Have you ever opened Zomato just to order a burger but ended up ordering a meal? Or went on yourself upgrading to Amazon Prime because the free trial was about to expire? Perhaps Myntra’s “Only 1 left in stock” message nudged you to buy that jacket you weren’t sure about. These are not coincidences but carefully crafted nudges—subtle psychological prompts designed to influence your decisions without forcing them.
Behavioral economists use the term ‘nudge’ to describe a small, indirect push that encourages people to adopt a certain behavior without restricting their freedom of choice. Popular books like Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard Thaler and Cass Sunstein, and Thinking, Fast and Slow by Daniel Kahneman, nudges are designed to work with human psychology rather than against it. Unlike mandates or monetary incentives, nudges gently drive people towards decisions they are likely to make anyway—just a little faster.
With the rise of mobile apps and digital services, nudging has become even more powerful and usual. Unlike traditional nudges—such as placing healthier snacks at eye level in supermarkets—digital nudges are personalized, timely, and scalable. They appear when you are most capable to influence, making them remarkably effective.
Human beings are social creatures, and our choices are frequently influenced by patterns of behavior we observe in others. The idea of social proof is especially relevant in the age of Instagram: When we see influencers and thousands of their followers discuss and promote a given product, it’s literally hard to not go for it. But the persuasive power of a crowd precedes social media. Nightclubs often make people stand in queue on purpose, creating a long line outside to make it look more popular than it actually is. If a club is worth waiting for, we assume others must be on to something.
Tech-based nudges leverage defaults, where users are automatically opted into a free trial, making it easier to continue rather than cancel. We get notifications like “Hurry! Only 2 seats left at this price” on a travel site compel users to book. Then messages such as “Vivaan from your city just ordered this!” create a sense of urgency. Gamification strategies like Zepto’s progress bar showing how close you are to free delivery encourage users to add more items to their cart.
Amazon’s free trial for Prime is a classic nudge. By making the first month free, users experience the benefits without a total commitment. As the trial nears expiration, Amazon nudges users with reminders, emphasizing convenience and savings, making it easier to continue than cancel. Ever noticed those “5 people are looking at this dish right now” or “Order now and get 20% off on your next order” prompts? Apps like Zomato and Swiggy create a sense of urgency and reward habitual behavior, ensuring users keep coming back.
Apple doesn’t tell you to upgrade, but every year, they subtly nudge you by showcasing “revolutionary” new features that make your current device feel outdated. Moving from an old iPhone to a new one is smooth and easy, making the upgrade feel effortless. Myntra’s “Only 1 left in your size” message taps into loss aversion—the fear of missing out—pushing users to make purchases quickly before an item ‘disappears.’ Meanwhile, Netflix’s auto-play feature removes the friction of making a decision. Instead of actively choosing, users passively continue watching.
However, the nudge of social proof can also empower our best instincts. Sometimes, conforming to the crowd means doing really well. Nudges, small design changes that can markedly affect individual behavior, have been catching on. These techniques rely on insights from behavioral science, and when used ethically, they can be very helpful. But we need to be sure that they aren’t being employed to sway people to make bad decisions that they will later regret.
Nudges succeed because they align with how our brains process information. People tend to follow the path of least resistance, making auto-renewal options work because canceling requires effort. People often feel left out which make users act before it’s too late, and social proof messages encourage them to follow what others are doing. Additionally, reward-based nudges such as loyalty points, cashback, and ‘streaks’ motivate repeated behavior.
While nudging can benefit consumers—like encouraging healthy choices or promoting financial savings—it can also be exploitative. Some companies use dark patterns (deceptive design tricks) to push users into choices they wouldn’t normally make, like sneaky subscription traps or confusing cancellation policies. Ethical nudging ensures transparency and aligns with the user’s best interests. All nudging should be transparent and never misleading. It should be as easy as possible to opt out of the nudge, preferably with as little as one mouse click. There should be good reason to believe that the behavior being encouraged will improve the welfare of those being nudged.
Nudging can also be used to increase motivation. If you want employees to increase sales, a possible motivational nudge is to set a sales goal and give employees a percentage of the amount above the sales goal. This is a practice already implemented in multiple companies. Nudge theory is also helpful at times of changes in workplace culture. Encouraging employees to share their goals and ideas on the topic can help others accept the change. It is also possible to share other companies’ experiences to show employees how well an idea has worked, and how they could achieve the same results.
As AI and machine learning advance, nudges will become even more personalized. Brands will anticipate user behavior more accurately, crafting nudges that feel even more particular and intuitive. Companies that master ethical nudging will build a long lasting trust, while those that misuse it risk losing credibility.
A look at past business strategies also shows that nudging has long existed, even before digital tools made it easier. The idea of ‘Planned Obsolescence’—where companies design products in a way that they become less useful over time. Apple’s yearly iPhone upgrades, car manufacturers subtly shifting designs every few years, and even software companies gradually discontinuing support for older versions, all push consumers towards upgrading. While this strategy ensures innovation, it also raises ethical concerns about sustainability and waste.
Next time you’re about to make a purchase or sign up for a service, pause and ask yourself—am I making this choice freely, or have I been nudged into it? While nudging isn’t inherently bad, being aware of it puts the power back in your hands. Understanding these psychological tricks can help you make more conscious decisions, ensuring that when you upgrade, it’s truly because you want to, not because an app gently steered you in that direction.
