The importance of behavioural psychology on digital strategy
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This document discusses the importance of behavioral psychology in developing effective digital strategies. It notes that people often act irrationally and are influenced by emotions rather than rational decision making. Behavioral psychology can help understand why people behave the way they do and better appeal to them. An effective digital strategy should accept that people are irrational, provide both emotional and rational reasons for users to take actions, observe user behavior rather than rely on self-reported preferences, and embrace testing, learning, and continuous improvement.
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The importance of behavioural psychology on digital strategy
- 1. Treat Me Like A Human, Dammit! The Importance of Behavioural Psychology on Digital Strategy 21 November 2014
- 3. Have I heard that somewhere before?
- 7. Extra Urgency! Extra Comfort!
- 8. But these are tactics not strategies
- 10. Never the first First MP3 Player 1998 iPod 2001 First smartphone 1999 iPhone 2007 First tablet Computer 1996 iPad 2010
- 11. Just the best to use
- 13. Apple understand human beings
- 14. Queuing for an iPad
- 15. Hang on, understanding humans is a novel idea?
- 19. Behavioural Psychology Gives us a way to understand humans Helps us to understand … Who they are. Why they behave in the way that they do. How better to appeal to them.
- 21. Fine, but how do we create a strategy for the irrational?
- 22. Enough with the research!
- 23. You’re going to trust what people say? Ambiguity effect Anchoring orfocalism Attentional bias Availability heuristic Availability cascade Backfire effect Bandwagon effect Base rate fallacy or base rate neglect Belief bias Bias blind spot Cheerleader effect Choice-supportive bias Clustering illusion Confirmation bias Congruence bias Conjunction fallacy Conservatism orregressive bias Conservatism (Bayesian) Contrast effect Curse of knowledge Decoy effect Denomination effect Distinction bias Duration neglect Empathy gap Endowment effect Essentialism Exaggerated expectation Experimenter'sor expectation bias Focusing effect Forer effect orBarnum effect Framing effect Frequency illusion Functional fixedness Gambler's fallacy Hard–easy effect Hindsight bias Hostile media effect Hot-hand fallacy Hyperbolic discounting Identifiable victim effect IKEA effect Illusion of control Illusion of validity Illusory correlation Impact bias Information bias Insensitivity to sample size Irrational escalation Less-is-better effect Loss aversion Mere exposure effect Money illusion Moral credential effect Negativity effect Negativity bias Neglect of probability Normalcy bias Not invented here Observation selection bias Observer-expectancy effect Omission bias Optimism bias Ostrich effect Outcome bias Overconfidence effect Pareidolia Pessimism bias Planning fallacy Post-purchase rationalization Pro-innovation bias Pseudocertainty effect Reactance Reactive devaluation Recency illusion Restraint bias Rhyme as reason effect Risk compensation / Peltzman effect Selective perception Semmelweis reflex Social comparison bias Social desirability bias Status quo bias Stereotyping Subadditivity effect Subjective validation Survivorship bias Time-saving bias Unit bias Well travelled road effect Zero-risk bias Zero-sum heuristic Actor–observer bias Defensive attribution hypothesis Dunning–Kruger effect Egocentric bias Extrinsic incentives bias False consensus effect Forer effect(aka Barnum effect) Fundamental attribution error Group attribution error Halo effect Illusion of asymmetric insight Illusion of external agency Illusion of transparency Illusory superiority Ingroup bias Just-world hypothesis Moral luck Naïve cynicism Naïve realism Outgroup homogeneity bias Projection bias Self-serving bias Shared information bias System justification Trait ascription bias Ultimate attribution error Worse-than-average effect Bizarreness effect Choice-supportive bias Change bias Childhood amnesia Conservatism or Regressive bias Consistency bias Context effect Cross-race effect Cryptomnesia Egocentric bias Fading affect bias False memory Generation effect) effect(Self-generation Google effect Hindsight bias Humor effect Illusion of truth effect Illusory correlation Lag effect Leveling and Sharpening Levels-of-processing effect List-length effect Misinformation effect Modality effect Mood-congruent memory bias Next-in-line effect Part-list cueing effect Peak–end rule Persistence Picture superiority effect Positivity effect Primacy effectt, Recency effect & Serial position effect Processing difficulty effect Reminiscence bump Rosy retrospection Self-relevance effect Source confusion Spacing effect Spotlight effect Stereotypical bias Suffix effect Suggestibility Telescoping effect Testing effect Tip of the tonguephenomenon Verbatim effect Von Restorff effect Zeigarnik effect
- 24. “If I had asked people what they wanted, they would have said …
- 25. Review assumptions Oh look a nice, rational funnel. I start at the top and consider all the products. I carefully remove products as we go. I never add products back in. And eventually I buy something.
- 28. Deliver rational and emotional reasons
- 29. Test, learn, do it again! Test Learn Improve
- 30. Don’t trust people, trust actions
- 31. We can change things
- 32. Digital strategy then … Accept people are irrational. Give them emotional and rational reasons to purchase. Observe don’t ask directly. Test, learn, improve. Don’t fear change – nothing is ever complete!
- 33. Thank you. @adamsefton adam.sefton@readingroom.com
Editor's Notes
- Understand people and their behaviour But accepting – in a traditional from traditional economics – that behaviour is irrational In our case, using that to our advantage
- What if behavioral psyc influences our digital strategies? Can we learn from elsewhere?
- MP3 Player was: The Audible Player closely followed by the Diamond Rio Smartphone was: in japan on NTT Docomo network Tablet was: Palm Pilot. MS was in 2000
- Unboxing the iPod video on the next slide.
- Use research to better understand the lives your customers lead Observe them as much as ask them