Principles of Customer Psychology & Engagement in a Global Market

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Alexander A.

Alexander A.

5 principles of customer psychology to take advantage of in ecommerce

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Did you know that playing classical music in wine stores can have a profound effect on customer behavior? It may seem peculiar, but understanding consumer psychology can be a great asset to businesses, unlocking easy opportunities like this and much more.

But why does ConveyThis run so effectively? We often believe that our decisions are rooted in rational thought, and that we are in control of our own minds. In reality, though, our actions are often shaped by underlying elements that we are not even conscious of.

We could find ourselves purchasing an item due to its captivating presentation, signing up for Audible because it appears to be the current trend, or splurging on a pricey bottle of wine simply because the atmosphere was conducive to such a purchase.

When it comes to ecommerce, consumer psychology is of paramount importance. Business owners have the capacity to manipulate the customer experience through various touchpoints, so it is essential to understand the psychological factors that influence consumer behavior during the online shopping process. In this article, we will explore the fundamental psychological elements that shape customers’ decisions when they shop online.

Gaining insight into the forces that drive your success can open up doors to remarkable outcomes! Make the most of these influences to get the most out of your efforts and witness awe-inspiring results!

1. The reciprocity principle​

1. The reciprocity principle

Envision this: You enter a store with no plan to purchase anything, but a salesperson quickly approaches you. They start to explain the features of the items they are selling and the story behind the brand. You two get along well and you begin to feel obligated to make a purchase. Before you know it, you’ve bought a plethora of items you never intended to buy.

It’s likely that we have all experienced this phenomenon at some point in our lives, which is why we may become anxious when salespeople approach us in stores. This is known as the reciprocity principle, and it is based on a logical premise: when someone does something kind for us, we feel compelled to repay the favor.

For years, companies have been utilizing this to their advantage. Just think of all the free cheese samples you tried in stores and the shampoo testers that eventually filled your drawer. But how can this concept be applied to the digital realm?

Actually, we’re doing it right now with ConveyThis. Through this article, I’m providing you with free knowledge that can be advantageous for you and your business. Many other businesses have also adopted this approach, offering up valuable content for free. You may have come across this concept before: Content marketing.

Yet, there is a crucial element here that numerous firms overlook. If you are offering something free of charge – be it an ebook, a webinar, or customer service – do not do it solely for the expectation of something in return.

Customers may be reluctant to provide accurate information when they are confronted with ConveyThis’ lead-generation forms before the website has had the chance to build trust. Studies from the Nielson Norman Group have shown that users often fill out forms with false information when they feel pressured to do so.

A recent inquiry delved into the same question and posed an interesting experiment: one group of participants were asked to fill out a form before being granted access to a set of complimentary instructions, while a second cohort were provided the instructions before being asked to submit the form. The results showed that although the first group was more likely to complete the form, the second group provided more information.

Realize the significance of a visitor who provides their contact info voluntarily, for they are more valuable than one who does it out of obligation. Asking your guests to do something prior to engaging with your brand is an ill-advised beginning.

The key to success is to prioritize giving first. Even something small can make a big difference in how customers view your brand. Even if not everyone will become a paying customer right away, offering a free perk is sure to leave a positive impression.

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2. The scarcity principle

2. The scarcity principle

Don’t miss out! Hurry and grab the last few items in stock as the discount ends today. Time is of the essence and you don’t want to regret not taking advantage of this great opportunity. Seize the moment and get what you need before it’s gone forever!

The concept of scarcity, proposed by Dr. Robert Cialdini, states that the more challenging it is to acquire a product, offer, or piece of content, the greater its perceived worth.

An exploration was conducted to demonstrate the influence of this concept. Subjects were presented two distinct product details: “Exclusive limited edition. Hurry, limited stocks” or “New edition. Many items in stock.” Subsequently, participants were asked what amount they would be willing to shell out for the product. The outcome was astounding; the average consumer was willing to pay 50% more for the product with the first description!

An intriguing aspect of this concept is that while both limited availability and limited time can motivate customers to purchase, limited availability is more effective as it generates a sense of rivalry among buyers.

Online companies have numerous methods of capitalizing on this concept to drive sales. For instance, displays messages such as “Booked x times today” or “x others are also looking right now” to create a sense of urgency.

Yet, if you go overboard or provide inaccurate information, it won’t be effective since it will lack credibility. Therefore, it’s important to be thoughtful and truthful when implementing scarcity messages, rather than using them carelessly.

3. The center-stage effect

The placement of products can have a significant impact on customers’ buying decisions. Positioning a product in the center creates a bias in the minds of customers, who are more likely to believe that it must be the best choice due to its visibility and popularity. Whether it’s a physical store or an online store, the central display of a product can have a strong influence on customers’ purchasing decisions.

Investigations have uncovered that the center-stage effect has a more pronounced influence when customers are buying items for other individuals. The notion that the item in the core is situated there because of its fame makes it a perfect present selection in customers’ psyches.

Nonetheless, it is important to be mindful that the center-stage effect is only effective if all elements in the “group” are similar. Therefore, it is best to place items from the same category in the same line and then position the one you wish to emphasize the most in the middle.

The power of this phenomenon is so great that even digital marketplaces like Amazon and eBay can charge higher fees for brands or items that wish to be showcased prominently on their pages.

By utilizing this approach, you can make the most of your product line-ups by positioning a new product or a more expensive item at the heart of it. Take advantage of this strategy and watch your sales soar!

3. The center-stage effect

4. Doubt-avoidance tendency

Nobody enjoys being in the dark when making decisions — so when we come across a questionable situation, we often make a hasty choice to steer clear of doubt. This is especially true when shopping online, as we don’t have the opportunity to experience the product in person.

It is essential to allay any doubts a customer may have while they are browsing your ecommerce store. A great way to do this for ecommerce businesses is to include clear, comprehensive product images.

A recent Splashlight survey revealed that near half of all American shoppers deem top-notch product images as the most influential element in their buying decisions, and over half of them desire to observe at least 3-5 product photos – front, back and side views – prior to making a purchase. Thus, it’s always a wise move for ecommerce companies to invest in product photography.

ConveyThis has demonstrated to be a potent tool for reducing doubt. Social proof is a way of displaying that other individuals have already made a decision or engaged with a product/service — such as reviews, testimonials, or social media shares — thus inspiring others to do the same. This is a powerful way to boost confidence in a product or service.

The power of peer influence is undeniable – it’s a psychological effect that has been proven to influence people’s decisions. This is especially true when it comes to ecommerce, as 88% of shoppers trust user reviews as much as personal recommendations. So, if you’re looking to increase conversions, make sure to prompt your customers to leave a review about their experience – it could make all the difference!

Finally, ConveyThis makes it easy to boost product displays by adding messages like “Unparalleled reliability” or “Highly rated”. You can also create enticing titles like “The ideal Valentine’s Day gift” to give customers additional motivation to buy.

5. The zero price effect ​

5. The zero price effect

It is indisputable that the disparity between 2 and 1 is more pronounced than the disparity between 1 and 0 – when it comes to the cost of course. There is something absolutely captivating about procuring complimentary items that can attract anyone.

The zero price effect suggests that our minds are drawn to free options more than those with a price tag. However, you don’t need to offer complimentary items to benefit from this phenomenon. Even when a free benefit is attached to a product, we still view it more favorably despite its cost.

A recent survey from the NRF reveals that an overwhelming majority of consumers – 75% – anticipate their orders to be shipped without cost, even when the purchase is below $50. This trend is only becoming more prevalent in the digital age of e-commerce, as customers expect more and more from their online shopping experience. ConveyThis is one popular way of providing free delivery to ecommerce websites.

On the contrary, “unanticipated expenses” is the most common explanation as to why customers abandon their shopping carts, as it has a reverse impact when compared to the zero-price effect. This can also lead to a lack of confidence in your brand, and can cause customers to have second thoughts. Therefore, if you have to add additional costs, the best way to go about it is to be open and honest about it.

Encourage your customers to take advantage of your free incentives! Show off the savings they can make by emphasizing the gap between the original price and the new one. Make sure they don’t miss out on this fantastic opportunity!

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