UX And Behavioral Economics

It was in 2001 that I heard it. I remember the date for two reasons. It was a few days after 9/11, and I remember thinking it was pretty odd that we were having a conversation about online shopping in the first place. But the date also sticks out because someone very senior in advertising - whom I respected immensely - said something I thought was utterly bonkers. They said they thought people would ultimately buy books online from Barnes & Noble, not from Amazon, because "the B&N brand was stronger." I remember thinking that I wished it worked like that, but it really doesn’t, and it’s fair to say that I was right on this occasion. Brands undoubtedly sit fairly high in the decision tree when consumers are thinking of many goods and services, but two things generally sit higher still, acting as earlier forks in the road on the journey towards a buying decision. Those two things are context and interface. Put me in a street where I am hungry and where there is a McDonald's and an obscure café, and I'll head for the Golden Arches every time. But put me at home in front of the telly, and I'll head for my phone (or my laptop, actually - I'm old-school). I'll then head for Deliveroo (where, thanks to my children, I have Platinum status) and make my decision from there. This simple fact explains why most successful disruptor brands win in their market not by competing head-to-head with established brands - that takes too long. Instead, they successfully change the context and interface via which decisions are made. This is true of the great majority of successful new brands over my lifetime. It was true of the Argos catalogue. It was true of Direct Line. It was true of easyJet. It was true of Rightmove and Hotels.com. It was true of Uber. It was true of ASOS. It was true of Nespresso. It was true of Amazon ... It was kind of true of Google, too. Such contextual shifts in decision-making are a godsend to disruptor brands, but they are also terrifying to established brands for exactly the same reasons. Which is why we need to talk about AI. Not the LLM version of AI, which is currently the Kool-Aid flavour of choice for this year's Cannes Festival, but Agentic AI. I was recently on holiday, and booking the whole thing took about eight hours. Now imagine I could simply say, "Price me ten different packages for a ten-day stay in the Canary Islands for two people." Suddenly, free text or the spoken word, rather than an app or a webpage, may become the default interface. But let's take it a stage further. What if the AI agent was trained to prioritise my interests over those of the seller? Suddenly, like that river in Chicago, the whole purchase journey will reverse its flow. Perhaps the ad agency of the 2030's will be appointed by the consumer, not the client - and maybe it's time to dust off your copy of The Cluetrain Manifesto? #AgenticAI #Creativity #BehaviouralScience

Tired of posting on LinkedIn and getting nothing but crickets?   Frustrated by all the tips that make you shouting more into a void? If you’re not leveraging reciprocity and curiosity, you’re wasting your time. Forget about meaningless connections and start focusing on what actually drives engagement and business growth. Here’s how reciprocity and curiosity are your secret weapons: 1. Give before you expect to get: Genuine connections are built on value. Stop asking what LinkedIn can do for you and start asking what you can do for your network. 2. Ask the bold questions: Curiosity isn’t just about learning—it’s about challenging the status quo. When you ask the questions no one else dares to, you spark conversations that matter. 3. Engage with intention: The more you give, the more you grow. Reciprocity turns casual connections into loyal advocates. 4. Break out of your echo chamber: Don’t just talk to the same people about the same things. Explore new perspectives and expand your influence. 5. Consistency is key: Consistent, thoughtful engagement isn’t just a tactic; it’s your ticket to building relationships that last. Want more Tips to reciprocate on LinkedIn? 1. Offer trusted connections to make introductions into your network.   2. Share your expertise in a LinkedIn Live or Audio Event.   3. Write thoughtful recommendations for deserving connections.   4. Engage with and amplify others' content. 5. Offer to review and provide feedback on a project or idea.       Reciprocity on LinkedIn isn’t just about what you can get—it's about creating a thriving, supportive network where everyone wins. How are you giving back?

When I worked on Google Pay, we had the opportunity of having Daniel Kahneman, better known as the author of “Thinking Fast and Slow” advising us. By focusing on creating delight, we outpaced other payment apps with only ¼ the marketing spend, and only ¼ as many features as the competition. Here’s how we did it. Nobody at the time thought of payments as an activity that could be fun, or delightful. It was just something that you had to get done, and be over with as quickly, and cheaply as possible. That’s why all the fintech companies were competing to provide more features, better integrations, lower fees, and faster payments. But eventually, everyone starts hawking the same features, and margins start trending to zero. Worse, Google Pay was a latecomer to the payments space! We had nowhere near the same number of features that other payment apps offered. We knew that we couldn’t possibly compete on rational factors alone. Instead, we set out to design the most delightful payments experience of all. In the words of Marie Kondo, we wanted to create moments that could “spark joy” for users. 𝟭) 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻 𝗔𝗳𝗳𝗲𝗰𝘁 𝗧𝗵𝗲𝗼𝗿𝘆 Unexpected good outcomes feel better to our brains. Each time someone paid with Google Pay, they would get a reward in the form of a virtual scratch card. It would reveal either a variable cashback amount or discounts. We turned payments from a painful, dull activity into a delightful surprise. This not only kept people coming back to Google Pay for the dopamine hits, but they even started creating video tutorials on YouTube to tell people about it. 𝟮) 𝗥𝗲𝗰𝗶𝗽𝗿𝗼𝗰𝗶𝘁𝘆 Payments are embedded within human relationships, like splitting a bill from a night out with friends. People feel obligated to return favors. So, we designed a referral program in which both the referrer and the new user, would get a reward for using the app to make payments to a new contact. Existing users started to nudge everyone in their friends and family circles to start sending money to each other using Google Pay. We turned Google Pay into one of the most prominent mobile payment apps in India, and even other countries like Canada, and the US. I’m trying to do the same for personal finance. Today, tracking your net worth, spending, investments, and planning for certain financial goals is dull, overwhelming, and a hassle. I believe there’s a better way. Why can’t it be as delightful as tracking your workouts, or leveling up a character in a video game? If you’re interested to know more, check out our beta program in the comments below!

Today, I came across Rapido's “Walk & Save” feature, which gently nudges users to walk a short distance to a more accessible pickup point & thus rewards them with a visible fare reduction. While it may seem like just another discount mechanism, a closer examination reveals a rich amalgamation of product and design thinking at play. ✅ Product Principle → Empower the User by Offering Choice and Tangible Incentives ↳By surfacing pickup alternatives (e.g., “Nearby Pickup – Walk & Save ₹113” vs. “Current Location – ₹127”), Rapido empowers users with a clear trade-off: walk a little, pay a little less, and maybe even get picked up faster. ↳This is an embodiment of the “user-in-the-loop” principle, where the user, not the system, makes the value-driven choice. ✅User Pain Point → Solving for Unpredictable Wait Times and Inaccurate Pickups ↳Users often deal with delayed rides due to hard-to-reach (or crowded) pickup points, leading to frustration and extended wait times. ↳By nudging users to more optimal pickup spots (where rides can reach them quickly), Rapido is directly addressing both sides of the marketplace: drivers save time/costs, and users get faster, cheaper rides. ✅ Product Design Principle in play 👇 1. Nudges to Drive Win-Win Behavior ↳ The design doesn’t force; rather, it nudges users with subtle labels like “Walk & Save.” ↳Savings are made explicit and prominent, anchoring the benefit both mentally and visually. ↳The current flow gives agency without guilt; the “Continue from Current Pickup” option still remains, ensuring the user never feels trapped. 2. Frictionless, Contextual Comparison ↳Both options (Nearby Pickup vs Current Location) are compared side-by-side: cost, route, and context are transparent. ↳The product minimizes cognitive load, so the user sees what they save and exactly where they need to walk, making decision-making effortless. 3. Micro-Moment Optimization ↳Designers capitalize on the “micro-moment” just before confirming a ride, leveraging user attention to drive engagement with this feature. ↳The UI aligns with behavioral science: show the cumulative benefits of small changes in routine behavior. What are your learnings from this feature? Share in comments. #UXDesign #Rapido #ProductManagement #MobileUX #UserExperience #DesignThinking #ProductManager #ProductDesign #UIUX #Design 

🧠 How To Reduce Cognitive Load In UX. How people make choice, how to make products less demanding — and dismantling some UX myths ↓ 🤔 People go through a huge number of choices every day. ✅ We’re very efficient in scanning, skimming and skipping. ✅ Users often rely on small “islands” of sections to use daily. ✅ Experts often prefer to see all options or features at once. ✅ People are happier by choosing from a small set of choices. 🤔 The biggest challenge isn’t managing too many options. ✅ The problem is how poorly organized these options are. ✅ It’s also having too many *similar* options to choose from. 🤔 Similar options → users get confused, frustrated, paralyzed. 🚫 Number of clicks/taps are poor indicators of good/bad UX. 🚫 Don’t enforce users to keep information in working memory. ✅ Avoid sliding panels/overlays: show content in split screens. ✅ Run card sorting on features, filters, attributes, menu items. ✅ Break down complex decisions in a set of smaller decisions. ✅ Flows with more pages might work better than 1 single page. UX is filled with confusing misconceptions and myths. Beware of the “3-clicks-rule” as users typically don’t mind an extra click if it’s clear and predictable — and as long as it’s not repetitive or slows down their daily workflow. Also, don’t rely on “7±2 rule” for navigation: it’s not about the number of navigation items, but how many of those we have to keep in our working memory. People don’t always use your product the way you imagined they would. In fact, it's common to see people using only small portions of a complex product frequently — almost identifying small islands of clarity that help them in their daily work, while avoiding obscure or daunting parts of the product because they haven’t managed to learn how to use them yet. But once they do learn how to use them, their efficiency grows, and so do their expectations of how customizable, flexible and sophisticated the feature should be. There, it's not about the number of features or clicks or taps or how many items they can keep in their working memory. It's about a highly accurate mapping of how people think and how the interface works. And: expert software must be complex as it must match the complexity of the real world. It requires a vast number of attributes, settings, views, panels, data points. However, complex products don’t have to be complicated in use if they make sense to end users, and they can be proficient with them. There, the worst thing we can do as designers is to oversimplify. We shouldn’t assume that people always struggle with complexity. They struggle with products they don’t understand. They also learn products and navigational paths over time, making tremendous progress in just a few days. Help users avoid confusion and make fewer mistakes, and they will use even complex products effortlessly over time. [Sources and resources in the comments below ↓]

The best design is the simplest one. The simpler the design, the more effort has been invested in achieving it. Early in my career, I thought great design meant adding more colors, more elements and more details. I thought this was where I would showcase my creativity. But with time, I realized that the hardest thing in design is knowing what to remove. The challenge is in making something feel effortless while ensuring every element has a reason. One of the most iconic designs is Google’s homepage. It is just a clean white background with just a search bar, putting “user experience” first. This means: >> Identifying the core message and removing anything that doesn’t serve it. >> Every design element should have a purpose, creating clarity rather than clutter. >>When unnecessary elements are stripped away, the audience can engage with the message more deeply. Simplicity in design takes patience, practice and the courage to remove things we might be attached to. But when done right, it leads to insanely good designs. Have you ever struggled with simplifying a design? #struggle #design

Context matters. Usability isn’t just about how a product works—it’s about where, when, and who is using it. Every context of use depends on 3 factors: 1️⃣ Task – What is the user trying to achieve? 2️⃣ User – Who is using it? What are their needs? 3️⃣ Environment – Where is it being used? What constraints exist? A sticker is a sticker, right? You just make the back side sticky. But what if it’s meant for a car windshield? Suddenly, the sticky side flips because it needs to be placed inside to avoid rain damage. That’s why most apartment parking stickers in India are designed to stick from the front side—so they can be applied from inside the car. Same product. Different task. Different environment. Completely different design decision. Context changes everything. P.S. A detailed (and fun) post on this is coming soon—just had to share this quick one. #designthinking #ux #productdesign #design #uiux #interaction #context

Have you ever spent endless hours on a project just to end up realising that a more straightforward method would have been more effective? This common mistake, referred to as over-engineering, can cause needless complexity and inefficiency when developing new products. Understanding Over-engineering > Over-engineering happens when a solution gets more difficult than it needs to be, usually by adding features or functionalities that do not directly meet the needs of customers. > This can lead to higher costs, longer development cycles, and less user-friendly products. Real-World Example: The Juicero The Juicero, a high-tech juicing machine, was released in 2016. It cost $700 and was designed to squeeze proprietary juice packets with considerable force. Later on, though, it was found that the costly machine was not essential because the same juice bags could be squeezed by hand. The company was eventually shut down as a result of the public outcry following this disclosure. My Own Story: The Overly Complex Website I was in a team early in my career that was assigned with creating a company website. We included the newest interactive elements and design trends in an effort to wow. Feedback received after the launch, however, indicated that visitors found the website overwhelming and challenging to use. In our pursuit of innovation, we had failed to realise the website's main purpose, which is to provide easily comprehensible information. I learnt the importance of simplicity and user-centred design from this experience. Useful Tips to Prevent Over-Engineering 1. Pay attention to the essential needs: Focus on key features that meet user needs and clearly explain the issue you're trying to solve. Don't include features that aren't directly useful. 2. Adopt Incremental Development: Begin with an MVP that satisfies the fundamental specifications. By using this method, you may get user input and decide on new features with knowledge. 3. Put Simplicity First: Use the KISS philosophy, which stands for "Keep It Simple, Stupid." Simpler designs are frequently easier to use and more efficient. 4. Verify Assumptions: Talk to users to learn about their wants and needs. This guarantees that the things you create will actually be useful to them. 5. Promote Open Communication: Create an environment where team members are at ease sharing thoughts and possible difficulties. Over-engineering tendencies can be recognised and avoided with the support of this collaborative environment. Have any of your initiatives involved over-engineering? How did you respond to it? Post your thoughts and experiences in the comments section below!

AMEX discovered its biggest competitor wasn't Visa or Mastercard. It was this: Their customers' fear of taking risks. So they built the ultimate risk insurance system that goes beyond rewards. Using the "Halo Gifting" strategy, their customers feel bulletproof. Here's what it means: American Express partnered with Calm, the meditation app. Eligible cardholders got a complimentary year of Calm Premium. This was a genius business move, but it's not about the giveaway. It's strategic innovation disguised as customer care. This is what I call "Halo Gifting" - the art of partnering to punch above your weight. When 2 brands come together the right way, something powerful happens. You borrow the strengths of a complementary brand to elevate your own. Think of it like this: You're a fitness brand. Instead of offering $20 off, you gift a free month of Headspace. Now you're not just selling workouts - you're curating a wellness lifestyle. The consumer receives more value, feels more connected, and engages more deeply. "Halo Gifting" works because it solved a fundamental challenge in customer psychology. Traditional credit card rewards create transactional relationships: "Spend money, get points." "Spend money, get cashback." This creates a cycle where value feels earned through spending. But wellness benefits? That's different. It transforms the relationship entirely. Suddenly, your credit card isn't just facilitating purchases. It's supporting your wellbeing. Your brain processes gifts and discounts through completely different neural pathways. Gifts trigger reciprocity and gratitude. Discounts trigger calculation and comparison. Reciprocity builds emotional loyalty. The pattern is always the same: Brand A delivers access to Brand B's unique value. Both receive credit for the experience. The customer receives genuine utility. This isn't just promotion - it's co-creating meaningful customer moments.

How do you retain people? "Make few promises. Keep them all." That's the simplest rule I always recommend. How do you keep your promises when they're a WIP? You send comms to keep people updated. But... How do you know if they're landing? Enterprise orgs should track these metrics: 1) Did they even get it? Measure: Delivery rate or % of employees who got this message. If people never see the message, nothing else matters. You'd be surprised how many internal IT protocols actually end up blocking your internal comms. Happens more than you think. 2) Did they see it? Measure: views or video plays. It helps show you initial engagement which is a good start. It doesn't quite tell you comprehension yet but that comes later. P.S. I've seen open rates below 10% before at Fortune 100 companies who initially thought their comms were landing well until they started benchmarking open rate by cohort & department 3) Did they understand it? Measure: Quick poll: “Was this clear?” (Yes/No. Short quizzes help too btw) People may see the message but not understand what to do with the info. That's why I'm a big fan of the BLUF technique the Navy Seals used for comms. It stands for "Bottom Line Up Front" where the most important information is presented at the beginning of your message. 4) Did they act on it? Measure: Did employee complete the action in question. Ex: what's your completion rate on the actions you sent? THIS is your ultimate indicator that comms are working. 5) Did they feel heard? Measure: Weekly or monthly pulse surveys This gives you qualitative data that helps improve tone, clarity, and trust over time. What you say is one thing but the TONE that your frontline feel from it is what really matters from a culture perspective. Friendly reminder: All of these performance analytics SHOULD be segmentable by department, location, team and region to validate where your areas of high and low engagement are so that you can address this with operations and local leadership teams. P.S. What else would you add?