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Influence of Consumer Motivations and Behaviors on Product Usage

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Presented at Product Camp, Bangalore - Sep 2014.

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Influence of Consumer Motivations and Behaviors on Product Usage

  1. 1. Influence of consumer motivations and behaviors on product usage Anuradha Sridharan Independent Products Consultant Product Camp Sep 2014
  2. 2. How many of you eat healthy meals everyday? Image Credit: http://www.flickr.com/photos/aryaziai/9018429130/ (Creative Commons Attribution License)
  3. 3. How many of you “like to eat” healthy meals everyday? Image Credit: http://www.flickr.com/photos/aryaziai/9018429130/ (Creative Commons Attribution License)
  4. 4. How many of you check Facebook everyday?
  5. 5. My quest begins! “Can a health & wellness app have as high an engagement as a social product? What goes behind creating high engagement products?”
  6. 6. Product Useful Design Usable Marketing Reach Basic understanding of “Why we do what we do”
  7. 7. Human Traits Persuasive Design Behavioral Psychology Emotional Design Captology Design Thinking User-centric Design Behavioral Economics Various Disciplines and Research
  8. 8. Key responsibility of a product manager Understanding customer’s pain-points motivations
  9. 9. Core Motivators We seek • Pleasure • Hope • Social Acceptance Source: http://www.behaviormodel.org/ We avoid • Pain • Fear • Social Rejection
  10. 10. Customer Lifecycle Acquisition Activation Retention Referral Revenue the higher the usage, the higher the scope of Word-of-Mouth, the higher the chances of upgrades/repeat purchases Adapted from Dave McClure’s startup metrics for pirates - http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version
  11. 11. Acquisition Activation Retention Referral Revenue Acquisition Getting people to your sacred page
  12. 12. Competitive, mature markets Endowment effect - "people ascribe more value to things merely because they own them” Loss aversion - "people are more motivated by the prospect of losing something than they are by the prospect of a reward” Choice supportive bias – “people tend to over attribute positive features to options they chose and negative features to options not chosen”
  13. 13. Position yourself as the “first” (leader) in a niche category
  14. 14. What’s “new” about your product/service? Call out to users in the higher end of “novelty-seeking” spectrum
  15. 15. Social Proof (also called Bandwagon effect/Group Think/Herd Behavior)
  16. 16. Grouping (label your group of customers)
  17. 17. Stop creating friction. Remove barriers to entry
  18. 18. Acquisition Activation Retention Referral Revenue Activation Signup, check it out
  19. 19. Cost-Benefit Analysis “perceived difficulty of a task in relation to the perceived reward” We can perform this analysis in a few milliseconds “Mentally taxing” tasks Too many decision variables (e-commerce) Form Fatigue Asking personal information Memory Retrieval
  20. 20. The scary world of app permissions!! Seriously puts off a potential user, who had the required motivation to locate your app and click “Install”
  21. 21. System 1 and 2 thinking System 1 – fast, automatic, unconscious, natural drives and instincts, general rules and heuristics System 2 – slow, deliberate, conscious, analysis, “inherently lazy” “the more the mental effort, the higher the reluctance to invest” - Pupil dilates - Heartbeat increases Image Source: http://assets1.bigthink.com/system/idea_thumbnails/54524/headline/BigThink_System_1_2.jpg?1394211473 Parameters of usability testing in the future? 
  22. 22. Acquisition Activation Retention Referral Revenue Retention Perform a certain behavior repeatedly
  23. 23. HealthifyMe case study Health and Wellness App (currently available for Android) Helps you to track your lifestyle and make positive changes in your eating habits and physical activity Calorie Tracker for Indian foods Track your meals and exercise Get analysis and actionable insights on your calorie intake Get personalized advice from coaches
  24. 24. High initial interest, but not sustaining Boring Time consuming I’m busy I’m traveling I’ll log Tedious Reactions starting next Monday I forget what I eat I don’t care about calories Your app is lying. My food habits are not that bad
  25. 25. Facilitate behavior change Constraint for any health & wellness app Requires consistent usage for atleast 2 weeks to notice tangible results Problem Statement What is the ONE specific behavior that we want our users to do in our product/app? “Track their meals and physical activity everyday”
  26. 26. BJ Fogg’s behavior model Full credit: BJ Fogg, Copyright: www.behaviormodel.org
  27. 27. Triggers – Day 2 email sample Social Proof Grouping
  28. 28. Increase Ability (Make it easy to track foods) Voice tracking / Photo tracking Quick access to your recent and frequently entered foods. Use the previously entered serving sizes as default
  29. 29. Increase motivation (using a layer of gamification)
  30. 30. Acquisition Activation Retention Referral Revenue Referral Spread positive WOM
  31. 31. Reciprocity principle “If you give something of value to your customers, they feel obligated to reciprocate / return the favor” - Robert Cialdini in his book “Influence” Demonstrate value first, then expect a favor
  32. 32. Not the other way around!
  33. 33. Acquisition Activation Retention Referral Revenue Revenue Journey from “Users” to “Customers”
  34. 34. A lot of choices is attractive! Default view of available flights, if there weren’t any direct flights – 1 stop Perception: “limited options, site’s not reliable!” Learning: Show all choices, even if most of them don’t make sense. Provide the customer with the necessary controls(filters) to narrow down further.
  35. 35. Choice paralysis Hick’s law - “the more options one is exposed to, the longer it takes to make a decision” Displayed: 24 jams Tried the jam: 60% Purchased the jam: 3% http://sheenaiyengar.com/the-art-of-choosing/excerpt/ Displayed: 6 jams Tried the jam: 40% Purchased the jam: 30% Jam Tasting Experiment
  36. 36. The speed breaker of online shopping Scarcity effect => Information Overload => Decision paralysis => Close the tab and grab a piece of chocolate!
  37. 37. For further reading Influence: The psychology of persuasion by Robert Cialdini Thinking fast and slow by Daniel Kahneman Hooked: How to build habit forming products by Nir Eyal Blink: The power of thinking without thinking by Malcolm Gladwell Emotional Design by Don Norman http://www.behaviormodel.org/ by BJ Fogg http://thenextweb.com/apps/2014/05/14/can-online-apps-change-real-life-behavior/ http://www.nirandfar.com/2012/03/how-to-design-behavior.html https://www.helpscout.net/consumer-behavior/ http://3.7designs.co/blog/2012/08/10-psychological-principles-to-design-with/
  38. 38. Thank you! Want to continue the conversation? Say hello! Twitter - @anura Email – anuradha.sridharan@gmail.com Blog – http://anusridhar.blogspot.in

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