Increase Your Website Sales (ecommerce) Using Applied Digital Consumer Psychology? Why Yes!
Note: This post was originally published on the Rewire Digital Blog.
What is Applied Digital Consumer Psychology and how does it lead to increased website sales? Before we answer that, it might be a good idea to back up a bit. Before the rise of ecommerce (remember back then?), several business leaders wrote about the need to understand consumers, their behaviors, and their motivations.
Management guru, Peter Drucker, wrote:
…to start out with the customer’s utility, with what the customer buys, with what the realities of the customer are and what the customer’s values are — this is what marketing is all about
He (Peter) was talking about an offline consumer but this is even more true of an online consumer, or a digital consumer. In fact, the need to have a deeper understanding of digital consumers has never been greater. Ecommerce businesses will either grow or die based on this understanding. We are getting further along with usability and functionality so our focus has to become human intelligence and behavioral psychology.
Knowing that, what are some of the challenges faced by ecommerce businesses?
- competition for shoppers
- decreasing brand loyalty
- low conversion rates
- low average order values
- dynamic nature of digital consumers
- competitive advantage
Many people will recognize that there are already efforts going on in order to help ecommerce businesses with their sales. Some of these efforts are conversion rate optimization, user experience, functional design, and usability testing. These areas of expertise and practice are major contributors to increasing online sales. But at the core of all of this is the user and it’s not just knowing the user, it’s deeper than that. It’s getting to the place psychologists can get to in order to uncover the unknowns and drivers of decision-making, motivations, and predispositions of a specific set of digital consumers for a particular ecommerce market.
Meet Applied Digital Consumer Psychology (ADCP). It combines the work of an experienced consumer psychologist with that of a digital analyst in order to learn about your users and get into the unconscious territory where people are being directed to make purchases for reasons they may not even be clear about. Specifically, it looks at things like:
- The thought processes and emotions behind digital consumer decisions
- The social, psychological, and cultural factors influencing buying decisions
- The digital consumer motivation process
- The personal factors and individual difference variables that affect people’s buying choices
This is both art and science. ADCP seeks to uncover a vast array of unknowns, or it might only discover one significant thing you didn’t know. Either way, it will help you with conversions, sales, competitive advantage, strategic planning, and in some cases your entire approach to a specific market.