{"id":291,"date":"2011-10-18T08:20:31","date_gmt":"2011-10-18T15:20:31","guid":{"rendered":"http:\/\/usereccentric.com\/?p=291"},"modified":"2011-10-26T08:05:25","modified_gmt":"2011-10-26T15:05:25","slug":"hindsight-bias-and-300-million-buttons","status":"publish","type":"post","link":"http:\/\/usereccentric.com\/?p=291","title":{"rendered":"Hindsight Bias and $300 Million Buttons"},"content":{"rendered":"<p>This morning I came across Jared Spool&#8217;s article about the <a href=\"http:\/\/www.uie.com\/articles\/three_hund_million_button\">$300 Million Button<\/a>.<\/p>\n<p>To summarize, Jared&#8217;s team worked on an ecommerce site that required a login\/registration to complete the checkout process. They did some design research and found out this step was chasing away huge numbers of potential customers &#8211; first-time users were resistant to registering, and even repeat users frequently forgot their usernames and passwords, causing frustration. When they eliminated the registration requirement, sales increased by $300 million in the first year.<\/p>\n<p>&#8220;Well, duh,&#8221; I thought. Registering with a new and possibly unknown site is a serious commitment for many people. Of course it would chase them away. If the designers were any good, they wouldn&#8217;t have needed a research study to tell them that.<\/p>\n<p><!--more-->But then my personal B.S. detector went off. Wait a minute, I thought. Would I have done better in their shoes? Or am I falling prey to <a href=\"http:\/\/youarenotsosmart.com\/2010\/06\/14\/hindsight-bias\/\">hindsight bias<\/a>?<\/p>\n<p>Hindsight bias is the human tendency to erroneously believe that we knew something all along <em>after<\/em> the facts have become clear. After 9\/11, many firmly believed another terrorist attack was imminent. Ask them now, and they&#8217;ll claim they always knew it wasn&#8217;t that likely. Many of us &#8220;knew&#8221; the 2008 market collapse would happen. But if that was the case, why didn&#8217;t we sell our houses and move all our investments into gold?<\/p>\n<p>Hindsight bias affects design research when we look at the results of a study and say &#8220;Well, duh.&#8221; It seems so obvious&#8230; in retrospect. We forget that facts aren&#8217;t nearly so clear, the right principles aren&#8217;t nearly so easy to follow, before the &#8220;correct&#8221; decisions are made clear through evidence. We fool ourselves into believing the people who made the incorrect decision must lack talent or training. Since we are talented and well-trained (<a href=\"http:\/\/youarenotsosmart.com\/2009\/10\/20\/self-serving-bias\/\">self-serving bias<\/a>) we don&#8217;t need any stinkin&#8217; design research to avoid such amateurish mistakes.<\/p>\n<p>It&#8217;s thinking like this that leads companies to de-invest in design research. And to build 300 million dollar buttons.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This morning I came across Jared Spool&#8217;s article about the $300 Million Button. To summarize, Jared&#8217;s team worked on an ecommerce site that required a login\/registration to complete the checkout process. They did some design research and found out this &hellip; <a href=\"http:\/\/usereccentric.com\/?p=291\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-291","post","type-post","status-publish","format-standard","hentry","category-design-research"],"_links":{"self":[{"href":"http:\/\/usereccentric.com\/index.php?rest_route=\/wp\/v2\/posts\/291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/usereccentric.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/usereccentric.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/usereccentric.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/usereccentric.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=291"}],"version-history":[{"count":4,"href":"http:\/\/usereccentric.com\/index.php?rest_route=\/wp\/v2\/posts\/291\/revisions"}],"predecessor-version":[{"id":301,"href":"http:\/\/usereccentric.com\/index.php?rest_route=\/wp\/v2\/posts\/291\/revisions\/301"}],"wp:attachment":[{"href":"http:\/\/usereccentric.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/usereccentric.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=291"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/usereccentric.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}