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Persuasive e-commerce

This is a prezi I use during my presentations about Persuasive E-commerce. There's a lot of info in there, I do presentation session starting at 30 minutes until 3 hours (incl workshop).
by

Guido Jansen

on 16 November 2015

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Transcript of Persuasive e-commerce

2) Practice
6) Scarcity
1) Reciprocation
5) Liking
4) Authority
2) Commitment &
Consistency
3) Social Proof
DO
Familiarity heuristic
Choice Paralysis
Trust Logo's
Other users
User statistics
What other customers do
Testimonials
Online-persuasion.com
'Psychology of E-commerce' blogseries on gxjansen.com
Leave your business card for a special treat...
Let's Connect!
@gxjansen | guido@onlinedialogue.com
Leave your business card to receive some exclusive material in your inbox
6 Weapons of Influence
What's next?
DON'T
Faking (reviews, statistics)


Too many options


Get people to buy things they don't want


Get personal in a creapy way


Overdoing it / being too obvious


Reversed Reciprocity


Copy other sites
Be authentic, ethical and honest


Instead of only positives: Show downsides when customers don't buy your product


Use pictures/ examples your audience can relate with


Show products (software too!) and services


Let people discover what they actually want


Focus on retention


Make it personal


Test!
Our decisions are for 90-99% unconscious
The power of 'because'
... but there is a solution!
There's (much) more!
6,3% - average order €90,-
14,1%
40,6%
May I use the Xerox machine?
May I use the Xerox machine because I'm in a rush?
May I use the Xerox machine because I have to make some copies?
Offline: 20 - 25%
Online: 2 - 10%
Average conversion rates
(numbers for fashion, but the general trend applies to most sectors)
Online lacks several

used in offline stores
Heuristics
LIMITED
Knowledge
Time
Resources
Why is online conversion so ?
9,50% - average order €430,-
low
1,5x
more people die in a swimming pool than the 3 other situations...
Airplane Crash
Terrorism
Any natural disaster
Swimming Pool
Actual statistics
Numbers based on some internet research and Internetretailer Top 300 Europe Edition 2011
Perceptual Contrast / Framing
Automated thoughts and actions
...COMBINED
$8
$13
$20
$8
$13
$20
$45
Motivation
Ability
Triggers
online marketing
Interaction/ UX
Persuasion technology
+
+
-
-
Fail
Succes
Activation Threshold
Elements of Simplicity
BJ Fogg, 2007
Time

Money

Physical Effort

Brain Cycles

Social Deviance

Non-Routine
Simplicity differs for each person

Simplicity differs by context
True versus Perceived simplicity
Put “Hot Triggers” in the path of your user
Researchers asked some residents of an area to accept and display a small 3-inch sign that said “BE A SAFE DRIVER”. Almost all did. Two weeks later, the researchers sent another representative around to ask both this group and another group of residents that had not received the first contact to allow a large billboard saying “DRIVE CAREFULLY” on their front lawns. As part of the request, they were shown a picture of a nice house almost completely obscured by a very large, poorly lettered sign with that message. 83% of the residents who had not received the first request refused, but 76% of those who had accepted the small sign agreed to placement of the large one! Moreover, in a further variant, the residents were first asked to sign a “Keep California Beautiful” petition. Two weeks later, they are asked about placement of the large billboard, and 50% agreed, even though the first request differed in subject (beauty) and action (signing)! The researchers theorized that the first action actually changed way the participants viewed themselves, e.g., “public-spirited citizens” in a way that influenced them to act in accordance with that view in the future.
94% - 60% - 93%
Free newsletter
Free eBook
Free tutorials
Free tips
Free webinar/podcast
Free software
Free apps
Free trial

Scarcity in
Time
Amount/ Stock
Access
...
Let's get our hands dirty!
Make a group with 2 or 3 people
Pick a card & read it
Go to the website
See how you can optimize the page using the card
Repeat
PS: It's not just these six, there are many more!
Problem:
"All things being equal, people will do business with a friend.

All things being unequal, people will still do business with a friend."

Mark McCormack
Attractiveness
Similarity
Compliments
Get likeable people to promote you
Key Factors
Scarcity Heuristic
Anchoring and adjustment heuristic
Let's try this....

Availability heuristic
Be the first
Be unexpected
Give something that has real value to the recipient
Put a personal face on your gift
Keep on giving
Don't apply reverse reciprocity
Use the senses
More sensory input = more dopamine release
47% more conversions
67% more turnover per sale
Especially effective with:
same kind of people
uncertainty
inexperience
intuition / common sense / rule of thumb / educated guess
Expensive = Good Quality
Beautiful = Userfriendly
Unknown = Creepy
Shiny = New
Familiar = Safe
Because... = a (good) reason
More = Better
White coat = truth
Travis Dane, Under Seige 2
Cognitive Bias / Prejudices
Sasquatch music festival 2009
Story: Derek Sivers: How to start a movement (TED)
Dynamic websites tuned to specific audiences

Everyone gets a different sales pitch
E-commerce in 2016
behavioral targeting / persuasive profiling
Now:
Future:
Large individual differences

(...but we see consistent behavior
on an individual level)
Problem:
Technology
Functionality
Usability
Persuasion
Prioritize
@gxjansen



personalization
direct feedback
sensory input
no commitment
until checkout
We all have many biases
and we're not even aware of most of them
Experiment!
1) Theory
3) Future
Total Orders

Total Visitors
x 100 = conversion rate
300 orders

20.000 visitors
x 100 = 1.5% conversion rate
60%
94%
93%
6 options
24 options
Tasting
Buying
40% 60%
(cc) image by anemoneprojectors on Flickr
Jam Experiment
Customer segmentation
Visitor segmentation
Rule based product relations
Customer group pricing
Automated e-mail reminders
Web subscription

Print subscription

Web & Print subsciption
$59

$125

$125
16%

0%

84%
68%



32%
12% 1.6%
Persuasion?
B.J. Fogg, 2003
Casualties from deadly situations
big
Online Merchants have a problem
Some very good e-commerce conversion rates
"Optimize for the average customer"

Communication is the same for everyone
Already in
Research
Optimization
Process
"an attempt to change attitudes, behaviors or both (
without
using coercion or deception)"
Persuasive

E-commerce
@gxjansen
One More Thing
Photo by Ryan Roberts (CC BY-NC 2.0)
We love to share!
Again: Always Be Testing
"In the past month [x] customers
bought this product"
Socially acceptable products
Socially undesirable products
Autonomy + positive reinforcement
Stress and decision making
Emotions and webcare
Gaze cueing
The ugly brother effect
10% discount

Version A: no limit per person
Version B: limit of 12 cans per person

Version A: average 3 cans sold
Version B: average of 7 cans sold!

Bat + ball together cost $ 1.10
Bat is $1.00 more expensive than ball
How much $ is the ball?
$0.05
Correct answer: 40.320

1x2x3x4x5x6x7x8 =
8x7x6x5x4x3x2x1 =
512
2250
Theory conclusion:
Big difference between online and offline conversion
We have many Cognitive Biases and we are not aware of most
We can use these Cognitive Biases to influence behavior
Quickly guess the outcome
Slides & additional info: gui.do/onpersuasion
Some simple math
Conference: All break-out sessions are public.
Except for one...
+14%
Slides & more: gui.do/onpersuasion
Who I am, according to
Online
Marketing
The future of the
Magento Ecosystem
Tomorrow
16:30
Room xxx
Full transcript