs money is not simple. That link in the simplicity chain will break easily. For wealthy people, this link in the chain rarely breaks. In fact, some people will simplify their lives by using the money to save time.

3. Physical effort

Behaviours that require physical effort may not be simple.

4. Brain cycles

If performing a target behaviour causes us to think hard, that might not be simple. This is especially true if our minds are consumed with other issues. We all are busy trying to lower our cognitive overload as explained by Kahneman. We generally overestimate how much everyday people want to think.

5. Social deviance

What is meant by social deviance is going against the norm, breaking the rules of society? If a target behaviour requires you to be socially deviant, then that behaviour is no longer simple.

6. Non-routine

People tend to find behaviours simple if they are routine, activities they do over and over again. Also referred to as habits or autopilot. When people face a behaviour that is not routine, then they may not find it simple. In seeking simplicity, people will often stick to their routine or habits, like buying groceries at the same supermarket, even if it costs more money or time than other options.

300 million button story

One of the most known examples of ability intervention is the 300 million dollar button story. The story is about Amazon.com. In the early days of the launch of their online shopping platform, they used to have a check-out form that consisted of two fields (email address and password), two buttons (login and register) and one link (forgot password). You would say this is simplicity.

But it turned out this form was preventing customers from buying products. They found out that new customers didn’t want to register right away, and returning customers often forgot their login and/or password and gave up after several failed login attempts.

Proceed to check-out

What did they do? They did an ability intervention. They took away the register button and replaced it with a button that said ‘continue’ accompanied with a simple message: “You do not need to create an account to make purchases on our site. Simply click continue to proceed to checkout. To make your future purchases even faster, you can create an account during checkout.” The story goes making the desired behaviour easier simply by changing the button, boosted sales with 45% ($ 300.000.000) in the first year.

 

To sum Fogg up

The BJ Fogg Behavior Model is a very useful model that derives from human psychology and is very recommendable to use for everyone who is involved in human-centred design or persuasive design. If you want to change behaviour three elements have to happen at the same time: motivation, ability, prompt. Also known as B=MAP. Advice is to start at ability. Making the desired behaviour easier to do, or the undesired behaviour harder to do.

We have looked at all three elements of the model; BJ Fogg explains the Behavior Model himself in this 2 and half minute video if you’d like to do a quick recap:

 

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