On the power of a deadline

πŸ’Ž On the power of a deadline

Prospective borrowers must complete a lengthy online application to be considered for a loan. Many of them begin the application but don’t finish it. Kiva enlisted the Common Cents Lab, a behavioral research laboratory, to come up with a solution.

Their suggestion: Impose an ending. Give people a specific deadline a few weeks away for completing the application. On one level, this idea seems idiotic. A deadline surely means that some people won’t finish the application in time and therefore will be disqualified for the loan. But Kiva found that when it sent applicants a reminder message with a deadline, compared with a reminder message without a deadline, 24 percent more borrowers completed the application.” Likewise, in other studies, people given a hard deadlineβ€”-a date and timeβ€”are more likely to sign up to be organ donors than those for whom the choice is open-ended.

Excerpt from: When: The Scientific Secrets of Perfect Timing by Daniel Pink

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