Why do some business communications hit home while others fall flat? The answer often lies in human psychology. By understanding how people process information, companies can communicate more clearly, especially in critical documents like contracts. In fact, studies show that most people don’t fully read or remember dense text – for example, over 90% of consumers accept terms and conditions without reading them. Clearly, there’s room to communicate better. In this post, we’ll explore six science-backed principles from behavioral science that can make your business communications – and contracts in particular – more effective. These principles come from cognitive psychology and learning science, and each offers practical ways to boost understanding, retention, and trust.
What this blog contains:
- Production Effect: Speaking to Boost Memory
- Dual Coding Theory: Combining Text and Visuals
- Cognitive Load: Simplifying to Avoid Overload
- Chunking: Breaking Information into Sections
- Salience Effect: Highlighting Key Terms
- Processing Fluency: Clarity Builds Trust
- Building Better Agreements with
i agree
1. Production Effect: Speaking to Boost Memory
Have you ever noticed you remember something better if you say it out loud? This is called the production effect – the psychological finding that actively producing information (by speaking or hearing it) enhances memory. In practical terms, hearing and speaking content helps it “stick” in a way that silent reading often doesn’t. Research has demonstrated dramatic improvements in recall when people read text aloud instead of silently. For example, in one study students who read words out loud remembered about 90% of them immediately afterward, compared to roughly 70% for those who read silently. Even a week later, the group that spoke the words retained more (around 59% vs 48% for the silent readers). That’s a huge memory boost, simply from vocalizing the content.
Why does this happen? Speaking engages more of the brain’s pathways – you see the words, say them, and hear yourself, creating multiple sensory inputs. This forms a stronger memory trace. In business communication, and especially contracts, the production effect is extremely relevant. If you really want someone to remember crucial terms, it helps to involve audio or speech. For instance, some companies now provide spoken summaries of important contract sections or even have customers verbally confirm key points. By listening to an explanation or reading key clauses out loud, the customer becomes an active participant rather than a passive reader. That active engagement means they’re far more likely to remember the details later. In short, giving people a chance to hear or say the important stuff (instead of burying it in text) taps into their auditory memory and reinforces understanding.
2. Dual Coding Theory: Combining Text and Visuals
“A picture is worth a thousand words” might be a cliché, but it holds true when it comes to memory. Dual coding theory tells us that people learn and remember information better when it’s presented in both verbal and visual forms. We have separate channels in our brain for words and for images – if you can engage both, you create two mental representations for the concept instead of one. In practice, that means combining text with visuals (or audio/video) can dramatically improve comprehension. Studies have found that adding relevant images or graphics to text can boost recall significantly. One often-cited result: after three days, people tend to remember only about 10% of information they heard or read, but if that information was paired with a visual, they remember around 65%. Visuals also capture attention faster – our brains process images much quicker than text – and they can simplify complex ideas into an easy-to-grasp format.
In business settings, dual coding can be a game-changer for communication. Instead of expecting a customer to digest a wall of text, consider providing a diagram, infographic, or short video that illustrates the key points. For example, if a contract outlines a process or timeline, a simple flowchart or icon-based timeline can convey it at a glance. Many companies have started including brief explainer videos alongside written documents – a 2-minute animation or walkthrough of a contract’s main terms can reinforce the written clauses. These multimedia approaches pay off. Businesses report that when they introduced visual aids into agreements (like summary graphics or videos), customers had far fewer questions and much higher understanding. In fact, some saw support calls drop and customer satisfaction rise because people “got it” the first time. The takeaway: don’t just tell – show. Pair your words with visuals to engage multiple senses, and your message will be clearer and more memorable.
3. Cognitive Load: Simplifying to Avoid Overload
Ever feel your eyes glaze over when confronted with a very dense, technical document? That’s likely due to cognitive load. Cognitive load theory explains that our working memory has limited capacity – it can only process so much information at once. When information is too complex or presented in an overwhelming way, people experience cognitive overload and comprehension plummets. Unfortunately, traditional business communications (think lengthy legal contracts or jargon-filled policy documents) often overload readers with far more than they can handle. The result? Customers either skim, misunderstand, or give up entirely.
The key is to reduce cognitive load by simplifying and structuring information. Use plain language, break down complex concepts, and focus on the essentials. Remember that the average person is not a lawyer or PhD – in fact, studies show the average adult reads at about a 7th–8th grade level, yet many contracts are written at a college level. It’s no surprise that if you throw heavy legalese at consumers, a good chunk won’t fully grasp it. (In the UK, roughly 1 in 5 adults have literacy levels equal to or below a 10-year-old, which underlines the importance of clear language.) By writing in plain English and explaining necessary technical terms in simple terms, you lighten the mental load on your audience.
The benefits of simplifying language are huge. When information is easier to digest, people make far fewer mistakes and need less assistance. For example, one government agency rewrote a confusing form letter in clear, everyday language – and calls to their office dropped by around 80% because people no longer needed help to understand it. That’s an extreme case, but it illustrates the point: a well-structured, clear message saves everyone time and frustration. To apply this principle, ask yourself: can this be said more simply? Can long sentences be split up? Can jargon be removed or explained? By designing communications that respect the limits of working memory, you ensure your audience isn’t overwhelmed. They’ll find the information more approachable and are more likely to actually read and comprehend it – which is the whole point of communicating in the first place.
4. Chunking: Breaking Information into Sections
When faced with a long document or email, most people don’t read top to bottom – they scan for key points. Given that about 79% of users scan text rather than read every word, how you structure information is critical. This is where chunking comes in. Chunking means breaking content into small, distinct pieces or sections (“chunks”) that are easier to process. Instead of presenting an agreement as one giant block of text, you divide it into logical sections with clear headings, short paragraphs, and bullet points. This technique works because it aligns with how our brains handle information – we naturally group related bits together to improve memory. A classic example is how phone numbers are chunked into segments (e.g., 123-456-7890) because it’s easier to remember than a 10-digit string.
In business communication and contracts, chunking makes a world of difference for readability. Imagine a standard contract: if it’s 10 pages of unbroken text in fine print, a reader will likely miss important details. But if that same contract is organized into labeled sections (like “Payment Terms,” “Cancellation Policy,” “Your Responsibilities”), the reader can quickly find and digest each topic. Bullet points are another great chunking tool – use them for lists of obligations or features, rather than hiding such information in long-winded paragraphs. The goal is to avoid the dreaded “wall of text” that scares readers away. By providing plenty of white space and clear section breaks, you make the document feel more navigable and less intimidating.
Chunking not only aids understanding in the moment, but also helps with retention. When information is well-organized, people can mentally index it and recall it later (“Oh, that fee was mentioned under the Fees section, as a bullet point”). For example, say you have a critical term like a late payment fee in a contract. If it’s buried in the middle of a long paragraph, there’s a good chance the customer will overlook it. But if you isolate it as a bullet point under a bold heading “Fees,” it suddenly becomes much more visible. In fact, many companies and regulators now insist on a summary or key facts box at the beginning of consumer contracts – this is essentially chunking out the most important info at the top. It ensures that even a quick skimmer will see the major points up front. By chunking your content into digestible sections, you respect the reader’s time and attention, guiding their eyes to what matters. The result: better-informed readers and fewer “I didn’t see that” surprises.
5. Salience Effect: Highlighting Key Terms
Not all information is equally important. The salience effect reminds us that people notice and remember things that stand out. In any communication, if you want certain details to grab the reader’s attention, you need to make them salient – that is, visually or contextually prominent. In psychology, something “salient” naturally draws our focus (think of a red stop sign on an otherwise gray road). In business writing and contracts, applying this means highlighting the critical terms and not letting them get lost in the noise. If a paragraph is filled with dozens of facts, the one crucial sentence among them might be overlooked unless you make it pop.
There are several ways to boost the salience of key points. You can use visual emphasis like bold or italic text for important phrases (for example, bolding a phrase like “late payment fee: £50”). You might use color or shading to call out a warning or obligation – some contracts put high-impact clauses in a shaded text box or a larger font. Icons or symbols can also draw attention (e.g., a ⚠️ caution symbol next to a warning clause). The idea is to break the uniformity of the text so that the reader’s eyes naturally land on the must-see items. This is especially important knowing how many readers skim; a skimmer will typically read headings, bolded lines, and maybe the first sentence of each section. So make those count. If there’s a must-know term, give it a heading or some typographic emphasis.
Another aspect of salience is repetition. If something is truly important, it shouldn’t just appear once in passing. Repeating key information at strategic points can ensure it isn’t missed. For instance, you might mention a cancellation policy briefly in the introduction, explain it fully in the body, and then reiterate it near the signature line (“By signing, you acknowledge the cancellation policy...”). This repetition leverages what educators call the spacing effect – we remember things better when we encounter them multiple times. In a contract, repeating critical terms in a summary and then again in a confirmation section makes that term extremely salient in the reader’s mind. They’re much less likely to later say “I had no idea about this fee” when it was bolded, boxed, and mentioned several times. The salience effect is all about not burying the lead: make the important stuff unmissable. Your customers will appreciate the transparency, and your business will benefit from fewer misunderstandings.
6. Processing Fluency: Clarity Builds Trust
The final principle ties everything together: processing fluency, which is the ease with which our brains process information. When something is easy to read and understand, we experience high fluency – and research shows this not only aids comprehension but also influences our attitudes. In general, people tend to trust and favor information that feels easy to process. If a document is written in clear, straightforward language, readers subconsciously get a sense of familiarity and confidence in it. On the other hand, if a message is convoluted, filled with long-winded sentences or obscure words, it creates “cognitive strain” – the reader has to work harder, which can breed skepticism or discomfort.
This has been demonstrated in some clever experiments. For example, when researchers presented the same instructions in two different fonts – one easy-to-read and one very hard-to-read – people who read the hard font consistently rated the task as more difficult and were less willing to trust the instructions. In another study, readers actually perceived authors who used plain, simple language as more intelligent and credible than those who used overly complex language. In other words, simplicity enhances credibility. For businesses, the lesson is clear: clarity and plain language build trust. If you make your customer-facing communications easy to read, you send a message of honesty and transparency. The customer is less likely to feel that you’re hiding something behind legal jargon.
Processing fluency also improves engagement. A customer who isn’t tripping over complicated phrasing will stay with your content longer and absorb more of it. They’ll feel more confident that they understand what they’re agreeing to, which leads to a more positive relationship. On a larger scale, companies that embrace plain language often see higher customer satisfaction and fewer disputes. Customers are happier because they know where they stand, and they’re not surprised by “gotcha” clauses. Regulators appreciate it too – for instance, consumer protection agencies encourage firms to use clear, plain disclosures precisely because it leads to fairer outcomes. The bottom line: when in doubt, simplify. A contract or policy written as if it were a friendly conversation (and then reviewed for legal accuracy, of course) will do a better job than one that sounds like an academic thesis. By making your communication fluent and easy to process, you not only help customers understand – you also earn their trust.
Building Better Agreements with i agree
Bringing these principles into the real world, modern companies are starting to design their communications – especially customer agreements – around how people actually think and behave. i agree is one example of a platform that applies all of the above insights to create clearer, more user-friendly contracts. Instead of a traditional static PDF, i agree uses an interactive, multimedia approach grounded in behavioral science to ensure customers truly understand what they’re signing. Here are a few ways these six principles come together in such a solution:
- Speaking and Hearing (Production Effect): The platform provides spoken explanations of key terms and even lets users give a verbal confirmation of important points. By hearing the contract summary out loud – and sometimes repeating “I understand X” in their own voice – users engage more actively and remember the content better.
- Text + Visuals (Dual Coding): i agree presents information through multiple channels. Users can read a plain-language summary, watch a short video overview of the agreement, and see icons or visual highlights for critical clauses. This combination of text, audio, and visual elements reinforces the message in different ways, catering to different learning styles and improving overall comprehension.
- Simplified Content (Cognitive Load): The contract language is written in clear, plain English with unnecessary legal jargon stripped away. Complex information is broken down into digestible bits, so as not to overwhelm the user. The interface might guide the user step by step instead of dumping all terms at once, thereby managing cognitive load and keeping the experience comfortable.
- Clear Sections (Chunking): Agreements are organized into logical sections with descriptive headings (e.g., “Fees,” “Cancellation Policy,” “Your Responsibilities”). Users see one section at a time or can easily navigate between sections. Bulleted lists and summaries are used wherever possible. This chunked structure means no intimidating walls of text – users can follow the agreement like a story with chapters, which makes it far easier to digest and reference.
- Emphasis on Key Terms (Salience): Important terms and conditions are highlighted so they stand out. i agree might bold certain phrases or present crucial points in a call-out box (for example, a shaded box that says “Important: You will be charged a £50 fee if you cancel early”). Additionally, the system often asks users to actively acknowledge key terms (ticking a checkbox or answering a quick question), ensuring those points don’t go unnoticed. By making the critical details salient at every step, the platform prevents misunderstandings like “I never saw that clause.”
- Easy and Trustworthy (Processing Fluency): The entire experience is designed to feel intuitive and user-friendly. The language is conversational and clear, the visuals are clean, and the process guides the user logically – all of which create a sense of ease. Customers aren’t left confused or suspicious; instead, they can confidently say “I understand.” This fluency fosters trust in the agreement. When a contract is this transparent and accessible, users are more comfortable signing because they genuinely comprehend the terms and feel respected by the business.
By using these principles in concert, i agree helps firms achieve what was once thought difficult: customers who truly understand their contracts and feel positive about the process. The payoff for businesses is huge – fewer disputes and complaints, faster onboarding, and stronger customer relationships built on trust. In essence, it transforms the agreement from a potential source of confusion into an opportunity for clarity. And as we’ve seen, clarity is not just a “nice-to-have” – it’s the key to better outcomes for all parties. When communication is designed with human behavior in mind, everybody wins.
References
Internal links:- i agree – How It Works: Explanation of how i agree delivers agreements using video summaries, plain-language text, and interactive confirmations to improve understanding.
- i agree – Reduce Complaints and Disputes: Overview of how clearer contracts and better consumer understanding lead to fewer complaints and disputes for businesses.
- i agree (Blog) – Clear Communication: The Key to Fewer Complaints and Disputes: Emphasizes that using clear, user-friendly language in customer communications results in fewer misunderstandings and grievances.
- i agree (Blog) – Plain Language, Fewer Problems: How Clear Contracts Reduce Complaints: Highlights the benefits of plain language in contracts, showing how simplicity can dramatically reduce customer issues.
- i agree – The Science Behind It: Describes the cognitive science principles (like the production effect and multimodal learning) that inform i agree’s approach to contract design and consumer consent.
- i agree – Consumer Understanding Reduces Disputes and Complaints: Explains how improving customers’ understanding of agreements leads to fewer disputes and complaints, and why that’s beneficial for businesses and regulators.
- i agree – Frequently Asked Questions: Provides additional details and common questions about the i agree platform, its features, and how it ensures informed consent.
- Business Insider – 91% of people don’t read online terms: Reports on a Deloitte study finding that the vast majority of consumers click “agree” to terms and conditions without reading them, underscoring the need for more understandable agreements.
- The Atlantic – We’re All Reading Wrong (Reading Aloud Benefits): Discusses the cognitive benefits of reading text aloud, citing research where students remembered ~90% of words read aloud versus ~70% read silently (and still retained more after a week), illustrating the memory power of the production effect.
- TruScribe – How Visuals Help You Remember Information: Blog post on multimedia learning noting that people tend to recall only ~10% of information after 3 days when they only hear it, but around 65% when that information is paired with relevant visuals, supporting the value of dual coding (combining words with images).
