Society is growing to rely on Artificial Intelligence more and more. Over the years AI has become embedded in everyday life, such as our smartphones and devices that control smart technology in our homes. One of the major components of AI is its ability to continuously learn so that it is constantly getting better and becoming more efficient. There are so many capabilities and it’s hard to imagine the limits of this technology. One such capability is to help businesses better understand their customers.
With customer expectations higher than they have ever been, it is important for companies to adapt and continue to be aware of those expectations. One report shows that about 80% of customers would prefer not to do business with a brand after just one bad experience. This shows that the bar is extremely high for companies to get it right from the beginning. That’s where AI can help.
There are plenty of people who have already come to embrace the idea of AI-enhanced CX (AI/CX). It has been found that 70% of executives believe their industry is ready to adopt AI/CX and three out of four predict AI will have a vital role in the future of their organizations.
When used in a contact center, artificial Intelligence can also save a business time and money, which is always a plus. However, being able to tap into the knowledge behind what drives customer engagement is key to success. The great thing is that AI will do the work for you and you get all the benefits. So, this is what AI can do for you.
Improving Customer Service
Having a responsive and helpful customer service department is essential to any business that wants to be successful. 90% of consumers say “immediate” response time is very important when they have a question. Customers need to be able to have direct access to businesses to file complaints or resolve any issues they may have. So having different channels where people can express those things is necessary for companies to retain customers. Multiple kinds of AI-powered software have been developed to enhance the customer experience.
Chatbots are one way that artificial intelligence can improve customer service. They are very relevant in today’s world, as 67% of people expect to use messaging apps to talk to businesses. They can easily answer frequently asked questions or simpler questions that do not require intervention from a customer service representative. They’re also available 24/7 so people have access at all times, without the need for shift workers.
Receiving feedback from customers is one of the best ways for companies to know how they are doing and what they need to improve. AI is a tool that can exceed what the standard survey provides. For example, AI can facilitate online focus groups in real-time and opens up a channel for communication, where you can have a conversation with people and participants don’t have to give one-sided responses.
Predicting Behavior
Being able to predict customer behavior has a major impact on the way companies conduct their business. In predicting behavior, brands can offer a more personalized experience and drive sales. Artificial intelligence can capture and analyze customer data to a much higher extent than ever before.
Programs, like Google Analytics, Facebook Ad Insights, Adwords, and CRM data are designed to track customers across platforms and generate reports with information about people’s online habits. They will track things such as which websites people visit and specifically what products they are looking at. They can get very detailed to even include how long someone stays on a page and how often they return.
By knowing ahead of time how people shop and what products/services they are looking for, brands can plan accordingly. They are able to design their websites in a way that draws people’s attention to exactly what they want and makes them more user-friendly. They can also put their time and effort into funding the design of products that they know people want.
Targeted Marketing
Marketing has drastically changed over the years. Traditional marketing no longer makes the cut and now people listen more to ‘influencers’ and spend so much of their time on social media, where they are seeing ads bombarding them in a whole new way.
It’s no coincidence when someone logs onto Instagram and sees ads for products they specifically like. That is because these ads are tailored for and targeted at each individual. AI is to thank for that. Algorithms are built into these platforms that run based on AI technologies and machine learning to make recommendations on content for users. It can almost be eerie in the ads that users see, especially if someone has just been searching for that very product being advertised.
Having AI keep up with customer data allows brands to know exactly how to customize their marketing tactics for each person. This keeps the customer drawn in and clicking that add to cart button. It also helps prevent churn and retains the best customers by detecting when they are starting to lose interest and can launch new campaigns to keep their attention.
Artificial intelligence is only going to continue improving and has so much potential in businesses. Brands are in a unique position, compared to those in the past, in the way they can use technology to tap directly into customer insights. By having a better understanding of customers’ expectations and habits, a company can completely transform itself to cater to its customers. The customer experience is everything. And AI is a powerful tool that can revolutionize the way customers interact with a brand. So, to get started with integrating AI to create a better customer experience, check out your options with LiveVox.
When you want to buy something, you seldom directly opt for an unknown brand or a new shopping portal you’ve only heard of. This is because you are driven to trust the brands or e-commerce portals, or a particular offline store based on your previous experience. You feel connected because somehow you find items that align with your interests and preferences.
In offline stores, one can say it largely depends on the relationship building of the owners and the shoppers. When it comes to online shopping, there is no face-to-face meeting. Yet, your favorite brands know what you like and recommend products you will likely purchase sooner or later.
This is no magic. Say hello to recommendation systems, one of the most frequently used machine learning techniques.
What are recommendation systems?
Recommendation systems are advanced data filtering systems powered by AI, recommending the most relevant item to a particular customer or user. It uses behavioral data and machine learning algorithms to predict the most relevant content or services for customers.
For instance, when you watch a web series or a movie on Netflix, you will see recommendations for shows and movies of similar genres. Netflix uses recommendation systems to analyze your watching preferences and browsing activities to suggest relevant content.
Doing this helps reduce users’ time to browse through thousands of contents to find a new show or movie to watch.
Recommendation Systems: The Science Behind It
A recommendation system is an algorithm that uses big data to suggest relevant products and services to users. Since big data fuels recommendations, the inputs required for model training are crucial.
It can work on various types of data depending on your business goals. For example, it can be based on user demographic data, past behavior, purchase habits, interactions with your product or website, and even search history. Recommendation systems analyze the data to identify patterns and then make suggestions for products most likely to appeal to the users.
For instance, on Amazon, you will discover related products on the homepage, upon adding items to your cart, reviewing a particular product, or completing a purchase. There is always a recommended list of items that align with your past purchase and overall browsing patterns.
Recommendation systems can offer personalized experiences to customers by providing relevant recommendations on various topics. They also help businesses increase customer engagement and loyalty by recommending related items and services.
Why use Recommendation Systems?
An essential component of recommendation engine algorithms is filtering based on different aspects. The recommender function gathers information about the user and predicts the most relevant product. For example, they predict user ratings and preferences based on recurring actions.
Recommendation system models are crucial in helping us have a hassle-free and seamless user experience. It also helps expose more inventory or content that we might not discover otherwise amidst the enormous volumes of data. There are many uses for recommendation engines:
Personalized content: Improves the on-site experience by creating dynamic recommendations for a diverse audience.
Better search experience: Categorizes products based on their features.
Increased sales: Recommends products to customers based on their purchase history, allowing them to make more informed decisions.
Re-engagement strategies: Helps bring users back by suggesting relevant items or services they may be interested in.
Cross-selling and up-selling opportunities: Identifies complementary items that customers may have yet to consider or be aware of.
Collecting valuable customer data: Generates useful insights into user behavior and preferences.
Optimizing marketing campaigns: Analyzes customer data to refine targeted promotions and campaigns to drive higher conversion rates.
Product recommendations on online shopping apps, social media news feeds, and Google ads are examples of recommendation systems in our day-to-day life.
Engineering Behind Recommendation Systems
Recommender Systems (RSs) are advanced software tools and techniques that recommend products to a user that they find useful. The recommendations involve different decision-making processes, like things to buy, music to listen to, or online news to read.
The four clearly defined, logical steps of a recommendation system are:
1. Data Collection
The first and most crucial stage in developing a recommendation engine is obtaining the appropriate data for each user. There are two kinds of data:
Explicit data is information gathered from user inputs like product ratings, reviews, likes, and dislikes.
Implicit data comprises details obtained from user behaviors such as web searches, clicks, cart actions, search logs, and order histories
Since each user’s data profile will change over time to become more distinctive, it is also essential to gather consumer characteristic information like
Demographics (age, gender)
User demographics refer to the various characteristics of individuals, such as age, gender, income, education level, location, and cultural background. In recommendation systems, user demographics can be used to personalize recommendations and improve user experience. In addition, it encourages engagement and loyalty to drive more business.
Psychographics (interests, value)
Psychometrics is the scientific study of human mental processes and behavior and can be used to develop more accurate user recommendations. By tailoring recommendations based on personality, interests, and behavior, companies can increase users’ likelihood of engaging with products or services.
Feature Information (genre, object type)
Feature information such as genre, object type, and keywords can also be used to personalize recommendations. By leveraging these characteristics, companies can create more targeted and relevant content for their users. For example, an online clothing retailer could use feature information to suggest items based on a user’s style preferences or the season.
Contextual Information (time of day, location)
Contextual information such as time of day, weather conditions, and location can be used to determine what content is most appropriate for each individual at any given moment. For instance, if a user is located in a city that experiences hot summers and cold winters may be prompted with seasonal items or activities suitable for the local climate.
2. Data Storage
Data storage is essential for any business as it allows them to store and access customer information. By monitoring user data, a business can gain insights into its target audience, including purchasing habits and preferences.
There needs to be enough scalable storage as you gather more data. Depending on the data you gather, you have various storage options, including NoSQL, a regular SQL database, MongoDB, and AWS.
Considerations for selecting the best storage alternatives for Big Data include portability, integration, data storage space, and ease of implementation.
3. Data Analysis
Data analysis is required to provide prompt recommendations. Therefore, the data must be probed and examined. Data analysis techniques that are most frequently used include:
Real-time analysis involves the system using tools to assess and analyze events as they are happening. Then, when we wish to make prompt recommendations, this strategy is typically used.
Batch analysis is a method for routinely processing and evaluating data. When we wish to send emails with recommendations, this strategy is typically used.
A near-real-time analysis is practical when you do not immediately require the data. It allows you to process and analyze the data in minutes rather than seconds. The main application of the strategy is when we offer suggestions to users while they are still on the website.
4. Data Filtering
The data must be appropriately filtered after analysis to produce insightful recommendations. During filtration, Big Data is subjected to various matrices, mathematical algorithms, and rules for the best suggestion. The recommendations that result from this filtering depend on the algorithm you choose.
Recommendation engines rely on understanding relationships. Relationships give recommender systems a wealth of information and a thorough knowledge of their clients. Three different kinds typically exist:
User to product: When specific users have a preference or affinity for particular goods they need, there is a user-product relationship User to user: Users with comparable preferences for a given good or service form user-user relationships Product to user: Product-product relationships develop when two products are similar, whether through description or appearance. These are then shared with an interested user
How do Recommendation Engines Gather Data?
Recommendation engines gather data based on the following:
User Behavior: Information regarding user interaction with a product can be gleaned from user behavior data. Rating clicks and purchase history can all be used to gather it.
User Demographics: Users’ data, such as their age, education, income, and location, are tied to their demographic data.
Product Attributes: Information about a product’s attributes includes information on the product itself, such as the genre of a book, the movie actors, or the cuisine of a dish.
Challenges and Advantages of Using Recommendation Systems
Challenges:
Implementing a recommendation system is rather complicated. The key challenges are:
Data Collection and Integration: The first challenge is collecting data from various sources, such as customer profiles, product catalogs, purchase histories, social media accounts, etc., and then integrating the data into a unified format for the recommendation engine. The process can be time-consuming and labor-intensive.
Algorithms: Choosing the right algorithms for your recommendation engine is also challenging since you need to build an algorithm that understands user preferences and makes accurate predictions based on those preferences. Additionally, new algorithms must be implemented as customer preferences change over time.
Accuracy: Once you have chosen the best algorithms for your purposes, it can still be difficult to ensure accuracy in the system’s output. This becomes even more difficult as the amount of data increases.
Scalability: As your business grows, so does the volume of data, and it can be difficult to ensure that your recommendation engine can handle these large volumes of data without a performance decrease.
Data Storage: Storing all of the necessary data requires considerable space and resources. Additionally, the data must be kept up-to-date to ensure the system’s output accuracy.
Privacy and Security: Customers may be concerned about privacy when they share their personal information with a recommendation engine. It is important to have a strong security measure that protects customer data and prevents unauthorized access or use for malicious purposes.
Despite the steep implementation curve, companies continue to rely heavily on recommendation systems. This is because user recommendations have a very strong influence on user purchase decisions. The TWO major advantages of using a recommendation system will always outweigh all the challenges.
Advantages:
Deliver Personalized and Relevant Content
Recommendation systems enable brands to customize the customer experience by identifying and suggesting items that may pique the customer’s interest. Additionally, the recommendation engine allows you to analyze the customer’s previous browsing history and current website usage. With the help of these real-time data, brands can deliver the most relevant product recommendation.
For instance, Instagram often suggests pages or brands you might want to start following based on your preferences. Similarly, based on the kind of reels you watch, Instagram keeps suggesting new ones. This keeps the addiction on as you continue scrolling through new recommendations you can’t deny liking. It boosts engagement via personalized content recommendations.
Increase Sales and Average Order Value
You can significantly enhance your revenue and average order value (AOV) by bringing in more website visitors by adding recommended products.
A recommendation system enables users to drive more conversions and deliver a high level of relevance that will boost sales. It exposes the customers to more products they are more likely to purchase.
You can add multiple data sets to your recommendation algorithm using a recommendation engine. The data sets will help provide recommendations in real time.
For instance, when looking at a product on Amazon, you will always find two sections back-to-back – customers who viewed this have also viewed it, and customers who bought this also bought. These two sections will push you to consider different products that go well with the product you are trying to buy.
Let’s say you are looking for a channel file on Amazon and have zeroed in on one of the options. As you scroll down to read more about its features and look at a comparative table (which Amazon always adds to propel better decision-making, ideally for the more priced product), you will come across two sections like this:
Now, offline stores will call this push selling. This is exactly what Amazon is doing here. Recommending similar or related products often triggers human brains to explore those products and probably buy or add them to the cart. Towards the end of the purchase cycle, the order value automatically goes up from what it was when the cycle started.
Filtering Algorithms Marketers Must Understand
To put a recommendation engine into proper functioning, marketers must also understand the algorithms that make up this system. Three major types of filtering algorithms are at play: Collaborative filtering content-based filtering Hybrid System
Collaborative Filtering
Collaborative filtering gathers information regarding customers’ activities or preferences to predict user interest. It is usually acknowledged based on their similarities with other users who might have the same preference. Similar customers are found using customer characteristics like demographics and psychographics.
E-commerce platforms like Amazon and Myntra are pioneers in effectively implementing collaborative filtering.
It works by gathering preferences from each user to determine a Customer X Product Matrix.
It is also known as the matrix factorization method and can be used to determine how similar user evaluations or interactions are.
For example, according to the straightforward user-item matrix, Ted and Carol bought products B and C. Bob also searched for product B. Matrix factorization determines that users who enjoyed B also like C, making C a potential recommendation for Bob.
Collaborative filtering is divided as follows:
User-item collaborative filtering
Like-minded customers are spotted based on similar rating patterns. It is a method for recommending products based on ratings from other users.
Item-item collaborative filtering
Similarities between multiple items are calculated. A recommendation approach that looks for comparable products based on the things consumers have already shown interest in or interact with.
Content-based Filtering
Predictions made by content-based engines are based on end-user interest in a particular product. The engine uses metadata to find and suggest related content items once a user interacts with a piece of content.
You can spot this recommender system on news websites with prompts like “You may also be interested in reading” or “You may like.”
For instance, on Medium, you will always find recommendations for articles similar to the ones you are reading or have read.
The recommendation engine algorithms filter content based on the following:
User ratings: User ratings are of two types: Explicit and Implicit. User profiles and star ratings are common sources of explicit data for recommendation systems (difficult to achieve). Implicit data is based on users’ engagement with the item. These are simple to obtain, including purchases, clicks, and views.
Product similarity: The most effective method for recommending products based on how much a customer would like a certain item is product similarity. Users may be shown comparable products if they browse or look for a specific item. Here’s how Amazon does it.
User similarity: It is a particular kind of algorithm for recommendation systems that suggest products based on product resemblances. Using data from previous user-product interactions, the algorithm generates suggestions. It assumes that individuals with similar interests will favor related goods. This is how Myntra does it:
In Conclusion:
Note: The debate on privacy versus personalization has been hot since the recommendation systems rise. While such technologies have enabled organizations to provide tailor-made customer experiences through big data analytics, there is an inherent tension between these two concepts.
Companies must collect and store large amounts of data to generate personalized customer recommendations. Reports show that Big Data analytics has helped them increase revenue by 30%.
On the other hand, companies must ensure that all collected data is securely stored and not misused. Survey results show 97% of consumers are concerned about their data being misused by companies and the government.
Ultimately, striking a balance between privacy and personalization should be the primary goal to ensure that customer data remains secure while providing an enjoyable customer experience.
With this in mind, businesses can leverage big data-powered recommendation engines to offer a customized experience that will keep their customers returning for more.
Psychology is the fascinating study of human behavior. It holds incredible potential for eCommerce seeking to boost their sales and thrive online.
By simply understanding the psychology behind consumer decision-making, ecommerce can unleash a powerful arsenal of techniques to drive conversions and cultivate customer loyalty.
This article delves into 14 proven psychological tricks for eCommerce sales and strategies.
From leveraging cognitive biases to mastering the art of persuasion, these tactics are designed to resonate with your target audience and empower them to make purchase decisions confidently.
So, fasten your seatbelts as we embark on the most critical journey of growing an eCommerce.
1. Price anchoring
Price anchoring is a common psychological trick influencing people’s perception of a product’s value. It is a trick that can help you establish a base and a discounted price to showcase the offer customers are getting.
And we see examples of this trick all the time.
It presents the product as expensive at first and then discounts it.
Because customers know the base price, the lower price is always perceived as a good deal.
Williams Sonoma, a home furnishings retailer, is known for using a price anchoring trick. By listing original high prices next to discounted prices, Williams Sonoma makes the discounted prices seem more attractive.
Price anchoring can be a very effective way to increase sales.
However, it is essential to use this trick carefully. If you anchor people with a price that is too high—unreasonable pricing to keep it short—they might not even be willing to buy your product at any cost.
2. Scarcity principle
The scarcity principle is another common eCommerce psychological trick to influence purchasing decisions.
This trick works by showcasing a product’s scarcity and making it more desirable. This trick is used in various ways, so let’s go through them.
One way is to limit the availability of a product. A typical example of this is “limited edition” products.
While most brands can easily replicate the production of the product, they only sell/create a limited number of products. This exclusivity creates lower supply, high demand, and hence high pricing.
Another way to create a sense of scarcity is to make people feel like they are competing for a product.
We most commonly see it on Amazon. The eCommerce giant often uses the scarcity principle by displaying messages like “Only 3 items left in stock“. This surely creates a sense of urgency and encourages immediate purchases.
The scarcity principle is a very effective way to increase sales. But it’s essential to be aware that excessive use of this trick might immunize your customers of it over a long time.
3. High manufacture cost portrayal and presentation
High manufacturing cost portrayal is a psychological trick that can inflate the cost of products and increase the perceived value.
This trick works by making people think that a product is more expensive than it is. Prominent brands use ecommerce photo editing services to make their products look more expensive and luxurious.
This includes clean background, product alignment, color consistency, lint removal, spot removal, retouching, and more.
Next is the line is the branding and the story behind the brand. Tiffany & Co is a luxury jewelry brand that emphasizes the craftsmanship and high-quality materials used in their products.
Through marketing campaigns, high-quality presentation, and creating the perception of exclusivity, Tiffany & Co justify its luxury prices and present itself as a premium brand.
4. Fear of missing out (FOMO)
FOMO, or Fear of missing out, is among the most famous psychological phenomena—thanks to social media and Genz lingo.
FOMO is the Fear that one might miss out on something others have. This could be a trend, a product, an experience, and everything a social group is involved in.
This Fear can be compelling and lead people to buy products they don’t need.
There are a few different ways to create FOMO. One way is to make people feel like they are missing out on a trend.
Supreme is one of the most popular brands that use FOMO as their bait for sale. While the products range from Tees to crossbars and brick—Supreme follows a drop strategy.
They release limited products for a limited time, and once the products are sold out—they are never restocked.
This scarcity creates a rush. People who have it flaunt it widely on Social media and on the street.
This creates a viral effect where hence people in the target group feel like they are missing out. Hence the next drop is even more successful and viral.
5. Social validation
Social validation is a psychological phenomenon embedded within the human psyche. Being accepted by the tribe and valued by the tribe is highly valuable to each individual.
And this factor can be used to influence purchasing decisions of the customers. This trick makes people feel like they are making the right decision by buying what others already trust.
Reviews, recommendations, and user-generated content are some common social validation signals.
There are several ways to create social validation for an eCommerce brand. And the most common method is through positive reviews of your product.
Another way is to show people that other people are buying your product. Motivating customers to use your product and creating social media content can create social validation for your customers.
Travel website TripAdvisor uses social validation by prominently displaying user reviews and ratings for their travel experience, helping new potential customers make informed decisions. And this is based on the experiences of others.
6. Loss aversion
Unlike other eCommerce psychological tricks that tell a customer what to do, loss aversion influences what not to do or, more commonly, what a customer can avoid.
Loss aversion is a psychological bias that makes people more likely to avoid losses than achieve gains. A typical example of a Loss aversion trick in practice is using a Countdown timer or flash sales.
If someone is participating in a flash sale or an offer with a timer—they are aware of the risk—the risk of losing the opportunity to get a product at the best price.
And this has proven to be highly effective as well. SaleCycle shared that adding a countdown can increase the click-through rate by 30% and conversion by 200%.
7. Micropayments
Micropayments are the small payments that customers can make over a more extended time after buying a product. The most common term for the same is Buy Now Pay Later schemes.
These are like financial aids that allow customers to buy a product now and pay for the product in small installments in upcoming weeks.
Result? Increase in sales. Top fashion brands like ASOS, H&M, & Nike saw an average of 15% increase in their sales. Additionally, these modes of payment reduced cart abandonment by 30%.
And all this is due to the lower barrier and stakes on the line. Rather than making a $100 purchase, people can opt for a $25 weekly payment and quickly get the product.
Micropayments are effective because they make it easy for people to make small purchases. This is important because people are more likely to purchase if they don’t have to think about it too much.
8. Bundling
Bundling is an eCommerce and psychological marketing trick mainly used to increase sales and cart value. Here, rather than telling customers to buy more/different types of products together as a package.
Bundling is practical because it seems like you are getting a good deal. Firstly, giving a bulk discount is easier for eCommerce. Order handling becomes much easier, and all sales KPIs are positively impacted.
For customers, it gives them the best deal, helps them pick the best combination of products, and saves time on shipping costs.
Dollar Shave Club uses one of the best examples of bundling psychological tricks.
It is a subscription service offering razors, shaving cream, and other shaving products. They have increased the average order value and kept customers subscribed for a more extended time.
On the other hand, customers receive their self-care package every month without friction to place an order each month.
9. Decoy effect
The Decoy effect is a gray psychological trick that must be used wisely. To use this strategy, eCommerce presents multiple options for the customers to choose from.
And while it might seem like a customer has multiple options, eCommerce puts a decoy that influences the customer’s buying decision.
Let’s understand this better with an example here. The Economist is a popular magazine that is available both online and offline. They experimented with three subscription options:
$59 for Online only
$125 for Print only
$125 for Print & Online
Adding the second option of Print only is an excellent example of the decoy effect. Why would someone get only one when they can get both at the price of both online and offline subscriptions? Right?
Well, here’s something we must note. We have already neglected the first while discussing the best deal between the second and third options.
That’s how a decoy influences the buying decision. While many customers would go for the Print & Online option—because of the decoy—they might simply ignore the first one.
10. The Gruen Transfer
The Gruen Transfer is a psychological phenomenon in that transfers create a sense of excitement and urgency in shoppers. As you might know, the most common name of this phenomenon is the IKEA effect.
IKEA is a home furnishing store chain where people can buy disassembled, DIY furniture rather than ready-made furniture at the best price.
The Gruen transfer comes into play when customers build the furniture by themselves. They are more involved with the product and brand and are hooked on the experience.
This often reflects in word-of-mouth marketing and returning customers, which helps a brand grow.
11. Periodic Equivalent Pricing
Periodic Equivalent Pricing is a psychological pricing trick for eCommerce with the subscription. This trick suggests showcasing the cost per unit rather than telling customers about the total subscription price.
Unlike regular online retailing, subscription retail has to convince customers to sign up for a monthly payout. And while the overall value of the subscription might be the same, breaking it down to each unit makes it appear more accessible to a broader audience.
Let’s understand this with a suitable example of Blue Apron, a meal kit delivery service that delivers pre-portioned ingredients and recipes to customers’ doorsteps.
A customer can choose the number of servings and meals per week. Look at their product page to understand how Periodic Equivalent Pricing is used.
Instead of presenting the total price of the plan, Blue Apron tells us the cost per meal we are paying. It makes a convincing case for many and helps eCommerce boost its subscription rate.
12. Parasite placements
Just like the Decoy effect we discussed, Parasite placement is a psychological trick that relies on the placement of the product. But here’s a difference.
While using the Decoy effect, eCommerce puts up an offer that isn’t worth it since customers are getting the same value at a lower price.
In Parasite placement, on the other hand, eCommerce places its high-end products near affordable options.
This is to make their high-end product look like a better deal or premium set of products. Let’s take the example of Apple. The tech giant often positions its higher-priced products next to lower-priced alternatives in retail stores.
While for some brands, this might put them at a disadvantage, for Apple, it makes their products appear more premium and desirable by comparison.
13. Simple pricing strategy
A simple pricing strategy is a psychological trick at almost every retail store. Instead of pricing as a whole, eCommerce reduces the pricing just a little.
Ecommerce will price their products at $19.99 instead of $20. The change is tiny and might barely make a difference for a customer, but in terms of conversion, it draws attention.
Entrepreneur.com has shared pricing a product just a penny or two below the dollar can increase conversion by 21-34%.
For a penny less, this is a great bargain for any eCommerce.
14. Baader-Meinhof phenomenon
The Baader-Meinhof phenomenon, also known as the Frequency illusion, is a psychological phenomenon that can be used to increase sales. This phenomenon makes people think they see something more often than they are.
Brands like Nike effectively utilize the Frequency illusion by collaborating with athletes, celebrities, and influencers and launching limited-edition collections.
This creates a sense of ubiquity, making their products more noticeable and driving consumer interest.
Retailers can use this phenomenon to increase sales. One can use this phenomenon and create social media campaigns and specific product placements to gain desirable attention.
Conclusion
These are just a few of the many psychological tricks that can be used to increase ecommerce sales. By understanding these tricks, ecommerce businesses can use them to increase sales.
However, it is essential to use these tricks carefully. If you use these tricks too often, or if you use them in an unethical way, you could alienate your customers.
Testing different psychological tricks to see what works best for your business is also essential. What works for one business might not work for another company.
By understanding and using psychological tricks, ecommerce businesses can increase their sales and grow their businesses.
Are you trying to find the best WooCommerce plugins to increase your sales?
WooCommerce is a popular platform for building small to large-scale online businesses with the aid of WordPress plugins. But you need to choose the right plugin to maximize your business potential. There are a lot of plugins available to offer the greatest customer experience and boost conversion in your store.
We have shortlisted some of the top plugins to skyrocket sales in your WooCommerce store.
Let’s get started.
1. WooCommerce Product Recommendations
Product Recommendations for WooCommerce is a smart plugin to create multiple product recommendation campaigns on your website. You can generate up-sell, cross-sell, top-rated, frequently bought together, or create custom recommendations in your WooCommerce store. You can build these campaigns strategically and increase sales in your online store.
This plugin comes with built-in recommendation templates that aid you in creating your campaign instantly. You can choose different conditions to display your products. Consider, for the out-of-stock product, you can showcase similar products that customers are interested in. This will increase the chances of purchase instead of leaving the cart empty.
Highlights:
Create custom product recommendations on your site.
Customize the slider that suits your store layout.
Display product recommendations on different pages.
Run multiple recommendation campaigns at a time.
Price:
The premium plugin price starts from $89/year.
2. Live sales notification for WooCommerce
Live sales notification for WooCommerce lets you showcase the customer’s purchase notification to visitors. This will create fear of missing out among the visitors and encourage them to purchase more products from your online store. The visitor will gain confidence in buying products from your site.
The plugin will let you display unlimited product purchase notifications in your store. If your store doesn’t have many products to feature, then you can go for virtual orders notification. This notification can be generated from visitors’ recently viewed products. You can also create custom messages for this notification.
Highlights:
Show original orders placed as live sales notifications.
Features unlimited product purchase notifications.
Use shortcodes to customize the messages.
Set the how much old order to extract for notifications.
Price:
The premium plugin price starts from
3. CartFlows
CartFlows plugin simplifies the checkout process in the WooCommerce store. This plugin helps customers to complete the purchase without any distractions. It allows you to build a modern checkout experience that outshines the default WooCommerce checkout. You can easily optimize the checkout funnel with this plugin.
The plugin enables you to build a multi-step funnel with a single click or build a custom funnel based on your store requirements. You can use real-time data to manage the funnel and get insight to improve the funnel to grow your revenue. With this plugin, you can set a strategy to keep your customer engaged.
Highlights:
Edit, remove, or reorder fields on the checkout page.
Ready-to-use checkout templates are available.
Control the coupon box to display or not.
Enable autocomplete Google address.
Price:
The premium plugin price starts from $79/year
4. Smart Coupons for WooCommerce
WooCommerce Smart Coupons is an advanced coupon generator plugin that allows store owners to create numerous discounts, like BOGO, conditional-based coupons, store credit, free shipping, storewide discounts, bulk discounts, cart abandonment coupons, and more. You can configure the auto-apply option for those coupons.
If your store has an abundance of coupons, there’s no need to worry. This plugin makes it easy to manage them all in one convenient location and sort them into different categories. You can easily manage your discount campaign in your WooCommerce store. You can also view the existing, used, or expired coupons on the “My Coupon” page under the My Account section in your store.
Highlights:
Email coupons based on different order statuses.
Personalize the coupon layout that matches your site.
Generate bulk coupons and export them as CSV with ease.
Create a count-down coupon banner on your WooCommerce store.
Price:
The premium plugin price starts from $69/year.
5. TI WooCommerce Wishlist
TI WooCommerce Wishlist is the best plugin to create and manage the wishlist page on your website. This plugin allows customers to add their desired products to the wishlist with a click. When the customer revisits your online store, they can purchase the desired products directly from the wishlist in the WooCommerce store.
This plugin lets you create a separate wishlist page on the website. You can view the bundle of wishful products in a place. You can select multiple products from the wishlist and add them to the cart right away. The plugin also enables customers to share their wishlists. This will attract more new customers & increase website visibility.
Highlights:
Determine the placement of add to wishlist button.
Update the wishlist to edit the number of products.
Purchase directly from the wishlist page to the cart.
Drag and drop to shift products on the wishlist page.
Price:
The premium plugin price starts from $79/year.
6. Sumo
Sumo plugin enables you to create timely popups across your WooCommerce website. The plugin lets you build a beautiful popup for your visitors that convinces them to subscribe to your website. You can easily follow up with subscribers and convert them into potential customers. You can track the ROI and sales that you make throughout the campaign.
The plugin allows you to create an automated drip campaign for subscribers. It will help you grow your email list and increase conversion with ease. This plugin has a perfect solution for website visibility; it will let you add a share button on your site. It allows visitors to share any content or products on social media.
Highlights:
Create highly converting opt-in forms for visitors.
Add social media sharing button on your site effortlessly.
Build an automated drip campaign to follow up with guest users.
Make unique discounts for popups to increase average order value.
Price:
The premium plugin price starts from $39/month.
7. Tidio
Tidio is the best plugin to configure live chat on your WooCommerce website. It provides an exceptional customer experience solution and converts visitors into valuable customers. The plugin comes with a pre-built chatbot that’s ready to launch on your site with a click. With this plugin, you can offer 24/7 support to solve visitors’ queries.
This live chat option enables you to troubleshoot any issues for visitors. A simple ticketing system to resolve and manage any request from guest users or customers. The plugin also lets you set a route to the point of reaching the right department. It helps to divert chat to the respective person and solves any queries instantly.
Highlights:
Check order history or recommend products directly in the chat.
Compatible with third-party plugins like Mailchimp, Omnisend & more.
Solve any query immediately with the pre-build chatbot.
Enable automated or talk to your visitor on the live chat.
Price:
The premium plugin price starts from $29/month (Get the chatbot & communicator separately at $19/month).
8. WebToffee WooCommerce Gift Cards
WooCommerce Gift Cards plugin allows you to create unlimited gift cards for your online store. You can use the multiple existing templates or use the custom template to create a gift card. The plugin lets you determine what to display on the gift card. You can enable users to schedule the gift card to send via email.
You can generate gift cards based on the order status. This plugin allows the customer to purchase a gift card using store credit. You can enable the option to use gift cards with other coupons from your store. You can also set an expiration period for the gift card. The plugin lets the customer email or print gift cards from your store.
Highlights:
20+ pre-defined gift card templates are available.
Manage all user credits in a single dashboard.
Decide when to calculate the tax for store credit.
Edit the gift card amount as required.
Price:
The premium plugin price starts from $99/year.
9. Popup box
Popup box plugin is powerful for creating any type of popup on your WooCommerce website. The plugin comes with an amazing popup design to create conventional popups on your site. It allows you to build 15 types of popups. You can use those popups strategically to increase your email list, average order value, and sales.
The plugin lets you trigger the popup based on the click or page load in your WooCommerce store. You can choose a specific page to display a popup for your visitors. You can customize the popup’s title, descriptions, layout size, and more. The plugin also lets you determine the autoclose timing of popups on your WooCommerce site.
Highlights:
Create a custom popup type using the shortcode or HTML.
Build a responsive popup design on your website.
Display popup on the specific post or page.
Decide the session time-out for the popup.
Price:
The premium plugin starts from $39 (one-time payment).
10. Pretty Links
Pretty Links is a great plugin to generate a plethora of unique links for your website. The plugin helps you to optimize the link, track, manage, and share URLs from your website. This plugin is handy when it comes to creating an affiliate program in your WooCommerce store. You can create custom links with random characters or make your own slug.
The plugin can turn your long-form URL into a short one in seconds. The plugin supports and creates 301, 302, and 307 redirect links. You can make a one-click shareable link with this plugin. The plugin also lets you track the performance of each link, and you can get a report filter by specific clicked links, date ranges, and more.
Highlights:
Fix broken links with multiple redirection links easily.
Track the number of clicks per day and optimize your links.
Generate random characters for slug or create your own slug.
Configure autopilot mode to share your content on social media.
Price:
The premium plugin price starts from $99.50/year.
11. WooCommerce Best Sellers
WooCommerce Best Sellers is the best plugin to promote your products by highlighting the top items in your eCommerce store. The plugin lets you create a slider to display the products with custom badges. You can showcase the slider on different pages, like the category page, shop page, and product page. You can determine strategic placement and elevate your sales.
The plugin comes with a separate best-seller page where you can view all created sliders in a place. For selecting products for the slider, you can display products based on the sales done. You can set a limit to feature the number of products on these sliders. The plugin lets you customize the appearance of the product slider.
Highlights:
Highlights top-selling products based on categories.
Supports both variable and simple products.
Add best seller or custom label to the slider.
Swiper and bxslider are available.
Price:
The premium plugin price starts from $49/year.
12. FunnelKit
Funnelkit is the best automation marketing plugin that allows you to create multiple email campaigns for your WooCommerce store. This plugin helps to visualize the workflow of your marketing funnel. You can use the drag-and-drop builder to create beautiful emails and engage with your leads via campaigns. It simplifies the marketing automation process.
Using this plugin, you can create multiple campaigns for cart abandonment, post-purchase follow-up sequences, customer win-back emails, and much more. You can customize these emails that resonate with your brand. You can also track the email click-through rate and optimize your campaign to increase conversion.
Highlights:
Add delays to trigger your email sequence for customers.
Multiple pre-built email marketing campaigns are available.
Create a segmented automated email campaign for cart abandonment.
Set auto-end for marketing campaign when a customer completes the purchase.
Price:
The premium plugin price starts from $99.50/year.
13. Product Feed PRO for WooCommerce
Product Feed PRO for WooCommerce enables you to create product feeds for various marketing channels, like Facebook, Google Shopping, Pricerunner, Remarketing, and more. There are 100+ pre-defined templates to create product feeds for multiple search engines, comparison shopping engines, and marketplaces.
With this plugin, you can create custom product feeds for your online store. You can use unlimited products for the feed. You can use advanced filters to sort products based on certain conditions. It will help you to display effective feeds or run ads for the right products to customers. You can create a campaign based on highly sold products and boost your profits.
Highlights:
Create unlimited numbers of product feeds.
Determine attributes to insert or exclude from feeds.
Add custom fields for your product feeds.
Configure Google Analytics UTM tracking codes for feeds.
Price:
The premium plugin price starts from $96/year (ex VAT).
Conclusion
To build a profitable online store, you can use multiple plugins to create additional features to sell your products. Keep in mind that you should create a campaign that doesn’t impact the quality of your WooCommerce site. This will help you to earn a long-run loyal customer base for your store.
In this post, we have compiled a list of the best WooCommerce plugins that are preferred by most store owners. These plugins will help you launch high-converting campaigns and upscale your sales of the online store.
Social media has come a long way since its inception, and it’s not slowing down anytime soon. In the year 2022, the number of active social media users increased by 190 million, indicating 4.2% annual growth, with 6 new users joining every second.
With new platforms and features popping up all the time, it can be hard to keep up. But it’s essential to stay informed about the latest trends and platforms, as they can provide new opportunities for businesses and individuals to connect with their audiences and build their online presence.
In this blog post, we’ll look at some of the most promising social media platforms and trends that are gaining popularity and how they can be leveraged to grow your business.
So, let’s dive in and explore the future of social media together.
5 Social Media Platforms Marketers Should Watch in 2023
As we all know, social media platforms are constantly changing and evolving. What was popular last year may not be popular this year. That’s why it’s important to always be on the lookout for new and upcoming platforms that could potentially take off.
This short-form video platform has taken the world by storm, with users spending an average of 52 minutes per day on the app. This is significantly higher than other social media platforms such as Facebook (24 minutes) and Instagram (32 minutes).
The platform is known for its short-form, user-generated videos and its algorithm-driven feed. TikTok is a great way to reach a younger demographic and build brand awareness through creative and engaging content.
Instagram Reels
Since launching in July 2020, Instagram Reels has been a hit with users and creators alike. Not only is Reels a great way to engage with your audience, but it’s also a powerful marketing tool. Reels are a great way to connect with your followers personally and show them the real you.
Reels offer a variety of content types, from quick fixes like tips and tricks videos to longer-form content like behind-the-scenes footage and interviews. There’s something for everyone on Reels, making it the perfect platform for both personal and professional use.
Clubhouses
Clubhouse is a newer social media platform that is based on audio-only conversations. The platform has grown in popularity in recent months, and it is a great way for brands to connect with their audience in a more intimate and authentic way. Clubhouse is still in its early stages, but it has the potential to become a dominant tool for marketers in the coming year.
Clubhouses allow users to join ‘rooms’ on topics they’re interested in, similar to how one would join a chatroom on other platforms. However, what sets Clubhouses apart is that these rooms are populated by experts on the topic at hand. This makes it a great place to go if you’re looking for a thoughtful and insightful discussion on a variety of topics.
Twitch
Twitch is a live streaming platform primarily used for gaming content, but it has also been used for other types of content, such as music and art. Twitch has a large and engaged audience, and it is a great way for brands to reach gamers and other niche audiences in real-time.
Additionally, Twitch has also added new features like watch parties, which further enhance the social experience of the platform.
Pinterest
Pinterest is a visual discovery platform often used for inspiration and planning. In 2021, the platform reported 459 million monthly active users.
The platform has a large and engaged audience, and it is a great way for brands to showcase their products and services in a visually appealing way. Pinterest is also a great tool for driving traffic to a brand’s website.
6 Social Media Trends for 2023 and Beyond
Here are the top social media trends for 2023 and beyond that are sure to give your brand a leg up over the competition:
User-Generated Content Tops The Chart
Users are becoming more savvy about what they share online and are increasingly likely to trust the content that comes from their peers.
UGC is often seen as more authentic and trustworthy than content created by brands. As a result, it can be highly effective in building brand loyalty and trust. UGC can also be repurposed and shared by brands to increase their reach and engagement.
For instance, GoPro, the action camera brand, is well-known for its user-generated content campaigns, which feature stunning photos and videos captured by customers using GoPro cameras.
The brand regularly shares this content on its social media channels and website, which helps to showcase the capabilities of its products and inspire others to capture their own adventures.
Social media platforms are also likely to continue to invest in tools and features that make it easier for brands to find, curate, and share UGC.
Youtube Shorts Is On Rise
Youtube Shorts is a new feature that allows users to create and share short, vertical videos on YouTube. YouTube Shorts crossed 30 billion views per day in 2022. The feature is similar to TikTok, and it is designed to make it easy for users to create and share videos on the platform without needing expensive equipment or editing software.
This feature will likely appeal to a wide range of users, from individuals and influencers to brands and publishers. It is expected to be a great way for businesses and creators to create engaging and shareable content that can help to increase reach and engagement.
Artificial Intelligence Is Ruling
AI is drastically changing how we interact with technology, and it will only become more prevalent in the years to come. Social media platforms are using AI to provide personalized recommendations, improve the overall user experience, and automate various tasks. Some of the ways that AI is being used in social media include the following:
Content curation and personalization: AI algorithms can be used to curate content based on a user’s preferences and behavior and can also be used to personalize the news feed, search results, and other content on a platform.
Image and video recognition: AI can be used to automatically tag and organize images and videos, as well as identify and remove inappropriate content.
Chatbots and virtual assistants: Social media platforms are increasingly using chatbots and virtual assistants such as Microsoft’s Cortana and Amazon’s Alexa powered by AI to provide customer support and answer user questions.
Sentiment analysis: AI can be used to analyze social media posts and comments to identify patterns in user sentiment, which can be used to inform marketing and customer service strategies.
Instagram Creators Are Everywhere
Instagram creators can be found everywhere, from niche communities to mainstream culture. They create a wide range of content, from fashion, beauty, food, travel, and lifestyle to education, entertainment, and activism.
Many creators like Jameela Jamil are also using Instagram for social causes and advocacy. They are using their reach and influence to raise awareness and advocate for issues they care about.
Jameela Jamil, an actress and advocate for body positivity, uses her Instagram account to promote self-acceptance and to challenge societal beauty standards. She also advocates for mental health awareness and has been vocal about her own experiences with anxiety and depression.
Instagram creators are also likely to use a variety of monetization strategies to monetize their content and audience. This can include sponsored posts, affiliate marketing, merchandise sales, and more.
Go Shopping on Social Media
54% of people on social media use it to research products. Social media platforms are increasingly adding e-commerce features, such as shoppable posts and in-app checkout, making it easier for users to purchase products directly from social media. This allows brands and businesses to drive sales and revenue directly from their social media presence.
Glossier, the skincare and cosmetics brand, has effectively used Instagram to promote its products and allow users to purchase directly from their social media feed. They use shoppable posts and Instagram stories to showcase their latest collections and drive sales.
Some of the ways that social commerce is being used on social media include:
Shoppable posts: Brands and businesses can now tag products in their posts and stories, allowing users to purchase products directly from their social media feed.
Live streaming: Social media platforms like Instagram and Facebook Live have been used by brands and businesses to showcase their products and take orders in real time.
Social marketplaces: Social media platforms like Instagram, Facebook, and TikTok have started to develop their own marketplaces where users can purchase products directly from the platform.
Virtual Reality and Augmented Reality: Social media platforms are starting to incorporate VR and AR technology to allow users to virtually try on clothes or see how furniture would look in their homes before making a purchase.
Social media platforms, such as Facebook, Twitter, Instagram and TikTok, are being used increasingly as a primary means of customer support. Businesses are expected to use social media to provide customer service to 70% of customers so that they can receive support in real time, 24/7.
Hootsuite is a perfect example of a brand that uses social media as a primary channel for offering customer support to its users.
Hootsuite, the social media management platform, has an active presence on Twitter and uses the platform to provide real-time customer support. They have a dedicated customer support handle (@Hootsuite_Help) and are known for their quick response time and detailed assistance.
Final Words
Social media is constantly evolving, and new platforms and trends are always emerging. TikTok, Clubhouse, and short-form video content are some of the most exciting new platforms and trends to watch, while social e-commerce and interactive and immersive experiences are also on the rise.
As social media continues to play an increasingly important role in our daily lives, it will be interesting to see how these new platforms and trends develop in the future.
