Good afternoon, Berlin.
Let's get stuck into things. A bat and ball cost $1.10.
The bat cost one dollar more than the ball.
How much does the ball cost?
Have little think... Ready? Who got this answer?
Hands up, please. Great.
You got one of two possible answers.
What you though got was the cognitive miser answer.
The one that uses shortcuts in the brain.
This actually isn't the real answer,
the real answer is 5 cents.
If you look in the graphic on that side,
it really does add up to kind of 5 cents.
So, that's one example of us thinking that we're rational,
but actually acting irrationally.
The reason behind the cognitive miser is that your brain
is actually trying to save mental energy.
The brain is a made an amazing thing
and we actually make on average 35,000 decisions in a day.
But that mental energy is a finite resource
and we suffer over the day something called
decision fatigue. So by the end of it,
it's almost as if we're drunk when we're making decisions
But that's just the tip of the iceberg, really.
Why are we all here today and why am i speaking up here?
Well, biases are really, really important to us.
Because we're all here to create
apps and experiences that really offer
a kind of long-term relationships with the customers.
We're all aiming for high engagement and a high perceived value
from customers for our products.
But we can use biases in positive way
and a guiding light in the simplification process, to guide them
through the journey of our app in really nice and simple way.
Two scenarios, which would you prefer?
The number involved above is number
of monthly active users in your app.
I think we'd all agree that we'd rather 3 million rather than 800,00.
Let's add one data point to that: engagements.
Scenario one now has low engagement,
the scenario two has got high, and by engagement
I'm defining that as the percentage of people completing your core action,
A core action, for example,
would be posting a tweet on Twitter,
pinning likes on a board on Pinterest.
So actually, which of the two would you rather?
I'd highly and strongly suggest that we
actually focus on the 800,000
and the high engagement.
The three million is really just a vanity metric
Let's go six months into the future.
And now we've seen how focusing on high engagement
that's leading to high retention.
You've been able to build up the monthly active users to 5 million.
And so that's with using these little
nudges, these little biases,
these guiding lights, to help your customers
along the journeys within the apps that you've built.
Having been in this business for a long time,
There's a few questions we ask ourselves
when we're designing and building apps.
Simple questions, really. Is it clear what the app does?
In that first 5 or 10 second experience or the customer,
really, are you getting the value across?
Are you providing that hook?
In terms of value as well, generally to create value
you either save people time, save people money
or enhance an experience, or it's a combination of the three.
So, think about how you're actually creating value for the customer.
And also going back to that core action, try and design that whole
experience of your app around that specific simple core action.
And use those biases to kind of help them
along the way to complete that core action.
Also along that journey, how can you
provide a sense of progress to make them
feel like they're progressing to the end goal.
We live in a very noisy world.
We've got push notifications, social messages, adverts, emails, phone calls
all from all sorts of different devices.
We live in an age of the distraction.
Wth that in mind, it's never been more
important to consider a few things.
Specifically, context and past behavior
when you're thinking about sending triggers
out to your customers.
Even better, there are now SDKs available,
That allow to look at the past behavior,
the habits, and the lifestyle of your users
and predict when is best to send out those push notifications.
As as used by MyDays, using the the newer SDK.
It's amazing the kind of tools that we've got access to.
Also worth considering other tools
like the Google awareness API,
which can provide a sense of context
to your app, in terms of
what state the users are in. Are they driving?
Are they walking?
Do they have their headphones plugged in?
These little nuances to how and when you're pushing out triggers,
really have long-term positive effects on your retention and engagement.
The power of defaults. This is often overlooked,
but hugely, hugely useful to simplifying the customers' experience.
Here we've got a top-up wheel for a mobile coffee loyalty app.
There are seven segments.
Now, the numbers in green,
which one of those do you think we should place
in the default highlighted segments in the wheel.
Anyone, give me a shout.10, 30...
Okay, we got we've got some smart people here, 30.
30 is correct, simply, I mean we we chose 30
as default here because it was in the middle of the range.
And the end result of that was the average top up value
was roughly around 20 pounds here,
where originally the business thought
it was going to be around 10 pounds.
Now with all these biases and guiding lights
and nudges, it's great to integrate
into an app but it really does have a
positive long-term effect.
And this was the case with this specific app.
The 50% of orders were coming from the app
for certain stores,
and that compares to the market leader
in the coffee space having an average of 21% of orders coming from the app.
So these little nudges really help.
I think a huge number of us have hear of the classic jam jar experiment.
whereby 24 jams compared to 6 jams,
that 3% of the people who are shown 24 jams buy a jam,
compared to 40% of people who buy for one of the six.
So that's called the pallets of choice.
And this applied to menu design here,
I start off with showing 50 options, so you got
every option under Under the Sun on the starting screen.
Obviously far too many, you're introducing cognitive load
into the experience, you're making user work too hard.
So let's just apply some some kind of common sense to that list
and we end up with the second screen.
Ten options, there's still a strong list,
but we can do so much more for the customer.
The ideal could be just one option.
The smarts, the perfect option that takes into account the context.
That's true but it's also worth
considering the last screen on the far hand side
of providing three options, why would you want to provide three options ?
To give a sense of choice to your customer,
to allow them to control their journey through your app.
All these behavioral biases are really kind of stemming from
the last 60 years of research in behavioral science.
But new concepts and theories are coming out on a weekly basis.
There's a problem though in that they're really largely very dry,
very academic maths written sometimes, actually hard to get hold of
and fundamentally also not very practical in their original form.
So we discovered this particular problem two or three years ago,
and decidesd to create a little micro-site called Cogload.com.
which basically is a collection of all these lovely
behavioral biases pulled together into location,
but redesigned and rewritten so that it's in a format
that's digestible, understandable and also practical to us
who are the designers and developers of today's products and the future.
So cogload.com, and I might
have something to give out later on.
With all this speak about biases,
how best do you integrate this thinking into the way that you're designing
and building your apps.
One of the methods that we've got is,
we call it the Cogload focus method.
We have biases on a whole stack of cards,
we we put it all out on the table and collectively
within the team,we look at what's most
applicable to that particular scenario,
to that brands, and we make sure that everyone
understands the biases, then we go off
in your individual little corners of the room.
and brainstorm ideas around how to integrate, how to best integrate that bias
into the experience for the benefit of the customer.
Also is worth keep in mind the values of the client
or the product, the strategy that you've got
and also think about the emotion that you are looking to evoke,
by someone using your your tool or app.
Then come back to sit together, present your best idea to the team
but think about the actual problem that you're looking to tackle,
present the idea, how it aligns with the brands',
present also the assumptions and risks you think involved in there,
and how you're gonna test and make that
minimal test and who's going to be involved in that.
The Memorize app, one of my most favorite apps in the world.
And I just wanted to take a moment to focus
you in on to the very top of the screen, the green area.
This is the first time this screen has been shown to me the user,
the first time user, but there's two ticks here.
This is what's called the Endowed Progress Effect,
and it's a feeling that you've already made a great start,
so you're more likely to progress to that
end goal, completing that line, developing a positive behavior.
And it all stems from research, originally done
in the US for a carwash, who trialled two different loyalty cards.
the first loyalty card had eight stamps,
the second loyalty card had ten stamps, but two were pre-filled.
Which is the loyalty card that performed the best?
It was the one that had the two pre-filled stamps.
It was though that was the card, that was completed the most often,
that was completed the quickest and had the most loyal customers.
Another lovely graphic here.
The Harvard Business Review pyramids.
Now two things to take from this slide, try and involve as many of these points,
in that pyramid as possible in your app.
And what you will then create is customer loyalty and high engagement.
One other thing from this pyramid is emotion.
Again, it's really important to just ask this
simple question when you're designing and building your app.
What emotion am I looking to evoke?
It might simply be a smile,
it might be some stage past emotion like salivation, which is an amusing one.
But it's a very simple question and it acts as a really lovely
simple guiding lights to make sure
that the value you're creating is high enough and beneficial to the customer.
Now, this is an app that I hope
you've all got installed already on your on your devices:
Playbook for developers.
which is a gold mine of nuggets for anyone building
businesses on top of Google platforms.
And I just wanted to showcase two particular biases
that are integrated into the app.
Sunk cost effect which is as you spend more time investing
within a tool or products, you're far less likely to leave.
And so over over the days or months that you're using the PlayBook app,
you're personalizing it, so then you're getting
a more personalized feeds and, again, less likely to leave.
Then there's a humor effect, nothing could, it's not really
connected to a feature, but it's used here
really to create a more lasting memory which helps with retention.
So, you know, we always want to get dancing androids into our into our apps.
As I've also mentioned before, it's not always about features.
Think about also the low moments in an apps experience,
when the network fails, when something...
when there's an internal error within the app,
when you when you're in that first default state
where you don't have any saved items.
How can you use these design nudges in a positive way,
to turn what actually might feel initially quite negative,
soften that and maybe you can even turn that into a positive experience,
and maybe make someone smile by showing a kind of cute robot.
The last case study I wanted to highlight today,
is the M. Gemi app, which is an app that sells shoes.
and the really interesting bias that they've integrated here
is that of limited availability.
So you have this notion of editions,
that they release every single week,
but within those editions, there's a certain number of shoes,
so limited availability actually of the shoes.
And then there's a limited window of 12 weeks for each shoe.
So the result of all that, they ended up
having the highest
converting sales channel on mobile.
That was their highest promoted sales channel,
and it was four to five times
the industry standards of conversions of push.
So, these things really do work,
and very, very useful for both customer and client.
All this said, like I've said before,
with biases come power, they can be used
for negative effect.
But it's not the time to use that, really for
creating long-term engagement retention,
the customer has to be right at the heart of it all.
And you can use this positive biases in so many ways
to create that positive emotion for the customer.
So this is people, always end
on a peak end rule bias,
which creates a longer lasting memory.
find me at the break, I've got a limited number
of special things to give up give out.
So, limited availability bias there.
Also humor bias creates a longer lasting memory.
Merci! Danke! Thank you!