searchlore

Back to Resource

All Segments

Using behavioral science to improve your product | Kristen Berman (Irrational Labs)

Using behavioral science to improve your product | Kristen Berman (Irrational Labs)

44 segments available

Kristen Berman is the CEO and co-founder of Irrational Labs, where she helps companies like Google, Airbnb, PayPal, Microsoft, and LinkedIn improve their products and services through behavioral design research. She is also the co-founder of Common Cents Lab, a Duke University initiative dedicated to improving the financial well-being of low- to middle-class Americans. In today’s episode, Kristen shares the 3B Framework of Behavioral Design and uses real-life examples to illustrate what influences behavior change and the common biases that get in the way of building successful products. She also explains how to keep users engaged and how you can implement behavioral design research to drive innovation and growth. Find the full transcript here: https://www.lennyspodcast.com/using-behavioral-science-to-improve-your-product-kristen-berman-irrational-labs/#transcript — Where to find Kristen Berman: • Twitter: https://twitter.com/bermster • LinkedIn: https://www.linkedin.com/in/kristenberman/ • Website: https://irrationallabs.com/ — Where to find Lenny: • Newsletter: https://www.lennysnewsletter.com • Twitter: https://twitter.com/lennysan • LinkedIn: https://www.linkedin.com/in/lennyrachitsky/ — Thank you to our wonderful sponsors for making this episode possible: • Flatfile: https://www.flatfile.com/lenny • Whimsical: https://whimsical.com/lenny • Lenny’s Job Board: https://www.lennysjobs.com/talent — Referenced: Learn more behavioral science: • 3B Behavioral Design Framework https://miro.com/miroverse/3b-behavioral-design-framework/ • Irrational Labs newsletter, with latest BE and behavioral design insights: https://irrationallabs.com/newsletter/ • Join the Behavioral Design Online Bootcamp (use code “Lenny” for 10% off): https://behavioraleconomicsbootcamp.com/ • Get the 3B Framework: https://irrationallabs.com/3bs-download/ • Behavioral Design & Diagnosis Cheat Sheet: https://irrationallabs.com/download-behavioral-design-guide/ • The 16 Critical Cognitive Biases (Plus Key Academic Research): https://irrationallabs.com/blog/cognitive-biases-and-academic-research/ • Behavioral Game Design: 7 Lessons: https://irrationallabs.com/blog/behavioral-game-design-7-lessons-from-behavioral-science-to-help-change-user-behavior/ • Predictably Irrational: The Hidden Forces That Shape Our Decisions:  https://www.amazon.com/Predictably-Irrational-Revised-Expanded-Decisions/dp/0061353248/ • Prolific testing platform: https://www.prolific.co/ • Kristen’s guest post on Lenny’s Newsletter: https://www.lennysnewsletter.com/people/23170097-kristen-berman • Influence: The Psychology of Persuasion: https://www.amazon.com/Influence-New-Expanded-Psychology-Persuasion/dp/0062937650 • The Darwin Economy: Liberty, Competition, and the Common Good: https://www.amazon.com/Darwin-Economy-Liberty-Competition-Common/dp/0691156689/ • The Science of Change podcast: https://podcasts.apple.com/us/podcast/the-science-of-change/id1587407079 • No Stupid Questions podcast: https://freakonomics.com/series/nsq/ • Stream The Rehearsal on HBO Max: https://www.hbo.com/the-rehearsal • Chris York’s website: https://www.chrisyork.co/ - Case studies mentioned:  • Budgeting fintech: https://irrationallabs.com/case-studies/budgeting/ • TikTok: https://irrationallabs.com/case-studies/tiktok-how-behavioral-science-reduced-the-spread-of-misinformation/ • One Medical: https://irrationallabs.com/case-studies/one-medical-case-study/ • Credit Karma: https://irrationallabs.com/case-studies/behavioral-design-credit-karma-money/ • TytoCare: https://irrationallabs.com/case-studies/tytocare-virtual-medical-visits/ • Kiva: https://blogs.scientificamerican.com/mind-guest-blog/the-deadline-made-me-do-it/ • When to Make Your Sign-Up Flow Harder: https://irrationallabs.com/blog/its-not-always-about-making-things-easier-when-to-make-your-sign-up-flow-harder/ — In this episode, we cover: (00:00) What is Irrational Labs, and what do they do? (05:45) What are behavioral economics and behavioral design? (06:50) The fintech budgeting experiment (10:46) What drives behavior change? (11:35) Why increasing friction can sometimes increase conversion (13:51) How to ask the right questions for user engagement (16:09) How Kristen got her start in behavioral economics (18:10) The 3B model of behavior change (20:37) Cognitive barriers (22:02) The importance of building products with immediate benefits to the user (24:20) How exploitation can occur (26:45) How to set customer-friendly incentives (29:15) How Kristen reduced the sharing of misinformation on TikTok (31:58) Tips for researching and solving problems (35:36) The One Medical case study  (38:31) Rules of thumb for improving flow (41:46) What is right-for-wrong? (47:00) How to get started using behavioral design (49:33) The Behavioral Design Bootcamp (52:01) Lightning round! — Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.

Segments Timeline

1
0:00 - 0:35
0:35 duration108 words

The Intersection of Psychology and Economics

Kristen Berman introduces the concept of behavioral economics, emphasizing how it combines psychology and economics to explain human decision-making. She highlights that people often make decisions driven by emotion rather than pure rationality, and understanding these behaviors can lead to effective behavior change.

"economics says look people are rational we make decisions with no emotion we use lots of computational energy weigh the pros and cons I mean obviously that's just not true it ignores the whole field o..."

2
0:35 - 1:50
1:15 duration230 words

What is Irrational Labs?

Kristen explains the mission of Irrational Labs, a Behavioral Science Consulting and Design firm. She discusses how her team works with various companies to understand user psychology and design interventions that drive engagement and behavior change, showcasing their growth and impact since its inception.

"and so Behavioral Science and behavioral design basically uses those insights on psychology to actually apply it within real world problems welcome to Lenny's podcast I'm Lenny and my goal here is to ..."

3
1:50 - 2:15
0:24 duration78 words

Real-World Applications of Behavioral Science

In this segment, Kristen shares examples of companies that Irrational Labs has worked with, including Google and TikTok. She highlights specific projects, such as reducing misinformation on TikTok and increasing appointment bookings for One Medical, demonstrating the practical impact of behavioral design.

"with that I bring you Kristen Berman hey Ashley head of marketing and flat file how many B2B SAS companies would you estimate need to import CSV files from their customers at least 40 and how many of ..."

4
2:15 - 3:01
0:46 duration123 words

Understanding Behavioral Design

Kristen defines behavioral design and its significance in addressing real-world problems. She explains how insights from behavioral economics can be applied to create effective solutions that influence user behavior, emphasizing the importance of understanding the psychology behind decision-making.

"right which is super common considering customer files are chock full of unexpected data and formatting they'll leave I am zero percent surprised to hear that I've consistently seen that improving onb..."

5
3:01 - 4:00
0:58 duration133 words

The Budgeting Experiment Surprise

Kristen recounts a surprising outcome from a budgeting feature experiment conducted with a fintech app. Despite high demand for budgeting tools, the experiment revealed no significant change in user spending behavior, illustrating the complexities of behavioral change and the importance of thorough behavioral diagnosis.

"flatfile.com Lenny [Music] this episode is brought to you by Whimsical when I asked product managers and designers on Twitter what software they use most Whimsical is always one of the most mentioned ..."

6
4:00 - 5:00
1:00 duration178 words

The Challenge of Budgeting

In this segment, Kristen discusses the inherent difficulties users face with budgeting apps. She emphasizes that the complexity of budgeting often leads to user disengagement, highlighting the need for simpler, more intuitive solutions to encourage better financial behavior.

"irrational labs and so to set a little context for folks can you just talk about what it is you all do at irrational Labs yeah so a rational Labs we are a Behavioral Science Consulting and Design shop..."

7
5:00 - 6:00
1:00 duration159 words

Default Settings as a Solution

Kristen suggests that default settings can significantly improve user engagement in personal finance management. She explains how automatic enrollment in savings plans has proven effective and advocates for making financial decisions easier through cognitive shortcuts or rules of thumb.

"cars to YouTube and so that was a big piece of the early work and then recently we've done work with Tick Tock where we've tried to it actually accomplished decreasing misinformation share by 24 we wo..."

8
6:00 - 7:00
1:00 duration162 words

Behavior Change Through Identity

Kristen discusses the concept of identity in behavior change, referencing James Clear's ideas. She emphasizes that changing behavior is more effective when individuals adopt new identities, such as seeing themselves as someone who makes healthier financial choices.

"let's start with what is behavioral economic so basically behavioral economics is a reaction to academics so economics says look people are rational we make decisions with no emotion we use lots of co..."

9
7:00 - 8:00
1:00 duration183 words

Surprising Insights from Sign-Up Flows

Kristen shares an unexpected finding regarding sign-up flows, where increasing friction can sometimes lead to higher conversion rates. She illustrates this with examples of how engaging users through questions can enhance their motivation and ultimately improve conversion.

"and behavioral design behavioral economics yeah great question so you know one one story that recently happened is actually a surprise that happened to the client the partner was shocked and actually ..."

10
8:00 - 9:00
1:00 duration202 words

Engaging Users with Questions

In this segment, Kristen explains how asking users questions during the sign-up process can lead to better engagement and conversion. She provides examples of companies that successfully implemented this strategy, demonstrating its effectiveness in enhancing user experience.

"results and what happened nothing so they were shocked the team was shocked remember this is like a big investment of time an effort took a lot of energy to build zero change in average spend zero cha..."

11
12:01 - 13:18
1:17 duration261 words

Increasing Friction to Boost Conversion

Kristen Berman discusses a counterintuitive principle in behavioral design: increasing friction can sometimes lead to higher conversion rates. By engaging users with questions during a sign-up flow, companies can enhance motivation and drive conversions. She shares examples from companies like Apartment List and Trunk Club, illustrating how asking the right questions can significantly impact user engagement and conversion rates.

"example one time where this is just not true that you can actually increase friction and increase conversion so actually Lenny have I ever told you about my mother nope okay so now you're thinking abo..."

12
13:18 - 14:03
0:44 duration139 words

The Power of Engaging Questions

In this segment, Kristen explains how asking engaging questions can lead to higher conversion rates. She shares a case study involving a quiz on a partner's website that helped users understand a medical device, resulting in a notable increase in purchases. This tactic emphasizes the importance of user engagement in the design process.

"conversion we actually did something where we put a quiz on a partner's website and it's title care which is basically a a device that lets you remotely connect to a physician it's a little bit hard t..."

13
14:03 - 15:00
0:57 duration192 words

Best Practices for User Engagement

Kristen outlines best practices for asking questions in user flows to enhance engagement. She emphasizes the importance of avoiding complex, open-ended questions and instead suggests using simple, multiple-choice formats to maintain user interest and improve conversion rates. This approach helps users feel more excited about completing the process.

"finishing is that right exactly yeah and I would say probably most teams can do this you just you can replace the carousel like the carousel you know in something where it tells you the benefit but we..."

14
15:00 - 16:09
1:09 duration238 words

Understanding Behavioral Economics

Kristen shares her journey into behavioral economics, highlighting her early experiences with Dan Ariely and the realization of the importance of behavioral insights in product management. She discusses how this field can inform product design and improve user experiences by understanding human behavior.

"the folks on the team thought that it was an easy question but most questions when you're asking people kind of wait an open text field is just not an easy question right hate those open text fields a..."

15
16:09 - 17:19
1:09 duration223 words

The 3B Framework for Behavior Change

In this segment, Kristen introduces the 3B Framework, which outlines the key components of behavior change: Behavior, Barriers, and Benefits. She explains how defining specific behaviors is crucial for product teams to effectively drive user engagement and improve product outcomes.

"before we dive even deeper into more examples I wanted to zoom out for a moment and I'm curious just how did you even get into behavioral economics you said you worked with Danner Ellie how did all th..."

16
17:19 - 18:14
0:55 duration183 words

Identifying Barriers to User Action

Kristen elaborates on the barriers that prevent users from taking action, distinguishing between logistical and cognitive barriers. She discusses how understanding these barriers can help product teams design better user experiences and encourage desired behaviors.

"you said you were running an embedded team within Google to work on this sort of thing amen yeah so so basically Google it's kind of a first mover and thinking about how important understanding Behavi..."

17
18:14 - 19:02
0:47 duration160 words

The Importance of Immediate Benefits

Kristen emphasizes the significance of providing immediate benefits to users to motivate action. She explains how present bias affects decision-making and shares examples of how companies can structure their offerings to highlight immediate rewards, thus encouraging user engagement.

"useful in improving product experiences and product design like what's kind of the handful that ends up being most useful totally and there are so so many mistakes that humans make and we can call the..."

18
19:02 - 20:00
0:58 duration191 words

Defining Specific User Behaviors

Kristen discusses the necessity of defining specific user behaviors for effective product design. She illustrates this with examples from various companies, stressing that clarity in what behavior to change is essential for understanding the psychological factors that influence user decisions.

"behavior in order to change Behavior you have to pick a behavior that you want to change so companies are really good at outcomes but just not as sharp at picking the behavior when I say Behavior I me..."

19
20:00 - 21:01
1:01 duration207 words

Overcoming Cognitive Barriers

In this segment, Kristen dives deeper into cognitive barriers, such as uncertainty aversion and the status quo effect. She explains how these barriers can hinder user decision-making and offers strategies for product teams to mitigate their impact.

"so that's a first be second B again is probably pretty obvious and it's very critical it's just barriers so we need to reduce the barriers to doing the behavior there are two types of barriers we look..."

20
21:01 - 22:03
1:01 duration221 words

Leveraging Benefits for User Motivation

Kristen discusses the third B in the 3B Framework: Benefits. She highlights the need to emphasize immediate benefits to users, explaining how this can drive engagement and motivate users to take action. She provides examples of how companies can effectively communicate these benefits.

"to open up Uber and say like maybe it'll come faster and so when there is uncertainty in our life we either look for other options or we just don't make a decision at all right this is by the way very..."

21
22:03 - 23:11
1:08 duration233 words

The Role of Completion Bias

Kristen shares insights on completion bias and how it influences user behavior. She discusses the psychological impact of completing tasks and how products can incorporate elements that enhance the feeling of accomplishment, such as visual rewards or notifications.

"sharing those we can let's keep going cool so the third B is benefits so this is where you want to increase the not just the benefits but the immediate benefits of doing something so we are all presen..."

22
23:11 - 24:47
1:35 duration319 words

Recap of the 3B Framework

In this segment, Kristen recaps the 3B Framework, summarizing the key components: Behavior, Barriers, and Benefits. She emphasizes the importance of understanding these elements to create effective product strategies that enhance user engagement and retention.

"I know sauna has famous for that little unicorn confetti thing right for like making you feel really good when you complete some yeah you know I don't know how much emphasis to put on these kind of li..."

23
24:47 - 25:03
0:16 duration69 words

Ethics in Behavioral Design

Kristen addresses the ethical considerations in behavioral design, discussing the importance of aligning product incentives with user well-being. She shares her perspective on how to ensure that behavioral strategies are used responsibly and for the benefit of users.

"I want to dive into a couple case studies of companies that I know you've worked with maybe before that I thought it'd be good to ask this question about just like the dark side of this stuff I imagin..."

24
25:05 - 26:39
1:33 duration266 words

Setting Customer-Friendly Incentives

In this segment, Kristen Berman provides insights on how to set effective and ethical incentives for product teams. She suggests focusing on behaviors that align with customer outcomes rather than short-term metrics, and emphasizes the importance of considering longer-term goals to foster a more customer-friendly approach in product development.

"line yeah it's a great question I think the answer to this really with many things in life comes down to incentives so what are the incentives of the product teams of you your manager the team working..."

25
26:39 - 28:23
1:44 duration371 words

Case Study: Lending Club

Berman shares her experience working with Lending Club, where she was tasked with increasing borrower conversion rates. She reflects on the challenges faced and the lessons learned about the importance of maintaining ethical standards in product design, even when financial incentives are at play.

"how anything is used much less behavioral economics with these tactics but generally what's the success of your team you may not have a clear answer to this but any advice for setting those incentives..."

26
28:23 - 29:10
0:47 duration142 words

The Role of Behavioral Design in Social Media

Kristen Berman discusses her work with TikTok, focusing on strategies to reduce the spread of misinformation on the platform. She explains the behavioral design techniques used to slow down user engagement with potentially harmful content, highlighting the importance of thoughtful intervention in social media environments.

"awesome are you hiring or on the flip side are you looking for a new opportunity well either way check out lennysjobs.com Talent if you're a hiring manager you can sign up and get access to hundreds o..."

27
29:10 - 30:51
1:40 duration344 words

Reducing Misinformation on TikTok

In this segment, Berman elaborates on the specific interventions implemented on TikTok to decrease misinformation sharing. She describes the use of cognitive and logistical barriers to slow down the sharing process, which resulted in a significant reduction in misinformation spread, showcasing the effectiveness of behavioral design in real-world applications.

"check out lennysjobs.com Talent so there's two companies that you work with that I use and I'm curious what you did for them and how you worked with them one is Tick Tock and then the other is one med..."

28
30:51 - 32:44
1:53 duration409 words

Research-Driven Solutions

Berman explains the research process behind the interventions at TikTok, including literature reviews and hypothesis testing. She emphasizes the importance of grounding behavioral design strategies in existing research to ensure effectiveness and shares insights on how to approach problem-solving in product design.

"annoyed it's harder to use the elevator and people went to the stairs 16 seconds interesting number 16 we can't wait 16 and then it's actually kind of long though you're standing there it's building y..."

29
32:44 - 34:44
2:00 duration403 words

Finding Research for Problem Solving

In this segment, Kristen Berman offers practical advice for product teams on how to conduct research when facing new challenges. She encourages teams to leverage online resources and academic literature to inform their design decisions, highlighting the value of a thorough understanding of existing knowledge in behavioral science.

"something how do you intervene so we did this literature review we came up with a hypothesis and we had probably 30 different ways to implement this because the hypothesis is just a starting point and..."

30
34:44 - 36:00
1:16 duration254 words

Engagement Strategies for One Medical

Berman discusses her work with One Medical, focusing on strategies to increase user engagement. She emphasizes the importance of defining what engagement means for the product and shares insights on how to encourage users to set up appointments immediately after signing up, ensuring they remember the service when they need it.

"there a reason you did ux oriented test versus testing the product is it just because they weren't ready to build an experiment in product yet yeah we actually only got two conditions in product which..."

31
36:00 - 37:14
1:13 duration251 words

Increasing Engagement with One Medical

Kristen shares a case study on One Medical, focusing on how they increased user engagement by targeting the key behavior of setting up a doctor's appointment right after signing up. She discusses the barriers users face and the importance of establishing a mental model for new users.

"actually have fun exercise that people could do with their teams is if you ask everyone on the team what engagement meets separately you can compare answers and most likely people are saying different..."

32
37:14 - 38:06
0:52 duration156 words

Simplifying User Choices

This segment covers how One Medical simplified the onboarding process by recommending a specific provider and appointment times. Kristen explains how reducing choices can lead to increased bookings and highlights the effectiveness of this intervention.

"also difficult like what what is this company or thing and where should I what should I go to them for and then the benefits right what are the benefits and the benefits for using more medical is you ..."

33
38:06 - 39:52
1:46 duration333 words

Key Strategies for Improving User Flow

Kristen outlines several strategies for improving user flow and conversion rates. She emphasizes the importance of showing immediate benefits, reducing cognitive load, and providing reminders to keep users engaged throughout the process.

"appointments I have appointments yeah yeah onboarding I don't know if I went through that when I joined one medic this is recent yep okay cool yeah by the way one Medical's awesome as you're talking I..."

34
39:52 - 41:01
1:09 duration247 words

The Power of Immediate Benefits

In this segment, Kristen discusses the significance of demonstrating immediate benefits to users. She shares an example from a fintech app where reframing the benefits of syncing bank accounts helped reduce drop-off rates during the sign-up process.

"then when they are back in land them on the spot that they were at so wealthfront has said you know one of their key insights was when people dropped out of the flow you know normally they would just ..."

35
41:01 - 42:11
1:09 duration240 words

Right for Wrong: Motivating Behavior Change

Kristen explains the concept of 'right for wrong,' where people are motivated to perform desired behaviors for reasons unrelated to the actual benefits. She provides examples, including incentives for vaccinations and voting, illustrating how immediate rewards can drive engagement.

"where we worked with a company called study and this was a fintech app and we're helping people to sign up or sync their bank accounts syncing their bank account is a required step in any kind of fint..."

36
42:11 - 43:34
1:23 duration291 words

Using Deadlines to Drive Action

This segment focuses on the effectiveness of deadlines in motivating users to take action. Kristen shares insights from her work with nonprofits and how adding deadlines can significantly increase participation and engagement in programs.

"with caution people will not use and love your app if you're putting error messages all over it that makes sense I think you mentioned this so I haven't mentioned but you wrote a guest post for my new..."

37
43:34 - 45:00
1:25 duration283 words

Building a Toolbox of Behavioral Insights

Kristen discusses the importance of understanding human behavior patterns in product design. She emphasizes that while behavioral economics reveals predictable irrationalities, teams can leverage these insights to create effective interventions that drive user engagement.

"level where you saw two levels of status in clubhouse there were the people who were friends with the people on stage and then there was everyone else and so that was like a motivator to be friends wi..."

38
45:00 - 47:01
2:00 duration427 words

Implementing Behavioral Principles in Product Teams

In this segment, Kristen offers practical advice for product managers looking to implement behavioral design principles. She suggests starting with defining specific behaviors and conducting a behavioral diagnosis to better understand user actions and motivations.

"understanding this are non-profits so we worked with one company me a while ago we tried to get them to add a deadline because they were trying to help people sign up for interviews so like they were ..."

39
47:01 - 48:06
1:05 duration225 words

Defining Specific Behaviors

In this segment, Kristen explains the first step in the 3B Framework: defining the specific behavior that needs to change. She suggests conducting workshops with teams to align on this behavior, which facilitates a clearer understanding of the psychological drivers behind it. This foundational step is crucial for effective behavioral design and intervention.

"you suggest to say a PM leading a team that wants to implement some of these principles yeah I would probably start from the process angle you know we have the 3B framework which again the most import..."

40
48:06 - 49:03
0:56 duration191 words

Behavioral Diagnosis Explained

Kristen elaborates on the behavioral diagnosis step, which involves mapping out the user journey to identify barriers to behavior change. She describes this process as a detailed analysis that connects psychological factors to each step in the user experience. This insight helps teams brainstorm effective interventions to facilitate desired behaviors.

"intervention can you talk a bit more about this behavioral diagnosis step like what actually happens there there's kind of two steps one you can outline the full kind of high level flow where you're s..."

41
49:03 - 50:01
0:57 duration213 words

Connecting Psychology to User Behavior

In this segment, Kristen discusses how to connect psychological barriers to specific steps in a user journey. She provides an example of information aversion in health apps, illustrating how understanding these barriers can lead to effective brainstorming sessions for solutions. This approach empowers teams to optimize user experiences based on behavioral insights.

"you're trying to change it wow that sounds really useful so you go through the product make a screenshot of every little step and then connect what barriers keeping them from progressing is that rough..."

42
50:01 - 51:03
1:02 duration209 words

The Behavioral Design Bootcamp

Kristen introduces the Behavioral Design Bootcamp, a self-paced online course designed to help individuals and teams apply behavioral design principles to their products. She outlines the course structure, including modules, homework, and interactive elements, emphasizing its value for product managers, designers, and marketers looking to enhance their understanding of behavioral science.

"are those the same thing um maybe I'm not interested no that that's that's perfect yeah so we have a thanks for the tea up bloody uh appreciate it we have a boot camp course which basically is a self-..."

43
51:03 - 52:02
0:59 duration217 words

Recommended Resources for Behavioral Science

In this segment, Kristen shares her top book recommendations for those interested in behavioral science, including 'Predictably Irrational' and 'Influence.' She highlights the importance of these resources for understanding human behavior and encourages listeners to explore them for deeper insights into behavioral design.

"send that and we will link to it in the show notes just a couple more details in this course how often do you run it how long does it take generally for folks to take yeah so once a year we'll do a co..."

44
52:02 - 56:09
4:07 duration790 words

Lightning Round Insights

Kristen participates in a lightning round, answering quick questions about her favorite podcasts, interview questions, and influential thought leaders in the behavioral science field. This segment provides a glimpse into her personal preferences and insights, showcasing her passion for the subject and the community surrounding behavioral design.

"we've reached our exciting lightning round so I'm just going to ask you a bunch of quick questions whatever comes to mind fire away and we'll just go through them real fast sound good great okay cool ..."