Based on Melanie Grano of Sales & Orders, a cognitive bias is “the tendency to act or think in certain ways, many of which are illogical”. Cognitive biases can influence our views in every area of our lives, including our spending habits. That is why the majority of digital marketing players use cognitive biases for more sale and conversion. But how can cognitive biases serve the purposes? The below inbound marketing info will tell you how!
The Framing Effect
The framing effect was first introduced by two psychologists, Amos Tversky and Daniel Kahneman, through their study. The framing effect idea can be defined as the way options are served which can impact how you react. Although the information is the same, your brain can influence you to choose something different, depending on how it is framed. Mostly people react more to negative framing than positive one.
For instance, through conducted studies, you found that customers will make a purchase right away if a certain product has limited stock than discount. In this case, the fear of loss or missing out has become their great motivator that leads them to purchasing decisions. Here we can see how negative framing has strong impact on decision making process. Instead of ‘get it now and receive a discount’, you should go with ‘buy now if you do not want to miss out’. The point is, you should be able to convince them that they will have something to lose instead of something to gain.
Anchoring is how you rely too much on single information, mostly the first one you get, when you make a decision. In other words, your first perception has ruled you. This particular bias works well with price. When a prospect sees your price first, it will be their anchor. Does not matter whether they can get higher or lower prices elsewhere, since the first one they see is yours, they will more likely buy from you. Likewise, if they see lower price set by your competition before they see yours, they will likely buy from the said competition.
The anchor does not always have to be physical or numerical. For example, if you left a bad impression on your customer due to bad customer service, that will be your anchor point for those who come across to you for the first time. However, if you put positive reviews, feedbacks, or testimonials in the spotlight, it will gain more sales and conversion. Therefore, make sure you offer positive vibe to all your prospects and customers. while you cannot please every single person, at least you can lessen the damage by providing top-notch customer service.
The Bandwagon Effect
It is also known as the herd mentality which means the tendency to believe or do the things that others believe or do. You cannot deny the fact that the crowd can influence an individual in the decision making process. So to use this effect, you have to make your inbound marketing brand more popular by using reviews, feedbacks, and testimonials from as many customers as possible.
Even if there are some bad reviews, you should display them in order to gain the trust of your prospects. When it comes to price point, include most popular option in the package. The bottom line, make your prospects feel like they will be a part of your large number of happy customers with your brand.
Cognitive biases are used to influence your prospects to choose your digital marketing brand. Thus, make certain you use them to your ecommerce business advantage. You can do more for your ecommerce business by downloading our free white paper about Take Your Ecommerce to The Next Level that will give you knowledge to shape up the best and most effective ecommerce strategy.