Product Managers are the Choice Architects of the Digital World
Learn how to use the tools of choice architecture to guide user decisions and drive product success
As product managers, we often have the responsibility of presenting our customers with a variety of options. But did you know that the way in which we present these options can greatly influence the choices our customers make?
This concept is known as “choice architecture” and it’s a powerful tool that can help us increase conversions, improve user satisfaction, and ultimately drive growth for our products.
So, what exactly is choice architecture? Coined by Thaler and Sunstein, it refers to the way in which options are presented to a decision-maker and the impact it has on their final choice.
Similar to how an architect of a building can affect the behaviour of its inhabitants through the placement of doors, hallways, staircases, and bathrooms, choice architects can influence choices in various ways, such as by altering the order of options presented, their ease of use, and by selecting default options.
Neutral choice architecture does not exist!
While it is tempting to think that choices can be presented in a “neutral” way (“Just the facts, Ma’am”), the reality is that there is no neutral architecture — any way a choice is presented will influence how the decision-maker chooses.
Product managers are the choice architects of the digital world.
And as a choice architect, you need to balance two criteria: first that more options increase the chances of offering a preference match to the consumer, and second that more options places a greater cognitive burden on consumers because of the additional need to evaluate options.
Let’s dive into the different variety of tools at our disposal to shape the decision-making process. These tools can be grouped into two categories: those used to organise the choices and those used to describe the choices. Let’s take a look at these in more detail.
Tools for organising the choice task
#1. Reducing choice overload: Alternative overload is a common problem in today’s digital world where there are too many options available to users, making it difficult for them to make a decision.
For example, when a customer is looking to buy a new phone, the number of options available can be overwhelming. A choice architecture tool that can be used here is to use filters to narrow down the options based on specific criteria like price, brand, or features.
Another example is Netflix’s personalized recommendations, which pre-selects options for the user based on their previous viewing history.
#2. The order of alternatives and attributes: The order in which options are presented can influence which option is chosen.
For example, if you’re a restaurant owner, the order in which menu items are presented can affect the choices made by customers. Studies have shown that people are more likely to choose items that are listed first or last, rather than those in the middle of the list.
Similarly, if the most critical attribute is listed first, it may have more weight in the decision-making process.
#3. Default options: If we set a default option that is pre-selected for the user, they are more likely to stick with that option rather than actively choosing a different one. This addresses the common problem of decision inertia, popularly known otherwise as the “status quo bias”.
For example, in your checkout flow, a default setting for the shipping address could be the last address used, allowing the user to proceed with checkout faster.
Tools for describing the choice options
#1. Translating attributes: Non-linear attributes such as environmental impact, or service quality are often difficult to understand or compare. Translating and rescaling these attributes into a score or rating makes it easy for consumers to compare and make informed decisions.
A few examples of this are product ratings, Michelin stars for restaurants, IMDB ratings, Air Quality Index (AQI)
#2. Framing: The way we present information can make a big difference.
The most famous example of framing bias is Mark Twain’s story of Tom Sawyer whitewashing the fence. By framing the chore in positive terms, he got his friends to pay him for the “privilege” of doing his work.
#3. Grouping of options: If we group similar options together, it can make it easier for users to compare and choose the one that’s best for them.
For example, presenting a list of investment options in different categories such as “low-risk investments,” “medium-risk investments,” and “high-risk investments” allows the user to easily compare and choose the options that align with their risk tolerance.
It’s important to note that as we use these tools, we also have to consider implementation issues, including individual differences and errors in the evaluation of choice outcomes. For example, what works well for one group of people may not work as well for another group. It is essential for us to keep in mind that different people make different decisions under different circumstances.
In conclusion, as product managers, we have the ability to influence user decisions through choice architecture. By understanding the different tools available and how to use them effectively, we can improve user satisfaction, increase conversions, and drive growth for our products.
Key takeaways
- Choice architecture is the way in which options are presented to a decision-maker and the impact it has on their final choice. Product managers are the choice architects of the digital world.
- We need to give our customers comparisons or multiple options to help them make a decision.
- Examples of choice set structuring include: reducing choice overload, the order of alternatives and attributes, and defaults.
- Describing choice options include: translating attributes, framing, and grouping of options.
- It’s important to note that different people make different decisions under different circumstances.
- By understanding the different tools available and how to use them effectively, we can improve user satisfaction, increase conversions, and drive growth for our products.
