Helping Consumers Make Better Choices

Becoming a Choice Architect

Ultimately, as Nulab puts it in its blog, “Choice architecture: what is it, why use it — and is it ethical?” the goal “isn’t to limit the user’s options or take away their power; on the contrary, choice architecture is all about helping your users make the right decision.” We all tend to analyze the pros and cons before making a decision. In essence, choice architecture can help streamline that decision-making process.

Certainly, the concept is not meant to force a decision on consumers. Rather, it can help reduce the time and energy users spend making decisions. Instead, Nulab notes, “The goal of choice architecture is to reduce the cognitive load on your users, helping them make decisions more easily and efficiently. When done well, it can lead to increased conversion rates and happier customers.”

Nulab goes on to give further advice on how to best put choice architecture into practice:

1. Use social proof: One of the key principles of choice architecture is that we’re often influenced by what others do and the decisions they make. This is why social proof—like reviews, ratings, or testimonials—is so powerful in marketing.By showing users that others have made a particular choice with good results (such as buying your product or service), you’re more likely to build trust and positively influence their decision.
2. Offer a single choice: When given too many options, people tend to freeze up and have a hard time making a decision. This is why it’s often better to offer a single choice rather than multiple options.Try offering a single product with different customization options. This way, users can still make a choice that’s tailored to their needs without feeling overwhelmed.
3. Use concrete and specific language: When you’re presenting choices to your users, it’s important to be as specific as possible.This means avoiding technical jargon and using language that’s easy to understand. Users can more easily understand their options and make an informed decision.
4. Create a visual hierarchy: In addition to using specific language, visuals are essential in choice architecture. For one thing, they provide additional context that helps users understand their options. Another crucial factor is the arrangement of visuals in a design. By presenting some visuals more prominently than others, you can influence which options remain on a customer’s mind and guide their journey.
5. Be clear about the consequences: When people are making a choice, they often think about the short-term consequences of their decision. But it’s also important to be clear about the long-term consequences as well.Let’s say you’re offering a cheaper price for a limited time. Make it very clear that the price will go back up after this time period has passed. Transparency is an important part of treating customers fairly.
6. Use the categorization technique: One key principle of choice architecture is using categorization techniques to simplify the decision-making process for users. Consider how Netflix allows you to browse movies and TV shows by genre, making it easier to find something tailored to your interests.
7. Offer pricing packages: Offer different combinations of products or services at multiple price points.There are several benefits to offering different pricing packages. First, it’s a great way to give users the flexibility to choose a plan that’s tailored to their needs.Second, it can help simplify the decision-making process by providing users with clear options and making it easier for them to compare and contrast different plans.
8. Use nudges: We experience nudges every day. White lines on the road? These are nudges to remind you to stay in your lane. A 2-for-1 promo at the grocery store? These are nudges to buy more of a particular product. Nudges are everywhere, and they’re often used to influence our behavior. In the context of choice architecture, you present information in a way that encourages users down a specific conversion path. When using nudges in choice architecture design, it’s important to think about what type of behavior you want to influence. Consider things like the wording, color, and placement of your nudge as well as triggers, such as clicking on a specific button or entering an estimated travel date.

Changing Consumer Behavior

Featured in “Thinking Through the Perception Perspective,” All Things Insights’ Seth Adler discussed a variety of subjects with author and journalist David McRaney at last year’s TMRE. McRaney gave a keynote presentation at TMRE, “How to Change Minds,” based on his book, “How Minds Change: The Surprising Science of Belief, Opinion and Persuasion.” He investigates why some people never change their minds—and others do in an instant.

Looking forward to TMRE 2024? The conference, which will be held October 8 to 10, will feature the keynote session, “Changing Behavior – Guiding Employee and Customer Choices for Good,” presented by Katy Milkman, Economist, Bestselling Author & Professor at The Wharton School of the University of Pennsylvania. Employee and customer choices are heavily dependent on context. Katy Milkman, an expert in the ways we consider options and make decisions, understands this from her extensive research studying these populations as a behavioral economist. ‘Choice architecture,’ or simply the way in which a choice is presented (on screens and in person) can thus be an extremely valuable tool for improving employee outcomes and consumer choices.

In this informative keynote, Milkman teaches audiences how to make use of the malleability in how choices are made to influence behavior for the better, providing insights about how to encourage improved decisions—online, at work, and at home. Covering the basics of wise choice architecture, nudges that have been proven to increase the likelihood of optimal decisions, and actionable takeaways tailored for your business or organization, Milkman leads a funny, fast-paced, and practical talk about how we can guide employee and customer behavior in the most helpful ways possible. Register for TMRE 2024 here.

Putting the Consumer First

At times, choice architecture, and nudges, are a point of debate. Some may question the ethics of such product and service branding or marketing. Is it coercion in a free market society, where freedom of choice is championed?

While this debate may continue in the future, some may argue that the mandates of psychology and design, in the context of marketing and branding, are still to understand the user or consumer first, to put their needs and preferences front and center, and to treat them fairly.

Nulab observes, “At the end of the day, choice architecture isn’t about controlling users. It’s about making their user experience as simple, straightforward, and satisfying as possible. By using social proof, offering fewer choices, and being clear about the consequences of their choices, you can design products and experiences that serve the needs of your users and your organization.”

Video courtesy of Columbia Business School