Behavioral Product Management (BPM)

What is behavioral product management (BPM)?

Behavioral product management is a product management approach that focuses on understanding how users interact with a product and what motivates them to use it.

Product managers and UI/UX folks need to be aware of the feelings and experiences a user can go through when working with the product. What gains their attention, what motivates them, and what keeps them motivated.

Definition of behavioral product management (BPM)

Behavioral product management (BPM) is the application of psychology in the design of a product.

Humans are illogical and impulsive, so BPM aims to incorporate these unpredictable elements.

This is accomplished in two primary ways. The psychology of the consumer may have a significant impact on the design of a product, but it may also be used to steer clients to specific behaviors that the product manager knows will benefit the product.

In this manner, the item and consumer have a two-way connection.

Why should you use behavioral product management?

Even if a business is unaware that it uses psychology in its project or product development, it must utilize it to some extent in order to attract the customer. 

A product manager must have a basic understanding of consumer behavior. Whether this develops into the formal application of psychology depends on a variety of factors.

A Product Manager can obtain significant knowledge of the expectations, worries, frustrations, needs, and wishes of the consumer through behavioral product management.

It’s worth noting, though, that while psychology may predict how individuals behave and react only to a certain extent, it frequently fails to anticipate how people will act or react. 

How Does Behavioral Product Management Work?

It’s a natural consequence of conventional product management. All PMs aim to develop successful products based on their knowledge of consumers’ needs, desires, hopes, worries, and pains.

However, behavioral PMs understand that the most popular approach to acquiring this knowledge—through customer comments—may result in faulty judgments. This is because humans are irrational creatures. We seldom understand our motives for doing things or believing as we do. Our viewpoints often change depending on the environment.

Because behavioral PMs are aware of the shortcomings of user self-reporting, they rely less on what they learn during user research calls. That’s why they can take a proactive approach based on what they know about psychology to lead and even transform their users’ actions.

Behavioral PMs have a unique understanding of their customers and how to create products that connect with them.

Because this technique integrates product management abilities and behavioral science, it may help businesses develop more gratifying customer interactions. Also: Check out the AARRR framework to measure the success of product management with a concrete set of metrics.


Examples of Behavioral Product Management

Psychological pricing

When consumers compare two pricing options for a product side-by-side, sales of that product rise. According to pricing psychology research, many customers believe they are receiving a good deal by selecting the less expensive option. Some consumers appreciate greater value or reputation from choosing the more costly alternative.

Steve Jobs announcing the price of the iPad in 2010. He’s using the so-called anchoring effect. First he sets a reference point ($999) to then drop down to the real price ($499) and make the consumer think it’s a bargain.

Automation of decision-making

People dislike repeating uninteresting activities, according to behavioral psychology.

Product managers who specialize in behavioral sciences can use this fact to make their software more appealing to customers. For example, many applications include the “Stay logged in” option. Instead of requiring the user to log in each time, the software removes this burden and allows him or her to get started right away.

Simplifying the user’s experience

People can also become overwhelmed by too many options, according to human psychology. Armed with this information, behavioral product managers limit their users’ alternatives at each step of the product’s user interface. Example: The software may have a minimized toolbar on its home page, with the most commonly performed tasks accessible. This also aids in the user’s experience. It provides a soothing and friendly atmosphere rather than one that is overwhelming.

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