Using behavioral science to improve your product | Kristen Berman (Irrational Labs)

Oct 2, 2022 Episode Page ↗
Overview

Kristen Berman, CEO and co-founder of Irrational Labs, discusses how behavioral science helps companies build better products. She shares insights on human psychology, common biases, and real-life case studies like TikTok and One Medical to drive engagement and behavior change.

At a Glance
24 Insights
56m 14s Duration
17 Topics
9 Concepts

Deep Dive Analysis

Introduction to Irrational Labs and Behavioral Science

Understanding Behavioral Economics and Behavioral Design

Fintech Budgeting Experiment: Counterintuitive Results

When Increasing Friction Can Boost Conversion

Kristen Berman's Journey into Behavioral Economics

The 3B Framework for Behavior Change

Addressing Cognitive Barriers in Product Design

Designing for Immediate User Benefits

Ethical Considerations: Incentives and Exploitation

Case Study: Reducing Misinformation on TikTok

Behavioral Research and Problem-Solving Strategies

Case Study: Increasing Doctor Appointments at One Medical

General Rules for Improving Product Flows

The Concept of 'Right for Wrong' Motivation

Getting Started with Behavioral Design Principles

Behavioral Design Bootcamp Overview

Lightning Round: Books, Podcasts, and Influencers

Behavioral Economics

This field combines psychology and economics, recognizing that people make decisions with emotion, are present-biased, and follow social norms, but do so in predictable ways. Understanding these patterns allows for intentional behavior change.

Behavioral Design

This practice uses insights from behavioral economics and psychology to apply them to real-world problems. It involves designing products and services that effectively influence user behavior and drive engagement.

Behavioral Diagnosis

A detailed process, akin to a journey map on steroids, where every single step a user takes to achieve a desired behavior is mapped out. This helps identify the specific psychologies driving decisions at each step, revealing what people actually do versus what they say they will do.

3B Framework

A model for behavior change that summarizes key psychologies for product managers and marketers. It involves defining the specific 'Behavior' to change, identifying and reducing 'Barriers' (logistical and cognitive), and increasing 'Benefits' (especially immediate ones).

Present Bias

The human tendency to prioritize one's current needs and desires over future ones. This means that for people to take action, they often need an immediate reason or benefit, even if the long-term advantages are clear.

Uncertainty Aversion

A cognitive barrier where individuals tend to avoid making decisions or seek alternative options when faced with uncertain outcomes. This often leads to inaction or choosing a perceived 'safer' path.

Status Quo Effect

A cognitive barrier reflecting the tendency for people to stick with their current state or default option. This is because it often represents the path of least resistance, making it difficult to motivate them to do something different.

Completion Bias

A psychological tendency where people are motivated to finish tasks or sequences. This bias drives satisfaction from checking off items, seeing progress, or reaching the end of a process.

Right for Wrong

A concept in behavioral design where people are motivated to perform a desired behavior (the 'right thing') for an immediate, often unrelated, incentive (the 'wrong reason'), rather than solely for the intrinsic or long-term benefits.

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What is behavioral economics?

Behavioral economics combines psychology and economics, recognizing that people make decisions with emotion, present bias, and social norms, but in predictable ways, which allows for understanding and changing behavior.

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What is behavioral design?

Behavioral design uses insights from psychology and behavioral economics to apply them to real-world problems, helping companies design products and services that effectively change user behavior and drive engagement.

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Why might a highly requested product feature like budgeting fail to change user behavior?

Budgeting features often fail because the behavior required (reducing spend) involves too many difficult steps and cognitive effort, making it unlikely users will adhere to it consistently, as revealed by a behavioral diagnosis.

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Can increasing friction in a product flow ever be beneficial for conversion?

Yes, sometimes increasing friction by asking users engaging questions can increase conversion. These questions make users think about the product's benefits, increasing their motivation to complete the flow.

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How does the 3B framework help in understanding and changing user behavior?

The 3B framework guides behavior change by first defining the specific 'Behavior' to target, then identifying and reducing 'Barriers' (logistical and cognitive) to that behavior, and finally increasing the 'Benefits', particularly immediate ones, to motivate action.

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How can product teams ensure they are designing ethically and not exploiting users?

Ethical design hinges on incentives; product teams should set KPIs and incentives focused on customer outcomes and behaviors, rather than just short-term metrics, and increase the duration of incentives to encourage long-term customer benefit.

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How can product teams effectively reduce the spread of misinformation on their platforms?

By introducing friction at the point of sharing, such as adding a label to unverified content and displaying a 'Are you sure?' pop-up, platforms can slow users down and prompt them to reconsider their decision, thereby reducing misinformation shares.

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What is the 'right for wrong' concept in behavioral design?

'Right for wrong' refers to motivating people to perform a desired behavior (the 'right thing') by providing an immediate, often unrelated, incentive (the 'wrong reason'), rather than relying solely on the long-term, intrinsic benefits.

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How can product teams start applying behavioral design principles without external consultants?

Teams can begin by conducting a workshop to define the 'uncomfortably specific behavior' they want to change, and then perform a 'behavioral diagnosis' to map out every detailed step of that behavior and identify underlying psychologies.

1. Define Specific Target Behavior

When aiming for behavior change, define the target behavior with “uncomfortably specific” detail, focusing on post-login actions rather than just login, to ensure clear objectives.

2. Perform Behavioral Diagnosis

Conduct a detailed “behavioral diagnosis” by mapping every user step with screenshots and identifying the underlying psychologies at play to understand actual behavior and pinpoint intervention opportunities.

3. Redesign Environment for Behavior

Understand that behavior change comes from altering actions and redesigning your environment, not just setting goals, to effectively drive new habits.

4. Understand Predictable Human Behavior

Learn how people make decisions with emotion, present bias, and social norms in predictable ways to design effective behavior change interventions.

5. Align Incentives to Behavior

Set team incentives and KPIs on specific customer behaviors that align with positive customer outcomes to ensure product development is customer-centric and avoids negative practices.

6. Highlight Immediate Benefits

To drive user action, highlight and integrate immediate benefits into products and features, recognizing that present bias makes current rewards more motivating than future ones.

7. Reduce Logistical & Cognitive Barriers

Systematically identify and reduce both logistical (e.g., form fields) and cognitive barriers (e.g., uncertainty, status quo) to simplify the desired behavior for users.

8. Utilize Default Options

Make desired behaviors the default option, especially for complex actions like saving, to significantly increase adoption by making it the path of least resistance.

9. Create Simple Rules of Thumb

Help users make decisions easier by creating simple rules of thumb, like “I don’t take Lyft on weekdays,” to reduce cognitive effort and increase adherence to desired behaviors.

10. Make Benefits Concrete & Immediate

Ensure users immediately experience and understand your product’s benefits by making them concrete and tangible, rather than abstract, to show how it fits into their lives.

11. Skepticism for Complex Features

If a user-requested feature, like budgeting, requires many difficult steps, be skeptical of its effectiveness and conduct experiments, as it may not change the desired behavior.

12. Add Friction to Reduce Action

To reduce unwanted behaviors, introduce friction by adding steps or prompts (e.g., “Are you sure?”) that slow users down and encourage reconsideration.

13. Ask Benefit-Oriented Questions

In signup flows, add easy questions that make users think about the product’s benefits, increasing their motivation to complete the flow and boosting conversion.

14. Avoid Hard Open-Ended Questions

Do not ask difficult, open-ended questions in user flows, as they create high friction and significantly decrease conversion; opt for easy, multiple-choice formats instead.

15. Combine Benefits with Setup

Engage users by asking questions that combine product benefits with setup choices, implicitly showcasing capabilities while guiding them through configuration.

16. Resume User Progress

For long user flows, send reminders to re-engage dropped users and ensure they are returned to their exact last point of progress to reduce friction and increase completion.

17. Reduce User Choice

Decrease the number of options presented to users, such as recommending a single choice or limiting available selections, to reduce cognitive load and improve decision-making and conversion.

18. Leverage Social Norms

Use social norms by informing users that others are performing a desired action, leveraging the “following the herd” bias to motivate their own behavior.

19. Motivate “Right for Wrong”

Encourage desired user behaviors by providing immediate, often superficial, “wrong reasons” (e.g., clearing an error message, getting a social reward) that act as powerful motivators.

20. Utilize Deadlines as a Gift

Implement deadlines to help users prioritize and complete desired actions, as this tactic consistently increases engagement and conversion by providing a clear impetus.

21. Conduct Literature Review First

Before tackling a new problem, conduct a thorough literature review using resources like Google Scholar to learn from existing research and avoid redundant efforts.

22. Test Interventions Relatively

When testing product changes, always compare multiple options against each other rather than evaluating a single option, to understand which design most effectively drives desired behavior.

23. Extend Incentive Duration

Increase the duration of incentives (e.g., annual instead of quarterly) to promote long-term thinking and decisions that align with the best interests of both the company and its consumers.

24. Interviews for Culture Fit

Conduct interviews to evaluate a candidate’s affinity and culture fit, but use skill assessments and trials as the primary tools for predicting actual job performance.

But the good news is that we do these things in predictable ways. And once you understand how and why people behave, you can start to change it.

Kristen Berman

Sometimes any kind of work that we put on the user, we should be skeptical. We have to really prove that it's worth their time and then, you know, measure if they actually do it.

Kristen Berman

When you ask a question, you can insert an idea into someone's head. You can get them thinking about something different.

Kristen Berman

It's not enough to have a goal. It's like, it's not enough. You actually need to redesign your environment to change your behavior.

Kristen Berman

I like to say kind of, we are what we measure and it really matters what you measure.

Kristen Berman

When you want to get somebody to do something more, you make it easier. When you want someone to do something less, you make it... Put up barriers.

Kristen Berman

Deadlines are a gift, right? You're just helping people kind of prioritize this.

Kristen Berman

Behavior is contextual. So, you know, why we are religious about testing is because it's hard to drag and drop from different contexts.

Kristen Berman

Behavioral Design Process for Problem Solving (Irrational Labs)

Kristen Berman
  1. Conduct a literature review to understand existing research and what has worked or not worked for similar problems.
  2. Formulate a hypothesis based on the literature review and generate approximately 30 different ways to implement it.
  3. Conduct quantitative research by testing multiple variations (e.g., 5 different pop-up versions) with a large user group (e.g., 1000+ users) using platforms like Prolific, measuring relative effectiveness rather than just user preference.
  4. Select the most promising interventions to test in the actual product (e.g., two conditions plus a control).
  5. Launch the intervention in the product and measure its impact.

Applying Behavioral Design Principles for Product Teams

Kristen Berman
  1. Define the Behavior: Conduct a workshop with your team to define the 'uncomfortably specific behavior' you want to change, ensuring everyone aligns on this specific action.
  2. Perform a Behavioral Diagnosis: Map out every single detailed step a user takes to get to the desired behavior change. This can involve creating a deck of 200-300 screenshots for existing products, overlaying the psychologies driving people at each step.
  3. Diagnose and Design Interventions: Use the insights from the behavioral diagnosis to brainstorm and design interventions that reduce identified barriers and enhance immediate benefits.
24%
Reduction in misinformation shares on TikTok Achieved by adding a label to unverified videos and a 'Are you sure?' pop-up when sharing.
20%
Increase in doctor appointments booked during onboarding at One Medical Resulted from an onboarding intervention that asked health questions, recommended a provider, and limited appointment time options.
18%
Increase in recurring deposit setup at Credit Karma Achieved through behavioral design interventions.
53% vs 37%
Increase in conversion for TytoCare users who completed a quiz 53% of users who completed a quiz about medical behavior and technology use went on to purchase, compared to 37% who did not complete the quiz.
40%
Increase in conversion by removing an open text field Page over page improvement by replacing a difficult open-ended question with an easier interaction.
133%
Increase in conversion for Trunk Club by asking questions during signup Asking questions that engage users with benefits can increase motivation to complete the flow.
16 seconds
Delay in elevator door closing to encourage stair use An experiment showed that making the elevator harder to use (by delaying its door closing) led people to choose the stairs.
8 weeks
Duration of the self-paced online Behavioral Design Bootcamp Users are given an additional month to complete the 16 modules.