Behavior Design: E-Commerce Psychology

Discover the psychology of why we buy.

Here are some principles you can apply to your online store:

• Reduce the final digit by 1: Humans are hardwired to believe that $2.99 sounds better than $3.
• Use numbers with fewer syllables: Research shows that we perceive phonetically shorter prices as being more affordable.
• Remove the comma: Research shows that $1499 sells better than $1,499.
• Show your prices in Buy-Now-Pay-Later, not only lump sum: Consumers for all products and services gravitate towards a smaller price, even if the sum total is large.
• Small daily equivalence: Break your prices down into how much it costs daily can make it feel more affordable, like comparing it to a cup of coffee.
• Remove the pain of paying: Consider the difference between buying a ride on Uber and a stay on AirBnB. Uber is more comfortable than a taxi with a transparent price up front, while AirBnB hits you with hidden fees as you're about to finally make a decision. Make your buyer's decsions less painful.
• Calm, slow music: Adding quiet, calm, and downtempo music to a website or marketing videos encourages us to take our time and look around. On the other hand, high energy and fast tempo music can scare people away.
• Offer exclusivity: People love to have a sense of beloning and community in society today. Consider how you can create a community or membership.
• Social proof: Monkey see, monkey do. As humans, we're more likely to do something if others are doing it. Get reviews and testimonials in front of the right people as part of your marketing effort.
• Focus on value rather than money. Money is simply a tool for exchange. What's more compelling is telling people how you'll solve their problem, create a transformation, or how much they'll love your product

All of this said, the best way to find clarity in why we buy is to learn from your buyers.

Ironically, your ideal client profile may not be your client after all.

There's no replacement for going and speaking to your clients directly to learn from them.

Buying decisions are based on both logical and emotional criteria, and there's no way to assume what the real decision is until you've asked enough times.

Years ago, McDonalds did an inquiry into what demographic of people were buying milkshakes, and, more interestingly, for what purpose.

In his book, Jobs to Be Done, Clayton Christiansen asks the question, "what job did you hire this product for?" After inquiring with hundreds of customers, McDonalds discovered a large percentage of people were buying the milkshake to solve their problem (or "hiring the product") of not having a meal before a long morning commute to work.

What you ultimately want to do is solve painkiller problems , rather than "nice to have" problems, because people will spend their budget to solve painkiller problems.

In order to understand how to speak to the buyer, it's important to understand the painkiller problems you're solving.

When you can identify those painkiller problems, you can market to the situation versus the problem. This is where you'll find ideal customers who easily understand your value and have no problem paying you.

Over time, you'll discover your ideal profile by doing research interviews. Taking the time to iterate and do user research has potential to transform and scale your business.