Psychology is a meaningful gift that has given marketers an understanding of what motivates the customers to buy from you. It plays a vital role in shaping our decisions and behaviour, and Ecommerce sites use this to their advantage to get us to buy their products. Whether it is through the choice of colour, information design or even the way customers ask you questions, ecommerce sites have mastered the art of applying psychology.
As consumers have high expectations from brands, it is difficult for a brand to retain their trust in the long run without engaging them emotionally. Understanding the psychology behind consumers' decision-making can help brands create an emotional connection with their consumers, which eventually helps them stay loyal to them.
There are some essential ways to use psychology effectively
1) Product scarcity or limited sales
When it comes to eCommerce, product scarcity is a powerful motivator. Consumers are more likely to purchase a product if they believe it is in limited supply. That's because the Fear Of Missing Out (FOMO) kicks in, and they don't want to regret not buying the product later.
This psychological principle is particularly effective for digital products. For example, Amazon uses several differential highly effective words in eCommerce business to catch customer attention, prompting them to take immediate action and purchase the products.
Some of them are:
Similarly, Flipkart uses these types of deals to play with customer psychology and makes them take immediate action.
An Amazon deal of selling products using psychology
2) Website speed
Have you ever noticed how some eCommerce stores have a constant flow of customers while others seem to be always empty? It's not just about the quality of the product, and it's also about how good the speed of websites is.
There's a reason big companies like Amazon & Walmart are always at the top of the list on search engines. They know that a fast website equals more sales and make sure they meet the speed criteria to get more business everyday.
57% of online shoppers will abandon a purchase if the web page takes more than three seconds to load.
An eCommerce website with excellent speed also means a customer can do product comparison, selection, transaction and shopping in a few seconds instead of hours, contributing to a positive shopping experience. But if a website is taking too much time to load, a customer may get angry, feel frustrated, and in short, they may undergo a lot of negative emotions with the eCommerce brand.
That's why it's so important to optimize your website for speed to attract excellent customer traffic.
3) Social Proof
The Internet is designed in such a way that every customer-brand interaction can be recorded on it in the form of images, videos and articles beautifully. It's no secret that online shoppers are influenced by the views of their friends, family and existing shoppers on their network, making social proof - one of the most potent drivers of eCommerce sales.
It may become challenging for a brand to sell their products on the internet if they have no social proof in the form of customer reviews, product recommendations and more.
Customers seek trust everywhere- in business, relationships and daily life. Social proof has shocked the core foundations of eCommerce business in such a manner that if a product gets good reviews from existing customers, it gets sold off in seconds, but if existing customers are not happy with the product and have expressed their disappointments in the form of negative reviews, the concerned product would remain unsold for months.
84% of consumers trust online reviews as much as personal recommendations. That's why it is more important than ever for businesses to use social media platforms like Instagram, Twitter, LinkedIn to build trust with their customers.
eCommerce and discounts are inseparable, just like a north pole and south pole magnet! Ask any eCommerce retailer, and they would accept that a significant chunk of revenue is from the sale of heavily discounted products.
Different ways in which eCommerce giants are offering discounts to attract mass customers:
Every eCommerce discount is designed for catering new customer segments like a new customer, existing customer, cart abandoned customers, discount customers, impulse customers, need-based customers and wandering customers.
Fynd Platform lets you create coupons for customers that entitle the customer to a discount on one or more products. Brands can create eight different types of coupon codes on the Fynd Platform. Click here to know more.
5) Regulate cart abandonment rate
Cart abandonment is a huge problem for ecommerce businesses. It is estimated that around 70% of online shoppers leave items in their cart without completing the purchase. It can be a major issue for businesses, as abandoned carts can often lose sales and revenue.
But what can be done to reduce the rate of cart abandonment?
One solution is to use psychology to regulate consumer behaviour. By understanding why people abandon their carts, businesses can put effective measures that will encourage speedy shopping and curb cart abandonment.
Check out these proven tactics to reduce shopping cart abandonment based on customer psychology:
Click here to learn in great detail about proven shopping cart abandonment tactics.
6) Run reward program
Having a loyal customer is a dream come true for many eCommerce businesses.
eCommerce loyalty programs are designed to offer customers incentives for their continued patronage. The premise is simple – the more you spend, the more rewards you earn. These rewards can come in the form of discounts, free shipping, bonus points, or exclusive access to special sales and events.
Customers are attracted to ecommerce loyalty programs because they offer tangible benefits that can save them money. They also make it easy for customers to track their spending and rewards.
Examples of some excellent customer reward programs:
Ikea family – Exclusive offer on interior design service
Love Bonito rewards - It's entirely free to join, and every S$1 spent earns you a point toward your next great benefit.
Sephora’s Beauty Insider - The company’s benefits include birthday gifts, exclusive events, giveaways, and product launches
Tarte’s point-based rewards – Customer can join, start earning points and finally redeem them
7) Build trust & authority
By regularly delivering high-quality products and services, eCommerce businesses can earn greater trust and reputation.
Other brands build trust by adding stories to their websites, social media posts that capture a customer’s attention and remind them of the quality product or service provided by them.
When consumers hear compelling stories, they empathize with the characters and generate favourable thoughts or attitudes toward a brand. For example, eCommerce brands can share new product launches, customer success stories, create a narrative around a brand, or participate in community projects.
Some exciting ways to build trust and authority are:
Congratulations on reading this far! We are glad that you consider using psychology to shape your eCommerce success. We hope that you will be able to use the information we have provided you and that you will be able to gain some insight into how you can use psychology to be successful in your eCommerce endeavours.
Fynd Platform has helped budding homepreneurs, entrepreneurs & Solopreneurs build a thriving eCommerce website in 30 minutes. We are a perfect choice for startups and small businesses just getting started. If you would like to learn more about Fynd Platform and how we can help you build a successful ecommerce website, Book a demo or contact us today. We will be happy to answer all of your questions!
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