The 03 tools you need in order to help your customers make better decisions online

In this article I share 03 tools from Behavioral Science and User Experience (UX) that can influence how your customers process information and make decisions online: information architecture, choice architecture, and thinking architecture.

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Isn't it true that nowadays many of us spend most of the time in front of a screen? Especially after the COVID-19 pandemic, most (if not all) companies went digital and customers had to quickly adapt to this change.

As the use of digital platforms is becoming increasingly important, companies need to consider the following:

• Create easy and memorable online experiences for customers.

• Understand how customers think and make decisions online.

In this article we will focus on the psychological aspects that allow us to deepen our understanding of how Behavioral Science and UX can help companies improve the decision-making process and the user experience online.

“We have information, but sometimes we miss important relevant details. We have more choices, but we choose the wrong things. We act very quickly, but that often means we act without thinking”. - Shlomo Benartzi

In his book “The Smarter Screen: Surprising Ways to Influence and Improve Online Behaviour”, Shlomo Benartzi shows a set of behavioral tools for the digital age.

When I read it for the first time, I found it very interesting and thorough to consider the following 03 tools in the design of solutions on digital platforms:

• Information architecture

• Choice architecture

• Thinking architecture

Let's dig into it!

Information architecture

“We have information, but sometimes we miss important relevant details”

What is it?

It refers to the way of organizing and structuring the content on digital platforms, since the format of the information can change the way we process it.

Why is it important for my business?

One of the ideas behind the concept of 'bounded rationality' (Simon, H., A., 1982) is that the human mind can process a limited amount of information. We are limited because of the lack of attention and the inability to concentrate on a few things at the same time. This makes it difficult to deploy that little attention we have left.

An unstructured information architecture can divert people from what is really important.

We react more slowly and are less likely to stop where we should on a website or app if we focus on other information. What causes this? It is the concept of Inattentional Blindness: when the information we receive in the brain exceeds our ability to process it, we stop noticing the things around us.

Companies must fight for the attention of customers. If they take into account the organization and the structure of the information on digital platforms they can help users process it, find what they need, and make better decisions.

How can I improve the information architecture?

Preselect the amount of information you want to present to your customers (only the relevant information... for them!).

One study found that providing consumers with more health insurance options on a website dramatically decreased their ability to find the best plan. 47 different insurance plans were offered, with specific information related to each of them. Finally (and as expected), they chose suboptimally.

Simplify the way you present information to your customers.

Chunking is a very good strategy to implement on digital platforms. People often rearrange, regroup, or reduce the information to easily understand or remember it. So when the same information is presented in 'chunks' or categories on your website, it becomes easier for your customers to process it, as well as their ability to receive and remember it.

Choice architecture

“We have more choices, but we choose the wrong things.”

What is it?

It is a key concept in the nudging theory. It refers to the practice of influencing people's choice by changing the context in which they make decisions (Thaler, R. Sunstein, C., 2008). Choice architecture shows how the design and layout of alternatives on screens can affect our decisions.

Why is it important for my business?

Choice architecture demonstrates the importance of contextual factors (eg, available resources), and not just individual factors (eg, motivation), that can influence people's behaviors. Therefore, choice architecture is the practice of influencing choice by changing the context in which people make decisions.

Knowing how people make decisions online is valuable when designing a website or app. For example, a study shows that people prefer to look at the center of the screen and are more likely to notice content that is placed in that position.

How can I improve the information architecture?

In their book, Thaler and Sunstein (2008) detail some principles that can be applied to create an effective choice architecture, for example default options, framing effect, or status quo bias.

These insights could help better design online environments while considering the behavior of people as “humans” and not “Econs” (according to behavioral economics and in contrast to traditional economic theory).

Thinking architecture

“We act very quickly, but that often means we act without thinking.”

What is it?

It is a strategy that can be used in the digital environment to help customers make smarter decisions.

Why is it important for my business?

If information architecture makes us more aware of relevant information and choice architecture makes it easier for us to make better decisions, then thinking architecture is about helping us think smarter.

When making decisions, people can think in two different ways, using two different systems. In particular,

• System 1 thinking is quick, automatic, and requires little effort. It is responsible for most of the decisions we make in our day to day.

• System 2 thinking is slow, conscious, and requires a lot of effort. It is responsible for all decisions that require more time and cognitive effort.

Knowing this about your customers can help you understand when in their journey you can influence their thinking architecture, helping them make better decisions for themselves.

How can I improve the information architecture?

How can you help your customers think smarter? One of the ways is the 'query theory' (Johnson, E., J., Haubl, G., Keinan A., 2007).

Query theory is based on the belief that when people make a decision, they usually arrive at it by asking themselves a series of internally posed questions. In their experiments, Johnson and his colleagues have shown that query theory can help explain many aspects of human behavior, from the Endowment Effect—the tendency to overvalue the things we own—to inconsistencies in political beliefs.

Benartzi shares an example applied to savings behaviors, In a 2007 article, a team of psychologists implemented a change in the sequence of questions to make people first think about why it would be good to delay gratification. and not receive it immediately.

It was shown that simply by changing the sequence of questions, subjects became more likely to expect a higher reward. The same approach could also help people save money for pensions. The key is to make people ask "Why should I save money?" before they wonder "Why shouldn't I save money?" The order of the questions is critical, also for your business.

Key Takeaway

By applying Behavioural Science in your business, you can help your customers think smarter and choose wiser, while providing the right amount of information they need and can cognitively process.

Silvia Cottone

Behavioral Science Consultant

& Worldwide Keynote Speaker

Reference

Johnson, E. J., Häubl, G., & Keinan, A. (2007). Aspects of endowment: A query theory of value construction. Journal of Experimental Psychology: Learning, Memory, and Cognition, 33(3), 461–474.

Simon, H. (1982) Models of Bounded Rationality: Behavioral Economics and Business Organization. Vol. 2, MIT Press, Cambridge, MA.

Shlomo Benartzi (2015). The Smarter Screen: Surprising Ways to Influence and Improve Online Behaviour. Penguin.

Thaler, R. H., & Sunstein, C. R. (2009). Nudge: improving decisions about health, wealth, and happiness. Rev. and expanded ed. New York: Penguin Books.