Category / Users

Screen Shot 2014-11-10 at 8.45.09 AMOn May 1, 1981, American Airlines launched its frequent flyer program AAdvantage. Since then, a flood of loyalty programs have attempted to bring customers back through rewards.

Today, you can become a card-carrying member of just about anything: hotels, supermarkets, drugstores and pizza chains. If you’re in a store, chances are someone will ask, “Would you like to join our rewards program?”

Marketing professors, store managers and executives are still not sure how effective these initiatives are. One puzzle is the link between participation and loyalty. It’s not that strong. Millions of Americans are enrolled in at least one loyalty program, but just a fraction of them are dedicated customers. Typically, loyalty programs work only to the extent that they reward customers who are already loyal.

product psychology

I do quite a bit of research, writing, and consulting on product psychology — the deeper reasons underlying why users do what they do. I also frequently teach and speak on the topic. Invariably, after each talk, someone approaches me and asks, “That was very interesting. Now where do I learn more?”

I’m never sure what to say, since there’s so much great information available. What this person really wants to know (and I’m assuming you do, too) is where all the really good stuff is. They want to know the highlights, the takeaways, and the methods and techniques that can help them be better at their careers, build better products, and ultimately improve people’s lives.

That’s why I’m proud to announce a new online course called Product Psychology. This free course taps into the collective wisdom of some of the brightest minds in the field to help you better understand user behavior. They’ve taken the time to dig up their favorite articles, videos, and resources to get you up to speed quickly. Best of all, lessons are sent free via email.

Nir’s Note: This post was co-authored with Stuart Luman, a science, technology, and business writer who has worked at Wired Magazine, the Bulletin of the Atomic Scientists, and IBM.

MAKING WORK INTO A GAME HAS ITS CRITICS. IS THIS A PRACTICE WORTH KEEPING?

11550024626_8a0284ef2a_bIn the never-ending effort to motivate employees, companies are taking cues from video games–adding scoring, virtual badges, and other game-like elements to everyday work processes to make jobs more fun.

Some proponents insist that one day every job will somehow be gamified, while detractors fear it’s just another management fad or worse, a sinister new form of corporate control.

To weed through some of the hype, here are four pros and cons to gamifying the enterprise.

The Good

1. GAMIFICATION INCREASES EMPLOYEE ENGAGEMENT

The most often cited reason companies try gamification is to improve employee motivation. Apparently, there are a lot of workers who need the extra boost. According to a 2013 Gallup poll, 70% of U.S. workers reported themselves as not being engaged in their jobs.

Nir’s Note: This guest post comes from Marc Abraham, a London-based product manager. In this article, Marc reviews the recently published book Designing for Behavior Change by Stephan Wendel. Follow Marc on Twitter.

Designing for Behavior ChangeBehavioral economics, psychology and persuasive technology have proven to be very popular topics over the past decade. These subjects all have one aspect in common; they help us understand how people make decisions in their daily lives, and how those decisions are shaped by people’s prior experiences and their environment. A question then arises around what it means to change people’s behaviors and how one can design to achieve such change.

Stephen Wendel, a Principal Scientist at HelloWallet, has written Designing for Behavior Change, which studies how one can apply psychology and behavioral economics to product design. In this book, Wendel introduces four stages of designing for behavior change: Understand, Discover, Design and Refine (see Fig. 1 below):

Recently, I started looking into the explosively popular new game Kim Kardashian: Hollywood. The game has ranked at or near the top of Apple’s U.S. App Store charts for the most downloaded free game. Industry watchers say the app could gross $200 million annually and net Kardashian a sizable chunk of the game’s profits.

My line of work is researching what makes some products so compelling and in the case of the Kardashian game, I wanted to know what was behind the app’s phenomenal growth.

I soon discovered that one potential driver of all of its installs is a rather sneaky tactic that exploits user error and can unwittingly post messages to players’ Twitter accounts.

It’s called the “viral oops.”

Unlike viral loops, which are actions users take in the normal course of using a product to invite new members, viral oops rely on the user ‘effing-up.

Nir’s Note: This guest post is by Dr. Marc Lewis, who studies the psychology and neuroscience of addiction. After years of active research, Marc now talks, writes, and blogs about the science and experience of addiction and how people outgrow it. Visit his website here. 

Xbox 360 ControllerYou’ve just obliterated the last seven or eight zombies. It was a narrow escape and you’re flushed with satisfaction. But you didn’t see that horrendous creep, weaping sores and oozing  pus, because he was hidden behind the dustbin in the shadow of a bombed out building. You get slimed, you’re dead. Or worse than dead. So you touch the “play again” bar at the bottom of the screen. Now you start further ahead than last time. You know you’re going to meet the slime-master again. Soon. Be prepared.

Or you’ve crossed the desert and scaled the abandoned fortress, nearly to the top, moving along pathways that require hair-trigger adjustments with your joy-stick. But the wind is getting stronger by the second. It keeps pushing you back along the path, dangerously close to the edge. You make a daring dash between gusts. But you miscalculated, and the force of the wind blows you right off the edge. Down you plummet, to a plateau you crossed minutes ago. Now you have to make that climb again. But do it better. Get it right.

Nir’s Note: This guest post comes from Marc Abraham, a London-based product manager at Beamly. In this article, Marc reviews the recently published book “Designing Multi-Device Experiences” by Michal Levin. Follow Marc on Twitter or check out his blog.

book coverWe live in a world where the number of connected devices is growing on a daily basis at an immense rate, with people constantly switching between these devices (PCs, smartphones, tablets, TVs and more). The question arises how we can design optimally for a device to be used together with other devices.

Michal Levin, a Senior User Experience Designer at Google, has created a framework which aims to capture the interconnections between different devices. Levin calls this framework an “ecosystem of multi-connected devices.’ The underlying goal behind this framework is to enable designers and product creators to “understand the different relationships between connected devices, as well as how individuals relate to them.” As a result, companies can create natural and fluid multi-device experiences for their users. Levin has written about the fundamentals of this ecosystem in her book Designing Multi-Device Experiences.

Nir’s Note: In this essay, Ryan Stuczynski and I discuss the relationship between habits and user satisfaction. Ryan was the Director of Analytics at Fab and today leads growth for theSkimm. Follow Ryan on Twitter or Medium.

Here’s the Gist:

  • People have limited bandwidth when it comes to mobile app usage and habits matter for long-term engagement.
  • Usage frequency helps explain whether a company is successfully creating user habits.
  • Companies able to create more frequent usage habits enjoy higher user satisfaction as measured by Net Promoter Scores.

In the company’s first quarter earnings call, Facebook CEO Mark Zuckerburg told Wall Street investors, “almost 63% of people who use Facebook in a month, will use it in a given day.” He continued, “another stat that I think is actually quite interesting is we track how many people use Facebook not just every day … but what percent of people used it 6 days out of 7 days of the week. And that number, for the first time in the last quarter, passed 50%. So, that’s pretty crazy, if you think about it … more than 50% of people have used it 6 days out of 7 days of the week, almost every single day of a week.”

Help techAddiction can be a difficult thing to see. From outward appearances, Dr. Zoe Chance looked fine. A professor at the Yale School of Management with a doctorate from Harvard, Chance’s pedigree made what she revealed in front of a crowded TEDx audience all the more shocking. “I’m coming clean today telling this story for the very first time in its raw ugly detail,” she said. “In March of 2012 … I purchased a device that would slowly begin to ruin my life.”

At Yale, Chance teaches a class to future executives eager to know the secrets of changing consumer behavior to benefit their brands. The class is titled “Mastering Influence and Persuasion,” but as her confession revealed, Chance was not immune from manipulation herself. What began as a research project soon turned into a mindless compulsion.

Nir’s Note: This guest post is written by Max Ogles. Max is an editor for NirAndFar.com and heads marketing for CoachAlba.com, a mobile health startup. Follow him on Twitter and read his blog at MaxOgles.com.

Screenshot 2014-05-14 11.39.14Weight gain happens pound by pound, over many years, and that’s how Dave Haynes found himself sixty pounds away from a healthy BMI. In his career, Dave was immersed in the startup world; he helped start Soundcloud, which allows anyone to share and produce music and has over 10 million users. So when he ultimately resolved to reverse this disturbing weight trend, he naturally looked to technology for the solution; he downloaded the popular fitness apps and bought an Internet-connected Withings scale. But could these online apps help him achieve real-life behavior change?