Psychology of Consumer Sales
eCommerce is one of the fastest growing industries in the modern world. This means there is much competition and success will be bred from ingenuity, innovation, and understanding consumer psychology. There are three steps the consumer must take to be converted into a sale. First, they must be driven to the website. Next, they must become engaged with your site, products, and offerings. Finally, they must complete a purchase and in turn increase your bottom line.
However, this process is not a simple as it once used to be. Consumer buying processes are more complicated and consumers themselves are more informed. This means they desire engaging and creative experiences in order that they purchase your products. Simple outdated strategies will not work in this day in age. It is crucial to understand the psyche of the consumer and what makes them tick. This will give brands an advantage in their attempts to turn traffic into conversions.
There are four major concepts that can help you move better understand consumers and move your company forward.
“You scratch my back, and I’ll scratch yours.”
Strong customer relationships are vital for the long term success of any business. The idea of returning the favor has existed for quite some time. However, the world of eCommerce is fairly new, so transferring this idea to a new industry requires some tweaking. It is not sensible for brands to give out free merchandise to a mass of consumers hoping for purchases “in return”. However, they can fulfill build up relationships with their customers by sending a free gift with any purchase. This serves a s win-win. Consumers feel as if they are given something in return for their purchase and commitment to the brand. Simultaneously, the brand is able to put another one if its products into the customers’ home. This adds to brand awareness and will help create long term loyalty.
A symbiotic relationship is a fruitful one.
Connecting on a Deeper Level
Having a good product or brand is not sufficient to separate your company in today’s market. Deep and emotional bonds must be built with your consumers. As consumes become more and more educated, brands need to evaluate what they stand for and stick behind their mission and values. This will reflect well with consumers as it shows the brand is genuine and transparent.
Another way to connect with customers is by placing the users at the forefront of your brand. User generated content such as customer created Instagram photos modeling the products or user reviews explaining how the products works. This connects potential customers with past ones allowing them to feel comfortable with your brand just like others did. People more easily associate with people that are like them. Many women cannot relate to a victoria’s secret model but they may be able to relate to models that are more like them. Bridging the gap between model and consumer can help create a company atmosphere that is welcoming to all.
Customers love fitting in with the crowd. The law of Diffusion of Innovations tells us that consumers do not like being the first nor the last to adopt a product. This means that the faster your product is “accepted” by more and more people, even more will follow in their footsteps. Good press can help spread your message and brands should be working internally to constantly push out content that reflects their brand positively. Integrating customer posts through hashtags, tweets, or Instagram photos to your site can help create a sense of community and show that other customers are already loving the products. Being socially relevant can help push your brand forward and breed success even if the product has much to be desired. Flex your muscles and show off what makes your brand great.
The idea of supply vs demand is simple in concept but can be used to the advantage of brands and online retailers to impulse customers to buy instantly or within a short period of time. Cart abandonment is a major issue with online shopping. To mitigate its effects, brands need to highlight the fact that the product may either go up in price or run out of inventory available if the customer waits too long to purchase. Brands should create a relative level of uncertainty when it comes to the availability of their products. If consumers fear missing out on a product or deal, they are more likely to buy now and become a loyal customer. Sales, promotions, countdown clocks, and releasing limited edition products are ways to increase impulse and impose the idea of scarcity onto consumers interested in the brand.