When it comes to converting visitors and browsers into sales, there are a number of techniques recommended by the experts—optimizing the sales funnel, predicting buyer patterns—but we believe the best way to convert people is to treat them like people.
This is something that can be difficult to remember while running an online business, free from in-person interactions, we’re wired to respond emotionally and psychologically to the world around us and this is something the top industry marketers keep in mind.
Real people get frustrated with your online store and leave if it’s slow or clunky, which is why you must have your e-commerce site operating beautifully. Similarly, real people are more likely to make a purchase if you understand this…
Conversion Secrets: One Basic Human Reaction You Need to Remember
The “fear of missing out,” or FOMO, as we sometimes call it, is something that has seen a surge in recent times as social media takes over our lives. It’s not a new development; the grass has always been greener elsewhere. But when breaking news is delivered straight to our phones and Facebook updates us on every little thing in our friends’ lives, being a part of everything becomes an obsession.
A survey from MyLife.com revealed that 56% of people fear missing out on events, news and important status updates when away from social networks. This phenomenon has spread to other areas of the internet, particularly to the area of e-commerce, with online consumers afraid they’ll miss out on an important purchase.
How Urgency Affects Online Consumers
Urgency affects consumers in general, but it’s particularly powerful in the digital arena where customers have the ability to make a purchase at any time of the day from their couch. The opportunity and incentive are always there, unlike a store that is far away and closes each evening.
People make snap decisions when in a seemingly urgent situation, be it a one-time discount or limited stock, which is where impulse buys happen. The pressured moment changes the consumer’s behavior and forces them to make a quick decision on impulse.
Brands are taking advantage of FOMO, tailoring their approach to make consumers feel they’ll be left out or at a disadvantage if they don’t buy. They minimize wriggle room or time to contemplate the purchase, making customers feel they need to act immediately or miss out. Considering the mind-blowing speed of how social media works, online consumers are conditioned to act quickly so they’re not behind the times.
How Can I Use the Fear of Missing Out to Increase Conversions?
There are a number of ways to apply this psychological approach to your e-commerce marketing plan.
1. Set a deadline
The easiest way to create a sense of urgency and trigger a FOMO reaction is to set a time limit. Run a special offer, discount code or free shipping for 24 hours and watch your visitors place impulse orders.
Time constraints create terrible urgency, which tells people they need to act now or miss out on something important. Travelocity uses this method on a rolling basis, offering 24-hour timeframes on their daily deals.
2. Use the right language
On landings pages, on social media, on product pages, wherever; make sure you’re using the right words to reel customers in and cause a surge of FOMO.
See how Groupon includes the phrase ‘Limited Availability’ on the below product – not only is the language urgent, making the customer feel like they need to buy now, they even include a little clock icon to subconsciously tell the visitor that time is running out on this great deal.
3. Limit the recipients…
Whether you’re offering a free downloadable in return for email addresses or applying a discount to a product, limit the number of people who can take advantage of this special offer.
Kickstarter regularly applies this method to their projects by offering Early Bird Offers to a certain number of first investors; once this quota has been filled, the price moves up to the next tier. Everyone loves to be on the ground floor of a new product or trend, which is why this FOMO strategy works so well.
4. …or the stock
By displaying available stock numbers, you’ll encourage an impulsive reaction in people. Amazon is famous for using this to encourage conversions among visitors and with good reason.
5. Use emails to encourage FOMO
Whether you’re sending out your weekly newsletter, offering a special discount or just sending a scheduled email to remind visitors you’re still out there, be sure to take full advantage. The right subject line not only encourages people to open your mail, but it also encourages them to purchase.
The below example using a number of psychological manipulations to trigger FOMO, from the percentage you can save to the limited time.
6. Display your figures
We like to think we’re all unique and independent, but deep down we get comfort and security from being part of the crowd. Displaying impressive figures, like “100,000 customers have already snapped up this great offer” or “Our clients have seen a 147% revenue boost since signing up with us” increases the importance and value of what you’re offering.
If you don’t have impressive figures like that to brag about yet, there are other ways to use numbers to create a sense of urgency and manipulate FOMO in potential customers. Simply advertising the percentage a person will save by scooping up your deal is enough to get impulsive cogs turning.
See how Nordstrom tells visitors they can save 40% on items in their Fall sale. Not only have they imposed a deadline, they’ve also kept the products mysterious, further encouraging people to click so they’re ripe for conversion.
7. Offer a bonus
If they sign up now, they get something extra for free—who wouldn’t be tempted by that? They want your product and if they grab this opportunity they’ll get even more than they want for no extra cost. Offering a bonus or upgrade along with a product is an excellent way to increase conversions, but combining it with a sense of urgency, like a restricted timeline, makes it almost irresistible.
Argos often throws in freebies with their products, like the below deal, which not only offers a discount on a toy but also gives the buyer an extra present for the child for free.
What About You?
How are you creating urgency and the fear of missing out in your promotions? Got any stories or tips for us?
About the Author: Ravit Sasson is Marketing Director and oversees all of the marketing activities for Shoppimon – the first online service for Magento-driven e-commerce sites that helps owners find issues with their stores before shoppers do. Prior to this, Ravit worked as a Digital Marketing Manager at Microsoft and served as a Marketing Mentor for the prestigious Microsoft Accelerator program. Ravit is an MBA graduate with over 10 years of experience in marketing management, business development, and web-based projects. In her spare time, Ravit is a seasoned traveler and an avid reader of historical literature. Follow him on Twitter.
