The Power of Defaults in Digital Products: Using Behavioral Economics to Drive User Engagement and Retention
If you are working on digital product management, you will most likely spend hours working on user data, conducting A/B tests, and iterating on designs to optimize the user experience. Okay, but have you ever considered using defaults to shape user behavior and drive engagement?
The pre-selected options that users encounter when they first use a digital product are named defaults. They are a starting point guiding users through the experience and subtly influencing their choices. Defaults can have a profound impact on user behavior even though they seem innocuous, as they tap into the principles of behavioral economics and decision architecture.
It has been proven by studies in behavioral economics that people likely stick with the default option, even if there are other choices available. This phenomenon is named as “status quo bias” and caused by a combination of other cognitive biases such as loss aversion, inertia, and the desire for simplicity. By understanding these biases and leveraging the power of defaults, you can create digital products that are more engaging, user-friendly, and ultimately, more successful.
I will try to explain how defaults can be used to drive user engagement and retention in digital products. I will also talk about behavioral principles of defaults, discuss practical examples from successful digital products, and provide actionable insights for incorporating defaults into your own product strategy.
The Science Behind Defaults
The reason why defaults work is rooted in cognitive biases and behavioral economics principles that influence how people perceive and process information.
Status-quo Bias
Defaults exploit the status quo bias, a bias that refers to the tendency to stick with the default option because the default option requires less effort which means less cognitive resources. The default is the least resistant cognitive path so people are more likely to continue with this option. When the decision is hard to make or the preferences are uncertain, this bias is more apparent.
Anchoring
The anchoring effect is also one of the cognitive biases that defaults benefit from. People usually compare every piece of information they receive with the first one they get. This phenomenon is called the anchoring effect because of this anchor-like perception.
So when people make a decision, they heavily depend upon the first information they receive.
Since defaults provide a reference point for users to compare with other options, they are most likely to continue with the defaults because it feels like a safe choice.
Loss Aversion
Loss aversion refers to the tendency to avoid losses over acquiring gains. It is a behavioral economic principle that suggests setting up default options that users would have to opt-out of if they want to make a choice. Because if users have to actively opt-out from them, defaults can be seen as a loss as well. A research on loss aversion studied organ donation forms as a real-life example. The study showed that people are more likely to become organ donors if the default option is to be one and they have to opt-out on the form they fill-out if they don’t want to donate their organs.
Defaults leverage cognitive biases and behavioral economics principles to shape user behavior and decision-making. Understanding the psychology of defaults can help designers and policymakers create effective defaults that nudge people towards desirable outcomes.
Defaults in Action
There are many examples of digital products that have successfully implemented defaults to drive user engagement, retention, and user satisfaction.
One of the most well-known examples is the default of Google’s homepage which has the cursor active in the search bar, ready to write a search query. This default makes it easy for users to start searching immediately, without any extra effort.
Netflix has “next episode” feature on as a default for instance. When you finish an episode of a TV series on Netflix, the next episode automatically starts playing after a few seconds. This default setting keeps users engaged and encourages them to keep watching. It’s also a convenient feature for users who don’t want to manually play the next episode every time. You have to change your settings to disable this feature.
Another example is the 30 minutes default exercise goal on the Apple watch. By setting this default goal, users are encouraged to engage in physical activity and improve their fitness levels without having to determine a goal themselves. They can always adjust the goal later based on their personal preferences and capabilities.
These are just a few examples of how successful products have used defaults to drive user engagement, retention, and satisfaction. By making it easy for users to get started and stay engaged, these products have built loyal user bases and become leaders in their respective industries. As you think about your own product, consider how you can use defaults to your advantage and create a seamless user experience.
Designing Effective Defaults: Best Practices and Considerations
Creating effective defaults is a critical part of product development. It is essential to choose the right default options that align with user needs and preferences.
To design functioning default options, the first rule to follow is to keep them simple. The default you add to your product should be straightforward. It should be easily understandable by users and it should let them make informed decisions. As the choice architect, always look for minimizing the cognitive load of the user.
Besides keeping defaults straightforward, you should also provide users the chance to change the options according to their needs. This way, you will improve the user experience and keep your users engaged. By following best practices and taking users’ needs into consideration, choice architects of the digital products can create products that enhance user experience and increase engagement.
Dark Side of Defaults: Ethical Considerations and Pitfalls
As many behavioral economics principles that have application areas on consumer facing digital products, defaults also have a dark side. They might be a powerful tool to influence users, but they also come with ethical concerns and potential pitfalls. The impact of our decisions on users and society as a whole should be taken into consideration as choice architects of products.
Defaults create a risk of manipulation. By setting defaults to nudge users towards a certain behavior, you basically try to control their choices. If the default choice is against the user’s values or it is not in their best interest, it will be an ethical conflict for the creators of the product. Approach defaults with a critical eye and consider the impact they might have on a variety of user groups to avoid pitfalls. One way to do this is to conduct a user research and have insights on users’ perception on the defaults you plan. Another thing to implement is to involve all stakeholders in the design process so that you collect feedback from stakeholders with different perspectives.
In addition to ethical considerations, there are also practical considerations when it comes to defaults. For example, defaults can create a sense of inertia, where users are less likely to deviate from the default option even if it’s not the best choice for them. This can lead to missed opportunities and suboptimal outcomes. To mitigate this, we can provide clear information and options that empower users to make informed decisions.
By approaching defaults with a critical eye and considering the impact they may have on different groups of users, we can design defaults that are both effective and ethical.
Defaults and The Future of User Experience
The emerging trend in machine learning is transforming the way users interact with digital products, by making it more intuitive, efficient, and enjoyable. Personalization and adaptive defaults with the help of ML are the future of user experience. Companies can leverage user data to create tailored experiences and default settings to drive engagement and retention.
Personalization will enable products to have features that are relevant to users’ unique needs. By analyzing user data such as search history, location, and behavior patterns, companies can create unique recommendations, notifications, and interfaces that anticipate and meet users’ needs which will increase user satisfaction and loyalty while also enhancing the user experience. Adaptive defaults take personalization a step further by automatically adjusting settings and features based on user behavior and feedback. For example, a music streaming app might learn that a user always skips a certain artist or genre and adjust the default playlist accordingly which would save users time and provide a more seamless experience.
Take Advantage of the Defaults
From the default settings on our devices to the pre-selected options on online forms, defaults have a significant impact on our digital experiences. As a product manager, designer or developer, understanding and harnessing the potential of defaults can unlock the full potential of the digital product you are working on.
Defaults are powerful because they set up a starting point for users and guide them towards certain actions or decisions. Yes, by carefully selecting defaults, you can nudge users towards behaviors that would align with your product’s goals. But also remember, if the defaults are not related to users’ needs or preferences, they can cause users to disengage and even churn.
