NUDGE THEORY
KELLY BARON
@KELLYGANCAS
TABLE OF
CONTENTS
1. What’s a Nudge?
2. Brains are Weird
3. Empathetic Defaults
4. Applied Nudges & 

Digital Product Creation
SXSW | NUDGE THEORY4
TO NUDGE IS TO 

“ALERT, REMIND, 

OR MILDLY WARN.”
DEFINITION
| SXSW | NUDGE THEORY5
FAMOUS NUDGES
Schiphol Airport, 

Amsterdam
This little
fly reduced
“spillage”
by 80%.
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
| SXSW | NUDGE THEORY7
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.
| NUDGE THEORY8
NUDGE OR NOT?
• Influences behavior
• Preserves choice
A WELL-DESIGNED
PRISON CELL
NUDGES EXIST BECAUSE WE
DON’T ACT IN OUR OWN BEST
INTEREST.
BRAINS ARE WEIRD
| NUDGE THEORY10
KNOW THYSELF
WHAT MOVIE WILL
YOU SEE NEXT
WEEK?
WHAT MOVIE WILL
YOU SEE TONIGHT?
LONG-TERM ESTIMATES
ARE MORE DIFFICULT.
SXSW | NUDGE THEORY11
OPTICAL ILLUSIONS
FALLACIES
7
8
| NUDGE THEORY15
IT’S ALL RELATIVE
Ebbinghaus Illusion
IMAGE: KEVIN WISBITH
RICHARD H. THALER & CASS R. SUNSTEIN,
NUDGE
There’s no such thing 

as neutral design.
WHY DEFAULT SETTINGS
RULE THE WORLD
| SXSW | NUDGE THEORY21
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.
| NUDGE THEORY22
MEETING PEOPLE WHERE THEY ARE
• Normally, 10
hours of fasting
• During Ramadan
DIABETES
SCREENINGS
UNDERSTANDING CULTURAL
CONTEXTS HELPS YOU
REDUCE FRICTION.
SXSW | NUDGE THEORY23
MIND THE (EMPATHY)
GAP
FALLACIES
SXSW | NUDGE THEORY24
FRENCH FRY FALLACY
FALLACIES
SXSW | NUDGE THEORY25
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
| NUDGE THEORY26
TECHNIQUE
• Cause the least harm
& most good
• As determined by
the user, not by you
GOOD DEFAULT
EXAMPLE: AUTO-RENEW
30-DAY

TRIAL
AUTO-

RENEW
INDIVIDUAL CHOICES
| NUDGE THEORY28
HIDDEN CHOICES
SOMETIMES, CHOICES
ARE DECOYS.
$41 STEAKS 

make you order the

$36 LAMB CHOPS.
| NUDGE THEORY29
HIDDEN CHOICES
SOMETIMES, CHOICES
ARE DECOYS.
THE INVISIBLE CHOICE:
THROWING THE CIGARETTE
ON THE GROUND.
LADDERING UP 

TO BEHAVIOR
NUDGE THEORY31
EACH INSTANCE OF
HAND WASHING IS A
BINARY CHOICE.
TO WASH OR NOT TO WASH?
NUDGE THEORY32
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
MEDICAL ERROR

PREVENTION
REAL-TIME

NOTIFICATIONS
NUDGE THEORY34
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%).
SXSW | NUDGE THEORY
STAT
36
$11-12Kper error prevented.
Source: “The Economic Measurement of Medical Errors,” Society of Actuaries, 2010
Estimated hospital savings of
NUDGE THEORY37
Anywhere human nature contradicts
business goals, regular real-time
intervention is needed to keep people
from acting too much like people.
KEY INSIGHT
HOW TO NUDGE
DIGITALLY
SXSW | NUDGE THEORY39
MAKE THE INTANGIBLE,
TANGIBLE.
PRINCIPLES FOR APPLIED NUDGES
SXSW | NUDGE THEORY40
MAKE THE UNFAMILIAR,
RELATABLE.
PRINCIPLES FOR APPLIED NUDGES
SXSW | NUDGE THEORY41
MAKE THE DISTANT,
IMMEDIATE.
PRINCIPLES FOR APPLIED NUDGES
| SXSW | NUDGE THEORY42
WHY:
HOW:
BELIEFS & BEHAVIOR 

DON’T MATCH.
WITH COMMON SENSE 

& COMMON SENSORS.
BY:
TAKING THINGS OFF THE
THINKING LIST.
QUESTIONS?
THANK YOU.
KELLY BARON
k.baron@fjordnet.com
linkedin.com/in/kellybaron
APPENDIX
| SXSW | NUDGE THEORY46
HOW TO
Types of Nudges
• Anchoring
• Priming
• Comparison
• Context/Framing
• Real-time
• Reminder
• Good Default
• Social
| SXSW | NUDGE THEORY47
STIMULUS-RESPONSE COMPATIBILITY
Nudging Natively
• Hybrid v. Native
• Push & Pull
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.
NUDGING TO 

SEE HERE
SAVINGS ACCOUNTS
LOTTERY
COLLEGE

COUNSELING
TEXTING
MANIPULATE YOUR
COWORKERS
WHAT NUMBER
DO I KNOW?
IS THE
NUMBER I NEED
TO KNOW
BIGGER OR
SMALLER?
ADJUST
ADJUST
ANCHORING

Nudge Theory

  • 1.
  • 2.
  • 3.
    TABLE OF CONTENTS 1. What’sa Nudge? 2. Brains are Weird 3. Empathetic Defaults 4. Applied Nudges & 
 Digital Product Creation
  • 4.
    SXSW | NUDGETHEORY4 TO NUDGE IS TO 
 “ALERT, REMIND, 
 OR MILDLY WARN.” DEFINITION
  • 5.
    | SXSW |NUDGE THEORY5 FAMOUS NUDGES Schiphol Airport, 
 Amsterdam This little fly reduced “spillage” by 80%.
  • 6.
    SXSW | NUDGETHEORY 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
  • 7.
    | SXSW |NUDGE THEORY7 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.
  • 8.
    | NUDGE THEORY8 NUDGEOR NOT? • Influences behavior • Preserves choice A WELL-DESIGNED PRISON CELL NUDGES EXIST BECAUSE WE DON’T ACT IN OUR OWN BEST INTEREST.
  • 9.
  • 10.
    | NUDGE THEORY10 KNOWTHYSELF WHAT MOVIE WILL YOU SEE NEXT WEEK? WHAT MOVIE WILL YOU SEE TONIGHT? LONG-TERM ESTIMATES ARE MORE DIFFICULT.
  • 11.
    SXSW | NUDGETHEORY11 OPTICAL ILLUSIONS FALLACIES
  • 13.
  • 14.
  • 15.
    | NUDGE THEORY15 IT’SALL RELATIVE Ebbinghaus Illusion
  • 16.
  • 17.
    RICHARD H. THALER& CASS R. SUNSTEIN, NUDGE There’s no such thing 
 as neutral design.
  • 18.
  • 21.
    | SXSW |NUDGE THEORY21 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.
  • 22.
    | NUDGE THEORY22 MEETINGPEOPLE WHERE THEY ARE • Normally, 10 hours of fasting • During Ramadan DIABETES SCREENINGS UNDERSTANDING CULTURAL CONTEXTS HELPS YOU REDUCE FRICTION.
  • 23.
    SXSW | NUDGETHEORY23 MIND THE (EMPATHY) GAP FALLACIES
  • 24.
    SXSW | NUDGETHEORY24 FRENCH FRY FALLACY FALLACIES
  • 25.
    SXSW | NUDGETHEORY25 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
  • 26.
    | NUDGE THEORY26 TECHNIQUE •Cause the least harm & most good • As determined by the user, not by you GOOD DEFAULT EXAMPLE: AUTO-RENEW 30-DAY
 TRIAL AUTO-
 RENEW
  • 27.
  • 28.
    | NUDGE THEORY28 HIDDENCHOICES SOMETIMES, CHOICES ARE DECOYS. $41 STEAKS 
 make you order the
 $36 LAMB CHOPS.
  • 29.
    | NUDGE THEORY29 HIDDENCHOICES SOMETIMES, CHOICES ARE DECOYS. THE INVISIBLE CHOICE: THROWING THE CIGARETTE ON THE GROUND.
  • 30.
  • 31.
    NUDGE THEORY31 EACH INSTANCEOF HAND WASHING IS A BINARY CHOICE. TO WASH OR NOT TO WASH?
  • 32.
    NUDGE THEORY32 92%of Americansbelieve
 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
  • 33.
  • 34.
  • 35.
    AMERICAN MEDICAL ASSOCIATION, EFFECTSOF 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%).
  • 36.
    SXSW | NUDGETHEORY STAT 36 $11-12Kper error prevented. Source: “The Economic Measurement of Medical Errors,” Society of Actuaries, 2010 Estimated hospital savings of
  • 37.
    NUDGE THEORY37 Anywhere humannature contradicts business goals, regular real-time intervention is needed to keep people from acting too much like people. KEY INSIGHT
  • 38.
  • 39.
    SXSW | NUDGETHEORY39 MAKE THE INTANGIBLE, TANGIBLE. PRINCIPLES FOR APPLIED NUDGES
  • 40.
    SXSW | NUDGETHEORY40 MAKE THE UNFAMILIAR, RELATABLE. PRINCIPLES FOR APPLIED NUDGES
  • 41.
    SXSW | NUDGETHEORY41 MAKE THE DISTANT, IMMEDIATE. PRINCIPLES FOR APPLIED NUDGES
  • 42.
    | SXSW |NUDGE THEORY42 WHY: HOW: BELIEFS & BEHAVIOR 
 DON’T MATCH. WITH COMMON SENSE 
 & COMMON SENSORS. BY: TAKING THINGS OFF THE THINKING LIST.
  • 43.
  • 44.
  • 45.
  • 46.
    | SXSW |NUDGE THEORY46 HOW TO Types of Nudges • Anchoring • Priming • Comparison • Context/Framing • Real-time • Reminder • Good Default • Social
  • 47.
    | SXSW |NUDGE THEORY47 STIMULUS-RESPONSE COMPATIBILITY Nudging Natively • Hybrid v. Native • Push & Pull
  • 48.
    JASON JOB,
 VP OFDEVELOPMENT 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.
  • 49.
  • 50.
  • 51.
  • 52.
  • 53.
    WHAT NUMBER DO IKNOW? IS THE NUMBER I NEED TO KNOW BIGGER OR SMALLER? ADJUST ADJUST ANCHORING