Behavioral Science Startups: Influencing User Behavior with Psychology and Data

Planting the Seed: Silicon Valley, Mind Control, and Finding Order in Chaos

This article explores the burgeoning field of behavioral science startups and their impact on innovation, particularly within Silicon Valley. It highlights how companies are leveraging insights from cognitive science to influence user behavior, drawing parallels to concepts of mind control and order from the movie Inception.

The Rise of Behavioral Science in Startups

The core idea is that startups are increasingly using psychological triggers and data to shape user actions. The article cites three prominent examples:

• Timeful: Launched in 2014 with the help of Dan Ariely, a renowned behavioral scientist. Timeful aims to combat procrastination and temporal inconsistencies by acting as a 'nagging friend.' It suggests activities to fill calendar gaps and encourages users to commit to tasks, even when difficult. The article likens its approach to the alarm clock Clocky, which rolls away to force users to get up. Timeful's effectiveness in 'nudging' users towards better time management led to its acquisition by Google.
• FitStudio: This Sears offering utilizes gamification to encourage fitness. By tracking user activity through devices like Fitbit, FitStudio rewards users with coupons and monetary incentives for achieving fitness goals. This approach taps into the human desire for rewards and recognition.
• OPower: Founded in 2007, OPower focuses on energy consumption reduction by providing personalized recommendations based on neighborhood energy usage data. It leverages psychological triggers like social comparison, guilt, and competitiveness to motivate users to conserve energy. OPower's success led to an IPO and a significant market capitalization.

Academic and Institutional Support

The growth of behavioral science in the startup world is mirrored by increased investment in academic programs dedicated to the field. The article points to:

• University of Michigan: Received a $7.7 million gift to establish the Weinberg Center of Cognitive Science.
• Princeton University: The Woodrow Wilson School of Public Policy received $10 million to create the Daniel Kahneman and Anne Treisman Center for Behavioral Science and Public Policy.

These developments indicate a growing recognition of the importance of understanding human behavior for innovation and policy.

Impact on Innovation Ecosystems

The principles of behavioral science are also influencing how innovation hubs are built. The article references Victor Hwang and Greg Horowitt's book, The Rainforest: The Secret to Building the Next Silicon Valley. Their research suggests that behavioral science can explain the success of certain innovation centers like Silicon Valley and Kendall Square, attributing it to factors like complex systems, social interaction, collaboration, and founder motivations.

The Future of Behavioral Science Startups

The article concludes by emphasizing the potential of behavioral science startups. As wearable technologies continue to collect vast amounts of data and social media provides a platform for widespread visibility, these startups are poised to attract further investment and generate new ideas. The ability to understand and influence user behavior is becoming a key differentiator in the startup landscape, potentially changing everything in how businesses operate and users engage.