Behavioral Strategist & Author

Presented by

Hi there, my name is Samuel Salzer and through this Habit Weekly PRO case study, I hope to help you uncover the following insights and tools 💡🛠

The EAST Framework 🚀

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4.

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How Lemonade makes it's call-to-action clear and timely ⏰

How Lemonade makes it feel ridiculously easy to onboard 🕺

How Lemonade makes it attractive to complete their onboarding 😍

How Lemonade could better utilize social influence 👪

Case Study Overview

In the top left, you can keep track of how many behavioral insights you've managed to collect through this interactive case study ⭐️

The EAST Framework 🚀

5.

4.

1.

2.

3.

How Lemonade makes it's call-to-action clear and timely ⏰

How Lemonade makes it feel ridiculously easy to onboard 🕺

How Lemonade makes it attractive to complete their onboarding 😍

How Lemonade could better utilize social influence 👪

Case Study Overview

To navigate, you can either use your arrow keys or click at the bottom right of the screen. Alright, ready? Let's go! 🚀

The EAST Framework 🚀

5.

4.

1.

2.

3.

How Lemonade makes it's call-to-action clear and timely ⏰

How Lemonade makes it feel ridiculously easy to onboard 🕺

How Lemonade makes it attractive to complete their onboarding 😍

How Lemonade could better utilize social influence 👪

Case Study Overview

Let's first establish; what the heck is Lemonade? 🍋

Lemonade offers renters and home insurance "powered by tech and driven by social good". They use AI aimed at giving people a fair price and quicker support. Plus, they want to do social good 💙

Lemonade offers renters and home insurance "powered by tech and driven by social good". They claim to have an AI that can give people a fair price and quicker support. Plus, they want to do social good.

Lemonade's business model

Pay claims super fast

A flat fee to run everything

If there's money leftover, give it back to causes.

They even claim that their platform is built based on principles of behavioral economics. And you might recognize their Chief Behavioral Officer who has been part of the team since 2016...

Hey Dan, good to see you 👋

Dan Ariely

Chief Behavioral Officer

It's safe to say they are a pretty cool company and they've recently taken Wall Street by storm. Their IPO on July 2nd saw their listing price of $29 jump 139% to a closing price of $69.41.

To help us analyze Lemonade's onboarding we'll use the EAST Framework. It follows 4 principles for changing behavior...

The EAST Framework

IF YOU WANT TO CHANGE A BEHAVIOR, MAKE IT...

During this case study, I hope to teach you these principles and help you learn some of their underlying behavior change tools as well.

The EAST Framework

IF YOU WANT TO CHANGE A BEHAVIOR, MAKE IT...

Let's dive straight in, this is Lemonade's landing page.

Pretty good first impression. Actually, what is there not to love about this page from a behavioral design perspective?

Make it Timely

For action to happen we need to be prompted. However, we respond differently to prompts depending on when they occur.

For example, we are particularly likely to change our habits during periods of transition — after we move house, get married, have a child or change jobs.

Timing is often overlooked, but it is a crucial component in making a behavior more likely to happen.

Make it Timely

For action to happen we need to be prompted. However, we respond differently to prompts depending on when they occur.

For example, we are particularly likely to change our habits during periods of transition — after we move house, get married, have a child or change jobs.

Timing is often overlooked, but it is a crucial component in making a behavior more likely to happen.

Oh, hey Maya 👋 I have no clue who you are, but nice to see a friendly face. I was not expecting that.

Who would have thought that giving an automated process a smiling face could make a big difference?

**Cough** Don't look at me **Cough**

While this is a great first screen in its simplicity, I was expecting to see prices straight away, given the call to action.

"In seconds" sounds quick and and I want to get an awesome price, but it also almost feel too good to be true 🧐 Still, I'm curious to find out - let's go!

For the sake of this case study,
I thought I'd use my friend's identity here... Again, don't look at me. Just doing this for a "friend" 🤫

Alright, let's see how well Google Maps cover Gotham City...

Well, close enough I guess 🤷‍♂️

Showing the map once I've added the address is a nice touch, removes potential uncertainty.

Make it Easy

We know from the behavioral literature and work in practice that small, seemingly irrelevant details that make a task more challenging or effortful (what we call ‘friction costs’) can make the difference between doing something and putting it off. Therefore, the first principle is to consider how to make it easier for someone to do something, be it live more healthily or pay their taxes on time.

Make it Easy

We know from the behavioral literature and work in practice that small, seemingly irrelevant details that make a task more challenging or effortful (what we call ‘friction costs’) can make the difference between doing something and putting it off. Therefore, the first principle is to consider how to make it easier for someone to do something, be it live more healthily or pay their taxes on time.

The language used is also very easy to understand and sentences are kept short, a good example of Simplify Messages  ⚒️

As we see when we continue, illustrations also helps to simplify the process. At least in most cases – these icons are a bit unclear.

The buttons turning pink when each step is completed is a nice touch as an indicator of being ready to continue.

My friend tells me Wayne Manor is 42,500 sq feet (4,000 sqm). Being a Wayne clearly has its benefits...

Oops! Well, I must say this seems fair. Let's enter 4,250 sq. ft. instead.

These illustrations are so fun! 🤩

Still, it's a bit sad with this one as my friend has 42,500 sq. ft. to himself. That's a lot of space for one toothbrush...

Still, it's a bit sad with this one as my friend has 42,500 sq. ft. to himself. That's a lot of space for one toothbrush...

I got to give it to Lemonade, they've made this onboarding very attractive. Especially using effective ways to attract attention and providing eye-candy 🍬

Make it Attractive

There are several ways of making things more attractive. Some of these are relatively intuitive (such as personalizing messages); others are more sophisticated (such as re-framing the way in which incentives are presented). Fundamentally, though, making an action attractive is about two main things: drawing attention to it, and making the action more appealing. We can accomplish this in a few ways, as listed below.

So, with what we have covered so far, we are at the acronym EAT. Honestly, I'm happy to stay here 😄... But we have one more letter left. Almost there, let's find S!

Make it Attractive

There are several ways of making things more attractive. Some of these are relatively intuitive (such as personalizing messages); others are more sophisticated (such as re-framing the way in which incentives are presented). Fundamentally, though, making an action attractive is about two main things: drawing attention to it, and making the action more appealing. We can accomplish this in a few ways, as listed below.

Hmm. This is honestly a tricky question. I'd assume "superb" for Wayne Manor, but I'm unsure 🤔

Oh! Very helpful and timely, Maya. Thanks! Another great example of reducing hassle factors 👏

Finally 🙏 I didn't plan to share my.. ehm, I mean my friend's email. But I've invested too much time in this to leave now...

Quick quiz! What is this tendency of finding it difficult to stop when we've invested time or money in something? Make your choice 🤓

How did you go with that one? The correct answer was the Sunk Cost Fallacy.

Here you can see how other people answered.

Alright, email entered! Still, this onboarding definitely took more than "a few seconds". Looks like you overpromised, Maya! 😉

I expect that most people wouldn't be too upset about this, especially given that the onboarding is so pleasant. Still, we should be careful not to over-promise if we hope to build long-term trust.

Anyway, my expectations are high now. I better be in for a sweet deal...

Alright, $207 per month. I guess that's a decent price. But is it an awesome price? I don't know. Say I had no previous house insurance to compare with, how would I know?

Everything is relative. We often don't know if something is cheap or expensive unless we have something to compare it with.

This is when we arrive at Make it Social! 🎉Lemonade has yet to use any social influence, could they perhaps make use of it here?

Make it Social

Humans are social animals. We are heavily influenced by what those around us do and say. We reduce our energy consumption when we know that others in similar households use less energy than we do. We are more likely to take the stairs rather than the lift when our colleagues do the same. We pay a premium for products or services that have been endorsed by other people, which is why online rating systems are so successful.

Social norms could be used here, but also social comparison – another form of social influence.

If accurate, next to the price could be text saying "more affordable than 90% of your neighbors insurance."

This could make the price feel more "awesome" as you'd at least have something to compare it with. Or some might think; "hmm, I wonder where the other 10% are getting their insurance?" 😂

In the end, you always need to test! #science. Also, this idea only works if the statement is true - there needs to be data showing the price advantage.

Last note... Remember that we should aim to keep one call-to-action per page? Here there are 3!

While they do a decent job of highlighting "Finalize Payment" as the top hierarchy call-to-action, I'd bet many would be curious to get discounts (leads to answering more questions).

There's surely a good reason for this, but it's not ideal. Here's a reminder to try and keep call-to-action's to a minimum at all cost❗

CASE STUDY COMPLETED

Well done, you've completed this case study! 🎉🎉 Let's do a quick summary of what you've learned.

Alright, this is what we have covered today. Not only did you get a chance to explore Lemonade's onboarding, but you've also developed a better understanding of the EAST framework. All in a few minutes. High five 🖐