Open up your mind and say, ahh...

How much is a touch screen button worth? If you’re a New York City cabbie who was forced to install a credit card reader in your taxi, it’d better be worth a lot, because those damn things were expensive. Well, according to the New York Times, those credit card readers increased tips from 10% to 22%, on average. Designer Joshua Gross did some arithmetic and it turns out that the touch-screen buttons were worth an extra $144,146,165 in tips.

Defaults require less thinking, and we view them as implicit recommendations.

So how could three buttons on a screen bump tips by over a hundred million bucks? Such is the power of user experience design–specifically, the power of the default option. A taxi rider paying her fare by credit card is presented with three buttons for adding a tip: 20%, 25%, and 30%. You can enter whatever tip you like manually, but you’re probably just going to hit one of those buttons. Since the average tip increased to 22%, that implies that most people hit the middle or lower option.

I asked behavioral economist Dan Ariely, author of the new book The Honest Truth About Dishonesty, why default options are powerful enough to turn even hard-boiled New Yorkers into generous tippers. “One reason is that they’re the path of least resistance,” he says. “Defaults always require less thinking, which is very tempting. But we also view default options as implicit recommendations–we assume that whoever designed the system thought about it and came up with this set of the ‘right’ responses.”

So buttons make us tip better because we’re lazy and we don’t want to be wrong. Could cabbies have made even more money if the UI designers had presented higher percentages on the tip buttons? “I think the answer is absolutely yes,” says Ariely.

But before you go thinking that UI designers could Jedi-mindtrick us all into emptying our wallets just because the buttons say so, Ariely says that even our laziness has limits. “If the options were 21, 26, and 31, i think the average tip would have gone higher. But the range has to reflect some possibility of normal behavior. No one is going to leave a 100% tip.” Not unless you’re Jay-Z, anyway.

And remember that the highest default option was 30%, but average tips only increased to 22%. This “middle to low” behavior emerges from the system presenting three buttons instead of two, or one. “When you present three options, people think this is the range of acceptable possibilities,” Ariely explains. “They don’t want to be too high or too low, so they tend toward the middle option. But this is money, so they’re still motivated to save and go lower as well. This might explain why the average tip reflects an amount in between the lower and middle default options.” Still, $144,146,165 isn’t chump change. So the next time you have to explain (or justify) the vaporous concept of “user experience” in design, just drop that figure into the conversation. It should make things clear as day.

via Joshua Gross; Top image by Nadirco/Shutterstock

Photo: General Motors

As automakers continue to load vehicles with the features and functionality people expect from their portable devices, the in-dash user interface has become a branding battleground – and the Achilles’ heel of the increasingly connected car. While giving a smartphone or tablet undivided attention is common – if not considered rude, depending on your circle of friends – calling up a Pandora station on your iPhone while driving has the potential to put your life, and others on the road, at risk.

Automakers have to strike a balance between providing drivers the smartphone-enabled applications they desire, while making them safe to access on the fly. But that poses its own issues, including liability concerns and a fear that the feds – fired up about distracted driving – could mandate or outright ban these newest technologies in the car. U.S. Secretary of Transportation Ray LaHood has personally called out automakers for putting tech prowess and profit before public safety, and has singled out Ford’s Sync system in particular.

But as automakers have pushed smartphone integration as a way to bring connectivity to the car – and attempted to emulate the slick touch screens of the devices – the most cutting-edge automotive UIs have largely been a series of failures. After soaring from the success of Sync, for example, the follow-up MyFord Touch system brought the Dearborn-based automaker down a few pegs. In a test of the Ford Edge last year, Consumer Reports called MyFord Touch “frustrating” and “a complicated distraction when driving.” A few months later, Ford dropped to 23rd from fifth place the previous year in J.D. Power & Associates’ 2011 Initial Quality Study, largely based on customer’s complaints with the largely capacitive touch-based system.

Ford declined to comment for this story, but claims an 80 percent “take rate” on MyFord Touch in the Edge and Explorer. The automaker also took the unprecedented step earlier this year of sending software upgrades to all owners of vehicles with the system. But one owner we spoke with doesn’t feel it saves the system.

Greg Gill of San Juan Capistrano, California, is a self-described “diehard Ford owner” who purchased his 2011 Edge about a year ago. “Before that, I owned two Expeditions and an Explorer,” said the VP of marketing for the National Auto Sport Association. Gill considers himself tech savvy and knew about the issues with MyFord Touch. “But I still bought it,” he said. “I thought, ‘That’s everybody else. I’m not going to have any problem with it.’ And what a nightmare it’s been.”

“The touchscreen is very clunky,” he told Wired. “I’m constantly tapping it multiple times and looking at it. There are so many things that have not been done well – even after the upgrade. And when I took it in for service, the dealer said, ‘Everybody’s coming in with these issues. Nobody’s happy with their MyFord Touch.’” Gill contends that he’s “still a satisfied Edge owner, but I could not recommend the vehicle overall because of MyFord Touch.”

Automakers are learning from the Blue Oval’s stumble

While Ford had a huge head start with the initial Sync system, other automakers are learning from the Blue Oval’s stumble with its latest high-tech release – and if not designing radically different systems, then at least pouring resources into consumer education. For the launch of Cadillac’s CUE system – which, from our early experiences with it, looks and functions similar to MyFord Touch – that will debut on the new XTS sedan, the GM luxury brand is taking a blitzkrieg approach to tech support, including giving everyone who purchases the XTS in its first year an iPad preloaded with an app that simulates the CUE user interface.

Cadillac is also dispatching 25 “connected consumer specialists” to dealerships to ensure that salespeople become familiar with CUE, and dealers are required to staff stores with two “certified technology experts” trained by the CUE specialists. Additionally, Cadillac is setting up a dedicated call center to handle questions on CUE, will have representatives scouring Internet forums and social media sites to spot concerns and is even prepared to send specialists to XTS owners’ homes who have still unresolved issues with the system.

“We’re trying to think of every way that a customer might ask for help,” said Scott Fosgard, a General Motors spokesperson. “If you’re a CUE owner and having problems, we’ll meet you at your place of work or home, whatever’s convenient.”

To coincide with the launch of the new 2013 GS, Lexus is creating two new tech positions at each of its dealerships: a vehicle delivery specialist to go over the features of a vehicle with new owners, and a vehicle technology specialist to serve as a contact for customers who have questions on how to use their vehicle’s electronics. “We need to provide a standardized method to get information to a wide variety of audiences, and owners’ manuals allow us to achieve that,” said Kevin Pratt, product education manager for Lexus. “However, we recognize that the best way for people to understand and get the full benefit of the features in their car is to be shown how to use them.”

Lexus is also employing an iPad app designed specifically for the GS to educate customers on the car’s features. Owners can even use the Facetime to contact a dealer and get remote personal tutorials on the tech in their vehicles.

But if the UI is properly designed in the first place, it should be intuitive enough that you don’t need a tech expert to make house calls or even an owner’s manual (see: Apple). “I think a lot of people have gotten used to Apple devices,” said Mark C. Boyadjis, an analyst who covers automotive electronics at IHS Global. “And when Apple owners have a question, there’s the Genius Bar.”

But Boyadjis points out that, unlike a smartphone, people typically own a car for years. And he notes that the recent rate of change in automotive infotainment may leave many new car buyers lagging in terms of tech. “I think people still to this day are familiar with the two-knob car radio,” he said. “That was the user interface for last 40 or 50 years. People who bought their last car in 2005 and upgrade to a 2012 model are going to see a completely different Human Machine Interface,” Boyadjis added. “They’re going to be introduced to touch screens. Many of them are going to be introduced to voice recognition for the first time. It’s not always something you can read in your user manual; you need to sit down and use it.”

As with any technology, pioneers are often punished for being first out the gate.

And while it’s economically feasible for a luxury brand to sink significant resources into owner education, consumers of lesser means could be left in the lurch as tech trickles down to more mass-market vehicles. “For the smaller automakers, there could be some issues,” Boyadjis tells Wired. “The GMs, Fords and Toyotas of the world have developed this because they’re the bigger players. But when it comes to Mazda or Mitsubishi or Subaru, they’re pushing to put some of this stuff in their cars. But even their newer systems are not super HMI focused, and they don’t have the R&D budget to spend.”

According to Cadillac CUE program manager Jeff Massimilla, while UI issues were addressed in the design phase, the lead up to the launch of the XTS is the first time GM has developed such as extensive tech support program. “The goal was to design a system that’s easy to use and that’s similar to Apple devices, Android devices or other device on the market that are intuitive.”

And then prepare for any potential tech-fail fallout by pumping money into training and support.

As with any technology, pioneers are often punished for being first out the gate. (We’re looking at you, Apple Newton.) Consider the clunky, pre-smartphone, first-generation BMW iDrive, which was pilloried by the automotive press when it debuted in 2001. Since its introduction, iDrive has become one of the more intuitive systems available as BMW refined and iterated on the original concept of a single knob and a handful of buttons to control a multitude of complex functions. Many luxury automakers later copied the concept, and it’s easy to envision similar evolutions with touch screens, capacitive buttons and haptic feedback. But the growing pains of new technology and unrefined UI paradigms are a tough sell for consumers holding onto vehicles for years or even decades, particularly when compared to the monthly and yearly upgrades of smartphones and tablets. It’s a brave new world for automakers, and it’s one that needs constant attention and an unwavering pursuit of usability before an iPhone-like revolution takes place inside the car.

You say you want to get closer to customers, but your actions are different than your words.

You say you want to “surprise and delight” customers, but your product development teams are too busy building against a roadmap without consideration of the 5th P of marketing…people.

You’re employees are your number one asset, however the infrastructure of the organization has turned once optimistic and ambitious intrapreneurs into complacent cogs or worse, your greatest detractors.

You question the adoption of disruptive technology by your internal champions yet you’ve not tried to find the value for yourself.

You’re a change agent and you truly wish to bring about change, but you’ve not invested time or resources to answer “why” in your endeavors to become a connected or social business.

If we are to truly change, we must find purpose. We must uncover the essence of our business and the value it delivers to traditional and connected consumers. We must rethink the spirit of today’s embrace and clearly articulate how transformation is going to improve customer and employee experiences and relationships now and over time. Without doing so, any attempts at evolution will be thwarted by reality. In an era of Digital Darwinism, no business is too big to fail or too small to succeed.

These are undisciplined times which require alternative approaches to recognize and pursue new opportunities. But everything begins with acknowledging the 360 view of the world that you see today is actually a filtered view of managed and efficient convenience. Today, many organizations that were once inspired by innovation and engagement have fallen into a process of marketing, operationalizing, managing, and optimizing. That might have worked for the better part of the last century, but for the next 10 years and beyond, new vision, leadership and supporting business models will be written to move businesses from rigid frameworks to adaptive and agile entities.

I believe that today’s executives will undergo a great test; a test of character, vision, intention, and universal leadership. It starts with a simple, but essential question…what is your promise?

Notice, I didn’t ask about your brand promise. Nor did I ask for you to cite your mission and vision statements. This is much more than value propositions or manufactured marketing language designed to hook audiences and stakeholders. I asked for your promise to me as your consumer, stakeholder, and partner. This isn’t about B2B or B2C, but instead, people to people, person to person. It is this promise that will breathe new life into an organization that on the outside, could be misdiagnosed as catatonic by those who are disrupting your markets.

A promise, for example, is meant to inspire. It creates alignment. It serves as the foundation for your vision, mission, and all business strategies and it must come from the top to mean anything. For without it, we cannot genuinely voice what it is we stand for or stand behind. Think for a moment about the definition of community. It’s easy to confuse a workplace or a market where everyone simply shares common characteristics. However, a community in this day and age is much more than belonging to something, it’s about doing something together that makes belonging matter

The next few years will force a divide where companies are separated by intention as measured by actions and words. But, becoming a social business is not enough. Becoming more authentic and transparent doesn’t serve as a mantra for a renaissance. A promise is the ink that inscribes the spirit of the relationship between you and me. A promise serves as the words that influence change from within and change beyond the halls of our business. It is the foundation for a renewed embrace, one that must then find its way to every aspect of the organization. It’s the difference between a social business and an adaptive business. While an adaptive business can also be social, it is the culture of the organization that strives to not just use technology to extend current philosophies or processes into new domains, but instead give rise to a new culture where striving for relevance is among its goals. The tools and networks simply become enablers of a greater mission

You are reading this because you believe in something more than what you’re doing today. While you fight for change within your organization, remember to aim for a higher purpose. Organizations that strive for innovation, imagination, and relevance will outperform those that do not. Part of your job is to lead a missionary push that unites the groundswell with a top down cascade. Change will only happen because you and other internal champions see what others can’t and will do what other won’t. It takes resolve. It takes the ability to translate new opportunities into business value. And, it takes courage.

“This is a very noisy world, so we have to be very clear what we want them to know about us”
-Steve Jobs

Photo of matches courtesy of Shutterstock