High prices slashed is a digital marketing strategy to bring out the anchoring effect during a sale. What a bargain! Your system 1 is attracted to buy it immediately, and now with the high price slash, your system 2 will rationalize the purchase. Who doesn't love sales? The ring you loved last week that was $129.99 is now on sale at just $89.99. Your sales or pricing page is the best place where you could implement anchoring. That is, different starting points yield different estimates, which are biased toward the initial values." Digital ImplementationĪnchoring effect, if used correctly, can boost sales on your website. In either case, adjustments are typically insufficient. The initial value, or starting point, maybe suggested by the formulation of the problem, or it may be the result of a partial computation. When potential customers land on their products' page and evaluate whether to purchase or not, they see content that is readily available as persuasive notifications.Īmos Tversky and Daniel Kahneman explained anchoring in a 1974 paper: "People make estimates by starting from an initial value that is adjusted to yield the final answer. See how ASOS and IKEA do that on their website. By drawing attention to real-time data of current customers' behavior, you highlight your product's popularity to boost sales. Triggering notifications at the right time is a great way to leverage social proof that also operates within our availability heuristics. By doing so, you not only highlight your product's improvement but also attract your customer's attention to the notification as it appears, making it readily available to assist them in making a decision. For instance, you might want to highlight your product's new feature on the landing page. One strategy is to trigger notifications in your website at specific points along your sales funnel. Make Persuasive Information Readily Available!Īnother way is to design your website so that the most persuasive information is readily available at the critical moments when a reluctant visitor is relying on heuristics to decide whether to sign up or purchase. For instance, recent place crashes, COVID-19 pandemic, shark attacks, etc. When you judge the correctness of a hypothesis or likelihood of an event based on the "readily available" information or how easily the hypothesis or event comes to mind. These are the example of availability heuristics or biases. " I saw that trend on LinkedIn we really need to take it seriously." Let's look at the two common cognitive biases mainly relevant to digital marketing and see how you can apply them in your copywriting, website design, pricing structure, and other user-related best practices. So, an in-depth understanding of these cognitive biases is a priceless tool for shaping our online marketing strategies. They influence your customers' purchase behavior and the user's perceptions of your website or product. Cognitive biases play a crucial role in the digital world, as well. There are 188 known cognitive biases in existence that largely affect the ways we do business both offline and online. For instance, we may trust an authoritative figure's opinion than an average Joe, or we may wrongly assume someone's gender based on their occupation. We rely on prejudices and cognitive biases for our decisions about uncertain life scenarios. We are all biased or mentally mistaken and capable of being flawed. Our decisions, and the changes to our decisions, are heavily influenced by the first bit of information we're given. ![]() ![]() If the seller asked for $200, my friend might have never bought it at this price. ![]() The seller's asking price heavily influenced my friend's counter offer. Well, that was " anchoring bias" at work. My friend was pleased as he thought it was a good deal because he bought the watch for less than the asking price. Whereas, he countered with $200, to which the buyer accepted and sold the watch. Upon asking, he said that the buyer asked for $300. After assessing many options, he chose one that had a bargain. ![]() A year ago, one of my friends wanted to buy a smartwatch.
0 Comments
Leave a Reply. |