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The psychology of successful ecommerce
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Psychological PRINCIPLES
5
OF
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Let’s start with a little experiment
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EXPERIMENT
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
Randomly distribute 300 loyalty cards
to customers at a car wash
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HALF GETS THIS
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
Collect 8 stamps, get
1 FREE car wash
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OTHER HALF GETS THIS
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
Collect 10 stamps, get
1 FREE car wash
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Which has the highest redemption rate?
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8 STAMPS?
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
Collect 8 stamps, get
1 FREE car wash
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10 STAMPS?
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
Collect 10 stamps, get
1 FREE car wash
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RESULTS
19%
34%
8 stamps 10 stamps
Redemptionrate
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RESULTS
19%
34%
8 stamps 10 stamps
Redemptionrate
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WHAT HAPPENED?
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
Task requiring
8 steps
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WHAT HAPPENED?
Task requiring
8 steps
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
Task requiring
10 steps
(2 completed)
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WHAT HAPPENED?
Reframed the task so one was
perceived as undertaken & incomplete
(rather than not yet begun)
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
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http://www.londonreal.tv/
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How does it work?
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1
People provided with
artificial advancement toward a
goal exhibit greater persistence
toward reaching that goal
“ ”
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort.
Journal of Consumer Research, 32(4), 504-512.
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ENDOWED PROGRESS
1
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CONSISTENCY
We’re naturally motivated to
complete tasks we’ve started & want to
remain consistent with previous intentions
Fox, S. & Hoffman, M. (2002). Escalation Behavior as a Specific Case of Goal-Directed Activity: A Persistence Paradigm. Basic and Applied
Social Psychology, 24 (4), 273-285.
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PROXIMITY
The closer we are to completing a
goal the more likely we are to increase our
efforts to close the last little gap
Hull, C. L. (1932). The goal-gradient hypothesis and maze learning. Psychological Review, 39(1), 25.
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TRIGGERS
Giving people a couple of free holes on a punch
card is enough to trigger both of these effects
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WHY IT’S USEFUL
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
• Increases the likelihood of task completion
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WHY IT’S USEFUL
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
• Increases the likelihood of task completion
• Decreases completion time
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HOW TO USE IT
• Incentivise users to take the first step
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HOW TO USE IT
• Incentivise users to take the first step
• Give them a head start towards reaching
their goal
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HOW TO USE IT
• Incentivise users to take the first step
• Give them a head start towards reaching
their goal (e.g. money off first purchase, or
download now to jump up a level)
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This triggers the next principle
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2
“ ”
van Putten, M., Zeelenberg, M., & van Dijk, E. (2010). Who throws good money after bad? Action vs. state
orientation moderates the sunk cost fallacy. Judgment and Decision Making, 5(1), 33.
The tendency to continue an
endeavour once an investment in
money, effort, or time has been made
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Sunk-cost fallacy
2
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GAMING
Player is more likely to return to look after items
they have been endowed (paid for / earned)
than goods they’ve simply been given
Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. The Journal Of
Economic Perspectives, 193-206.
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SUNK-COST FALLACY
Rational player:
Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), 124-140.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society,
263-291.
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SUNK-COST FALLACY
Rational player: would ignore sunk-costs
Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), 124-140.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society,
263-291.
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SUNK-COST FALLACY
Rational player: would ignore sunk-costs
Real player:
Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), 124-140.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society,
263-291.
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SUNK-COST FALLACY
Rational player: would ignore sunk-costs
Real player: reluctant to discontinue an activity
once they’ve already put effort in
Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), 124-140.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society,
263-291.
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Which is why this works
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https://www.facebook.com/FarmVille
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SUNK-COST FALLACY
Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), 124-140.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society,
263-291.
The sunk-cost of planting the tomatoes
increases your desire to continue the game
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The same is true for other products
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When people start interacting with you,
how do you get them to come back for more?
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3
“ ”
At a predetermined time / place,
the user must login or participate
for positive effect
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Appointment dynamic
3
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APPOINTMENT DYNAMIC
Keeps the customer coming back for more,
creating a habitual pattern of use
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How these work together
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Endowed progress
Customer is helped to begin
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Endowed progress
Customer is helped to begin
Consistency
Initial intention
fuels desire to
complete
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Endowed progress
Customer is helped to begin
Consistency
Initial intention
fuels desire to
complete
Sunk-cost fallacy
Encourages further investment
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Endowed progress
Customer is helped to begin
Appointment
dynamic
Habitual use is
reinforced
Consistency
Initial intention
fuels desire to
complete
Sunk-cost fallacy
Encourages further investment
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HOW TO USE IT
• Research what motivates your users
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HOW TO USE IT
• Research what motivates your users
• Give relevant initial progress for free (e.g.
points, upgrade, virtual currency / product)
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HOW TO USE IT
• Research what motivates your users
• Give relevant initial progress for free (e.g.
points, upgrade, virtual currency / product)
• Use these principles to create a user
journey that encourages completion
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COGNITIVE LOAD
4
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4
“ ”
The load that performing a
particular task imposes on
your cognitive system
Paas, F. G., & Van Merriënboer, J. J. (1994). Instructional control of cognitive load in the training of complex
cognitive tasks. Educational psychology review, 6(4), 351-371.
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COGNITIVE LOAD
The total amount of mental effort being
used in your working memory
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COGNITIVE LOAD
• We have a limited capacity for cognitive
processing
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COGNITIVE LOAD
• We have a limited capacity for cognitive
processing
• To encourage conversion, you have to
lower the mental effort
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http://kylerush.net/blog/meet-the-obama-campaigns-250-million-fundraising-platform/
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http://kylerush.net/blog/meet-the-obama-campaigns-250-million-fundraising-platform/
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http://kylerush.net/blog/meet-the-obama-campaigns-250-million-fundraising-platform/
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HOW TO USE IT
• Reduce number of actions required to
achieve the goal
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HOW TO USE IT
• Reduce number of actions required to
achieve the goal
• Split complex processes into single steps
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HOW TO USE IT
• Reduce number of actions required to
achieve the goal
• Split complex processes into single steps
• Minimise visual clutter by chunking design
elements together
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PROCESSING FLUENCY
5
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5
“ ”
The ease with which people
process information
Alter, A. L., & Oppenheimer, D. M. (2009). Uniting the tribes of fluency to form a metacognitive nation. Personality
and social psychology review.
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PROCESSING FLUENCY
• Conceptual: Semantic priming
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PROCESSING FLUENCY
• Conceptual: Semantic priming
• Perceptual: Visual clarity
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PROCESSING FLUENCY
• Conceptual: Semantic priming
• Perceptual: Visual clarity
• Linguistic: Simple language
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PROCESSING FLUENCY
• Conceptual: Semantic priming
• Perceptual: Visual clarity
• Linguistic: Simple language
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https://www.optimizely.com/
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HOW TO USE IT
• Increase contrast between text and
background
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HOW TO USE IT
• Increase contrast between text and
background
• Use an easy-to-read (sans serif) font
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HOW TO USE IT
• Increase contrast between text and
background
• Use an easy-to-read (sans serif) font
• Simplify your language
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HOW TO USE IT
• Increase contrast between text and
background
• Use an easy-to-read (sans serif) font
• Simplify your language
• Have a direct, tangible, CTA
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KEY TAKEAWAYS
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KEY TAKEAWAYS
You have to understand the
psychological triggers, biases & motivations
that drive your customers
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KEY TAKEAWAYS
1 Endowed progress
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KEY TAKEAWAYS
1 Endowed progress
2 Sunk cost fallacy
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KEY TAKEAWAYS
1 Endowed progress
2 Sunk cost fallacy
3 Appointment dynamic
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KEY TAKEAWAYS
1 Endowed progress
2 Sunk cost fallacy
3 Appointment dynamic
4 Lower cognitive load
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KEY TAKEAWAYS
1 Endowed progress
2 Sunk cost fallacy
3 Appointment dynamic
4 Lower cognitive load
5 Perceptual fluency
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