The labor illusion effect to drive onboarding completion
Overview
Business Outcome
Conversion Rates
A higher conversion rate indicates that the presentation of the design process effectively influences users' perceptions of the service's value and motivates them to take the desired action of purchasing the personalized plan.
Behavioral Outcome
Increase Perceived Value
Users may spend more time interacting with the platform, exploring design options, and providing input on their preferences, driven by the perceived value of the personalized plan creation process. Increased engagement indicates that users find the presentation of the design process compelling and are motivated to actively participate in the service.
The Behavioral Science
Labor Illusion Effect
The labor illusion effect is a cognitive bias where individuals tend to perceive products or services as more valuable when they are presented with evidence of effort or labor involved in their creation.
By showing the process of coming up with a personalized plan, Spacejoy is leveraging this bias to enhance the perceived value of its service.
How It Works
Spacejoy showcases the behind-the-scenes process of creating a personalized plan for users' spaces. By demonstrating the effort, expertise, and attention to detail involved in the design process, Spacejoy enhances users' perceptions of the service's quality and value.
Users are more likely to view the personalized plan as valuable and worth investing in when they see evidence of the effort and expertise that went into its creation. This increases their willingness to engage with the service and potentially convert into paying customers.
How It Might Backfire
Mismatched Expectations
If the presentation of the design process sets unrealistic expectations about the outcome or the level of customization achievable, users may feel disappointed or dissatisfied with the personalized plan they receive. This could result in negative perceptions of the service and decreased satisfaction.
Loss of Interest
While showcasing the design process may initially capture users' attention, prolonged or repetitive demonstrations could lead to boredom or disengagement. Users may lose interest if they perceive the process as repetitive or if they are unable to see tangible progress being made towards their personalized plan.
How To Test
User Feedback Surveys
Conduct surveys to gather feedback from users about their perceptions of the design process demonstration. Ask questions to assess whether they found it informative, engaging, and easy to understand, or if they felt overwhelmed or confused by the presentation.
Usability Testing
Conduct usability testing sessions with representative users to evaluate their interactions with the service, including the design process demonstration. Observe users' behaviors and gather qualitative feedback to identify any usability issues or points of confusion.
A/B Testing
Compare the performance of different versions of the design process demonstration to determine which approach resonates best with users. Test variations in the level of detail, presentation format, or length of the demonstration to identify the most effective approach in driving user engagement and conversion.
Frequently Asked Questions
Increase onboarding calls by making it the default option
Leantime increases the number of users who book an onboarding call by making it the default option in the onboarding process. Users can still skip the call if they prefer, but framing it as a standard part of onboarding encourages more users to participate.
A double-sided referral program leveraging the reciprocity effect
Gusto offers a referral program that rewards both the referrer and the referee with gift cards, effectively leveraging the reciprocity effect to drive participation.