Marketing is strategy, marketing is psychology. There are a few, simple insights into human behavior that will drive your conversion rates through the roof. Details often make the difference.
Follow the herd – social proof
As soon as other buyers rate products positively, uncertainty with regard to buying from an unknown vendor decreases significantly. The trust factor is immensely important in ecommerce. Customer reviews should therefore be communicated in great numbers and with a necessary degree of transparency. Success stories on blogs, a customer evaluation system as part of your online shop or feedback on social media channels can all be valuable here.
Give me something and I will buy something – reciprocity
The American psychologist Robert B. Cialdini has researched this phenomenon. Reciprocity is common human behavior. When we receive a gift, we usually want to show our appreciation – not only with words. We want to give back to the person that has given us a gift. This psychological phenomenon is often used in marketing. Gifts tied to purchases or free knowledge (white papers etc.) and services compel customers to buy something.
Three instead of two alternatives facilitate decisions
Customers have problems making a decision when they are confronted with two options. Experience has shown that this indecision is solved by offering a third option. This phenomenon was discovered by the marketing professor Joel Huber. A third, less useful option guides consumers to a decision.
“Only three items left” - scarcity
Things that are always on stock can be purchased at a later date. However, business does not survive on possible future sales, but on actual sales. If there is only a limited number of products available, it is useful to communicate this as people will be compelled to make a decision rather sooner than later. This has a lot to do with the fact that rarities appear more valuable.
People are more willing to pay for something if they had the chance to test it beforehand. Why? People who have enjoyed services do not want to miss them later when they become fee-based. Subscriptions, additional service packages or upgrades for hotels are marketed this way.