Last week, I kicked off the different types of nudges and how they apply to choice architecture with incentives. The word NUDGES is an acronym for the categories of nudging, and we are breaking those down episode by episode over six weeks to showcase different aspects of choice architecture and nudging. Now that we tackled incentives last week, we will jump into understanding mapping – both what in the world that means...and how to use it to your best advantage in your business. In this behavioral economics podcast, I share how nudges and my 5 Steps for Mapping can be used in your business to encourage the buying process. CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes [02:56] Thaler and Sunstein describe a mapping as “the relation between choice and welfare” and use a simple example of choosing a flavor of ice cream in one of their papers on choice architecture. [03:30] At its core, the path from the choice and its outcome is called a mapping. [03:50] For ice cream, you have some mapping in your brain that let you know which flavors you would enjoy the most. [04:20] It's more difficult to see the mapping with more complex choices. [04:49] Their paper uses the options of surgery, radiation, or watchful waiting with a cancer diagnosis. Comparing the options weighs a longer life against negative side effects. [05:45] In spite of this, most patients decide which course to choose at the very first meeting when they are given the diagnosis. The option they choose also depends strongly on the type of doctor they see. [06:44] My five steps for a choice architect to make the mapping as clear as possible: 1) encourage thoughtful review and open-mindedness, 2) break it down, 3) make it relatable, 4) help them get there, and 5) call to action. [07:25] With big decisions it's important to understand your biases. [08:21] It's important for doctors as the choice architects to understand the way they are framing the options. [09:29] Our brains put more weight on the default or what we hear about first. [10:02] The best choice architect should know that a person shouldn't make a decision when they are highly emotional. [11:06] Breaking it down. If you want to make a map, it's important understand all of the options available. [12:41] That way you can anticipate the questions a potential customer (or patient or client) will have, the things they need to know, and guide them to the right recommendation. [13:11] Make it relatable using simple rules of thumb. [13:56] Use the customer's language and an example that they can relate back to. [15:16] Find the thing that customers care the most about. [15:50] The way you build your choice architecture is to think about how your customers will determine what to buy. What is the primary reason they are buying? [16:06] What do your customers need to know or hear, and what rule of thumb will make the choice simple and easy to make? [16:51] Once you know what your customers need, they still may require a little sample to get there. Incorporating the senses can help them make a decision. [17:44] Your call-to-action is the final step - it is important because it helps the chooser realize it is an appropriate time to stop analyzing and consider making a choice. [18:41] It's also important to prime all throughout the interaction. [19:15] To encourage thoughtful review, an air conditioning company should know that the customer has other options. [20:11] Frame the cost in a relatable way. [21:49] Relating their mindset to the right point is your “taste test” when they can’t have a physical sample. [22:23] Ask for the sale...and then stop and wait. [23:52] If you use a script, understand the intent behind the script and know the content by heart in order to have a true conversation. [24:12] Price is never about price. It's about all of the things leading up to the price. [25:42] Here are some basic mapping examples (because the final installment of the series – the “S” in nudges – is for structuring complex choice