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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 6 November 2016

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Transcript of Persuasive e-commerce

6) Scarcity
1) Reciprocation
5) Liking
4) Authority
2) Commitment &
Consistency
3) Social Proof
DO
Choice Paralysis
Trust Logo's
Other users
User statistics
What other customers do
Testimonials
Let's Connect!
@guido | gui.do
guido@euroflorist.com
6 7 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'
There's (much) more!
6,3% - average order €90,-
15,8%
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: 25 - 35%
Online: 5 - 20%
Average conversion rates
Online lacks several

used in offline stores
Heuristics
Why is online conversion so ?
50%
more people die drowning 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
$8
$13
$20
$45
triggers
online marketing
-
-
Succes
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
94% - 60% - 93%
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
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
Anchoring and adjustment heuristic
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
Story: Derek Sivers: How to start a movement (TED)
Dynamic websites tuned to specific audiences

Everyone gets a different sales pitch
behavioral targeting / persuasive profiling
Now:
Future:
Large individual differences

(...but we see consistent behavior
on an individual level)
Problem:
Technology
Functionality
Usability
Persuasion
Hierarchy of optimization
Experiment!
Total Orders

Total Visitors
x 100 = conversion rate
3.000 orders

20.000 visitors
60%
94%
93%
6 options
24 options
Tasting
Buying
40% 60%
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, PhD
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
Two More Things
Again: Always Be Testing
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
Quickly guess the outcome
Let's do a quick calculation...
Slides & more: gui.do/onpersuasion
Scientist @ Stanford University
because online conversion rates suck
x 100 = 15.0% conversion rate
Fail
E-commerce in 2020
PS: It's not just these 7, it's probably closer to 700
(numbers for fashion, but the general trend applies to most sectors)
"In the past month [x] customers
bought this product"
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.



personalization
direct feedback
sensory input
until checkout
no commitment
Sasquatch music festival 2009
... but there is a solution!
We all have many biases

and we're not even aware of most of them
Let's try this....

Availability heuristic
Online
Marketing
"an attempt to change attitudes, behaviors or both (without using coercion or deception)"
Scarcity in
Time
Amount/ Stock
Access
...
Conference: All break-out sessions are public.
Except for one...
Scarcity Heuristic
Attractiveness
Similarity
Compliments
Get likeable people to promote you
Familiarity heuristic
Be the first
Be unexpected
Provide real (personal) value
Keep on giving
Don't apply reverse reciprocity
Newsletter
eBook
Tutorials
Courses
Webinar/podcast
Software
Apps
Trial

Knowledge
Time
Resources
Key Factors
8 - 11% - average order €430,-
+
+
Persuasion Technology
motivation
(us)ability
...COMBINED
Casualties from deadly situations
Cognitive Bias / Prejudices
LIMITED
We have many Cognitive Biases and we are not aware of most
low
big
Who I am, according to Data
Theory
Applied
Future
Autonomy
First action
Visual Cues
@guido
gui.do

Chief Psychology Officer @ Euroflorist
Persuasive E-commerce
Remote User Testing you'll actually use
Marketingsherpa Benchmark 2014
25,3%
Hobson's +1 choice
We like to collect/ complete
Conversion Rates
0% 5% 10% 15% 20% 25%
https://en.wikipedia.org/wiki/List_of_cognitive_biases
Workshop!
Give me your business card for a special treat...
Usability
Data informed
A/B/MvT testing
Book online now, and
you get:
Book online now, and
you get:
Discount on your next order

Free drink

Free cancellation

Room upgrade when available

Free and unlimited internet

Checkout untill 5pm on sundays

Best & lowest price guarantee

Direct e-mail confirmation
Lowest price guarantee!

You also get:

Discount on your next order

Free cancellation

Free and unlimited internet

Besides this, you also have
no
reservation costs
, you get an
e-mail
confirmation
and you get a
free
drink
on arrival (and on sundays you
can
checkout untill 5pm
!)
14% lift
4,77% lift
3,97% lift
Get to know your customer!
Sending flowers since 1947
Offices across Europe
Florist Network (9.000 florists) + Box Product
B2C & B2B sales
1 Million SEK Revenue
Growing revenue, teams and taking market share
Quick Facts
Austria
Belgium
Denmark
France
Germany
Ireland
Luxembourg
Norway
Poland
Sweden
The Netherlands
United Kingdom
19 WEBSITES
12 COUNTRIES
8 LANGUAGES
20 NATIONALITIES
Majority of revenue comes from online
~200 employees (15% online, 50% CS)
2M+ bouquets sent every year
Market shares ranging up to 45%
Conversion rates up to 20%
Or...
gui.do
@guido
x@gui.do
Don't make users think
A: Hidden fees
B: Right below pricing
12,5% Uplift in CR
Distractions
A: Addons on PDP
B: No addons on PDP
14,9% Uplift in CR
A: Product Description
B: No Product Description
10,8% Uplift in CR
Evening schedule
19:00 - Persuasive E-commerce

20:00 - Workshop

21:00 - A/B testing process Demo

21:15 - Cross-Cultural E-commerce

22:00 - End
Seeing is
Believing
7) Unity
'Psychology of E-commerce' blogseries on gui.do
Books
Online courses
My Vlog on
....
Liking: surface level similarities
Unity: shared identities
Appeal to the 'We' or 'Them'

Family, location, religion, social group, products bought, pets, holidays, ...
When you're walking down a street...
Activation Threshold
Freedom of choice?
gui.do/clickchoice
The Bouba/Kiki effect
1
2
3
4
5
6
7
Our brain sets the default
Online

Team
E-com
Product
Retention
Traffic
Conversion
Full transcript