A leading Latin American insurance company had launched a new insurance for children, which could be purchased online and in a few steps. However, despite its ease and accessibility, sales were not meeting the desired expectations. 

The company, a pioneer of adopting behavioral design practices in Latin America, partnered with Heurística Lab to optimize the design of the product's homepage using insights from behavioral science to increase the product's conversion rate and sales.

Understanding the barriers

This project did not include a behavioral diagnosis, as the company had already conducted previous research and developed a hypothesis about the psychological barriers their users might be facing. Specifically, the hypothesis suggested that it is difficult to determine the utility of insuring a child for the price of $10 per month. It is not intuitively known whether this is a fair or adequate price. To design behavioral science solutions for this challenge, we took the following approach:

• Building a theoretical foundation: We conducted an extensive review of literature of common biases and heuristics related to financial decision-making.

• Reviewing past research: The company’s existing data offered valuable context about past user research studies, previous efforts and results.

• Collaborative workshops: Together with the client, we developed and prioritized potential interventions.

The experiment

After a selection process with our client, we implemented two behavioral nudges, each addressing an specific behavioral science principle:

• Pennies-a-Day Framing: This principle simplifies the cost by presenting it in smaller, daily terms ($0.33/day), making the price appear more manageable and less overwhelming.

• Anchoring: By highlighting a higher potential cost (e.g., "$3,000 for a medical emergency"), this principle makes the $10/month insurance seem much more affordable in comparison.

These principles were tested on the platform’s landing page (randomized), with a control group exposed to the original design.

The results

Note: This is a general description of the main intervention' results, in line with confidentiality agreements with the organizations. 

The field experiment revealed significant improvements in sales:

• The Anchoring nudge increased sales by five times compared to the control group, effectively addressing users' price-perception challenges.

• The Pennies-A-Day nudge also boosted sales, with its effectiveness varying based on the user context (platform).

Reflections

This project showed how small, targeted adjustments based on behavioral science can drive user action. By reframing the cost and highlighting potential risks, we helped reduce hesitation and encouraged users to engage with the product offering on the webpage.

Key takeaways

• Behavioral science can transform how users perceive and interact with digital platforms.

• Simple, cost-effective interventions like framing and anchoring can significantly impact user decision-making.

• Collaborative design processes ensure interventions are both practical and aligned with business goals.