The Smarter Screen
Shlomo Benartzi

The Smarter Screen - Book Summary

What Your Business Can Learn from the Way Consumers Think Online

Duration: 20:14
Release Date: November 13, 2023
Book Author: Shlomo Benartzi
Categories: Technology & the Future, Entrepreneurship
Duration: 20:14
Release Date: November 13, 2023
Book Author: Shlomo Benartzi
Categories: Technology & the Future, Entrepreneurship

In this episode of 20 Minute Books, we're delving into the fascinating realm of behavioural economics and its role in our digitized world, with the book "The Smarter Screen." Written by Shlomo Benartzi, a reputable behavioral economist, this book is a beacon for businesses striving to enhance their digital presence in our media-saturated reality. Benartzi, who also serves as a professor and co-chair of the Behavioral Decision-Making Group at the University of California, Los Angeles’s Anderson School of Management and holds a doctorate from Cornell University, applies his deep insights from behavioural economics to articulate precisely how people interpret and react to digital information on screens.

This enlightening guide is not only for start-ups, but also for established businesses aiming to elevate their digital footprint. It's a must-read for anyone managing or creating digital content, website designers, marketing managers and anyone curious about the forces driving consumer choice. We'll explore its key concepts, revealing insights into how we can intelligently tailor our digital screens to interact more effectively with our audience. Join us on this episode of "20 Minute Books" as we uncover the intriguing interplay between technology, behavioural economics, and consumer decision-making.

Dive into the digital world: Refine your website to create an oasis for users.

Imagine this: a landscape populated with over a billion destinations, with new ones popping up every minute. This isn't a sci-fi movie setting — it's the reality of the internet. Filled to the brim with websites and each site brimming with information. However, much of this gold mine of knowledge remains unexplored, hidden behind the labyrinth of poorly designed websites.

We have all been there — landing on a website and then not being able to locate the information we seek, getting lost in the clutter and complexity. This doesn't have to be the norm. With the application of a few critical guidelines, websites and mobile apps can be transformed into user-friendly, well-organized spaces. This not only aids users in discovering the information they need, but also guides them directly towards the features you'd like them to see.

Wondering what these rules of the digital game are? Buckle up, and let's unravel these insights together.

In this journey, we'll uncover

- the universal pattern of eye movements shared by all, regardless of their backgrounds;

- the surprising truth that people generally prefer fewer choices instead of a plethora of options;

- and the unique way imagining oneself as an elderly person can influence savings habits.

Navigating the sea of information: How businesses can stand out in the age of data deluge.

Picture this: You're planning a trip to London and need to book a hotel. You turn to trusty Google for options, only to be greeted with a staggering 500 million search results. It's downright impossible to go through each one — welcome to the era of information overload.

As we dive deeper into the digital age, the explosion of information available has skyrocketed. Consider this mind-blowing fact: scientists from IBM estimated that 90 percent of the data we have today has been generated in just the last two years!

Take television as an example. In the 1950s, viewers could switch between two or three channels at best. Fast forward to today, and virtually every TV show ever made is available on-demand, thanks to cloud services.

Yet, despite this data deluge, the human brain has its limits. Our cognitive abilities restrict the amount of information we can actively focus on — studies suggest our short-term memory can hold approximately four pieces of data at a time.

This capacity constraint means that when the flow of information surpasses our brain's processing capability, we start missing details. An evident example of this is trying to have a phone conversation while driving — it's estimated that drivers overlook about 50 percent of their environment, including critical elements like traffic lights and pedestrians.

When it comes to the internet, this overload has a significant consequence — the battle for users' attention becomes fiercer, as they are constantly making split-second decisions about what to focus on.

In the midst of this attention scarcity, smart businesses can spot an opportunity. They leverage the gap between the overflow of available information and what people can actually process. Take for instance, online platforms like Booking.com or Hotels.com. By offering a simplified, clear layout of information, they've managed to monetize this attention gap, charging hotel owners commissions as high as 30 percent. But what's the secret behind their success? Stay tuned to find out in the next section.

The power of visuals: Unlocking the secret of grabbing attention and establishing connections.

You're likely familiar with the dating app, Tinder. A fleeting glance at a profile picture is all it takes for users to decide their interest level in a potential match. In fact, users swipe about 1.2 billion Tinder photos daily!

This serves as a striking example of how quickly we form opinions on any given subject. But what propels such rapid decisions?

Interestingly, most of our choices stem from subconscious processes that occur even before we become fully aware of what we're examining. So, instead of rationally weighing the pros and cons, we let our subconscious make snap judgments based on first impressions.

As a result, if you're a website owner, your mission is to make your site appeal at a subconscious level to attract users. Yet, unfortunately, many websites resort to long swathes of text to engage visitors, overlooking the crucial role of visual appeal. Such an approach often leads to a convoluted and complex site that fails to capture attention.

Take Bank of America's homepage as an example of what to avoid: 68 links, 15 asymmetrical blocks of text in a variety of fonts, sizes, and colors, topped with three separate menu bars.

Instead, to create a truly captivating website, visual complexity is key. Striking the perfect balance of color and detail can make all the difference. Bright, dynamic colors are a great starting point to pique a user's interest. Once you have their attention, it's crucial to present the rest of the information in an intuitive, clear format to avoid overloading the subconscious.

Studies have shown participants screenshots of websites at such a pace that they couldn't consciously process the details. Yet, the sites that scored highest in usability and trustworthiness were the ones that were visually compelling.

This phenomenon is known as the halo effect — a single appealing feature of a product is so powerful that it positively influences the overall perception of the product. But the question remains, what are the other elements of an effective website? Let's delve deeper in the next segment.

Decoding human perception: How understanding patterns can boost your website design

Imagine this: You're standing in a grocery aisle, confronted with ten different brands of cereal. Unless you're already brand loyal, you're likely to pick a box located smack in the middle of the shelf.

This common tendency is governed by something known as the middle bias — our inherent preference for the center when making decisions.

Contrary to the belief that our eyes move systematically, they actually jump around in an anticipated pattern, often settling in the center. This is illustrated by studies with candy, wherein participants often chose a sweet placed in the middle over their favorite candy situated far to the side.

So, how does this translate to website design? Simply put, if you want users to click on a link, place it right in the middle of the screen.

Beyond simply central placement, highlighting specific options can also enhance their visibility and chances of selection. This is particularly effective when users aren't searching for something specific or when they are multitasking. In such scenarios, the brightest-colored option usually wins.

After the initial erratic scanning, eyes tend to move horizontally. Leveraging this knowledge can greatly influence how information is organized on a website.

Dell Computer provides a great example of this. Initially, they listed their computer models in columns and other details, like prices, in horizontal rows on their website. However, researchers noticed that customers were fixating more on the horizontal rows, leading them to primarily focus on prices.

Seeing this, Dell switched the format, placing the products horizontally and the prices vertically. The result? Customers spent more time exploring the products and less time obsessing over the prices. But the journey to a top-notch website doesn't end here. Let's uncover more insights in the next section.

Striking a balance: The paradox of ease and disfluency in website design

The default notion is that the easier, the better. But is that always true? While users appreciate a smooth experience, there are times when making tasks too effortless might backfire. Here's why.

An efficient, user-friendly website typically enables visitors to access content and services with relative ease. This is a generally desirable outcome, but excessive simplicity can brew its own set of issues.

Take Uber, for example. Its uncomplicated interface is well-known, but it often clashes with the company's surge pricing policy, which increases fares during high demand periods. An individual can hail a ride with just a few clicks, even during peak times. However, this quick transaction could cost the user a whopping $150 for a short journey, leading to disgruntled customers and a surge of complaints.

Thus, in some cases, enhancing online service efficiency might mean making the website a tad more difficult to navigate. Studies suggest that incorporating disfluency, i.e., making information slightly more challenging to digest, can boost people's attention and enhance their long-term memory. By slowing down, users process information more profoundly, sparking more thoughtful cognition.

There are numerous strategies to facilitate disfluency: an unfamiliar font, an unconventional layout, or even requiring manual entry of information. Uber, responding to the surge pricing issue, now asks users to input the precise surge multiplier during peak hours. This simple step compels users to slow down, ensuring that they are aware of the ride's cost.

In essence, if your goal is to help your customers complete a task swiftly, make the process easy. However, if you want them to thoroughly process particular information, a touch of disfluency can prove surprisingly beneficial.

The art of feedback: A blend of timeliness, instruction, and emotionality to enhance efficacy

Have you ever pondered the best way to deliver feedback? This is a question worth considering because for feedback to create a real impact, it needs to be presented appropriately.

The optimal balance of feedback resembles an inverted U-curve. On the one hand, insufficient feedback could hamper learning, as the receiver would be in the dark about areas requiring improvement. Consider bathroom scales, for instance. They merely provide a number without any insights on how to change it. They're not the most effective tool for weight loss because of this lack of feedback.

Conversely, excess feedback can overwhelm, leading to an information overload that encourages disregarding the provided information. Case in point: certain smartphone apps that track every little detail from body fat to meal ingredients haven't significantly curbed obesity. The sheer volume of information can be overwhelming for most users.

But, merely providing feedback is not enough. The manner of its presentation is crucial as well, and the timing of feedback is key. Consider the Personal Capital mobile app that enables users to track finances in real time. This feature allows them to check their balance while waiting in line to make a purchase, ensuring they have the right information at the right time.

Feedback should also offer clarity on how to achieve the desired outcome. The Red Alert app, created to notify Israeli residents about potential missile attacks, offers a prime example. Along with the alarm, the app also provides directions to the nearest bomb shelter. This not only alerts the user about the danger but also guides them on how to evade it.

Finally, feedback needs to provoke an emotional response. The GlowCap, an internet-connected pill bottle, illuminates with different colored lights and sounds, creating a sense of urgency for the patient to take their medicine.

In sum, for feedback to truly be effective, it should be timely, instructive, and emotionally engaging.

The power of personalization: Encouraging action and behavioral change through bespoke content

In the era of information overload, personalization stands as a beacon to effectively convey messages.

Picture this: hotel managers grappling with environmental concerns and burgeoning laundry expenses. A signboard in the room reading, "Please reuse your towels," might not elicit much response from the average guest. However, a message like "75 percent of guests in this room reuse their towels," proves to be more compelling because it speaks directly to the individual.

The beauty of this tactic lies in its ease and cost-effectiveness when applied to digital content. Coca-Cola, for example, tested an innovative campaign using billboards along specific highways in Tel Aviv. After downloading a special app, a passerby's name would appear in large letters on the billboard. The outcome? The Coca-Cola app was downloaded more than 100,000 times within weeks, significantly boosting customer engagement with the brand.

Consider another example, the AgingBooth app. This free tool adds effects to photos to make people appear much older. Studies reveal that an individual asked to save money for a hypothetical retirement fund is likely to stash away twice as much after seeing their aged image. The potential advantage such technology offers for banks and financial service providers is immense!

While personalization is vital, timing is equally crucial when strategizing outreach for optimal impact. The fresh start effect is one such technique that can aid in weight loss, fitness, or savings goals. This approach encourages people to initiate changes on specific days. Researchers at The Wharton School of the University of Pennsylvania discovered that people are more likely to act on their goals at the start of the week, month, or year. However, significant personal dates like birthdays or retirement dates can also trigger action.

The wisdom of guided choices: Boosting customer satisfaction through a streamlined decision-making process

Have you come across Healthcare.gov? The website was designed to help Americans pick a personalized insurance plan that aligns with their unique needs.

Despite hosting an impressive catalog of 78,000 insurance plans and the freedom to choose, users often end up selecting a plan that overshoots their budget by around $900 on average. The paradox of choice could be the key player here.

People tend to make incorrect decisions or none at all when presented with an array of complex choices swarming with data. A study conducted by scholars from Columbia and Stanford universities elucidates this behavior. They compared two marmalade stands, one offering 24 varieties and the other only six. With the explosion of choices at the first stand, only three percent of customers made a purchase, while at the stand with limited options, 30 percent of visitors bought jam.

This phenomenon arises from what's known as buyer's remorse, where consumers immediately question their purchase post-acquisition, unsure if they made the 'right' choice. In the digital world where options are endless, this anxiety only intensifies. Compare the average supermarket stocking approximately 220 breakfast cereal brands, to Amazon.com that showcases nearly 2,000!

The answer lies in adopting a guided decision-making approach, assisting customers in identifying the best fit for their needs. Take the example of a couple house-hunting in a buzzing city. The author first had them narrow down their plethora of choices to about 16, using filters like location, size, and proximity to quality schools.

Then came the serious decision-making phase. A system was created where only four options appeared on screen at a time, and the couple had to pick one, forever losing the remaining three. This process whittled down their options to a manageable set of four houses to choose from.

Such strategies work because customers typically don't crave infinite options. Instead, they seek a carefully curated selection that simplifies their decision-making process.

Concluding insights

Human interactions with digital information bear a strong element of predictability. By understanding and utilizing these patterns in your website design, you can ensure that your business stands out, effectively engaging your target audience amidst the overwhelming deluge of digital options.

The Smarter Screen Quotes by Shlomo Benartzi

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