How does Uber use psychology and behavioral science to perfect their customer experience? Check it out

1/ The scale and speed of adoption of Uber was incredible, and Uber cites its unique business model and customer experience as the drivers.
2/ Uber customers' biggest pain point is the wait. The issue is, many people use Uber in high-pressure situations - like getting to a job interview or getting home from a party at 2am...
3/ And in emotional situations, your perception of time is warped. Not only that but people will use this warped wait time to judge their entire experience. Why? It's down to a psychological principle called the Peak-end Rule.
4/ The Peak-end Rule says that people judge an experience based on how they felt at its peak and its end, not the average of every moment of the experience. And that’s true whether the experience was good or bad.
5/ For brands, this means customers will remember their whole experience based on only two moments — the best (or worst) part of their experience, and the end.
6/ In their research, Uber discovered three key principles for dealing with how people perceive wait times: Idleness Aversion, Operational Transparency, and the Goal Gradient Effect.
7/ Idleness Aversion states that people are happier when they are busier, even if they’re forced to be busy.
8/ To keep people busy, give them information to engage with — animation, gamification, and visuals are ideal. In the example from Uber below, they use an animation that keeps you entertained and informed while you wait for your ride.
9/ Operational Transparency is the deliberate inclusion of windows into your company’s operations, so customers can see the effort going into their experience - it causes customers to value your product more highly and can even make people happier.
10/ How can you apply this principle? Keep people informed by making key information available, and help them understand where this information came from.
11/ Uber does this by providing information on how arrival times are calculated. It provides customers with transparency but doesn’t overwhelm a non-technical audience with too many details.
12/ The Goal Gradient effect states that people are more motivated by how much is left to reach their target, rather than how far they have come. And as people get closer to a reward, they speed up their behavior to get to their goal faster.
13/ Think of the Goal Gradient Effect as a virtual finish line. The closer customers get to winning, the more encouraged they become. You see this effect in UX elements like progress bars and profile completion — users are encouraged to complete a task by achieving objectives.
14/ Uber applies this principle by illustrating what’s happening behind the scenes while customers are waiting. They explain each step in the process, making customers feel they are making continuous progress toward their goal.
15/ There’s no doubt that a large part of Uber’s revenue comes from optimizing their experience using science. Their applied behavioral insights team experiments with principles like these constantly (they even have a blog!).
16/ If you want to apply behavioral science principles a testing mentality is critical. If you want to learn more, check out Choice Hacking and read the full article here
https://choicehacking.com/2020/07/15/how-uber-uses-psychology-to-perfect-their-customer-experience/
