So, what’s the problem? Sometimes it's poor timing, an incorrect price point, or an incomplete product that causes a launch to fail. But far too often, it comes down to misunderstood user needs. Even when you ask your users, there’s no guarantee that you can trust the answers they give.
One reason is that much of our behavior is unconscious. It is driven by automatic processes influenced by our emotions, impulses, the situation we are in, and the people around us.
In other words, when you ask users about their preferences, they may not be truthful about what they want, what they do, or even what choices they have made. Often, they are not aware of their own behavior.
One company that experienced the consequences of this was the Australian shoe brand Shoes of Prey. They listened to extensive customer surveys suggesting that people wanted to design their own shoes. As a result, they restructured their production and retail strategy. The setback came when the market did not respond as expected.
CEO Michael Fox explained it this way: “While our mass market customers told us they wanted to customise … what they were consciously telling us and what they subconsciously wanted … were effectively polar opposites.”
Sales dropped so dramatically that the company eventually went bankrupt.
Watch and learn
If you want to increase your chances of success, you need to study what people actually do in practice – not what they say they have done in the past, what they claim they will do in the future, or why they believe they do what they do. These are the points where errors often occur.
The truth is, we forget quickly, we don’t remember details, we give answers we think others would give because we don’t want to stand out. We are impulsive, stressed, and affected by mood. All of this influences us in real decision-making situations, such as when answering surveys, being interviewed, or participating in focus groups.
One way to analyze behavior is by applying a well-established behavioral science framework called ABCD. It is based on the distinction between two types of cognitive processes:
System 1, which is fast, intuitive, automatic, and usually unconscious
System 2, which is slow, deliberate, and conscious
The ABCD framework helps us understand the actual drivers of behavior across four key categories:
Attention
BeliefsChoice
Determination
It can help explain the behavioral challenges we identify, many of which result from the mental shortcuts we use when relying on system 1. It also shows how this differs from the rational perspective, where we evaluate all available information and perform a cost-benefit analysis to arrive at the most logical decision (system 2).
The ABCD framework in practice
Attention (A)
Rational view: People should focus on what is most important based on their preferences and knowledge.
Behavioral insight: Attention is limited, and we are easily distracted.
Example:
At work, we are expected to be productive and focused. Yet many of us lose attention throughout the day due to the growing stream of digital distractions. Recognizing that we cannot resist checking emails, likes, and tweets, the company reMarkable created a product based on what we actually do, not what we know we should do. Their promise is: "No distractions, just you and your thoughts."
Beliefs (B)
Rational view: People form beliefs based on logic and probability.
Behavioral insight: We rely on mental shortcuts (heuristics), leading to intuitive judgments that can result in bias.
Example: Surveys show that most people say they care about climate change and want to buy sustainable products. But in practice, only a small percentage actually do. Logic and probability suggest that sustainable choices are best, and people know this. Saying otherwise feels wrong.
Globally, we purchase an average of 56 million tons of clothing each year. In 2020, H&M alone generated over NOK 160 billion in revenue.
When faced with the choice between the cheapest option and the most sustainable one, price often wins. Choosing the lowest price is a well-established habit and therefore difficult to break.
Another opposing force is our tendency to prefer what we already know. We like things the way they are – a phenomenon known as status quo bias. As a result, we often stick to the same products and services, even when new options appear more rational.
Choice (C )
Rational view: People should choose the option that maximizes potential gain.
Behavioral insight: People are influenced by how options are presented and the context in which they are making decisions.
Example: Do employees choose to save for retirement on their own or not?
A comparison between two companies shows stark differences. In one company, 47% of employees saved for retirement, while in the other, 97% did. The reason was not age, education, or income. It was simply that in the second company, retirement saving was set as the default option when employees were hired.
Most people are familiar with this bias – we tend to go with the default. We like to have choices, but we often feel overwhelmed when faced with them. The easiest option is to avoid choosing altogether and go with what is already selected.
Determination (D)
Rational view: People act according to long-term plans and goals.
Behavioral insight: Motivation and willpower are limited, fluctuate over time, and are influenced by bias.Example:Many people aim to eat healthier or live more sustainably. But strong intentions do not always lead to real change.
Foto: theculturetrip.com
This was something the founders of Pink Fish learned the hard way. They had to close several restaurants because fast food made with salmon did not sell. “People in Norway say one thing and do another,” said CEO Ronny Gjøse. Customers originally claimed they cared about sustainability, wanted to eat healthier, and more fish. But when given the opportunity, they still chose pizza, burgers, and hot dogs.
A key bias here is social desirability bias – a tendency to give answers that we believe make us look good in front of others. Like claiming we never text while driving, that we work out more often than we do, or that we never make impulse purchases.
This also shows how much impulsivity and context influence our choices. When we are “on the go,” we choose what is most tempting, despite having clear goals to eat healthier. People are naturally biased toward immediate gratification.
How to apply behavioral science in practice
Start by observing what your users actually do. Watch how they interact with your product or service, and how the context shapes their choices at any given moment. A simple approach to begin with:
Identify the behavioral problem – Define the desired behavior and map out the steps users must take to reach the goal.
Identify relevant biases – What are the barriers preventing the desired behavior, and what could motivate users?
Experiment – Choose one barrier to address first, create a test, and run it.
Use the ABCD framework when analyzing the problem to identify which biases are in play, so you know what to test first. Applying behavioral psychology principles has the potential to improve the quality of user interactions and strengthen brand perception as a user-centered organization.
In other words, it could determine which companies will be the most successful in the future.
