Discover this podcast and so much more

Podcasts are free to enjoy without a subscription. We also offer ebooks, audiobooks, and so much more for just $11.99/month.

294. Understand Mapping: Mastering Choice Architecture in Business

294. Understand Mapping: Mastering Choice Architecture in Business

FromThe Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics


294. Understand Mapping: Mastering Choice Architecture in Business

FromThe Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics

ratings:
Length:
51 minutes
Released:
Jun 6, 2023
Format:
Podcast episode

Description

In the context of choice architecture, mapping involves organizing options to make them easily comprehensible and help customers make better decisions. By presenting choices in a simple and quick-to-understand manner, customers can avoid getting overwhelmed and make choices they are confident about. It is important, however, to carefully consider how options are presented, as offering too many choices can lead to confusion and regret.  For the best results, businesses should strive to make options easy to compare and understand. Melina Palmer explains that mapping is a critical part of structuring complex choices, the "U" and "S" in NUDGES, and can be used to make customer decision-making more accessible and efficient. Proper mapping can result in better outcomes for both the customer and the business. Palmer highlights examples from several industries, including ice cream, hospital treatments, megapixel cameras and product guarantees, to illustrate how mapping concepts can be utilized to guide customers towards the best choice while maintaining their freedom to choose. Understand the role of mapping in choice architecture for superior customer selections. Convert complex choices into approachable, meaningful opportunities. Help people get from where they are to where they want to be in the easiest way possible. Show Notes: 00:00:00 - Introduction, Melina Palmer introduces the topic of the episode, which is the “U” in NUDGES: understanding mapping. She explains that the concept of mapping is important in choice architecture and nudging, which are foundational in behavioral economics. 00:04:03 - What is Mapping?, Mapping refers to the relation between choice and welfare. The example given by Thaler and Sunstein in Nudge is choosing a flavor of ice cream versus choosing a medical treatment. The mapping for choosing ice cream is relatively easy, while the mapping for choosing a medical treatment is much more complex and difficult. 00:07:07 - Five-Step Process to Understanding Mapping, Melina’s five-step process to understanding mapping includes: 1) encourage thoughtful review and open-mindedness, 2) break down the options, 3) make it relatable, 4) help them to get there, and 5) call to action. This process is essential in building the map and guiding the customer to the right recommendation. 00:10:22 - Encouraging Thoughtful Review, It's important to understand the biases and mental state of the customer or patient in making big decisions. The best choice architect will encourage thoughtful review and open-mindedness, especially in highly emotional situations. 00:12:08 - Breaking it Down and Making it Relatable, The second and third steps in the five-step process are breaking down the options and making it relatable. This means anticipating the questions and needs of the customer and presenting relatable information in their language. In the example of buying a camera, the mapping will be different for each type of customer and their needs. 00:16:34 - Mapping in a nutshell, Every choice can be broken down into a simple rule of thumb to use. Sticking with the camera example, megapixels are confusing. Saying it can be “billboard” or “poster size” or “web only” means something that can help someone make an informed decision. 00:19:54 - Air Conditioning Mapping Example, To map the seemingly simple choice of buying air conditioning, let’s encourage thoughtful review, break it down, make it relatable, help them get there, and set our call to action. 00:27:17 - Mapping in the Restaurant Industry, Mapping in the restaurant industry involves sorting menu items into categories, relatable descriptions, and making it easy to choose. Staff picks, chef specials, bolded options, and images can also help with the mapping process. 00:31:44 - Mapping in the Beauty Industry, Nail salons and other businesses in the beauty industry can learn from mapping practices. Simplify options, categorize services, and provide clear descriptions to help custo
Released:
Jun 6, 2023
Format:
Podcast episode

Titles in the series (100)

Consumers are weird. They don't do what they say they will do and don't act how we think they "should." Enter Melina Palmer, a sales conversion expert with a personal mission to make your business more effective and brain friendly. In this podcast, Melina will take the complex concepts of behavioral economics (the study and science of why people buy - or not) and provide simple, actionable tips you can apply right away in your business. Whether you're a small business or thriving corporation, Melina's tips can help your business increase sales and get more customers.