Exploring the World of Ecommerce, A/B Testing and Personalisation - Insights from an Experienced Leader

Category: Behavioural Science

How to Use Social Proof to Increase Conversions on Your Ecommerce Site

What’s the secret to increasing conversions on your ecommerce site? How do you convince your visitors to buy from you instead of your competitors? The answer lies in social proof.

Social proof is the concept that people are more likely to take an action if they see others doing it. It’s a powerful psychological phenomenon that can be used to increase conversions on your ecommerce site. In this article, I’ll show you how to use social proof to your advantage.

  1. Customer Reviews

One of the most effective forms of social proof is customer reviews. According to a study by BrightLocal, 91% of consumers read online reviews before making a purchase decision. This means that having customer reviews on your site can be a powerful tool to convince visitors to buy from you.

But not all reviews are created equal. In order to be effective, reviews should be genuine, detailed, and include both positive and negative feedback. They should also be easy to find on your site, preferably on the product page itself.

  1. Testimonials

Testimonials are similar to customer reviews, but they are usually provided by a business’s most satisfied customers. They are often longer and more detailed than reviews, and can be used to highlight specific features or benefits of a product or service.

Testimonials can be displayed on your site in a number of ways, such as on a dedicated testimonials page, in a carousel on the homepage, or as a popup when a visitor completes a purchase.

  1. Social Media Followers

Another form of social proof is social media followers. If your business has a strong social media presence, you can use this to your advantage by displaying your follower count on your site. This can be especially effective if you have a large following on a platform like Instagram or Twitter.

You can display your follower count in a number of ways, such as in the header or footer of your site, or on a dedicated social proof page.

  1. Influencer Endorsements

Influencer endorsements are a form of social proof that has gained popularity in recent years. If your product or service has been endorsed by a well-known influencer, this can be a powerful tool to convince visitors to buy from you.

However, it’s important to note that influencer endorsements should be genuine and relevant to your brand. You should also be transparent about any paid partnerships or sponsorships.

  1. Trust Badges

Trust badges are icons or logos that indicate that your site is secure, reputable, or verified in some way. Examples include SSL certificates, payment provider logos, and trust seals from organizations like the Better Business Bureau.

Trust badges can be displayed in the footer of your site, on the checkout page, or next to customer reviews.

In conclusion, social proof is a powerful tool that can be used to increase conversions on your ecommerce site. By leveraging customer reviews, testimonials, social media followers, influencer endorsements, and trust badges, you can create a sense of trust and credibility with your visitors. Remember, the key is to be genuine and transparent in your use of social proof.

If you’re looking to take your social proof strategy to the next level, consider using a SaaS personalisation platform. These platforms can help you target your social proof to specific groups of visitors, such as new visitors who may be unfamiliar with your brand. By delivering targeted social proof to the right audience, you can increase the likelihood of conversions and build credibility with your visitors. So if you’re serious about using social proof to drive results, consider investing in a SaaS personalisation platform.

As marketing expert Brian Dean says, “Social proof is the marketing tactic for easing the minds of worried customers.” So go ahead and start incorporating social proof into your ecommerce strategy today. Your conversions will thank you for it.

Share this now:

Behavioural Economics Explained

We will delve into the intriguing field of behavioural economics today. I understand your reaction: “Behavioural economics? That sounds like a sophisticated, difficult subject that only chartered accounts could comprehend.

Don’t worry if you’ve never heard of it before – it’s a relatively new field that combines psychology and economics to better understand how people make decisions. In fact, behavioural economics is an intriguing and approachable way to comprehend how people decide, and it can aid you in making wiser decisions in both your personal and professional lives.

Behavioural economics is a discipline that combines insights from psychology and economics to explain why people make the decisions they do. It acknowledges that humans aren’t always rational decision-makers, and that our emotions, biases, and cognitive limitations can all influence the choices we make.

At its core, behavioral economics challenges the traditional assumption that people always act rationally when making economic decisions. Let’s face it, we’ve all made irrational decisions before. Whether it’s buying a new outfit we don’t really need, or splurging on an expensive meal when we’re trying to save money – we’re all guilty of it.

So, what causes us to make these irrational decisions? Well, behavioral economics suggests that our decisions are influenced by a number of factors, such as our emotions, our biases, and even our social surroundings.

For example, have you ever noticed that you’re more likely to buy something when it’s on sale, even if you didn’t really want or need it in the first place? That’s because we’re influenced by the “anchoring effect,” which is the tendency to rely too heavily on the first piece of information we receive when making decisions. So, when we see that something is discounted from its original price, we automatically think it’s a better deal than it is.

This has implications for pricing strategies – companies might set high prices initially, even if they don’t expect anyone to pay that much, in order to anchor customers to a higher price point. Or, they might use “decoy” products or prices to anchor customers to a particular price point.

Another interesting concept in behavioural economics is the notion of “loss aversion”. Loss aversion is essentially the propensity to prefer the joy of a gain to the pain of a loss. For instance, if you received £100 and later lost it, you would likely feel much worse than if you had never received it at all.

The ramifications of this idea for digital marketing and online advertising are extensive. For instance, you may come across advertisements that emphasise the “fear of missing out”—the notion that you will lose out on something significant if you don’t purchase a product or service. Or, you may come across advertisements emphasising the possible savings you could miss if you don’t act now.

Of course, these are just a few examples of the many interesting concepts in behavioural economics. But hopefully they give you a taste of how this discipline can shed light on why people make the decisions they do – and how companies can use that knowledge to nudge customers towards certain behaviours. You can use and a/b test tactics using behavioural science on your website and judge the efficacy for yourself.

So, the next time you’re making a decision, take a moment to consider how your emotions, biases, and cognitive limitations might be influencing you. And the next time you see an ad or a technique being used by a website, think about how the principles of behavioural economics might be at work behind the scenes. List any interesting ones in the comments below. Happy decision-making!

Sponsored Links

Share this now:

11 Proven Behavioural Economics Strategies to Improve Your Website’s Conversion Rate

Some of you will be aware the world of behavioural economics, where understanding how people make decisions can lead to better conversion rates on your website. Whether you’re an e-commerce pro or just starting out, these ten proven strategies can help improve your website’s conversion rate and ultimately drive more sales. So, grab a cup of tea, sit back, and let’s dive into the fascinating world of behavioural economics.

  1. Scarcity
    • We all have a fear of missing out (#FOMO), and businesses can use this to your advantage by creating a sense of scarcity. By limiting the availability of a product or service, you can create urgency and drive people to make a purchase. For example, “Only 5 left in stock!” or “Sale ends in 24 hours!”.
  2. Anchoring
    • Anchoring is a cognitive bias that occurs when people rely too heavily on the first piece of information they receive. This means that your ecommerce website can set the tone for your customers by anchoring your prices high, and then offering a discount or promotion that makes the lower price seem like a great deal.
  3. Social proof
    • People tend to follow the crowd, and businesses can use this to your advantage by displaying social proof on your website. This can include customer reviews, ratings, and even celebrity endorsements. When people see that others have had a positive experience with your product or service, they are more likely to make a purchase.
  4. Loss aversion
    • People are more motivated by the fear of losing something than the potential to gain something. Businesses can tap into this by highlighting the potential loss if someone doesn’t take advantage of a promotion or buy a product. For example, “Don’t miss out on this limited time offer!”.
  5. Framing
    • The method you convey information can have a significant impact on how it is understood. You can improve your chances of making a sale by presenting your message in a favourable way. For example, say “95% of our customers love our product” rather than “5% of our customers don’t love our product,”.
  6. Default bias
    • Businesses can take advantage of the fact that people frequently choose the default option by designating a default choice that is best for their organization. For instance, a subscription service may have auto-renew set as the usual setting, which can improve retention rates.
  7. Avoiding choice overload
    • While having a variety of options may seem like a good thing, too many choices can actually lead to decision paralysis. Businesses can combat this by limiting the number of options available or providing clear guidance on the best option for the customer.
  8. Urgency
    • Creating a sense of urgency can motivate people to take action. Businesses can use urgency by setting a limited time offer or displaying a countdown timer. For example, “Sale ends in 2 hours!”.
  9. Priming
    • Priming is the concept that exposure to one stimulus influences a person’s response to a subsequent stimulus. By priming customers with positive associations or emotions, businesses can increase the likelihood of a sale. For example, a luxury brand may use imagery of high-end lifestyles to prime customers to associate their products with luxury.
  10. Gamification
    • Employing game mechanics to engage consumers and motivate them to take specific actions is known as gamification. A points system, badges or incentives for specific actions, or even a game that users can play on the website are all ways that businesses can use gamification.
  11. Personalise the experience
    • Personalise the Experience: People are more likely to take action when they feel understood and valued. Use behavioural science principles to personalise the experience, such as showing relevant content based on previous behaviour or using language that resonates with the visitor’s identity.

Consider using A/B testing to apply these ten behavioural economics strategies to see what works best for in your vertical. You can create an online customer experience that is both attractive and effective by studying how people make choices and taking advantage of their cognitive biases. Try out various variations of these tactics to determine which ones your visitors respond to the best, then use a data-driven approach to improve the layout of your website. Always keep learning, and iterating. Keep in mind that it’s not just about making sales; it’s also about giving your clients a satisfying experience that will motivate them to come back.

Share this now:

© 2024 Knutton