This behavioral economics podcast is another foundations episode where we discuss the E in NUDGES: expect error. I think this might be my favorite of all the types of nudges. This is really the reason we need nudges at all – and why choice architecture even exists. Choice architecture takes a lot of time, effort and strategy to do well and having a background in nudging is essential to helping your customers and employees make good choices. If we humans did not make errors, we would not need help in making decisions. We would be able to evaluate all the possible options and make an informed decision every time. Because we don’t and can’t…we need choice architecture. And it is all built on expecting those errors to properly build in nudges. In this episode, I talk about different types of errors with real life examples and how to apply this information to your life and business. CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes [05:02] If humans didn't make errors, then we wouldn't need help making decisions. [05:16] We need choice architecture, because we don't evaluate all of the possible options and make the most informed decision every time. [05:36] When it comes to errors – we can expect humans to err on nearly anything. No matter how brilliant someone is, they will still make errors throughout their lives. [06:01] Quote from Nudge: “Beethoven wrote his ninth symphony while he was deaf, yet he would frequently misplace his house keys. How can people be simultaneously so smart and so dumb?” This is what makes us human. [06:42] Errors come in many fashions – as I said it can be as simple as forgetting your keys or leaving the card in the ATM. These are actually part of a subcategory of error called postcompletion error. [06:57] Postcompletion errors occur whenever we have a task to do, and once it is partially done, we mentally check it off the to do list. [08:41] The list of potential errors is truly endless. [08:59] The dinging noise your car makes when you don't have your seat belt on is a nudge, because manufacturers expect you to make an error at some point. [09:24] Check engine and filter lights are also nudges. [10:31] Try to incorporate all of the senses when creating a nudge. [10:52] Any time something is not consistent enough to become a habit (check out episodes 21 and 22 if you need a refresher) it is a prime candidate for error. [11:15] Consistency is key in business. [11:35] A good example of this is taking medicine every day at a consistent time. [13:06] Subscription models are really useful when an error is expected. They help the customer do what they are supposed to do, and it gives the business a built in reason to follow up and stay top-of-mind. [13:33] In the case of an air conditioning unit…it is important to have the ducts cleaned on a regular maintenance schedule. [14:16] I would recommend regular check ins with their customers – on more than just maintenance tips. That way, you can check in more than just once every three years (which is longer than you want to go if you want to remain top of mind). [15:24] People want heat when it is cold and AC when it is hot (this is availability bias – episode 15). [15:33] Send an annual check in or reminder in the fall and spring. The AC company could also create some type of certification program to prove that the unit has received recommended maintenance. This could help when selling a home and realtors could also be partners. [16:42] You get all this benefit from a little strategic foresight and understanding of when people will make errors, so you can step in and be the solution. [16:56] In any company, there are bound to be tons of places where people will make errors – both employees and customers. Dig deeper and look for more opportunities to solve errors before they happen. [18:28] Staff at the Ritz-Carlton have the ability to make things right for customers without having to ask for permission. [20:06] When you are trying to anticipate errors to nudge, you