your customers are stupid–but it's not their fault

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YOUR CUSTOMERS ARE STUPID #stupidcustomers #bigd13 Sunday, October 20, 13

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They make choices we wish they didn't. They make mistakes that we designed websites to avoid. And yet, they our customers still do stupid things sometimes. The question we need to ask is, Why? The human brain is complex and amazing, yet often struggles with the simplest of fallacies. These fallacies or cognitive biases can range from assuming that because the roulette wheel has come up red 5 times in a row that black is "due," (Gamblers Fallacy) or judging the value of an item based on the price of a similar item (Anchoring), we make choices every day based on faulty logic. As marketers, we need to understand and overcome/play into these fallacies in order to design experiences that change behavior. This presentation will get into the root of these cognitive biases and how we can address them in our strategies, messages and designs. Questions Answered/Things you Learned: What are some common biases that affect consumer behavior? How have companies designed around/for these biases (and how can you)? How can you better identify what sort of pitfalls your customers will fall into? How Cognitive Biases can lead to the dreaded "user error?"

TRANSCRIPT

Page 1: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

YOUR CUSTOMERS ARE STUPID

#stupidcustomers#bigd13

Sunday, October 20, 13

Page 2: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

YOUR CUSTOMERS ARE STUPID

#stupidcustomers#bigd13

BUT IT’S NOT THEIR FAULT

Sunday, October 20, 13

Page 3: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

Need Proof?

Sunday, October 20, 13

Page 4: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

Sunday, October 20, 13

Page 5: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

STUPID.

Sunday, October 20, 13

Page 6: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

Sunday, October 20, 13

Page 7: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

STUPID.

Sunday, October 20, 13

Page 8: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

End. Tosh.0

Sunday, October 20, 13

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#stupidcustomers

We Are NOT Here...

... to talk about stupid people doing stupid things.

Sunday, October 20, 13

Page 10: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

We Are Here...

... to talk about how smart people do stupid things without knowing it.

Sunday, October 20, 13

Page 11: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

Sunday, October 20, 13

Page 12: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

Reality.

Sunday, October 20, 13

Page 13: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

People...

...Are not always in charge of their own actions and behaviors.

Sunday, October 20, 13

Page 14: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

The Scary Truth...

... is people’s loss of control is due to the unconscious mind constructing subjective realities.

Sunday, October 20, 13

Page 15: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

... cause people to think in less than rational ways. Sometimes this works to their advantage. Other times, not.

These Subjective Realities...

Sunday, October 20, 13

Page 16: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

... Cognitive Bias.

Experts Call This...

Sunday, October 20, 13

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#stupidcustomers

Tendencies to think in certain ways. They can lead to systematic deviations from a standard of rationality or good judgement.

Cognitive Biases:

Sunday, October 20, 13

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#stupidcustomers

Who? Why?

Sunday, October 20, 13

Page 19: Your Customers Are Stupid–But It's Not Their Fault

We Are...

Ezra Englebardt@ezra802Brand planner currently obsessed with gadgets, bikes, consumer behavior, movies, food trucks and 5Ks

Timothy Parcell@freescribblesExperience designer permanently obsessed with running, comic books, cartoons, beer and My Little Pony

Sunday, October 20, 13

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SapientNitro...

Sunday, October 20, 13

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#stupidcustomers

SapientNitro...

... helps brands bring ideas to life.

Sunday, October 20, 13

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SapientNitro...

... helps brands bring ideas to life.Sometimes it’s a website. Sometimes it’s an ad.

Sunday, October 20, 13

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#stupidcustomers

SapientNitro...

... helps brands bring ideas to life.Sometimes it’s a website. Sometimes it’s an ad.All the time, it’s an experience.

Sunday, October 20, 13

Page 24: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

SapientNitro...

... helps brands bring ideas to life.Sometimes it’s a website. Sometimes it’s an ad.All the time, it’s an experience.

Sunday, October 20, 13

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Brands We’ve Helped...

Sunday, October 20, 13

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The Real Challenge

Sunday, October 20, 13

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Our Industry...

... designs solutions to complicated problems.

Sunday, October 20, 13

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These Solutions...

...require interaction with customers.

Sunday, October 20, 13

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And...

... customers are stupid.

Sunday, October 20, 13

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Ok. That’s Been Debunked.

Sunday, October 20, 13

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Customers...

... talk rationally.

Sunday, October 20, 13

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Customers...

...act irrationally.

Sunday, October 20, 13

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What is a Cognitive Bias?

Sunday, October 20, 13

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You know how every time you get in line at the grocery store you ALWAYS seem to get stuck behind the lady with 800 coupons? or the guy paying in pennies?

Sunday, October 20, 13

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#stupidcustomers

This is an example of the Availability Bias–giving more unwarranted importance to memories that are most vivid, the most available for retrieval by our brains.

You simply don’t recall all the times you go to the market, pick up some items, and check out without incident.

Sunday, October 20, 13

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How many of you think that you are a good driver?

Sunday, October 20, 13

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How many of you think that you are a good driver?How many of you think you’re above average intelligence, relative to your peers?

Sunday, October 20, 13

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Sunday, October 20, 13

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Both are examples of Illusory Superiority Bias–people overestimate their positive qualities and abilities and underestimate their negative qualities, relative to others.

Sunday, October 20, 13

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Both are examples of Illusory Superiority Bias–people overestimate their positive qualities and abilities and underestimate their negative qualities, relative to others.In other words, it’s statistically unlikely that you are ALL better than average (at anything).

Sunday, October 20, 13

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What This Means For Us

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Great Experiences...

... require forethought and an attention to detail.

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Aesthetics

Sunday, October 20, 13

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Pick A Good Typeface

Sunday, October 20, 13

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Sunday, October 20, 13

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Pick A Good Typeface

Sunday, October 20, 13

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Sunday, October 20, 13

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Pick A Good Typeface

Sunday, October 20, 13

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Sunday, October 20, 13

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Form...

... And function.

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3 tablespoons olive oil, divided2 pounds lamb meat, cut into 1 1/2 inch cubes2 teaspoons paprika1/4 teaspoon ground turmeric1/2 teaspoon ground cumin1/4 teaspoon cayenne pepper1 teaspoon ground cinnamon1/4 teaspoon ground cloves1/2 teaspoon ground cardamom1 teaspoon kosher salt1/2 teaspoon ground ginger1 pinch saffron3/4 teaspoon garlic powder3/4 teaspoon ground coriander2 medium onions, cut into 1-inch cubes5 carrots, peeled, cut into fourths, then sliced lengthwise into thin strips3 cloves garlic, minced1 tablespoon freshly grated ginger1 lemon, zested1 (14.5 ounce) canhomemade chicken broth or low-sodium canned broth1 tablespoon sun-dried tomato paste1 tablespoon honey1 tablespoon cornstarch(optional)1 tablespoon water (optional)

1. Place diced lamb in a bowl, toss with 2 tablespoons of the olive oil, and set aside. In a large resealable bag, toss together the paprika, turmeric, cumin, cayenne, cinnamon, cloves, cardamom, salt, ginger, saffron, garlic powder, and coriander; mix well. Add the lamb to the bag, and toss around to coat well. Refrigerate at least 8 hours, preferably overnight.

2. Heat 1 tablespoon of olive oil in a large, heavy bottomed pot over medium-high heat. Add 1/3 of the lamb, and brown well. Remove to a plate, and repeat with remaining lamb. Add onions and carrots to the pot and cook for 5 minutes. Stir in the fresh garlic and ginger; continue cooking for an additional 5 minutes. Return the lamb to the pot and stir in the lemon zest, chicken broth, tomato paste, and honey. Bring to a boil, then reduce heat to low, cover, and simmer for 1 1/2 to 2 hours, stirring occasionally, until the meat is tender.

3. If the consistency of the tagine is too thin, you may thicken it with a mixture of cornstarch and water during the last 5 minutes.

Making Tagine...

Sunday, October 20, 13

Page 52: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

3 tablespoons olive oil, divided2 pounds lamb meat, cut into 1 1/2 inch cubes2 teaspoons paprika1/4 teaspoon ground turmeric1/2 teaspoon ground cumin1/4 teaspoon cayenne pepper1 teaspoon ground cinnamon1/4 teaspoon ground cloves1/2 teaspoon ground cardamom1 teaspoon kosher salt1/2 teaspoon ground ginger1 pinch saffron3/4 teaspoon garlic powder3/4 teaspoon ground coriander2 medium onions, cut into 1-inch cubes5 carrots, peeled, cut into fourths, then sliced lengthwise into thin strips3 cloves garlic, minced1 tablespoon freshly grated ginger1 lemon, zested1 (14.5 ounce) canhomemade chicken broth or low-sodium canned broth1 tablespoon sun-dried tomato paste1 tablespoon honey1 tablespoon cornstarch(optional)1 tablespoon water (optional)

1. Place diced lamb in a bowl, toss with 2 tablespoons of the olive oil, and set aside. In a large resealable bag, toss together the paprika, turmeric, cumin, cayenne, cinnamon, cloves, cardamom, salt, ginger, saffron, garlic powder, and coriander; mix well. Add the lamb to the bag, and toss around to coat well. Refrigerate at least 8 hours, preferably overnight.

2. Heat 1 tablespoon of olive oil in a large, heavy bottomed pot over medium-high heat. Add 1/3 of the lamb, and brown well. Remove to a plate, and repeat with remaining lamb. Add onions and carrots to the pot and cook for 5 minutes. Stir in the fresh garlic and ginger; continue cooking for an additional 5 minutes. Return the lamb to the pot and stir in the lemon zest, chicken broth, tomato paste, and honey. Bring to a boil, then reduce heat to low, cover, and simmer for 1 1/2 to 2 hours, stirring occasionally, until the meat is tender.

3. If the consistency of the tagine is too thin, you may thicken it with a mixture of cornstarch and water during the last 5 minutes.

Making Tagine...

Sunday, October 20, 13

Page 53: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

3 tablespoons olive oil, divided2 pounds lamb meat, cut into 1 1/2 inch cubes2 teaspoons paprika1/4 teaspoon ground turmeric1/2 teaspoon ground cumin1/4 teaspoon cayenne pepper1 teaspoon ground cinnamon1/4 teaspoon ground cloves1/2 teaspoon ground cardamom1 teaspoon kosher salt1/2 teaspoon ground ginger1 pinch saffron3/4 teaspoon garlic powder3/4 teaspoon ground coriander2 medium onions, cut into 1-inch cubes5 carrots, peeled, cut into fourths, then sliced lengthwise into thin strips3 cloves garlic, minced1 tablespoon freshly grated ginger1 lemon, zested1 (14.5 ounce) canhomemade chicken broth or low-sodium canned broth1 tablespoon sun-dried tomato paste1 tablespoon honey1 tablespoon cornstarch(optional)1 tablespoon water (optional)

1. Place diced lamb in a bowl, toss with 2 tablespoons of the olive oil, and set aside. In a large resealable bag, toss together the paprika, turmeric, cumin, cayenne, cinnamon, cloves, cardamom, salt, ginger, saffron, garlic powder, and coriander; mix well. Add the lamb to the bag, and toss around to coat well. Refrigerate at least 8 hours, preferably overnight.

2. Heat 1 tablespoon of olive oil in a large, heavy bottomed pot over medium-high heat. Add 1/3 of the lamb, and brown well. Remove to a plate, and repeat with remaining lamb. Add onions and carrots to the pot and cook for 5 minutes. Stir in the fresh garlic and ginger; continue cooking for an additional 5 minutes. Return the lamb to the pot and stir in the lemon zest, chicken broth, tomato paste, and honey. Bring to a boil, then reduce heat to low, cover, and simmer for 1 1/2 to 2 hours, stirring occasionally, until the meat is tender.

3. If the consistency of the tagine is too thin, you may thicken it with a mixture of cornstarch and water during the last 5 minutes.

3 tablespoons olive oil, divided2 pounds lamb meat, cut into 1 1/2 inch cubes2 teaspoons paprika1/4 teaspoon ground turmeric1/2 teaspoon ground cumin1/4 teaspoon cayenne pepper1 teaspoon ground cinnamon1/4 teaspoon ground cloves1/2 teaspoon ground cardamom1 teaspoon kosher salt1/2 teaspoon ground ginger1 pinch saffron3/4 teaspoon garlic powder3/4 teaspoon ground coriander2 medium onions, cut into 1-inch cubes5 carrots, peeled, cut into fourths, then sliced lengthwise into thin strips3 cloves garlic, minced1 tablespoon freshly grated ginger1 lemon, zested1 (14.5 ounce) canhomemade chicken broth or low-sodium canned broth1 tablespoon sun-dried tomato paste1 tablespoon honey1 tablespoon cornstarch(optional)1 tablespoon water (optional)

1. Place diced lamb in a bowl, toss with 2 tablespoons of the olive oil, and set aside. In a large resealable bag, toss together the paprika, turmeric, cumin, cayenne, cinnamon, cloves, cardamom, salt, ginger, saffron, garlic powder, and coriander; mix well. Add the lamb to the bag, and toss around to coat well. Refrigerate at least 8 hours, preferably overnight.

2. Heat 1 tablespoon of olive oil in a large, heavy bottomed pot over medium-high heat. Add 1/3 of the lamb, and brown well. Remove to a plate, and repeat with remaining lamb. Add onions and carrots to the pot and cook for 5 minutes. Stir in the fresh garlic and ginger; continue cooking for an additional 5 minutes. Return the lamb to the pot and stir in the lemon zest, chicken broth, tomato paste, and honey. Bring to a boil, then reduce heat to low, cover, and simmer for 1 1/2 to 2 hours, stirring occasionally, until the meat is tender.

3. If the consistency of the tagine is too thin, you may thicken it with a mixture of cornstarch and water during the last 5 minutes.

Sunday, October 20, 13

Page 54: Your Customers Are Stupid–But It's Not Their Fault

#stupidcustomers

Font Effect Bias

A beautiful typeface can have a powerful effect on experience.

Sunday, October 20, 13

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Key Takeaways

Be a Designer.

Sunday, October 20, 13

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Key Takeaways

Be a Designer.Ensure that complicated subject matter is clean and easy to read.

Sunday, October 20, 13

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Key Takeaways

Be a Designer.Ensure that complicated subject matter is clean and easy to read.

Sunday, October 20, 13

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Use Pictures

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You Never Saw That.

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Picture Superiority Effect

People retain pictures better then text.

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Key Takeaways

Use pictures.

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Key Takeaways

Use pictures.Combine images with text to deliver a memorable experience and reduce cognitive effort.

Sunday, October 20, 13

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Decision Processes

Sunday, October 20, 13

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Conform

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Keeping Up With the Joneses

Sunday, October 20, 13

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Bandwagon Effect Bias

The tendency to follow ‘groupthink.’

Sunday, October 20, 13

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Key Takeaways

Show what others are doing.

Sunday, October 20, 13

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Key Takeaways

Show what others are doing.Utilize social networks and peer reviews.

Sunday, October 20, 13

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Contextualize

Sunday, October 20, 13

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Priced To Move?

If Apple says something is $.99 or Amazon says something is $9.99 any competitor will have to do the same.

Sunday, October 20, 13

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Anchoring Bias

The tendency to rely to heavily on one piece of information to make decisions.

Sunday, October 20, 13

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Key Takeaways

Determine what anchors exist in the category.

Sunday, October 20, 13

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Key Takeaways

Determine what anchors exist in the category.Give customers an understanding of the value offered with your product.

Sunday, October 20, 13

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Profile

Sunday, October 20, 13

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Profile?

Sunday, October 20, 13

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Sunday, October 20, 13

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Stereotyping Bias

The assumption that a member of a group has a certain characteristic without having any more information.

Sunday, October 20, 13

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Key Takeaways

Know the audience.

Sunday, October 20, 13

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Key Takeaways

Know the audience.Test reactions.

Sunday, October 20, 13

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Layout/Selection

Sunday, October 20, 13

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Provide Comparisons

Sunday, October 20, 13

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Sunday, October 20, 13

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Sunday, October 20, 13

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Notice The Differences?

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Notice The Differences?

Okay, that one was easy.

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Still Not Seeing It?

It’s a lot easier to to see the differences if they’re side-by-side.

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Still Not Seeing It?

It’s a lot easier to to see the differences if they’re side-by-side.No Shit.

Sunday, October 20, 13

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Vroom. Vroom?

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Manufacturers...

... are missing the big picture.

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Manufacturers...

... are missing the big picture.They create rich experiences about one car while customers are looking at all four on cars.com.

Sunday, October 20, 13

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Distinction Bias

The tendency to view two options as more distinctive when evaluating them simultaneously than when evaluating them separately.

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Key Takeaways

Help customers see the distinct features of products by showing them together (not in isolation).

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Key Takeaways

Help customers see the distinct features of products by showing them together (not in isolation). If your product is inferior, don’t do the above.

Sunday, October 20, 13

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Key Takeaways

Help customers see the distinct features of products by showing them together (not in isolation). If your product is inferior, don’t do the above.If your product is superior, definitely do the above.

Sunday, October 20, 13

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Key Takeaways

Help customers see the distinct features of products by showing them together (not in isolation). If your product is inferior, don’t do the above.If your product is superior, definitely do the above.

Sunday, October 20, 13

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Do Not Alphabetize

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Which%tent%will%sell%the%best?%%A)  The%highest%

rated%B)  The%lowest%

priced%C)  The%first%one%

featured%D)  The%last%one%

featured%E)  The%one%with%

the%“online%only”%flag%

Which Tent Sells Best?

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Were You Right?

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Were You Right?

The answer is “The First One”

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Were You Right?

The answer is “The First One”In this study, people picked the first tent 2.5 times more than any other. They chose the first tent 200 times; they chose the other three tents (combined) only 60 times.

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Outside of Design...

... and in the world of Politics.

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Outside of Design...

... and in the world of Politics.Meredith and Salant found that in one out of every 10 elections, the first name on the ballot will win just because it’s first (although this effect tends to lessened in major elections like Senate and Presidency

Sunday, October 20, 13

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Key Takeaways

Order by Business Value. If you want to sell it, put it first.

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Key Takeaways

Order by Business Value. If you want to sell it, put it first.Combine this with Anchoring and Distinction.

Sunday, October 20, 13

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Impulse

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Make It Easy

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Sunday, October 20, 13

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Restraint Bias

The tendency to overestimate one’s restraint in the face of temptation.

Sunday, October 20, 13

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Key Takeaways

Make actions simple.

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Key Takeaways

Make actions simple.Make actions fun.

Sunday, October 20, 13

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Affinity

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Empathize

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Remember...

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Remember...

... people are irrational.

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Even Designers...

... think with their hearts.

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Empathy Gap Bias

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Empathy Gap Bias

tendency to underestimate the influence or strength of feelings, in either oneself or others.

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Be Repetitive

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Spacing Effect Bias

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Spacing Effect Bias

Information is better recalled if exposure is repeated over time.

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Key Takeaways

Be consistent with your messaging at all touchpoints.

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Key Takeaways

Be consistent with your messaging at all touchpoints.Make sure each one is great.

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In Closing

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Recap

Your customers are stupid.

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Recap

Your customers are stupid.Knowing is half the battle.

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Recap

Your customers are stupid.Knowing is half the battle.Proactively address irrational behavior.

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Recap

Your customers are stupid.Knowing is half the battle.Proactively address irrational behavior.Understand your options.

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Recap

Your customers are stupid.Knowing is half the battle.Proactively address irrational behavior.Understand your options.Be kind.

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Thank YouEzra Englebardt

@ezra802Timothy Parcell

@freescribbles

Sunday, October 20, 13