People tend to accept what they are given and stick with what they have
Description
When presented with pre-set courses of action or defaults, we tend to accept what is presented.
When a company or brand makes a particular option the default or standard option, it is more likely that people will choose that option over other options that are presented.
When we are not sure what to do and lack expertise in the area we consider the default as a form of advice and we stick to that.
Example:
Default message set for our voice mail, which we never change.
Research:
A national railroad increased its annual revenue by an estimated $40 million by changing its website to automatically include seat reservations unless customers explicitly opted out. Prior to the change, only 9% of tickets sold included reservations, but after the change, 47% of tickets sold included reservations.
Are you an organ donor?
The default in the U.S. is to not be an organ donor.
Because of this, there aren’t enough registered organ donors in the U.S. to keep up with the demand.
The simplest option to increase organ donor registration is to change the rules and instead of requiring organ donors to sign up, from default everyone was a donor unless stated otherwise - this is known as “opt-out organ donation"", the standard already existing in 25 countries in Europe.
In those countries, about 90% of people are listed as organ donors. Compared to 15% typically seen in opt-in countries.
Application
Pre-Selected Subscription Plans
When offering subscription plans or services, set one of the options as the default choice, preferably the one that offers the best balance of value and revenue for the business. For example, a streaming service could set a mid-tier subscription plan as the default option during the sign-up process, suggesting it as the most popular or recommended choice. This leverages the default effect by nudging customers towards this option, increasing the likelihood that they will choose it over others without having to deliberate extensively.
Opt-In Extras and Add-Ons
In e-commerce checkouts, include opt-in extras or add-ons (like gift wrapping, insurance, or a donation to a cause) with the boxes pre-checked by default. Customers are more likely to accept these additional offers if they have to actively uncheck them to opt-out. This method can subtly increase average order values and promote additional services or contributions to charity, benefiting both the business and potentially wider communities.
