Conversion
Limited Choice
We’re more likely to decide when the options are sensibly restricted
249 supermarket customers were invited to one of two tables, displaying either 24 jams or 6 jams. They were then asked how attractive the jams were and observed as to whether they bought one.
The results found that though customers considered the 24 jams more attractive, they were far more likely to buy when there were only 6 jams to choose from.
Reduce choice difficulty. If customers are time-poor, reduce the number of dimensions along which your products are compared. Present choices in an organised, non-random order, especially with visual layouts.
Tidy up choice relationships. Highlight one dominant option, align the attributes along which products are compared, and eliminate products from your range that overly complement each other to decrease deferral and increase purchase likelihood.
Adapt to product expertise. Who is your audience? To what extent can they weigh up the benefits of each possible choice? Experts prefer more choice and the lesser-informed crave less.
Build around intent & focus. Intent: are they buying or merely browsing? If browsing, they’re not making a decision, and are less likely to feel overloaded. Focus: a single purchase or a bundle? Bundlers want more options, but Singles want fewer.
Pricing
Anchoring
What we see first affects our judgement of everything thereafter
During decision making, anchoring occurs when individuals use an initial piece of information to make subsequent judgments.
Once an anchor is set, other judgements are made by adjusting away from that anchor, and there is a bias toward interpreting other information around the anchor.
For example, the initial price offered for a used car sets the standard for the rest of the negotiations, so that prices lower than the initial price seem more reasonable, even if they're still higher than what the car is really worth.
Studies have shown that anchoring is very difficult to avoid.
For example, in one study students were given anchors that were obviously wrong. They were asked whether Mahatma Gandhi died before or after age 9, or before or after age 140.
Clearly neither of these anchors are correct, but the two groups still guessed significantly differently (choosing an average age of 50 vs. an average age of 67).
During decision making, anchoring occurs when individuals use an initial piece of information to make subsequent judgments.
Once an anchor is set, other judgements are made by adjusting away from that anchor, and there is a bias toward interpreting other information around the anchor.
For example, the initial price offered for a used car sets the standard for the rest of the negotiations, so that prices lower than the initial price seem more reasonable, even if they're still higher than what the car is really worth.
Studies have shown that anchoring is very difficult to avoid.
For example, in one study students were given anchors that were obviously wrong. They were asked whether Mahatma Gandhi died before or after age 9, or before or after age 140.
Clearly neither of these anchors are correct, but the two groups still guessed significantly differently (choosing an average age of 50 vs. an average age of 67).
Participants were asked to quickly estimate - within 5 seconds - the answer to one of two same calculations, anchored either low or high.
Those with the low anchor guessed 512 on average, whereas the high guessed a much higher 2,250. The correct answer was 40,320.
Put the highest price first
This will make subsequent prices appear cheaper in comparison and increase sales.
For instance, on the wine list shown, instead of putting the expensive items at the foot of the list, rearrange them in descending price.
Alternatively, if higher, show your competitors' prices first before revealing your comparative value.
Don’t set your anchor price too high
If you do, the natural inclination to anchor other options against this price will diminish.
Be realistic. Keep it within an appropriate region of your other prices in order for your anchors to be effective.
Audience matters.
Anchoring effects weaken for those with higher cognitive ability (Bergman et al., 2010) and those with prior product-buying experience (Alevy et al., 2011).
Conversion
Contrast Effect
We better remember products that stand out from their surroundings
40 people were split into two groups and shown a list made up of either 10 unrelated items (a number, a syllable, a colour, a word etc.), or 9 numbers and one isolated syllable placed second in the list. After a 10-minute reading task, both groups were then asked to recall the list.
Those in the isolation group successfully recalled the syllable 70% of the time, as opposed to 40% in the control.
Use complementary contrast. When showing a list of similar products (e.g. beer), weave in a contrasting product to create complementary cross-selling (e.g. nuts) or up-selling (premium beer) opportunities.
Use contrast for clarity. If you offer a range of products, draw the undecided consumer to a strategic option, preventing choice overload and assisting sales. How might customers become overwhelmed with your range? How can you create a clear sense of contrast that avoids this negative feeling?
Contrast through context. If your brand is familiar, how can you place it in relevant yet unexpected contexts to heighten recall? For instance, British food delivery service Deliveroo could have a movie tie-in shot in London, where its turquoise drivers whiz by in the background 2-3 times over the course of the narrative.
Conversion
Salience
Our choices are determined by the information we're shown
What info we decide to surface visually has a powerful effect on peoples’ decisions. The same is also true for what we choose to hide.
For instance, if I wanted to design a work environment where people ate more fruit, I could buy bananas and apples but store them in the fridge, out of view.
But this would have what we call “low salience”, or a low likelihood of being seen.
Instead, to boost fruit consumption further, we’d want to increase Salience.
So now, instead of hiding the fruit in the fridge, we put it in large colourful bowls in central, highly visible areas of the office in eye line and within arm’s reach.
Now the fruit have “high salience” and are much more likely to be eaten.
Note that this also has second order effects; more salience from the fruit bowls means more people eating fruit, creating a powerful salience cycle.
What do you want people to do more or be more aware of? How can you increase its salience next to other things?
Another strategy is to remove other things around it to increase salience in relative terms. So in the fruit example, we might want to remove the coffee machine to give the bowls greater salience.
What info we decide to surface visually has a powerful effect on peoples’ decisions. The same is also true for what we choose to hide.
For instance, if I wanted to design a work environment where people ate more fruit, I could buy bananas and apples but store them in the fridge, out of view.
But this would have what we call “low salience”, or a low likelihood of being seen.
Instead, to boost fruit consumption further, we’d want to increase Salience.
So now, instead of hiding the fruit in the fridge, we put it in large colourful bowls in central, highly visible areas of the office in eye line and within arm’s reach.
Now the fruit have “high salience” and are much more likely to be eaten.
Note that this also has second order effects; more salience from the fruit bowls means more people eating fruit, creating a powerful salience cycle.
What do you want people to do more or be more aware of? How can you increase its salience next to other things?
Another strategy is to remove other things around it to increase salience in relative terms. So in the fruit example, we might want to remove the coffee machine to give the bowls greater salience.
Over 10 days, millions of people using online ticket marketplace Stubhub were put into two groups, where 15% ticket fees were either made salient up front during ticket browsing, or hidden until checkout.
Results found that for those with delayed salience of the fee, revenue increased by 21%, with a quarter of this due to higher priced tickets being bought.
What is seen is what is done
Surfacing key information in a timely fashion can prompt us to do more of what we aspire to. For instance, Amazon have redesigned their Kindle so that when it's not in use, the screensaver becomes the cover of the book you're currently reading. This acts as a salient reminder to read as one notices the Kindle throughout the day. We can use the same approach to boost healthy eating, having a bowl of fruit on the kitchen table over one filled with salty cashews. What do you want users to do more of? How do you want them to feel? What unique or delightful features can you surface that will help inspire action and make Tiny Habits that much more likely to form?
More knowledge isn't necessarily better
There's a trade-off between what's presented to us now and making good decisions for our future. For instance, cryptocurrency exchange Coinbase choose to omit the % gained or lost from one's investments. Research shows that if they instead showed this, people may incorrectly sell coins that have increased in value, while keeping coins that have dropped in value, known as the Disposition Effect.
Differentiate by removing information
Whereas knowledge can be power, it can also demotivate. For example, weight loss scales Shapa does away with the number telling you how much you weigh, instead providing 5 colour bands denoting averaged performance. Omitting the number shifts us away from short term fluctuations in weight that can lead to feelings of failure causing us to give up. What information or options could you hide that could otherwise lead users to short term or harmful outcomes? What can you remove that could confuse or overwhelm?
Delayed salience can trigger shock
Also consider the ethical implications of hiding key information, as in the study above. In this case, any reactance felt will be relative to the proportion of the extra fees incurred, customer expectations, industry norms and how frequent the transaction is. Hidden fees on more regular transactions like grocery shopping will be subject to higher levels of reactance than one-offs like a car purchase. There is an art to surfacing such painful information at the correct time in order to generate a sale. Try adding an explanation of why the fee exists to reduce drop-off, like Airbnb do.