Cognitive bias shapes the way we consume and process information. People develop biases through good and bad experiences or associative assumptions that are made at conscious and sub conscious levels. These biases affect all our decisions - big and small.
In fact, when the stakes are higher or more critical, biases have a bigger impact on decisions and outcomes – and this holds true for businesses, customers, employees or partners. Effectively meaning, biases could affect the ecosystem at large.
One of the most common challenges in decision making is information overload – being able to absorb, process and navigate through information pouring in from various data sources. When biases enter the decision making process of product teams, it can lead to incorrect prioritization of the product roadmap which impacts value realization. (e.g. prioritizing capabilities in the way one perceives the customer to behave versus actual user research based findings).
Key takeaways
Organizations have to grasp and deal with the various beliefs and conclusions that customers carry about their product needs and experiences.
The creation of products and services based solely on the organization’s view might not help seal the deal with customers. What’s needed is to design and position the products and services through the minds of customers.
Our session on cognitive bias elaborated on the following:
i) What creates cognitive bias
ii) What are the manifestations of cognitive bias in real-life scenarios
iii) What insights can we draw and leverage
iv) What approaches and strategies can help to deal with these biases in a well-informed manner