How to improve product conversion rate? A few tips!

Whether it is online e-commerce or offline stores, traffic and conversion are unavoidable marketing issues. However, if the conversion process is not done well, the traffic generated will be wasted.

For example, if a store attracts 2,000 visitors and the conversion rates are 10% and 50%, I don’t need to explain the difference in final sales and marketing effects. Therefore, before attracting traffic, you need to do a good job of conversion first.

There are many factors that affect user conversion, but in today's article, Mr. Monster wants to talk to you about the essential reasons for conversion, and from the user's psychology, share some effective psychological techniques to improve the conversion rate of user orders.

1. Reasons that influence user purchases

What do you think made you decide to buy a certain product or service?

There are of course many reasons, and we have summarized a formula that can better analyze the factors that users consider when deciding to purchase a product or service.

User purchase decision = user's willingness to purchase - risk cost (market risk + personal risk)

For example, if I want to buy a mobile phone, first of all, I have the intention to buy the mobile phone. The next step is to consider the brand or product I want to buy, which one is more suitable for me or more satisfactory to me (if the cost of risk consideration is less than the intention to buy, I will be more likely to choose to buy the brand of mobile phone).

If you are still a little confused, you may understand better after reading the explanation below.

Let’s first talk about risk concerns: personal risk and market risk.

What is market risk and personal risk?

I quote here the explanation given in the practical community two days ago:

(Screenshot of the actual community discussion)

• Personal risks are the problems that individual users encounter when purchasing. For example, if I find a fly in my food while eating in a restaurant but other people are fine, this is a personal risk.
• Market risk is a common problem in this industry. For example, I found flies in my food in the restaurant, and many other restaurants also have this problem. This is market risk.

The market risks and personal risks mentioned above are the main factors that reduce the cost of user purchasing decisions.

So, what are the specific situations of these two risks and what are the solutions? Let me tell you about it below.

1. Market risk

Every industry has its own market risks. We may wish to refer to the theory proposed by Professor Johan Bruwer to make analysis and judgment, and then make corresponding solutions.

• Health/functional risks — Is the product really that good?
• Financial Risk – Is the product worth the price?
• Time risk - what if you invest too much time? Can I get a refund?
• Social risk - will this be good for my image (face)?
• Psychological risk - Am I being too extravagant in my consumption?

For example, when shopping online, the most common market risks are “Is this product really as good as it is said to be online?” and “Can I get a refund if I am not satisfied with it?” Many online shopping platforms have corresponding solutions to these risk issues, such as seven-day no-reason refund and 30-day return and exchange guarantee.

Another example is medical beauty. In the entire industry, negative news often appears, such as "XX girl failed in plastic surgery and complained to XX plastic surgery hospital but was at a loss for words", "XX girl was forced to spend 600,000 yuan on XX medical beauty..." These are the current market risks (functional and financial risks) of the industry.

If you are also engaged in medical beauty, you should find ways to solve the market risks of these industries. For example, if the store makes a promise of "no hidden consumption, and if any, compensation will be 10 times the penalty for breach of contract", the store employees will be responsible for implementing it and allow users to complete the conversion on their own initiative.

2. Personal Risk

Every company and brand has different individual risk issues, which is also an important factor affecting user purchasing decisions. We need to discover and solve them during the operation process.

For example, the catering products, services, scenes, hygiene, prices, etc. may all lead to personal risks, which are important factors that affect whether consumers will choose your restaurant. Through practical experience and summary, we have come up with the following solutions:

• Product characteristics - differentiation (special dishes in the store)
• Quality of service - the law of terminal peak (the moment when users enter the store to leave the store is very important, such as Haidilao's service at the door and the farewell when leaving the store)
• High-quality scenes - providing social content (such as barbecue restaurants, buffet tables, lighting design, conducive to the atmosphere of friends gathering)
• Very good hygiene conditions - sense of ritual (such as the "seven ups and eight downs" way of eating Banu Hotpot)
• Very worthwhile price - misplaced value perception (for example, a free dish worth 30 yuan for a purchase of 100 yuan - the actual cost is 10 yuan, which is no different from a 10% discount, but the user feels differently)

(PS: The specific explanation of the above points can be written into an article, so I won’t elaborate on it here, just give some simple examples.)

So how do you know what individual risk issues your store needs to address?

You can find and resolve users’ personal risks during their purchase decision-making stage , thereby reducing their decision-making costs for your store or brand. Most of the users’ purchasing decisions follow the following stages:

Demand confirmation—search information—evaluation and comparison—purchase decision

Let’s take catering as an example:

Demand confirmation : I want to go out for dinner with my friends.

Search information: What should we eat today? ——Chinese or Western food, a la carte or buffet, Sichuan cuisine or Cantonese cuisine, seafood or barbecue?

Comparison Assessment: Does your restaurant stand out in these subcategories? This product feature requires your special dishes to complete. For example, when I want to eat Sichuan cuisine, I will go to your place because your Sichuan cuisine is the most distinctive one nearby. In addition, it is not just because the product is unique or delicious. It may be because your price is attractive, or the service is very good (such as Haidilao), or your scene is good (for example, your barbecue restaurant is very social and very suitable for eating barbecue and chatting with brothers), etc., that ultimately make the purchase decision .

You need to see if your store or brand has any outstanding features during the user's decision-making and purchasing stage to increase users' willingness to buy from you and reduce their personal risks.

The idea is similar in other industries, but the specific factors are different and require specific analysis and diagnosis.

Therefore, if you can reduce the above market risks and personal risks, and then increase users' willingness to buy or under the same purchasing intention conditions, users will be more willing to choose to buy your brand or product.

After reading this, do you think that if the above risk concerns are resolved, users will buy immediately?

The answer is: probably not.

Because in most cases, users are still hesitant - "The products in this store are really good, but I don't seem to be in a hurry to buy them now/I heard that my friend has better store recommendations..."

In this situation, what should you do?

Please see below:

2. Encourage users to buy immediately

The following two psychological techniques, if used well, can effectively eliminate users' hesitation and encourage them to make purchasing decisions quickly.

1. Manufacturing shortages

Creating shortages means taking advantage of the psychology of scarcity to create a sense of urgency for users to buy.

(Monster has explained this psychological technique in his previous article, so I will just quote the previous explanation)

Sociologists Eldar Shaffir and Sandhil Mullainathan say:

As long as we feel that we lack something, such as food, money, or time, we may be obsessed with it, which may cause our thoughts to deviate and easily produce a series of strong needs in our brains.

This is the psychology of scarcity. Making good use of this psychological technique and creating a shortage will increase the user's purchase conversion rate.

Imagine this scenario: one day, you were just strolling down the street when you suddenly saw a clothing store having a big sale and you were drawn in to take a look. While casually browsing, you find a piece of clothing that you like, but you don’t plan to buy it, you are just interested.

But when you see the store’s promotional advertisement saying “Anniversary sale, 50% off everything, today only!”, you think about it again, touch the dress again, and are reluctant to let it go. You finally console yourself by saying, "If I don't buy it today, I'll miss such a good price... so I better buy it!"

The above is a situation that most of us often encounter. The "today only" marketing method adopted by this store is the application of "scarcity psychology", which makes people who originally had no intention of buying develop a desire to buy, thus prompting them to place an order quickly.

Common marketing methods based on scarcity psychology include “limited time offer, limited discount for the first XX people”, etc. The above examples and online shopping promotion festivals such as Double 11 and 618 all utilize limited-time methods. I once helped someone write a sales copy for snacks, and at the end of the article I wrote, "The first 200 people to place an order can enjoy a 28% discount and free shipping!" - Although it is a very plain sentence, the conversion rate is very different if this sentence is written or not.

For example, the common screen-sweeping posters we see often use this psychological technique.

However, it should be noted that when using scarcity psychology for marketing, it is best to explain the reasons for doing so to eliminate users' concerns about product quality. Otherwise, users will have a negative perception that "Is there something wrong with your product's quality/you are having a promotion because it can't be sold?" And if you say that today is the store anniversary week, Valentine's Day , or membership day, and you are reducing the price for other reasons, then you can greatly reduce users' negative perception of your product quality.

2. Herd mentality

In addition to creating shortages to prompt users to make immediate purchasing decisions, there is also the user's herd psychology technique. Herd mentality means that an individual's behavior will be influenced by the outside world or the behavior of others.

For example, if you launch an event and it shows that XX people have purchased it, or that your friends have also purchased it, this will subtly give users the idea that “since so many people have bought it, it shouldn’t be too bad, so I might as well buy it.”

For example, in our last store’s fission marketing, we used this technique on the social network – we asked users who participated in the event to post screenshots of their participation to the group, so that other users who have not yet participated can see this information. This will better encourage users who have not yet participated to participate in the group.

For example, in our recently launched customer acquisition and traffic generation program, we also utilized this herd mentality in the design of marketing tools . The actual results of several stores showed that the conversion rate was more than 30% higher than that without this psychological design.

(The above is a screenshot of our latest store traffic fission case)

It can be seen that the herd mentality has a huge impact on users.

Summarize

There are many factors that influence users’ purchasing decisions, and they vary from industry to industry. However, you may wish to use the following formula to find out the factors that influence users’ purchase of your products.

User purchase decision = user's willingness to purchase - risk cost (market risk + personal risk)

Therefore, if you can reduce the user's risk concerns while increasing the user's willingness to purchase your product or maintaining the same willingness, you will be more attractive to users than products from other brands or stores.

However, many users may still be hesitant after all their concerns and risks have been eliminated, so you need to use some psychological techniques to encourage users to quickly choose your product - create shortages and herd mentality.

Source: Mr. Monster (ID: Mister-shou)