Part 3 - Pro Tips and Techniques Product Managers Need to Know

I recently contributed a guest post for The Frictionless Experience team, inspired by my insightful conversation with Chuck and Nick during my appearance on The Frictionless Experience. We delved into the topic of inevitable change, exploring how we can excel at creating predictable and reliable change that adds value for both the organization and customers—in a truly frictionless way!

During the episode, I provided my E3 frictionless product management framework, which all product managers can use to improve the way they create their digital products and experiences.

But going even deeper, mastering advanced strategies can make all the difference between good and exceptional outcomes.

Let’s talk about Behavioral economics and how it can impact product design! Below you’ll find

• 60 second highlight video

• Example techniques with quick examples for each

• 1 use case with various ways to apply the techniques.

Let’s jump in…

Behavioral economics can profoundly impact product design by tapping into the psychological factors influencing user decisions. Techniques like nudges, defaults, and social proof can significantly enhance user engagement and conversion rates.

Techniques

Nudges:

Nudges are subtle prompts that encourage users to make certain choices without restricting their freedom. For instance, setting a default option that benefits the user, such as pre-selecting the most popular or recommended choice, can significantly influence their decision-making.

• Example: When designing an online checkout process, you might pre-select the most eco-friendly shipping option to encourage sustainable behavior without forcing it upon users. This nudge aligns with values and increases the likelihood of users opting in.

Defaults:

Defaults are powerful because users tend to stick with pre-selected options. By setting beneficial defaults, such as opting users into a newsletter or a premium feature trial, you can increase the likelihood of user engagement with those options.

• Example: Many subscription services use default settings to opt users into auto-renewal, ensuring continuous service unless the user actively chooses to opt out. This technique leverages the inertia of user decision-making to maintain subscription rates.

Social Proof:

This leverages the influence of others' behaviors to encourage similar actions. Displaying testimonials, user reviews, or the number of people who have taken a particular action can create a sense of trust and urgency, prompting users to follow suit.

• Example: Displaying messages like "Join over 10,000 satisfied customers" or showing real-time data like "3 people have purchased this in the last hour" can encourage others to make similar choices, boosting conversions.

Scarcity and Urgency:

Highlighting limited-time offers or low stock levels can create a sense of urgency, driving users to take immediate action to avoid missing out.

• Example: E-commerce platforms often show messages like "Only 2 left in stock!" or "Sale ends in 2 hours!" to spur quick decision-making.

Anchoring:

Providing a reference point (or "anchor") can influence how users perceive value. For example, displaying a higher-priced option alongside a mid-range option can make the mid-range option seem more reasonable and attractive.

• Example: Consider a scenario with only one soda machine in a lobby; the customer's decision is limited to "Do I want a soda or not?" In contrast, if there are two competing soda machines, the question shifts to "Do I want a soda from Brand A or Brand B?" This subtle shift increases the likelihood of a purchase as the customer is now comparing options rather than deciding on a single choice.

Think about the Jobs to Be Done Framework we discussed in Part 1 of this series.

Where we discussed how you start by identifying the core job your users are trying to accomplish with your product.

Let’s take an example - if you're building a fitness app, the job might be "help users stay motivated to exercise regularly."

What are some ways you can use the tactics above to help the customer?

Nudge Users Toward Completing Their Job In the Fitness App

Use Nudges to gently push users towards actions that help them complete their job. If the job is to stay motivated, you might send daily reminders or motivational messages nudging them to log their workouts or set new goals.

Tactical Tip: Create a checklist within your app that reminds users of small actions they need to complete their job, such as tracking their meals or setting up workout reminders. By nudging them with notifications, you keep them engaged and on track.

Set Defaults That Align with the JTBD

Ensure the Defaults you set within your product are geared toward helping users fulfill the job they hired your product to do. For instance, automatically setting the fitness goal to a manageable target, like 10,000 steps a day, can help users feel more successful and engaged.

Tactical Tip: Pre-configure your app with default settings that are most likely to help users achieve their goals, such as recommended workout plans or healthy meal suggestions. These defaults reduce friction and make it easier for users to start their journey.

Leverage Social Proof to Validate the Job

Use Social Proof to show users that others with the same job have successfully used your product. For example, testimonials from users who have successfully lost weight or increased their fitness levels can inspire new users to believe that they, too, can achieve their goals.

Tactical Tip: Highlight user success stories or statistics within your app, such as “85% of our users hit their weekly fitness goals,” to encourage others to stick with their plans.

Create Urgency Around Completing the Job

Incorporate Scarcity and Urgency to drive users to take immediate action that aligns with their job. If the job is to learn a new skill quickly, offer limited-time challenges or courses that motivate users to start right away.

Tactical Tip: Introduce time-limited challenges or goals, such as a 30-day fitness challenge or a week-long healthy eating plan. Use countdowns or limited slots to join the challenge, creating a sense of urgency that prompts users to commit.

Highlight Loss Aversion to Prevent Inaction

Utilize Loss Aversion to emphasize what users might lose if they don’t take action toward completing their job. For example, highlight the potential progress they’ll miss out on if they skip a workout or the health benefits they forgo by not sticking to a diet plan.

Tactical Tip: In your app, display notifications or messages that remind users of the gains they’ve made so far and how they risk losing them by not continuing. For instance, “You’ve worked out 5 days in a row! Don’t break the streak!”

---

By combining the JTBD framework with these behavioral economics techniques, you can create a more compelling, user-centric product experience that drives engagement and helps users successfully complete the jobs they’re hiring your product to do​​​.

Let me know how you plan to implement these techniques in our Protégé Collective Slack Community - join for free today to chat with product experts and a great product community.

Until next time!

Jason from Product Protégé