Nir’s Note:This guest post comes from Brendan Kane who has built technology for MTV, Paramount, Taylor Swift, Rihanna, and the NHL. In this article, Brendan describes how he reprogramed the way he views the world using little more than his iPhone and iPad.
We all have the power to change our lives. I know this because I found ways to reprogram my inner circuitry and change my perspective of the world. A few simple steps inserted into my daily routine dramatically improved my life. Surprisingly, many of my new rituals were made possible using the technology I carry with me every day.
“Because the people who are crazy enough to think they can change the world are the ones that do.”
I was trained to think small and seek comfort rather than risk. From an early age, many of us are told to think realistically and to leave the big audacious ideas to people with more experience and resources. But the truth is, as Steve Jobs said, ““Everything around you that you call life was made up by people that were no smarter than you.”
We are all born with the same basic brain hardware and though there are variations in intelligence between people, the differences are relatively minor and show little correlation with life outcomes. However, what does make a difference is how much we believe in ourselves and our capabilities. A much greater determinant of where we will end up in life is whether we have what Stanford researcher Carol Dweck calls a “fixed” or “growth mindset.”
Nir’s Note: In this guest post, Jonathan Libov explores free-to-play apps and takes a wry look into our future. You can connect with him on Twitter at @libovness or visit his website, Whoo.ps.
Three-card Monte is a classic street hustler’s game. The dealer shows you the target card — say, the ace of spades — then leisurely shuffles it with two other cards and places them in a row, face-down. Your job is to pick the target card. Pick right and you win.
The game starts out shockingly easy. You’re offered the chance to play a few rounds for free — or at a very low cost — just to get the hang of it and you win each hand. Not only does your confidence rise with each turn, but you find yourself amped-up from playing the fast-paced game on a bustling street.
With your adrenaline rising, you reach into your pocket, pull out your wallet, and drop $20 on the table to up the ante.
And just like that it’s gone.
The dealer introduced a sleight-of-hand to increase the difficulty of the game — free to play, nearly impossible to win.
The job for the Three-card Monte operator is to build your confidence enough to entice you to reach into your pocket and overcome any second thoughts you might have. Mobile game makers have a word for the obstacles that stand between the player and the designer’s objectives — they call it “friction”.
Nir’s Note: An edited version of this essay appeared in The Atlantic. Below is my original.
It’s not often an app has the power to keep someone out of a strip club. But according to Bobby Gruenewald, CEO of YouVersion, that’s exactly what his technology did. Gruenewald says a user of his app walked into a business of ill repute when suddenly, out of the heavens, he received a notification on his phone. “God’s trying to tell me something!,” Gruenewald recalled the user saying, “I just walked into a strip club — and man — the Bible just texted me!”
YouVersion recently announced its app hit a monumental milestone — placing it among a rare strata of technology companies. The app, simply called “Bible,” is now on more than 100 million devices and growing. Gruenewald says a new install occurs every 1.3 seconds.
On average, some 66,000 people have the app open during any given second, but that number climbs much higher at times. Every Sunday, Gruenewald says, preachers around the world tell devotees, “to take out your Bibles or YouVersion app. And, we see a huge spike.”
The app was funded and built by LifeChurch.tv of Edmond, Oklahoma. Though Silicon Valley digerati rarely heed lessons from churches in red states, in this case, Gruenewald and his team have something to preach about.
Imagine walking into a busy mall when someone approaches you with an open hand. “Would you have some coins to take the bus, please?” he asks. But in this case, the person is not a panhandler. The beggar is a PhD.
As part of a French study, researchers wanted to know if they could influence how much money people handed to a total stranger using just a few specially encoded words. They discovered a technique so simple and effective it doubled the amount people gave.
The turn of phrase has been shown to not only increase how much bus fare people give, but was also effective in boosting charitable donations and participation in voluntary surveys. In fact, a recent meta-analysis of 42 studies involving over 22,000 participants concluded that these few words, placed at the end of a request, are a highly-effective way to gain compliance, doubling the likelihood of people saying “yes.”
What were the magic words the researchers discovered? The phrase, “but you are free to accept or refuse.”
The “but you are free” technique demonstrates how we are more likely to be persuaded when our ability to choose is reaffirmed. The effect was observed not only during face-to-face interactions, but also over email. Though the research did not directly look at how products and services might use the technique, the study provides several practical insights for how companies can influence customer behavior.
Interested in boosting customer desire? A classic study reveals an interesting quirk of human behavior that may hold a clue.
In 1975, researchers Worchel, Lee, and Adewole wanted to know how people would value cookies in two identical glass jars. One jar held ten cookies while the other contained just two stragglers. Which cookies would people value more?
Though the cookies and jars were identical, participants valued the ones in the near-empty jar more highly. Scarcity had somehow affected their perception of value.
There are many theories as to why this was the case. For one, scarcity may signal something about the product. If there are less of an item, the thinking goes, it might be because other people know something you don’t. Namely, the cookies in the almost empty jar are the num-numier choice.
It’s About Context
Classical economic theory starts with two key assumptions: First, consumers are armed with “perfect information.” Second, people behave rationally. However, in the real world, these two conditions are more the exception than the rule. In fact, marketers do their best to trigger cognitive quirks, like the scarcity heuristic, to influence behavior.
Even though it may make no objective difference regarding what is actually being sold, marketers know context matters just as much as the product itself. The near-empty jar with just two cookies left in it conveys valuable (albeit irrelevant) information.
How do products tempt us? What makes them so alluring? It is easy to assume we crave delicious food or impulsively check email because we find pleasure in the activity. But pleasure is just half the story.
Temptation is more than just the promise of reward. Recent advances in neuroscience allow us to peer into the brain, providing a greater understanding of what makes us want.
In 2011, Sriram Chellappan, an assistant professor of computer science at Missouri University of Science and Technology, gained unheard of access to sensitive information about the way undergraduates were using the Internet. His study tracked students on campus as they browsed the web. Chellappan was looking for patterns, which not only revealed what students were doing online, but provided clues about who they were.
“We believe that your pattern of Internet use says something about you,” Chellappan wrote in the New York Times. “Specifically, our research suggests it can offer clues to your mental well-being.” Chellappan concluded that there was, in fact, predictive power in the data. He found students with early signs of clinical depression used the Internet differently and he could identify students most likely to face mental health issues simply by looking at how they clicked.
“We identified several features of Internet usage that correlated with depression,” wrote Chellappan. “For example, participants with depressive symptoms tended to engage in very high e-mail usage.”
Chellappan developed the technology in hopes of creating an early-warning system to identify struggling students. But his study raised another question, why do people with depression check email more?
“Successful entrepreneurs recommend reading this article about the persuasion techniques companies use to drive engagement.”
Scratch that, how’s this? “Tons of people are tweeting this article. Find out why.”
OK, here’s one more. “This article will only be on the TechCrunch front page for a few hours before fading into the information abyss.”
Perhaps your preference for one of the opening lines above is a matter of taste, but for companies leveraging the explosion of personalized data, it’s very big business.
Marketers are increasingly personalizing their products and services to meet their customers’ changing needs. But customization used in conjunction with powerful persuasion techniques is arming marketers with new weaponry to boost customer engagement and drive profits.
The tools of influence, such as authority (seen in the opening line), social proof (second line), and scarcity (third line), have been used to persuade consumers since Edward Bernays launched the public relations industry during the first World War. Bernays, the nephew of Sigmund Freud, applied his uncle’s theories of the human subconscious to drive consumer behavior. Back then, marketers, including tobacco companies and the CIA, hired Bernays to shape public opinion and influence the masses.
Bernays, and the PR and advertising industries he spawned, sold consumers goods and ideas by tapping deep into the human psyche. For example, Bernays engineered demand for cigarettes among women by associating smoking with the desire for independence and freedom from male domination.
This week, Baba Shiv and I taught a class at the Stanford Graduate School of Business called, “Using Neuroscience to Influence Human Behavior.” The course focused on the science behind how consumers make decisions.
During the class, we walked through my Desire Engine framework, a four-step cycle that creates preferences and usage habits. Readers of my blog will be familiar with the model but I wanted to share some slides regarding one particular part of the Desire Engine, the “investment phase”.
This phase involves customers doing a bit of “work”, which commits them to the usage of the product. Investment makes re-engaging with the product more likely, and with the slides below, I try to explain why.
Slides from the Investment Phase discussion are below and I apologize for not having a voiceover to go with them yet. I’ll be writing more on this topic in the coming weeks but wanted to share some of the research into the topic.
I was honored to present at WordCamp this year but had to make do with the small amount of time allotted. I crammed my talk into a very short intro to the Desire Engine that sounds like I’m talking while on fast forward. Enjoy!
Step 1: Build an app. Step 2: Get users hooked to it. Step 3: Profit. It sounds simple and, given our umbilical ties to cell phones, social media, and email inboxes, it may even sound plausible. Recently, tech entrepreneurs and investors have started to look to psychology for ways to strike it rich by altering user behavior. Perhaps you’ve read essays on how to create habit-forming technology and figured you’d give it a shot?
Well hold your dogs Pavlov! Though I’m an advocate for understanding user behavior to build high-engagement products, the reality is that successfully creating long-term habits is exceptionally rare. Changing behavior requires not only an understanding of how to persuade users to act — for example, the first time they land on a webpage — but also necessitates getting them to behave differently for long periods of time, ideally for the rest of their lives.
The good news is that that companies that accomplish this rare feat are the ones associated with game-changing, wildly successful innovation. Google, Apple, Twitter, and Android come to mind. As we enter a world where, according to Paul Graham, everything is becoming more addictive, the companies that successfully form and control habits in the future will come to dominate the industries of tomorrow.
Habits or Hype?
But claiming that habits are the keys to success is a tall order. If people like me provide ready-made formulas and guidebooks on how to create habits, why isn’t every company that alters user behavior succeeding?