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Psychology used by:
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Users are less likely to be overwhelmed, if they're progressively (gently) exposed to complications.
It's the psychology equivalent of 'don't run before you can walk'.
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Information horizon
The term information horizon refers to what a person can see at any one time.
In a regular game of chess, the information horizon is essentially everything, because you can see all of your opponents pieces at all times.
In design, this concept is used to quantify what features, functionality, complexity and optionality the user has at any one time.
If the information horizon is too broad, then you're likely overwhelming them with choice.
Progressive onboarding is a technique to lower / reduce that.
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Feature usage