What Is The Psychology Of Conversions
Marketers aim for conversion optimization or conversion rate optimization (CRO) to increase the percentage of visitors on their website that convert into customers or take preferred action on their website. They use all the possible means to create, attract, engage and interact with the prospective customer through their website.
(CRO) Conversion Rate Optimization is a two way process or approach where the marketers choose process oriented (CRO) Conversion Rate Optimization and psychology oriented (CRO) Conversion Rate Optimization. Process oriented (CRO) Conversion Rate Optimization is the prescribed norm within the industry. It directs marketers who only want guides, steps, processes, hacks and techniques without understanding the psychology of conversion optimization. Every business deals with living and thinking human consumers who are looking for a solution to their problem. Psychology oriented (CRO) Conversion Rate Optimization focuses on the core, nature or purpose of conversion optimization: the consumers!
Every buyer makes a decision based on their logical, emotional, physical and psychological factors. There is a consensus that all marketing is psychology and this cannot be more true when you want to optimize conversions. Human psychology must inform your (CRO) Conversion Rate Optimization. The reason for your marketing content strategy is mostly psychological; your customers are the ones making the decision after all. They are the one clicking, searching, registering, looking, purchasing, thinking, analyzing, reading, sharing, deciding and acting. They are the heart of conversion optimization that forms the integral part of your content strategy.
Understanding human behavior for conversion rate optimization
Through psychology, you can understand the basics why website visitors convert. This will help you comprehend the field of CRO and improve your digital marketing strategy based on human behavior. The goal of your website is to make practical applications for your (CRO) Conversion Rate Optimization in line with the business goals. For the best way to cater or serve the user is through the knowledge of their needs, interests, goals and purpose.
Marketers need to know this psychological aspect in boosting their conversion rate.
1. Create a sense of urgency and scarcity in your marketing
Creating urgency (limited time) and scarcity (limited offers or supply) are common psychological motivators. When you are motivated by the statements of urgency you are compelled to make a decision instantly. For instance, an offer telling you only 1 hotel room is left will motivate you more; a restaurant offering discounts for lunchtime only will draw in more customers during lunch-time hours. LateRooms, Amazon and Ticketmaster effectively use this technique.
Amazon relies on using limited time to encourage immediate purchase. Ticketmaster uses the “a few minutes left tactics” to increase the urgency to buy tickets.
In the Journal of Applied Psychology, Italian Psychologist Luigi Mittone and Lucia Savadori found, that an item’s subjective value or the value a person ascribes to an object is based on their perception, rather than the external world. Subjective value ascribed to an object increases when it is perceived as being scarce.
Indeed, urgency and scarcity have an inherent influence on desire.
2.Try before you buy psychology trick
Product sampling is one of most effective aspect that affects purchase behavior. When given something free online (and offline) you are obliged to give something in return. A behavioral economist from Duke University, Dan Areily, explains it this way: “Reciprocity is a very, very strong instinct. If somebody does something for you, you really feel a rather surprising strong obligation to do something back for them.”
Let people commit to a decision by the sample you are offering. Like for example Amazon with their “Look Inside” idea a glimpse of what is inside an eBook.
From the sample product customers must discern that it excels above your competitors. You need to give a whole and complete image of what you can give to your customers and what value they can gain. To see is to taste is to believe is to purchase.
3. Social proof to convince and convert
Build social proof by showing some influential testimonials from your customers or experts that use your products or services. To make it more reliable or authentic, include a photo of the person who is giving testimonial and their company- or add video testimonials.
Showing social proof through social media is another way; this is word of mouth marketing on a much larger scale. Social proof may take a long time to gain, but it can convert website visitors effectively.
4.Build trust with your sincerity
Build trust between you and your client by being sincere, transparent and understanding. Sincere means truthful in your digital marketing campaigns. Transparent means open in your mistakes and business practices. Understanding means being thoughtful in your ability to relate with your prospective customer.
Building trust is a long term content strategy but one that can convert the most number of customers. These days, marketers all talk about consumer centric marketing. In actual fact, it is the good old fashioned listening and asking questions. Ask customers questions in order for them to be a part of your business. Share with them your success in that way they have vested interest in it. Encourage them to get social with your business. Provide them with the right content as one way of nurturing this relationship.
People tend to be afraid of loss and want to avoid it. Some customers need to thoroughly research a product (and be convinced of the value) before committing to purchase. It is probably an instinct that people have in fearing being shortchanged. Offering a refund, subscription, limited period free trial or stating a clear returns policy can be a great marketing strategy for loss-averse customers.
Marketers can use the psychology of loss-aversion to make the customers purchase something they perceive as valuable. If you can convince consumers that your product will add value and solve pain points, you will optimize your conversions.
6.Create the perception of freedom
Freedom is one of the most powerful motivators and it is universal. A strong psychological need deeply rooted within us. To take advantage of this psychological aspect of a person, marketers can provide basic form of freedom to their customers by giving them the freedom to choose. The customer will feel connected with your business through ownership of your brand.
When they identify themselves as consumers with the freedom to choose and express themselves through your brand- they will invest for the long term. This is the psychology behind customized designs in products; NIKEiD is one example who lets shoppers modify shoes by color and features. Coca Cola used names on bottles in their Share a Coke campaign for their customers to personalize their drink.
7.Know your customer inside out
The more you know about your customer, the better you are able to serve them. It is the best way to bring value to them. It creates in them a sense of belonging and a sense of importance that lets them prefer your brand over others. You need to know your user, as there are changes that take place such as business models, new marketing trends and upgraded technologies. Gather data about your customers to gain insights into their purchasing behavior. This will help you optimize conversions by targeting customers better.
Applying the psychological concept of (CRO) Conversion Rate Optimization is an action that benefits the business as well as the consumer. Since it is the very foundation of consumer marketing, businesses are advised to gather data about their customers and create a customer-centric content strategy. Long gone are the days of broadcasting content to consumers: businesses have to think like their customers. This means more interaction with customers and listening to what they have to say about your business.