By now, it is widely established that personalization works as a powerful tool to drive customer engagement and conversions in the eCommerce industry. Understanding the psychology behind personalization helps in using it effectively, so let’s see how personalized user experiences make use of these principles in driving purchases.
One of the most important principles of human behavior is reciprocity: the feeling that people need to return a favor or kindness. It is one of the game-changing factors in eCommerce for companies targeting a devoted customer base. For instance, if an online shop is going to offer something of value for free — a discount, a freebie, or high-value content — this taps into a psychological trigger among customers. They feel in turn obliged to reciprocate the attention with a purchase or some engagement with the brand.
Examples of these tactics, which help put customers in a more giving mood and increase their conversions and brand loyalty, include offering personalized discounts in exchange for newsletter sign-ups or membership in a loyalty program, free e-books, exclusive tips, or sending a small gift or discount code to the customer after the first purchase.
Social media influencers have mastered the art of exploiting this very psychological aspect of human beings: social proof. Most people look to others when making decisions for their own actions. In eCommerce, employing social proof can massively change the way a customer decides because all of us look at reviews, testimonials, and social media endorsements from other buyers, judging the authenticity or quality of products and services. This may be an encouragement to potential buyers, making them make that purchase.
Brands that feature reviews and ratings on product pages from happy, satisfied customers and highlight user-generated content and influencer endorsements are going to do much more toward building trust in a world where all we look for is certainty before making a decision.
The other psychological trigger that goes hand in hand with the previous two is scarcity, such that when related to the eCommerce industry, it can be a big motivator to obtain quick conversions. If you let customers believe something is in limited quantity, they are more likely to act quickly before the special offer runs out. After all, FOMO is still a thing!
Personalized messages, such as low stock alerts, limited-time offers, or exclusive access to special deals, can bring about an element of urgency and, subsequently, a rise in conversions.
Personalization in eCommerce connotes custom-tailored experiences specific to the individual customer, and at Fanplayr, we have perfected the art of driving such experiences by the use of behavioral data. Our platform uses complex algorithms to study what customers want from a business to be able to execute the correct strategy, in the best way possible.
