Ecommerce Psychology: Learn the 10 strategies you can use to increase sales conversions for your online store.
The psychology of ecommerce is the key to success in sales, if you don’t know this already. When it comes to digital marketing and ecommerce, neuroscience is a key component.
Today, I invite you to learn more about e-commerce psychology and how to use it to your advantage.
Understanding what motivates customers is one of the greatest gifts that psychology has given marketers. What motivates customers to buy, buy now, and buy from you?
The three elements of the psychologist’s behavior modification model are:
Motivation can be divided into three types: anticipation, feeling, or social belonging. What does this mean? It means that consumers are motivated by the promise or avoidance of pain, pleasure or hope, or the promise or acceptance of others. These are the motivators that we use to market our products/services.
Although motivation is great, it doesn’t mean that a consumer will be able to buy your product. Capacity can be measured by financial ability, knowledge, or the time required to purchase or use your product.
Motivation is often a constant state, especially in e-commerce. The third element is a trigger, something that causes the consumer to take action and make a purchase. Advertising, which includes calls, ads on Facebook, and pop-ups on websites, is primarily designed to encourage consumers to purchase.
The three elements of motivation, skill, and triggers are all in harmony (Eureka! You have successfully attracted a new client.
The psychology of ecommerce in action: Some trends in customer behaviour
We can still learn a lot from statistical observations and findings that are specifically designed to reveal trends in consumer behavior without having to go into psychological theory. Theorizing is just as valuable as its application in the ecommerce industry.
What consumer psychology behaviors are necessary to create a successful online store?
A site that takes longer than three seconds to load will lose 57% of its customers. A further 80% will never return to a site that takes more than three seconds.
92% of respondents say visuals and images influence their buying decisions.
Before making a purchase decision, 85% of consumers check online reviews about local businesses. 79% of these consumers trust online reviews more than a friend’s recommendation.
Unexpected charges at checkout are responsible for 41% of cart abandonment. 29% are due to having to register before buying, 11% are unclear delivery information and 10% are due long checkout processes.
Trusted card logos on checkout pages make it safer for more than 80% of customers.
Now that we have a better understanding of consumer behavior, I am sharing these practical insights from the psychology behind ecommerce.
It is possible to increase the perceived value of something by making it appear scarce. This has been a benefit of the diamond market for many years.
There is a reason why you won’t see “we have more in stock” on any ecommerce product page. It doesn’t motivate potential buyers to act.
Amazon sellers know that if they have less than 20 products, the product page will display the remaining items. To take advantage of this trick, stock levels are artificially kept low.
No matter what segment you are in, even if your site is focused on financial planning, it is important to demonstrate that you can sell consulting and encourage clients invest.
A deadline is a powerful way to get potential buyers to contact you about buying. This tactic is used frequently by private sales websites and bargain sites. Groupon.com is known for its limited-time deals.
This one is clever. When you are browsing through a product page, wondering if it is the answer to your problem. You suddenly see the message “Order Today and You’ll Receive the Item on Saturday”.
Customers are more likely to buy the product if they receive it quickly.
E-commerce companies can use this strategy to increase their sales by displaying the original price alongside the discounted price and showing what they have saved.
This is because the consumer believes that losing these savings will cost more than the price of the product. The cost of not purchasing is greater than the cost to buy.
Anchoring is also possible by displaying the economy prominently relative to the original price. People tend to stick to the first piece of information that they find in order to guide their decision-making. This anchor is the foundation of all subsequent decisions.
Another sales strategy that uses loss aversion is This involves displaying multiple similar options at different prices. This is common in software industries, where there are many options for the same product at different price points. The best value option will usually be the one that stands out from the rest or is the most popular.
This psychological effect is known as attribution of value. You end up buying the product that the seller wants you to purchase. The customer is happy about it so everyone wins.
Free shipping is something that everyone wants. E-commerce websites offer free shipping. This is mainly due to high sales competition. Many shipping deals require a minimum purchase or order.
This is a great customer service strategy. However, it is not always the best. This strategy can be used in order to increase average order values and cover shipping costs for an e-commerce business.
Please indicate the shipping cost on your e-commerce website. Why? Additional charges at the time they pay are the number one reason customers abandon their cart. If shipping is not charged at a flat rate, you can let the customer enter their zip code to get a more exact price.
Cart abandonment is mainly due to anxiety when shopping online. This is especially true if you have never purchased from this website before. Is this company reputable? Customer service will help me to resolve any problems. These barriers are often broken down by e-commerce sites that are good.
E-commerce is a popular market place for lifetime warranties and no-questions-asked return policies. They are a good way to increase the site’s credibility and customer service. These warranties can also increase sales and customer satisfaction.
Many product websites offer a seven-day guarantee on all purchases. If the customer isn’t satisfied, they can ask for money back.
A product with a lifetime warranty, such as courses, or a return policy that is free of charge, will make the customer feel more confident than if it came without such a warranty. The company that you purchased it from will support it, so it is less likely that you will be unhappy with it.
As you are going through checkout, you will see a box asking for a discount or promotional code. What should you do? Let me tell you. I open another browser to search for the code for the discount coupon.
Discount services are widely used in physical shops, such as a photography studio for pregnant ladies, which can often offer a discount on cash payments, on special dates, and other options. This makes it easy for the customer to make a decision and gives them an economic advantage, which motivates them to sign up for the service.
This behavior is well-known and many e-commerce sites have removed this option from their shopping carts. PayPal conducted a survey and found that 27% of online shoppers said they abandoned their shopping carts because they searched for coupons.
The customer needs to click the button to call for action. This ecommerce hack reduces the time and effort required to order. This is crucial because:
The customer does not have to take out his credit card to look at the almost erased CCV numbers. He can just do a photo.
You can receive a follow up from the ecommerce site the next time you abandon your cart. Because of their unquestionable effectiveness, abandoned cart emails are gaining popularity. SalesCycle has provided some statistics:
On average, abandoned cart purchases are 19% more expensive than normal.
A lot of people need some encouragement to break the “buy or don’t buy” barrier. Even something as simple as an email generated automatically can help you get out of the “buy or not buy” trap.
We care about what others think, regardless of whether we like to admit it. When making decisions, we value outside opinion.
These are 10 ways to increase conversion rates on your e-commerce site. However, you can also reach out to a digital agency or marketing professional to help you design the best strategy for your specific project.