?? Mind Hacks: Choice Architecture 101. Make your options more attractive!

Small adjustments in how options are presented can go a long way! How even small adjustments in the environment can make your customers buy.

[This article was ?? by Roman Buri?, Senior Consultant @ Mindworx ??]

You won't like this. Science shows you are a fallible, lazy, busy, energy-conserving creature. I am too! We all are.?

So, when something seems easy, we’re more likely to do it. Does it seem hard? Screw that!?

But there's a bright side to that - you CAN adjust the environment to steer your customers’ quick decisions in the right direction.??

That's what choice architecture is all about!?

Here are 3 easy ways to use it.

01 Change the design to opt-out

In a pizza study (yes, there are pizza studies), one group started with a plain cheese pizza and added toppings (opt-in). The other group began with a fully loaded pizza and removed toppings to lower the price (opt-out).?

The opt-out group ended up with 5.29 toppings (average). The opt-in group had 2.71.

???????? Why? Because sticking with the default settings is easier!?

Whether it's a pizza, car or insurance, the opt-out design will ensure customers end up with more features in their carts.?

02 Use the first option the customers see as a reference point

We get anchored to the first piece of information we’re offered. This initial anchor heavily influences all subsequent decisions - we tend to adjust from that starting point rather than starting fresh.

If the first item on the restaurant menu is a $5 soup, a $20 burger might seem a bit expensive. But if you start with a $50 steak, then $20 for a burger suddenly sounds more reasonable.

Remember - the first thing the customers see sets the tone. It can make the following options seem like no-goes or no-brainers.?

03 Simplify complex choices

Dealing with complexity can be tough in two ways:

Too many choices: It can overwhelm us. A large number of options means too many decisions to make and too much energy to burn. To help customers decide, reduce options or categorize them.

Complicated product features: Break down the decision into smaller steps. For example, Warby Parker, the eyewear company, simplifies eyeglass selection by asking customers to choose things like face width, shape, and color one step at a time.

?? What to take away

• When it comes to picking features, consider opt-out design. We hate choices, so we don't make them. Opt-out design can cause your customers to end up with more features.??
• The first information your customers engage with creates the reference point. Think about the first option your customers will see. Does it make the following options seem like a good deal?
• Too many options = big bad! Reduce them or chunk complex decisions into multiple smaller steps.?

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Mind Hacks is a monthly newsletter written by smart folks at Mindworx Behavioral Consulting. It is crafted for the curious minds eager to delve into the fascinating fields of consumer psychology and behavioral economics. Our goal? To translate complex principles into practical insights you can relate to easily.

We are a team of business consultants with a shared passion – we believe in the power of behavioral economics and consumer psychology. Our results from dozens of completed projects for the largest companies in the banking, insurance, and telecom industries reinforce this belief.

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