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NUDGE THEORY KELLY BARON
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Nudge Theory

Mar 21, 2017

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Kelly Baron
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Page 1: Nudge Theory

NUDGE THEORY

KELLY BARON

Page 2: Nudge Theory

@KELLYGANCAS

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TABLE OF CONTENTS

1. What’s a Nudge?

2. Brains are Weird

3. Empathetic Defaults

4. Applied Nudges & Digital Product Creation

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SXSW | NUDGE THEORY 4

TO NUDGE IS TO “ALERT, REMIND, OR MILDLY WARN.”

DEFINITION

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| SXSW | NUDGE THEORY 5

FAMOUS NUDGES

Schiphol Airport, Amsterdam

This little fly reduced “spillage” by 80%.

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SXSW | NUDGE THEORY

STAT

6

92%of Americans believe

it’s important to always wash your hands,

Source: “Overconfidence among physicians and nurses: The ‘micro-certainty, macro-uncertainty’ phenomenon,” Social Science & Medicine, 1991

66%actually do.

BUT only

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| SXSW | NUDGE THEORY 7

APPLIED NUDGES

• Inexperienced

• Poorly Informed

• Tired/Hungry

PEOPLE DON’T MAKE GOOD DECISIONS WHEN THEY ARE:

When common sense fails, common sensors bridge the gap.

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| NUDGE THEORY 8

NUDGE OR NOT?

• Influences behavior

• Preserves choice

A WELL-DESIGNED PRISON CELL

NUDGES EXIST BECAUSE WE DON’T ACT IN OUR OWN BEST INTEREST.

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BRAINS ARE WEIRD

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| NUDGE THEORY 10

KNOW THYSELF

WHAT MOVIE WILL YOU SEE NEXT WEEK?

WHAT MOVIE WILL YOU SEE TONIGHT?

LONG-TERM ESTIMATES ARE MORE DIFFICULT.

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SXSW | NUDGE THEORY 11

OPTICAL ILLUSIONSFALLACIES

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7

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8

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| NUDGE THEORY 15

IT’S ALL RELATIVE

Ebbinghaus Illusion

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IMAGE: KEVIN WISBITH

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RICHARD H. THALER & CASS R. SUNSTEIN, NUDGE

There’s no such thing as neutral design.

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WHY DEFAULT SETTINGS RULE THE WORLD

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| SXSW | NUDGE THEORY 21

OPT-IN VS. OPT-OUT

Organ Donation

In opt-out countries, over 90% of people donate their organs.

In opt-in countries, fewer than 15% do.

Source: Davidai, S., Gilovich, T., & Ross, L. (2012). The meaning of default options for potential organ donors.

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| NUDGE THEORY 22

MEETING PEOPLE WHERE THEY ARE

• Normally, 10

hours of fasting

• During Ramadan

DIABETES SCREENINGS

UNDERSTANDING CULTURAL CONTEXTS HELPS YOU REDUCE FRICTION.

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SXSW | NUDGE THEORY 23

MIND THE (EMPATHY) GAP

FALLACIES

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SXSW | NUDGE THEORY 24

FRENCH FRY FALLACYFALLACIES

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SXSW | NUDGE THEORY 25

PEOPLE DESIGNING PRODUCTS

PEOPLE BUYING

PRODUCTS

1. Fast Company, “The Innovation Economy Is Terrible At Designing For Women,” 2016. 2. Bloomberg, “Women Make Up 85% of All Consumer Purchases,” 2016.

85%WOMEN

85%MEN

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| NUDGE THEORY 26

TECHNIQUE

• Cause the least harm

& most good

• As determined by

the user, not by you

GOOD DEFAULT

EXAMPLE: AUTO-RENEW

30-DAYTRIAL

AUTO-RENEW

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INDIVIDUAL CHOICES

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| NUDGE THEORY 28

HIDDEN CHOICES

SOMETIMES, CHOICES ARE DECOYS.

$41 STEAKS make you order the$36 LAMB CHOPS.

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| NUDGE THEORY 29

HIDDEN CHOICES

SOMETIMES, CHOICES ARE DECOYS.

THE INVISIBLE CHOICE: THROWING THE CIGARETTE ON THE GROUND.

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LADDERING UP TO BEHAVIOR

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NUDGE THEORY 31

EACH INSTANCE OF HAND WASHING IS A BINARY CHOICE.

TO WASH OR NOT TO WASH?

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NUDGE THEORY 32

92%of Americans believe

it’s important to always wash your hands,

Source: “Overconfidence among physicians and nurses: The ‘micro-certainty, macro-uncertainty’ phenomenon,” Social Science & Medicine, 1991

STAT

66%actually do.

BUT only

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MEDICAL ERRORPREVENTION

REAL-TIMENOTIFICATIONS

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NUDGE THEORY 34

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AMERICAN MEDICAL ASSOCIATION, EFFECTS OF COMPUTERIZED CLINICAL DECISION SUPPORT SYSTEMS ON PRACTITIONER PERFORMANCE AND PATIENT OUTCOMES

Improved practitioner performance was associated with [systems] that automatically prompted users compared with requiring users to activate the system (success in 73% of trials vs 47%).

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SXSW | NUDGE THEORY

STAT

36

$11-12Kper error prevented.

Source: “The Economic Measurement of Medical Errors,” Society of Actuaries, 2010

Estimated hospital savings of

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NUDGE THEORY 37

Anywhere human nature contradicts business goals, regular real-time

intervention is needed to keep people from acting too much like people.

KEY INSIGHT

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HOW TO NUDGE DIGITALLY

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SXSW | NUDGE THEORY 39

MAKE THE INTANGIBLE, TANGIBLE.

PRINCIPLES FOR APPLIED NUDGES

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SXSW | NUDGE THEORY 40

MAKE THE UNFAMILIAR, RELATABLE.

PRINCIPLES FOR APPLIED NUDGES

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SXSW | NUDGE THEORY 41

MAKE THE DISTANT, IMMEDIATE.

PRINCIPLES FOR APPLIED NUDGES

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| SXSW | NUDGE THEORY 42

WHY:

HOW:

BELIEFS & BEHAVIOR DON’T MATCH.

WITH COMMON SENSE & COMMON SENSORS.

BY: TAKING THINGS OFF THE THINKING LIST.

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QUESTIONS?

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THANK YOU.

KELLY BARON [email protected]

linkedin.com/in/kellybaron

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APPENDIX

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| SXSW | NUDGE THEORY 46

HOW TO

Types of Nudges

• Anchoring

• Priming

• Comparison

• Context/Framing

• Real-time

• Reminder

• Good Default

• Social

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| SXSW | NUDGE THEORY 47

STIMULUS-RESPONSE COMPATIBILITY

Nudging Natively

• Hybrid v. Native • Push & Pull

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JASON JOB,VP OF DEVELOPMENT EVANGELISM AT FJORD

With hybrid, you’re always going to be compromising. It’ll either be more like Android or like iOS or like neither. One of them is going to suffer.

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NUDGING TO SEE HERE

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SAVINGS ACCOUNTS

LOTTERY

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COLLEGECOUNSELING

TEXTING

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MANIPULATE YOUR COWORKERS

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WHAT NUMBER DO I KNOW?

IS THE NUMBER I NEED

TO KNOW BIGGER OR SMALLER?

ADJUST

ADJUST

ANCHORING