Change the Default

Studies have shown that when you ask a question in a different way, or rather more specifically, you alter the default settings you get a different result. For example a study in the US has shown that when you change organ donor choices from “Opt in” to “Opt Out” you move participation levels from 40% to 80%. But (see this month’s Wired) this also has application in business. Amazon set defaults on your account so you can click once to buy for example. So powerful is this that it has been shown people would prefer to shop at Amazon than have to input their data again elsewhere, even if elsewhere is cheaper. The default of “One Click” is so powerful. In fact Amazon goes further and lures you in further by offering you free postage for a year if you pay c.£49.00, thus rendering you a more dedicated shopper - not only buying more but not going elsewhere in order for you to make the most of your free postage. Similarly Facebook sets various defaults on your account so that they collect a huge amount of data AND make it all available to advertisers (and in some cases everyone else too)! Lethargy and/or ignorance prevent people from amending these default settings.

So how can business more generally make use of this? How can we create choices for our customers so that using us is the default and/or the easier option than going somewhere else? It would be trite to answer that this simply comes down to excellent delivery and or keen prices so that our customer don’t want to go elsewhere. In my view “setting the default” goes much deeper than this and is also subliminal or not in any way obvious to the client. In other words certain standards, settings or modes of behaviour are established as the norm such that the client doesn’t even realise that they are being treated in a particular manner but it creates loyalty and higher spend.

Further to this there are other smaller settings you will have as a business that can be immediately altered to be the new "default" and quickly enhance your offering and/or return. I remember for example at a previous employer we had a clause referring to our rebate period, I recommended a new default, no rebate and moreover, don't mention it at all! Result was that clients hardly ever thought to ask about it. The new default was set.

This blog has been in gestation for some time and I have been trying to theorise the various applications of this but I felt it was time for me to just get it out there for others to apply.....