In the digital world, where companies increasingly compete for the attention and trust of their customers, so-called Dark Patterns are becoming more common. These manipulative design tricks aim to push users into taking actions they normally wouldn't—such as making unintended purchases, subscribing to unwanted newsletters, or sharing personal data. They are also used to create seemingly positive metrics, such as higher conversion rates or lower churn rates. Although these tactics may boost revenue in the short term, they carry significant risks for long-term customer loyalty and brand image.
What are Dark Patterns?
Dark Patterns are user interfaces deliberately designed to deceive or manipulate users. These techniques range from subtle design choices to blatant deceptions.
Examples of Dark Patterns
Time-consuming Cancellation Processes ("Hard to Cancel")
A classic example of a Dark Pattern is a difficult cancellation process ("Hard to Cancel"). Here, signing up or subscribing is made very easy and quick for users. However, when they want to cancel, the process becomes complicated, often discouraging users from successfully completing the cancellation.
Hidden Costs
Users are enticed by a low advertised price. After investing considerable time and effort, they discover unexpected fees and additional costs only at checkout, forcing them to pay more than originally planned.
Guilt Manipulation ("Confirm-Shaming")
In this case, users are emotionally manipulated to feel bad or guilty if they choose an option other than the one preferred by the company. This often leads them to take actions they would have otherwise avoided.
A collection of Dark Patterns can be found on the websites Dark Pattern Detection Project and Deceptive Pattern.
How do Dark Patterns affect customer loyalty?
Loss of Trust: Dark Patterns undermine customers' trust in a company. When users realize they have been manipulated or deceived, they often react with distrust and disappointment. Trust is the foundation of customer loyalty, and once broken, it is difficult to rebuild, often leading to customer churn.
Negative Word of Mouth: Disappointed customers frequently share their experiences on social media or through reviews. This negative word of mouth can significantly damage a company's reputation. Potential customers may decide against doing business with the company based on these reviews.
Reduced Customer Retention: Customers who feel pressured into a purchase through manipulative practices are less likely to buy from the same company again. Instead of building a loyal customer base, the company risks losing customers to the competition.
The Legal Situation Regarding Dark Patterns
Dark Patterns are increasingly coming under scrutiny by regulatory authorities and are often deemed illegal. Companies that employ such practices risk facing legal action and substantial fines, especially in regions like the EU and the US, where strict data protection and consumer protection laws apply. The Digital Services Act (DSA) prohibits the use of Dark Patterns by online platform operators in the EU, aiming to protect users from deceptive and manipulative designs and processes that impact their ability to make free choices.
In practice, however, the use of Dark Patterns remains a gray area. It is often decided on a case-by-case basis whether certain measures intended to prompt an action are appropriate and whether they exert excessive influence on users.
The Business Impact of Dark Patterns
Financial Consequences
The use of Dark Patterns can have significant financial consequences. For instance, Epic Games paid $245 million to settle allegations that they used deceptive patterns in the cancellation and refund processes for in-game purchases in the video game Fortnite.
Similarly, TikTok was fined $345 million for using manipulative designs that prevented neutral choices, prompting children to make settings that infringed on their privacy.
Impact on Loyalty and Brand Reputation
Beyond potential financial consequences, Dark Patterns can also harm customer relationships. A study by the e-commerce agency Xigen found that 60 percent of respondents were unlikely to return to a website after a poor user experience. Almost half (47 percent) said they would never interact with a brand again after experiencing difficulties with unsubscribing.
These examples demonstrate that using Dark Patterns can severely damage the development of a loyal customer relationship. Customers who feel deceived or manipulated develop a negative perception of the brand and are less likely to engage with future offers or recommend the company to others. This damages both customer loyalty and the company's reputation, ultimately affecting sustainable growth.
Conclusion
At first glance, Dark Patterns may seem like an effective method for boosting conversion rates and revenue, but their use comes with significant risks. They undermine customer trust, damage brand image, and lead to long-term revenue losses. For companies focused on sustainable success and strong customer relationships, it is advisable to rely on transparent and fair practices. Customer loyalty is built on trust and respect—both of which are jeopardized by Dark Patterns.
While it is important to intuitively guide users with call-to-actions in digital products and prompt them to take the next step—especially in the e-commerce context, where the range of products is constantly growing and decisions can be greatly facilitated—it is essential to avoid intentionally deceiving users through Dark Patterns. Those who do so risk sacrificing sustainable business growth due to declining customer loyalty and brand reputation for short-term profitability.
Would you like to elevate your customer experience to a new level? We are happy to advise you on optimizing your target group's customer journey and on tailored loyalty initiatives.
Phillip Stolz
