GBHJ GLOBAL: Boost E-Commerce Sales by Understanding the Psychology of Your Customers

By Japs Buidon

You’ve built and launched your e-commerce site. You’ve set your target market. You’ve got everything in place. What’s next? You need to understand the psychology of your customers—how your market thinks and behaves. Delving deeper into the impact of psychology on consumer behavior can help boost your e-commerce sales.

Who Are Your Customers?

There are different types of consumers and different ways to reach them. Understanding who they are can help you better present your products or services—and increase your sales.

Seasonal consumers. This type of customer purchases products depending on the season. They benefit businesses selling seasonal products such as summer wear, Christmas décor, umbrellas, winter clothes, etc.

Personal consumers. They purchase products and services for personal, household, or family use. Household products, clothes, spa services, etc. are samples of products and services bought by personal consumers.

Organizational consumers. This type of customer often purchases goods and services in wholesale or bulk for a long period. Organizational consumers are highly prized because they bring in long-term recurring orders and sales.

Impulse buyers. Customers who make purchases based on impulse are consumers who do not plan their buying decisions. Impulse buyers tend to purchase products and services based on mere connection, impulse, and emotion.

Need-based consumers. For this type of customer, they only purchase certain goods when a sense of need is present. Products and services that stir up a sense of need in entice them to make a purchase.

Discount-driven consumers. Discounts and promos drive this type of customer to purchase goods and services. They are sensitive to pricing and prefer purchasing products that come with discounts over products sold for full price.

What Motivates Your Customers?

After figuring out who your customer is, there are different psychological principles you can use to boost your e-commerce conversions.

Need and motivation. Needs entice customers to purchase goods and services. For example, consumers purchase medicine when they’re sick, food when they’re hungry, protective gear for safety, phones for communication, and the list goes on. A sense of need significantly affects a consumer’s buying behavior.

To take advantage of this psychological principle, think of ways to make your customers feel like they need to purchase your products and services. Also, package your product in a way that meets, addresses, and fulfills your consumers’ particular needs and goals.

Sense of urgency. According to one study, creating a sense of urgency leads to great demand that eventually drives great sales and compels consumers to act immediately. A sense of need makes them think, “I need this product.” A sense of urgency convinces them, “I need this product—now.”

Loss aversion. This theory refers to the tendency of people to prefer avoiding losses over acquiring gains. Make your customers realize that if they don’t take action, they will risk losing something. Enumerate the actual benefits of your products more than its features. Use phrases like “Don’t miss this great deal…” or “Stop losing more money…”

Scarcity or limited duration. A limited-time offer increases the possibility that consumers will take action. Include time limitations in special offers and promos to increase the sense of urgency. Stir up feelings of loss in your customers if they don’t take action. Remember, humans, by nature, are terrified of losing and missing out.

Anchoring and pricing. Humans naturally think in a twisted web of options and scenarios. Comparisons attempt to make the human brain make the right decision; anchoring is a technique where consumers can evaluate and compare the relative value of similar products or services.

Create favorable comparisons for your customers by adding a competitor’s deal or an alternative price for comparison. You can also introduce other higher-priced products for comparison to make a product considered appear to be reasonably priced.

Another way to take advantage of this technique is to add bonus offers and freebies. This way, your consumers feel like they’re getting more out of the deal.

Social Proof. It is naturally part of our human nature to be easily influenced by our peers and having a desire to fit in. When consumers see their peers approve or endorse your products and services, they are more likely to make a purchase as well.

Social proof can be in the form of well-placed positive and negative reviews, social media sharing, and endorsement from peers. These social proofs can easily establish a connection between you and your potential consumers; they can also increase your trust quotient.

Authority. Humans naturally trust figures of authority; we are designed to acknowledge leaders of any kind. This is why renowned personalities, experts, and celebrities are often used to promote different products and services.

Establish yourself as a thought leader in your niche or you get outside experts or celebrities to recommend your products and services. Getting experts to endorse your products or services can give customers positive perception,making them more likely to make a purchase. You also instill confidence by partnering with reputable companies and placing their logos on your e-commerce site.

Color Psychology

Colors significantly affect consumers’ buying behaviors and decisions. Studies show that colors and branding increase brand recognition by 80 percent; also, 85 percent of shoppers say color is the primary reason they will purchase a particular product.

According to color data reported by Kissmetrics, different colors convey different meanings and affect consumer buying decisions in different ways:

Yellow. Optimism and youthfulness. This color is often used to grab the attention of window shoppers.

Red. Energy. This color creates a sense of urgency by increasing the heart rate. Most often, red is seen in clearance or seasonal sales.

Blue. Trust and security. Blue creates a sense of trust and confidence in a specific brand. This color is often seen in banks and businesses.

Orange. Aggression. This color greatly attracts impulse shoppers and serves as a great call to action. Often, orange is used in fast food, outlet malls, and sales.

Pink. Romance and femininity. Pink has the ability to attract traditional buyers especially women and young girls. This color is most effective in stores appealing to women buyers.

Black. Power. The powerful and sleek vibe of this color exudes luxury. This is why black is used to sell and market luxury products to high-end consumers.

Purple. Calmness. Purple is a soothing color that sends a calm vibe to people. This color is often seen in beauty and anti-aging products.

If you take advantage of the above psychological principles, you can increase the success of your e-commerce business and boost your e-commerce conversions in a much shorter time.