Mar 22, 2019
We are getting close to wrapping
up our series on NUDGES today – and if you have been following
along each week you know we went a little out of order and did the
E in nudges last week – expecting error, and are now coming back to
G for giving feedback.
This combines with incentives,
understanding mapping and defaults (which we have covered already
starting off the series in episode with an introduction to nudges
in episode 35. Next week will wrap it all up with structuring
complex choices…and then we will move on to our next topic (and it
is one I am really excited about – you are going to love episode 42
to be sure).
In this behavioral economics
podcast, I talk about the importance of feedback, and why it lets
us know if we are doing a good or a bad job. I give several real
life examples involving cars, banking, our continued HVAC example,
and some fun gadgets that help us conserve energy or be better
weekend painters. I talk about the importance of visual cues and
incorporating all of the senses and how the concepts in this series
can be used to improve your business.
- [03:19] Last week I talked
about errors people make on things like getting their oil changed
or replacing the filter on the refrigerator. The light that comes
on to alert you it is time to take care of this task, is
essentially the feedback mechanism or the little nudge.
- [03:51] Choose your feedback
wisely, when there is too much people start to ignore the
- [04:48] This is where
understanding mapping is really important. When you understand the
best outcome for the chooser you can properly structure the choice
- [06:24] There are a combination
of concepts at play along with the nudges and choice architecture,
including optimism bias, and time discounting.
- [09:33] A speed sign with
flashing lights is feedback from an expected error. Something that
has been created based on the way the brain actually makes
decisions to help make the roads a little safer.
- [11:27] Remember, vision takes
place in the brain. Our brains take in all those pieces of data and
put them together with alerts and tasks based on rules of
- [13:03] The HVAC company could
have a system that would notify customers when it’s time to
schedule their maintenance. And, because it has smart technology,
it could be created to do the work for them.
- [15:57] The nudge the company
could put in place (which is using a combination of feedback and
loss aversion) is to strategically create their sales process to
encourage the person to make their decision that day.
- [17:34] Like the wedding dress
store, the HVAC company could give discounts if the customer
purchases on the same day of the sales call.
- [19:48] Simple things can make
a big difference. Examples are our phone cameras clicking, and
website links changing color.
- [22:29] I think it is important
to note here that a lack of a negative does not necessarily lead to
a positive feeling.
- [24:07] Feedback allows people
to know they are doing a good job – or where they are going
- [26:12] Wouldn’t it have been
nice if you had a little feedback during the process? This is
exactly why the geniuses at Glidden created a ceiling paint that
goes on pink and dries white.
- [28:22] Color coding is really
helpful for our visual brains. The episode on color theory is
coming soon – I promise, but know that our subconscious picks up on
the colors and knows what it should be striving for (green is good,
red is bad). An example on helping people use less
- [28:46] How can your business
incorporate the senses – color, pressure, scent, or sound to
provide feedback to your customers to nudge them into better
- [29:16] Feedback can also be
useful when things take a while and there are a lot of steps
happening behind the scenes. Domino's Pizza Tracker gives helpful
- [31:01] Feedback is appreciated
and can help your customers to quell an anxiety they may not be
able to articulate beforehand.
- [31:45] Timers without a
tracker make people wonder if they did something wrong.
- [32:12] If someone is stressing
about all that stuff, they are not paying attention or retaining
anything from your advertisement, so you should provide that little
bit of feedback.
- [33:19] Using feedback with
credit cards. Is there a way to provide feedback and a nudge for
those who would have issues without inconveniencing those who do
not need the nudge?
- [34:43] The point of feedback
is to get as close to the action as possible.
- [37:24] Using money in a jar as
feedback of progress and an incentive to keep moving forward. Also
using loss aversion by losing that money if you miss a
- [37:33] You can use this trick
for any goal. How could you use a tactic like this with your
employees or customers?
- [38:29] Take a look at your
company, customers, and the products or services you offer for
opportunities to provide feedback.
Thanks for listening. Don’t
forget to subscribe on
Android. If you like
what you heard, please leave a
review on iTunes
and share what you liked about the
Links and Resources: