Marketing and customer psychology go hand in hand. Any time you interact with a brand, and it makes you want to purchase from them, know that the brand has successfully appealed to your intrinsic motivations.
This is even more true in the world of Ecommerce. Think about it. You can’t physically see the product. You have to maneuver through a website to find what you need. Yet, you purchase from such platforms. And you are not alone in doing so, either!
According to Nasdaq, by 2040, 95 percent of all shopping will be conducted via Ecommerce. Even currently, Optin Monster reports that 93.5 percent of internet users have purchased items online, even if it is at least once.
If you are an Ecommerce owner, these statistics paint a glorious future for the sector. However, don’t think that you will have it easy. The Ecommerce industry is growing by 23 percent every year, as per BigCommerce. And this means enhanced competition.
To ensure your success, you must ensure that you facilitate your customers in their consumer buying journey, which in turn guarantees a current or future transaction. Factors that one needs to consider relating to customer behavior fall into the category of psychology.
How to use customer psychology in Ecommerce
Here are crucial areas where Ecommerce firms should focus on investing their time and money in order to increase the overall conversion rate.
Whether it be high search engine ranking or customer satisfaction, your website’s speed is an important factor for it all.
Research by Search Engine Journal reveals that 70 percent of customers’ purchasing decision are impacted by site speed. Additionally, every additional second delay in page loading causes conversions to drop by 7 percent!
Apart from fixing slow site speed, also use consumer shopping psychology to improve the perceived speed of your page. This calls for loading above the line items first so that consumers can begin perusing the site.
How to fix it?
Here are the following things you can do at your end to fix this problem:
- Use browser cache to leverage saved data.
- Use CDN for images and other heavy content so that the page can load faster.
- Eliminate unnecessary redirections.
- Use AMP for mobile browsers.
Over 92.6% of the people decide whether they should buy from the website or not, on the basis of website design. Web design practices affect your SEO rank too. A poorly designed site lowers your rank, and this directly impacts your business’ bottom line. So it is essential to invest in eCommerce SEO-focused web design from the start. According to Web Fx, 89 percent of consumers seek out competing websites after witnessing a poor user experience in a given website. This means that if you don’t pay attention to your site’s design, you are handing over your users to your competitors!
This means that if you don’t pay attention to your site’s design, you are handing over your users to your competitors!
What is the customer psychology behind this? Well, users tend to associate credibility with web designs. A poorly designed site signals a lack of quality of the products it displays (which may or may not be synonymous!)
For instance, take Amazon into account. It is surely the undisputed king of the Ecommerce world. Its website is very clean and simple. It is quite easy for users to find the products they are looking for, peruse its specifications, look at its pictures and read its reviews to form a decision.
How to fix it?
There are few things you can do to create a better design that converts:
- Make your design mobile-friendly, as according to Oberlo, Mobile Ecommerce will reach a whopping 3.56 trillion USD revenue by the end of the year.
- Opt for a flat design. Almost all ecommerce businesses are doing this, whether it be Apple store or Ecommerce solutions specializing in home décor.
- The use of colors should encourage the user to stay on the website. Bright colors tend to attract users positively, like blue, orange, green, whereas colors like gray, dull red, and black give somewhat a negative look and boring look. Also, use prevalent schemas when using colors. For instance, red should be used to symbolize error, and green for a successful action.
- Map your customer journey in advance and find ways to provide smooth navigation.
- Know what people buy online and place those items at the top for convenience.
A consumer survey showed that 91 percent of people between the ages of 18 to 34 rely on peer reviews to gauge the authenticity of a product. The absence of product reviews causes a potential buyer to move towards the competitor and buy! It is very important for a website to have product reviews, especially on review websites like Yelp, Google Places, etc.
This customer psychology calls for including online reviews on your Ecommerce website as well as managing negative reviews across platforms to maintain a positive brand image. It is also crucial to have multiple reviews from different satisfied clients so that people can trust you more and make purchase decisions in your favour.
For instance, Tata Harper, a luxury Ecommerce brand, has a section dedicated to reviewing each of its products. See how it includes the call to action of writing a review on top. This urges customers to write reviews, thereby helping your cause. Also, see how it reflects positive reviews on top.
How to do this?
Here the following tips for dealing with product reviews:
- Get yourself listed on famous websites like Yelp and Google Places, as these are the first places where the user will search for you to check for online reviews.
- Encourage your happy customers to write a positive review for you on different review websites.
- You can always try different tactics like offering special discounts or call them to ask if they are really satisfied and request them to share their experience online.
- Always respond to negative reviews as evidence of your impeccable after-support.
Checkout Page Problems
Another way psychology behind marketing can be leverage is via the checkout. According to Sleeknote, on average, the cart abandonment rate stands at 69.57 percent across various industries. This often occurs due to un-optimized checkout pages. Remember, an un-optimized page refers to an unsatisfactory experience in the eyes of users and not search engines!
For instance, let’s say a given Ecommerce website asks for you to create an account to complete a transaction. Not all users feel comfortable sharing personal details with every Ecommerce they purchase from. Considering the various data breaches, their concern isn’t invalid either.
Similarly, an Ecommerce store that redirects you to another page for every checkout process is likely to cause cart abandonment.
See how Nike gets its checkout process right. Not only does it include images, product prices, and live chat on its checkout page, it also ensures that the customer is not distracted by any other thing during the process.
How to fix this?
Here are a few steps you can take to reduce this problem up to zero percent:
- Try to make your checkout process quick and short so that buyers don’t get frustrated by the form filling process.
- Give an option to make a purchase without registration. Do so via guest checkouts.
- Do not come up with hidden charges in the checkout section; this is one of the reasons why a large number of people leave the websites at the checkout point.
- Be transparent by displaying your phone numbers and other contact details.
Coupons and Deals
Most consumers search for online coupons and deals before visiting an Ecommerce store.
There are different deals and coupon websites like FatWallet, Groupon, Shop at Home, etc., from where you can get amazing deals and discounts on products you are planning to buy.
Coupons and deals have a great impact on sales. If you have coupons and deal available in your store, you will have more chances for the visitor to convert over your competitors.
Studies say that coupons and deals can increase customer satisfaction by up to 11%. Additionally, online shoppers that make use of coupons end up spending 24 percent more on a website than those who don’t use coupons!
A great way to ensure this is by offering tier discounts, i.e., the more you spend, the more discount you get. Pottery Barn does a great job of using this tactic.
How to use this to your advantage?
Here are few things you can do by using coupons and discounts to benefit your business as well as your customers:
- Try to add coupons and get them published on websites like Groupon, Fatwallet, etc. Always try to conduct some form of informal research to find out what coupon website works best for your niche.
- Add time-bound discount coupons on your website from time to time to entice the fear of missing out.
- Use tier discounting to encourage consumer spending.
- Add discount coupons and deals within your email shoots as well.
Why do people come to my website but not purchase from it? This could be the question of many ecommerce websites. Obviously, there are certain reasons why visitors visit the website but do not buy from you, and one of the reasons could be the shipping cost.
If you are charging extra shipping cost than normal, chances are your customer will move towards your competitors and buy from them. In fact, Neil Patel reports that 28 percent of shoppers end up abandoning carts if they are suddenly faced with unexpected shipping costs.
If you are charging a high shipping cost, you must offer an additional perk like same-day delivery.
While previously the incentive was not considered by the masses, Gen Z and their psychology of instant gratification mean that if the generation makes your target audience, you can justify the high cost and get away with it as well. A survey revealed that same-day delivery drives purchases of under 25 by 54 percent.
How to fix it?
Here are some tips that can help you fix this issue:
- Do not charge more delivery charges than normal.
- Offer free delivery options on a certain amount of purchase to encourage buyers to buy more.
- Leverage psychology by including shipping cost within your product cost and offering free shipping.
- Stick to your provided timelines.
- Offer incentives in case of high shipping costs.
Payment and Security
Customers pay from their own pockets, so this is very obvious that they need to care about security with regards to payments. Payment options have an impact on sales as well because people tend to purchase more from the website that offers more than one payment option.
According to a survey by Statista, a staggering amount of people (53 percent) don’t think that online companies can be trusted with personal information. The most skeptic demographic is 25-44-year-olds, which make a significant chunk of the working population – and hence purchasers.
How to combat this?
To boost trust in your brand, take these measures for your site’s security:
- Obtain an SSL certificate.
- Pick a trustworthy processor for processing card payments.
- Limit the number of people who have access to your online stores’ backend operations. This means that there are lesser outlets for hackers to target.
- Update your operating system regularly to benefit from the provided security updates.
- In a world where 80 percent of cyberattacks are successful due to weak passcodes, make sure to use two-factor authentication as well as strong passwords.
Remember, if you consistently generate low revenue in your Ecommerce store, digital marketing, and product quality are not always to blame. Your website’s ignorance of customer behavior might be the cause of this. Try to optimize your website, keeping in mind customer behavior to encourage people to continue coming back to your site and possibly convert too.
Customer psychology is part and parcel of the marketing world. It becomes even more relevant in online solutions where all your customers see is a digital depiction of a set of products. Here, to gain their trust and to convert them, you need to incorporate psychology in your digital strategy.
Something as simple as the way your page loads can govern the perception formed in the mind of consumers. So, think of each action carefully. When in doubt, conduct surveys and focus groups. No one can tell you what customers want other than customers themselves!