Choice Architecture – What ti is? How can you use it in business life? Choice architecture is the design of, for example, an environment, system, or context in a way that influences your clients to make specific decisions.
The Role of a Choice Architect
A choice architect is someone who influences human behavior (otherwise designs behaviors) while still allowing the other party the ability to make a choice. If you’re in marketing and/or sales, you want people to buy your products. Companies use these tools to increase sales, enhance marketing effectiveness, or improve customer satisfaction. Choice architecture operates based on heuristics, which are mental shortcuts used when making human decisions.
Examples of Choice Architecture in Action
Here are a few examples:
- Default Options: Setting default options to prompt customers to choose specific products or services (typically more profitable ones). For instance, a product offered with additional accessories or a suggested transport service.
- Choice Overload: It’s easier to choose between 3 products than, say, between 33. Therefore, to simplify your customer’s decision, you can limit the number of available products by offering packages and presenting them appropriately.
- Feedback Loops: Providing immediate benefits, as offers with benefits that aren’t delayed over time are perceived as more attractive. Hence, loyalty programs that reward customers instantly can increase customer engagement.
- Nudges: Nudges are subtle prompts that steer your behavior in a desired direction. For example: To make this salad, you need an apple, a banana, and a kiwi. It’s a very clear hint about what you need to buy to make a salad.
Adoption of Choice Architecture
Various entities such as banks, telecom operators, government institutions, and NGOs are already using choice architecture as a tool. It’s a powerful tool that can be used to enhance your company’s process efficiency. In today’s competitive business world, understanding these mechanisms could be the key to gaining a competitive edge.
I have nearly 10 years of professional experience in the sale of IT systems and IoT solutions. I started as Sales Engineer, but today I'm Business Development Manager. At that time, I cooperated with companies from the automotive, aerospace, railway industries, SMD/THT contract assembly and distributors of electronic components. I also cooperated with leading Polish technical universities.
Currently, at ALSO Polska, I am developing the Internet of Things department. You will find solutions in the area of assisted / augmented reality (ar / AR), software and platform for collecting data (Saas / PaaS), sensors and elements needed to create an efficient network infrastructure with Cisco Meraki (access points, gateways, switches, routers, cameras, etc).
From October 2020, I am a PhD student in department of Research on the Digital Economy at the University of Economics in Katowice. I will write a doctorate in economics and finance field.