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7 Psychology Tricks to Boost Your E-Sales

It's never too late to add some few well-intentioned, additional tweaks to your e-shop. Design, layout and even new language copy can help you in your quest to make as many conversions as possible. Let's have a look at the tried and tested 7 psychology tricks that will help your sales and marketing.

1. Acknowledge That Less Is More

Imagine you come to an e-shop to buy a new phone. You know the exact model you want to purchase - and suddenly it comes in 50 colors... Now, do you feel sure about buying just one off the bat? According to a study from Social Triggers, abundance of options can throw your customers into so-called analysis paralysis.

The best way to prevent that is to streamline your offer. Eliminate 47 of your 50 product variations. Create categories so instead of showing people the whole bunch of stuff, you provide them with limited number of categories of products in smaller numbers. When designing your website, think about creating specific list of main categories - the so-called primary ones - and support them with a larger number of less specific secondary categories. This way, you can easily funnel customers, based on their interests.

2. Take Into Account Customer's Loss Aversion

In economics and theory of decision-making, loss aversion refers to customer's tendency to strongly prefer avoiding losses to acquire gains. Psychologically speaking, losses feel twice as powerful as gains. This means customers are more likely to go through great lengths just to avoid losing out on something. Apply this in your strategy and advertise bargains and affordable deals, e.g. "You save up to 30%!", "Best value!" or "Buy over 100 EUR and get shipping for free", et cetera.

3. Take Advantage Of Sense Of Urgency

When you make something appear limited in availability, its perception value rises. This old “marketing chestnut” has been boosting sales for ages. For example, the use of inventory of less than 20 items on Amazon has proven to create more urgency to purchase.

The same goes for scarcity of time. Introduction of deadline into purchasing decision is a powerful tool for getting the undecided buyers. This tactic of limited time offers was made famous by Groupon.com.

4. Don't Forget About Power Of Free Shipping!

Due to fierce competition between e-shops, there are many small things that can sway customer either way. Free shipping is a bullet-proof way to get your client's attention. For example, Book Depository offers free shipping and has made a profit of more than £15 million in 2012. "It has been part of our success, and it simplifies things straight away in customers' minds and has allowed us to build up the business in places like Australia," said managing director of Book Depository, Kieron Smith.

Other way to go around the concept of free shipping is to set a purchase limit, after which customer receives free shipping. This can increase average order values and eventually cover the cost of shipping for the e-shop.

5. Don't Present Unexpected Costs

According to Statista research based on data from 2012, every other online shopper leaves without paying because he or she is presented with unexpected costs (56%). Don't give them a reason to abandon their shopping cart - always display the total price of the purchase. The price of items, VAT, shipping, all of it. This will not only eliminate unpleasant surprises, but also will help with express checkout.

6. Count On Risk Aversion

When your customer is buying something online, there is an anxiety, associated with the act of throwing your money into the wind - especially if they hadn't purchased at your site before. Does this e-shop have a good reputation? Will customer care help me in case of any issues? You need to crush these doubts as soon as possible.

Popular answers to consumer's second-guessing are lifetime warranties and free returns. E-commerce site Zappos.com offers free shipping on all distribution of merchandise, eliminating the risk involved with buying at their e-shop. This results in staggering number of 75% of Zappos' sales coming from returning customers who order 2,5 times more items than fresh customer in the entire year following their first purchase.

7. Never Underestimate Online Reviews

Customers are heavily influenced by the opinions of others. An average customer has the optimistic belief that third-party judgements are unbiased and trustworthy - 63% of customers are more likely to buy from a site that has user reviews over the ones that don't. Having a visible review board also boosts your trustworthiness and prestige.

However, what about those negative reviews that are bound to come in once in a while? You can let them stew in the review section and wreak havoc on your reputation - or you could offer alternative communication channel for all the issues and complaints that your customers might have with an online complaint management (e.g. Youstice), therefore taking care of all the pressing issues your customers are facing in just a few clicks.

Rejuvenating your e-shop might sound like a tough job, but as you can see, it's actually very easy and down-to-earth. If you'd like to hear more valuable advice for e-shops, try our article about necessity of automation for small online business or read our research on summer trends in e-commerce.

If you want to check out our solution for handling online disputes and complaints, click here for your free trial.

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