Use the power of psychology to influence customers’ buying behavior.
With a little knowledge of psychology, you can incorporate targeted strategies that encourage customers to make purchases from your e-commerce site. Here are some tricks e-commerce entrepreneurs can incorporate to boost their bottom line:
- Create Urgency
On e-commerce sites, you’ll frequently see things like “only 3 left in stock.” You’ll never see sites announcing that they have more than enough products to go around. That’s because the fact that only a few items remain creates a sense of urgency that motivates buyers to make the purchase now, rather than later. Most Amazon merchants know that the product page will announce how many products remain if the inventory has fewer than 20 items. Many merchants purposefully keep inventories low for this exact reason.
- Offer Fast Shipping
Amazon has revolutionized shipping speeds with its deliveries within days, or even hours, of the time of purchase, and other sites are following their lead. Announcing to potential buyers that they will “receive the shipment by Saturday” or “get the product tomorrow” gets them thinking about how they’ll use the item if only it were theirs. If you don’t have the resources to offer faster shipping time, you may be in the market for a small business loan that could improve efficiency at your company.
- Warn of a Limited Time
Products that are available for only a limited time tugs at people’s fear of missing out (FOMO). Seeing that a product may not be around for much longer gets people thinking that they might miss out on a great opportunity if they don’t act now. That loss aversion is often enough to motivate on-the-fence buyers into taking action.
- Display Discounts
Telling customers how much they’ll save is a sure-fire way to get them thinking. After all, promotions and discounts usually don’t stick around forever, and who doesn’t like saving some money? The discounted rate makes the higher original price seem a lot more reasonable in comparison.
- Offer Better Value
We’ve all been in the situation when we go to buy a month-by-month membership to some business, only to discover that buying the yearly membership all at once will save us money in the long run. The yearly option costs the customer more now, but appears to have better value when compared to the monthly option. This is the psychological effect of value attribution taking place, and it’s often enough to influence customers’ buying decisions.