Ownership
Users should be nudged early in the product journey to develop a sense of ownership in the product - either by investing or creating something of psychological value. Such ownership mechanisms help users develop connection and commitment to the product. This sense of ownership can then be reinforced later on during all stages of product use.
HIT!
Squarespace (01)
In this example, Squarespace steps in when users spend time exploring the website builder without taking action. The dialog shows that the platform cares about the user's success. If the user engages with this dialog and provides an answer, they will feel more invested, increasing their commitment to the product and deepening their connection to the platform.
However, consolidating that sense of ownership will depend on what happens next, based on how the product responds to the user's choice in this dialog, going beyond just capturing a personalised response.
Principles at work
Noble Edge Effect
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Canva (01)
Canva leverages the principle of reciprocity to capitalize on a user's expectant state. While the user awaits their design download, a moment of excitement and anticipation, Canva presents a subtle request for feedback. This strategic placement maximizes the likelihood of a positive response, as users often feel obligated to reciprocate when they receive something of value—in this case, their completed design. By positioning the request at this specific juncture, Canva increases the chances of gathering valuable user insights to improve the platform. In essence, Canva's reciprocity-based nudge transforms users from passive consumers into active participants, fostering a deeper connection to the product and driving long-term engagement.
Principles at work
HIT!
Slack (01)
When setting up a new workspace, Slack tries to determine strong ties between core team members. If the user submits this information, it drives up both the user’s investment and ownership in the product, as well the team’s collective ownership, kicking off network effects from the very get-go of product use.
And if the user tries to skip the invites, Slack tries again (below) to drive this behavior by emphasising loss of potential value from not doing this (notice hard red button color signifying alarm).
And again, Slack tries below to help the user bring their Google connections onboard. Same logic in a different journey.
MISS!
Blinkist (03)
Blinkist's premature subscription prompt is a misstep. The Peak-End Rule suggests users judge experiences based on their most intense and final moments. By prematurely introducing a subscription, Blinkist interrupts the onboarding process before users have experienced the product's value. This can negatively impact their overall perception and reduce the likelihood of conversion. This early revenue push risks hindering the likelihood of users returning to capture that value again and potentially subscribe later.
Principles at work
Interference Effects
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Facebook (02)
Facebook taps into the inherent Declinism and nostalgia prevalent in many individuals by highlighting past memories. This strategy also effectively leverages the Endowment Effect, for users find that the platform has greater value and deeper meaning to them as a container of their cherished memories. By evoking feelings of nostalgia, Facebook reinforces users' sense of ownership and investment, reducing the likelihood of entirely leaving it for good.
Principles at work
Declinism
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iOS (02)
Similar to the Facebook example, iOS leverages memories to deepen user loyalty. By sending notifications highlighting past experiences, iOS taps into the Endowment Effect, increasing users' perceived value of their photo library. This strategy reinforces the platform's position as the users’ primary photo storage and management solution. While this approach can be effective, it may be made even better by applying the Peak-End Rule - to surface not random memories but those highlights and end points that make great experiences memorable.
Principles at work
Endowment Effect
HIT!
Facebook Marketplace (02)
Facebook is experimenting here with a new feature that allows users to create a preliminary form of ownership by offering a small, non-binding token to reserve an item for purchase. This approach combines elements of Pre-Commitment and the Endowment Effect. By offering a token, users signal their intent to purchase, increasing their commitment to the transaction. Simultaneously, the token creates a sense of ownership over the item, making them more likely to follow through with the purchase.
Principles at work
Endowment Effect
HIT!
N26 (01)
N26's value proposition revolves around empowering users with a sense of ownership over their financial lives. Traditional banking often fosters a passive and impersonal relationship. In contrast, N26 promises to be more invested in the lives of its future customers, leveraging the power of affect - an emotional response - rather than the hard, cold logic characteristic of banks. By emphasising an emotional connection from the outset, N26 encourages users to take the first steps to adopting the product.
Principles at work
HIT
Duolingo (03)
In this example, Duolingo sets a high standard upfront, leveraging the Pygmalion Effect to motivate users to put in more effort. By presenting the task as challenging, which users may or may not be able to distinguish from easier tasks, users are primed to expect the lesson to be hard. Consequently when they succeed against this expectation, the sense of accomplishment increases the value of their investment and makes the reward, such as earning XP, feel more satisfying. This process enhances the user's sense of ownership, as they think, "I worked hard to earn these credits, so they are more valuable to me."
Principles at work
Hard-Easy Effect
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Squarespace (02)
The moment of purchase is a powerful one, characterized by optimism and a newfound sense of ownership. Squarespace taps into this positive state by immediately requesting feedback. This approach leverages several psychological principles. The Endowment Effect suggests people value things more once they own them, making new customers more invested. The Fresh Start Effect implies that new beginnings (like a purchase) can motivate positive actions. The Peak-End Rule indicates that people judge experiences based on their best and final moments, making the post-purchase experience crucial. Optimism Bias naturally leads people to view new ventures positively, increasing the chance of helpful feedback. Finally, the Reciprocity Decay principle suggests that the sense of obligation to reciprocate is strongest immediately after receiving something of value (in this case, the product or service), making this the optimal time to ask for a favor.
Principles at work
Endowment Effect
Miss!
Zoom (02)
Zoom's current cancellation process presents a missed opportunity. While their last-ditch discount offer (above) is a smart tactic, its effectiveness is hindered by the lack of clear communication about the value proposition. The focus is predominantly on the price reduction, with the actual benefits of the premium subscription obscured in fine print. This is a missed chance to highlight the specific value users derive from their subscription.
Additionally, the email sent after cancellation (above), while attempting to highlight lost benefits, inadvertently triggers Loss Aversion. This approach is counterproductive as these benefits should have been explicitly communicated during the cancellation process itself to prevent the user from reaching that decision.
A more effective strategy would involve clearly communicating the benefits of the premium subscription upfront, and then continuing to emphasize the positive aspects of the product experience even after cancellation. By highlighting specific features or memorable moments, Zoom can reinforce the value proposition and potentially encourage future re-subscription. This approach can foster stronger customer relationships and increase the likelihood of customer retention.
Principles at work
Endowment Effect
HIT!
StepsApp (01)
Steps App effectively leverages user psychology by timing its upgrade prompts. Unlike many apps that prematurely solicit upgrades, Steps App strategically positions its review and upgrade requests immediately following goal achievement. This moment of accomplishment is characterised by heightened motivation and positive sentiment, creating an optimal opportunity to further user engagement and drive potential conversion.
Principles at work
Endowment Effect
HIT / MISS?
Medium (02)
Medium's top shortcut panel inadvertently triggers a combination of psychological forces. By prominently featuring followed authors, the platform applied the Halo Effect, amplifying the perceived value of following these individuals. This, coupled with the Authority Bias, creates a virtuous cycle where users are more likely to consume content from these highlighted figures. However, this reliance on familiar content can paradoxically lead to Functional Fixedness, limiting users' exploration of the platform's broader offerings. To mitigate this, Medium must balance personalization with serendipity, ensuring that the shortcut panel continues to introduce new and diverse voices and perspectives to keep discovery on the product broad and interesting.
Principles at work
MISS!
Facebook Messenger (01)
Facebook Messenger's attempt to create more engagement through meeting scheduling is undermined by its lack of direct calendar integration. Relying on in-app scheduling for informal meetings, which often occur spontaneously, may not alter user behavior as intended. Users are likely to default to their preferred calendar applications for more structured events. Additionally, the 'reminder' feature may be of limited utility for the kind of impromptu gatherings commonly facilitated through Messenger.
Principles at work
HIT!
Notion (01)
Notion effectively creates a sense of ownership outside the product by introducing its web-clipper tool as part of its features. Once users start adding content to Notion using the web-clipper, they become more invested in the platform. The more time and effort they spend collecting and organizing information within Notion, the more committed they feel to continue using the product. This increased commitment makes them less likely to switch to another tool, as they don't want to "waste" the time and energy they've already put into building their Notion workspace.
Further, notion users might see the task of organising information and taking notes as necessary but potentially tedious. However, by bundling this task with the enjoyable activity of browsing the web and clipping interesting content, Notion makes the process more appealing. The act of discovering and saving interesting tidbits from the web becomes a rewarding experience, making users more likely to continue engaging with Notion regularly. This not only increases content within the platform but also deepens the user's relationship with the product.
Principles at work
Endowment Effect
HIT!
Medium (03)
This is an interesting nudge during the user onboarding process on Medium. The selection of topics appears to be a vast collection of distinct options. However, these choices are essentially broad tags. For example, topics like ‘writing’, ‘future’, or ‘self’ are so broad that articles about any one of them could also apply to one of the others, or to ‘entrepreneurship’, ’humor’, or ‘design’. So, why include this dialog at all? While this step does provide Medium with insights into user interests and helps serve customised content, its impact on users is likely even more significant. The dialog communicates to users that they, not Medium, determine what content they will see next, helping them invest early into the product. It fosters a sense of ownership, allowing users to feel that they are shaping their own journey on the platform. Additionally, the wide array of topics reinforces the idea that Medium is rich in topical content.
Principles at work
Endowment Effect
HIT!
Canva (02)
Canva's easy-to-use tools for uploading and organizing design assets encourage users to create and save more of them. As users effortlessly upload, label, and organize their assets such as photos and videos, they are naturally inclined to explore additional functionalities, discovering new ways to utilize their assets and expand their design aspirations. This exploration often leads to the identification of previously unmet needs, further solidifying Canva's position as the primary design platform. This process exemplifies how a product can cultivate user ownership through entrenchment.
This process is amplified by the endowment effect, as users begin to assign greater value to their uploaded assets simply because they own them. Loss aversion further reinforces this attachment, as users are motivated to protect their investment in the platform by continued use. The sunk cost fallacy might also come into play as users justify increased time and effort spent on the platform due to their existing investment.
Principles at work
Endowment Effect
HIT!
Oura Ring (03)
Oura’s subscription model is quite unique in the health tracker category, and has two key outcomes. The more obvious first outcome is that it is an additional revenue stream that goes straight to the bottom line. It charges users simply for accessing their own health data and insights, which cost nothing extra for the company to provide. The user has almost no data without the subscription (see the nudge writeup discussing this) and so the subscription can be considered a kind of ‘tax on usage’, which interestingly, some users are persuaded into paying.
The second function of the subscription is more subtle: for some users, the subscription fee acts as a Precommitment Device. By subscribing, users invest more in the product, which increases their sense of ownership and the perceived value they get from it. The user rationalises their behavior as: “After all, I am paying a premium for this thing, so it must be good!” Not an entirely negative mindset, as this encourages the user to engage more deeply with the ring and take its recommendations more seriously, thus increasing the probability that they will benefit from it more.
Principles at work
Precommitment Device