Tag / Design

smartcab

You are unconsciously paying more. (Photo credit: Digital Dispatch)

My taxi pulled up to the hotel. I got out my credit card and prepared to pay for the ride. The journey was pleasant enough but little did I know I was about to encounter a bit of psychological trickery designed to get me to pay more for the lift. Chances are you’re paying more, too.

Digital payment systems use subtle tactics to increase tips, and while it’s certainly good for hard-working service workers, it may not be so good for your wallet.

A new report by the tech research firm Software Advice discovered that digital point-of-sale terminals, like the one in my cab, increase the frequency and amount of tips left by customers. What’s the secret behind how these manipulative machines get us to pony up?

Let’s say you’ve built the next big thing. You’re ready to take on the world and make billions. Your product is amazing and you’re convinced you’ve bested the competition. As a point of fact, you know you offer the very best solution in your market. But here’s the rub. If your competition has established stronger customer habits than you have, you’re in trouble.

The cold truth is that the better product does not necessarily win. However, there’s hope. The right strategy can crowbar the competition’s users’ habits, giving you a chance to win them over.

To understand how to change customer habits, we first need to understand what habits are and how they take hold. Simply put, habits are behaviors done with little or no conscious thought. Research shows almost half of what we do, day in and day out, is driven by these impulsive behaviors.

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 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):

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.

computer faceNir’s Note: This article is adapted from Hooked: A Guide to Building Habit-Forming Products, a book I wrote with Ryan Hoover and originally appeared on TechCrunch.

Earlier this month, Twitter co-founder Biz Stone unveiled his mysterious startup Jelly. The question-and-answer app was met with a mix of criticism and head scratching. Tech-watchers asked if the world really needed another Q&A service. Skeptics questioned how it would compete with existing solutions and pointed to the rocky history of previous products like Mahalo Answers, Formspring, and Aardvark.

In an interview, Biz articulated his goal to, “make the world a more empathetic place.” Sounds great but one wonders if Biz is being overly optimistic. Aren’t we all busy enough? Control for our attention is in a constant tug-of-war as we struggle to keep-up with all the demands for our time. Can Jelly realistically help people help one another? For that matter, how does any technology stand a chance of motivating users to do things outside their normal routines?

Nir’s Note: In contrast to last week’s post on the power of saying “no,” Eric Clymer shares how a creative attitude helped his team build a #1 ranked app. Eric was the lead developer of the “A Beautiful Mess” app and is Partner at Rocket Mobile.

In improv comedy, there are really only two words that matter: “Yes, and.” You share a premise, form a scene, create a character, and if everything works out right, kill the audience. Then, you try and do it again with another, “Yes, and.”

Before I began developing for iOS, I performed stand-up and improv as a hobby. I never thought “Yes, and” would apply to the development of software and how to work with clients. But, in my best Louis CK voice, “It TOTALLY did.” This essay is about what I learned working with the artists who hired my company to create “A Beautiful Mess,” an app that went to #1 in the App Store 15 hours after its release (it’s still near the top of the app store).

Nir’s Note: An edited version of this essay appeared in The Atlantic. Below is my original.
Stairway to Heaven

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.


Cookie jar
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.

The first thing Don Draper does when he gets to his office is give his busty secretary a suggestive wink. The second thing he does is take off his fedora. Finally, depending on the severity of the previous night, he completes his morning routine with a stiff drink.

What can we learn from Don’s habits? First, that scotch and submissive secretaries always equal drama. But what of that fedora? There’s a lesson there too.

As any Mad Men fan knows, it was once popular for men to wear hats everywhere they went — except that is, when they stepped indoors. When a gentleman went inside, he removed his hat and placed it on the nearest rack. It was a required social norm, a sign you were ready for business.