Whether you know it or not, social proof has influenced major decisions in your life. The effect has been proven to shape consumer choices and, as such, it represents an essential tool for marketers to leverage. In one of the largest reports on advertising in recent years, 83% of consumers across 60 countries said that they trusted recommendations from friends above any other form of advertising. Such third-party endorsements are just one example of how marketers can use the phenomenon.

Social proof occurs when customers use popularity and consensus to inform their choices. Acting as a decision-making heuristic, it tells them at a glance whether a product is worth their time and money. With the rise of digital platforms and social media, the effect and importance of social proof has been enhanced. As businesses learn to use these channels to reach customers, it is becoming increasingly central to marketing campaigns.

The reason social proof is so powerful is that it comes directly from other customers and because of this, it inspires trust more effectively than traditional marketing techniques. However, there are ways in which marketers can pro-actively implement social proof across their digital platforms. Features such as customer reviews, testimonials and case studies recreate the effect of popularity and consensus in a digital setting.

There are many different forms that social proof can take, and various factors that enhance its effect. Three of the biggest factors in determining the impact of social proof on a customer are uncertainty, social similarity and attractiveness.

Uncertainty and social proof

The modern world presents consumers with a vast number of offers and opportunities. The amount of choice can be overwhelming, causing consumers to defer making decisions about what to buy.

In these situations, it is likely that the consumer will look to their peers for recommendations or advice. Increasingly, such validation is sought through social media. According to a recent study, which explored the most significant influences on modern consumer choices, customer reviews were the largest decision-making factor.

Age, gender and similarity

Another factor that intensifies the impact of social proof is similarity, or the extent to which a customer identifies with the group they are observing. Consumers are far more likely to copy the behaviour of those with whom they feel connected. The most important forms of social similarity for establishing this kind of connection are age and gender.

One of the groups for whom the effect of social proof is particularly significant is mothers. Both uncertainty and social similarity combine to enhance the effect. A study by Babycentre found that mothers made decisions based on friends’ recommendations 67% more frequently than other shoppers and were more active on social media than almost any other demographic.

The way that marketers appeal to social groups is no secret. However, the way in which they appeal to group instincts is rarely understood. Associating a product with membership of a particular social category is a powerful strategy, and one that can be used across almost all industries and products.

Attractiveness and desirability

The principle of attractiveness is simple: in controlled experiments, people are more likely to listen to and comply with people that they find attractive. The same phenomenon affects Social Proof. The effect of popularity and consensus is significantly enhanced when a customer admires the individual or group they are observing.

Perhaps more surprisingly, positive feelings and experiences can be transferred between associated objects or concepts. Even a minor association between a brand and a charismatic figure can significantly alter how consumers feel about it. For marketers, this provides an effective way to establish positive feelings towards their products.

It is a well-kept secret among advertisers and marketers that individual preferences are almost impossible to change directly. Instead, one strategy marketers use is to convince consumers that their product is popular. In order to give strength to the effect, marketers will suggest that their product is popular amongst particular groups of people: those that their target market find recognisable, relatable and attractive.

Although the principal of social proof is nothing new, its influence over our lives is increasing. As smart technologies continue to develop, the effects of imitation and consensus are likely to grow. In the future, social proof marketing will become an essential feature of every professional’s toolkit.

The post The Rise of Social Proof and Why it is Such a Powerful Tool appeared first on PerformanceIN.

This is where A/B testing platforms can become priceless assets to businesses of all industries and sizes. As most of us are aware, A/B provides retailers businesses with the ability to compare variations on their platforms, statistically analysing the results of experiments to gain an insight into the most valuable layout for their store. Along with this, the latest platforms also enable users to apply more complex statistical algorithms that take past outcomes into account, providing more reliable results in a shorter time-frame.

There are many ways that businesses can use A/B testing to help maximise the value of website traffic and in turn their sales. Here are a few tips on how to be successful in increasing your website traffic:

Increased customer personalisation

The first way A/B testing platforms can help you make the most of website traffic for your business is through boosting customer personalisation. It is well known that if a website is populated with products, services and content that the customer is interested in, they are more likely to continue on the path to complete a purchase or sign up.

However, if you have invested money in a series of paid adverts, it is likely that the messages will be targeted at a variety of different customers. If one customer clicks on an advert for a particular accessory – let’s say a necklace – it is best that they land on a page with content that is consistent to that message.

This is simple on platforms that provide dynamic text features. A Dynamic Text plugin allows you to drag and drop it on your page, and then simply add the message you want to appear into a parameter on the end of the URL. When a customer clicks on this advert, the message you put in the URL will display on the page they arrive at.

Another personalisation technique is a geolocation plugin. This displays the visitor’s location when they arrive on your page, further enhancing the level of personalisation and increasing the likelihood of a sale. Implementing this on an A/B testing platform allows retailers to test and discover which personalisation technique works best for their customers.

Meeting specific targets and goals

Setting precise goals for e-commerce platforms enables retailers to measure how effective the changes are that they are making during A/B testing. Some goals that can be set include:

Page view goal – this allows businesses to track the number of times each page has been viewed.

Click view goal – this allows retailers to track the number of clicks on each page that have been modified.

The revenue goal – enables businesses to track and measure the success of their  A/B test by tracking the value of each purchase made by customers.

Improving agility in your strategy

New algorithms implemented into A/B testing and notifications platforms can now enable businesses to automatically allocate traffic to the best performing variant in an A/B test. Previously, those testing their website would have to wait for the end of the test to discover which version of their website was producing the highest revenue.

This meant that for the duration of the test you would be losing out on sales. Furthermore, once the test was over you would have to switch off the experiment and manually implement the changes before reaping the rewards – all in all, it could take weeks.

Now, with various features results can be taken into account before the test has finished: necessary changes can be actioned instantly to maximise visitor value. This allows you to produce something that will continually recalculate the best performing variant and will therefore automatically push more traffic to it.

A hybrid approach to statistical significance

Behind A/B testing lies a whole world of statistical debate. An experiment must run for long enough for a statistically significant (reliable) result to be achieved, to make sure that the new colour scheme or positioning of reviews is actually responsible for improving conversions.

There are two main statistical approaches to A/B testing: the Frequentist approach which is generally faster, and the Bayesian approach which is arguably more reliable but slower. Both have their benefits, but fully understanding them takes more time than most business owners have. That’s why the best A/B testing platforms take the best elements of both in a hybrid approach to statistical significance, which will give you more accurate results, more quickly.

The ‘hybrid’ approach considers how results are changing over the course of the test, whilst also taking into account the differences of consumer behaviour on different days of the week. Using a platform with carefully designed algorithms will allow you to run tests quickly and reliably.

However, subscribing to an A/B solution doesn’t always guarantee results for some companies. It is important to note that selected A/B testing platforms will often sell with a 12-month subscription in mind which can lead to misinformation – be wary of guarantees. The best way to optimise conversions is research the wide range of solutions available and ensure that the chosen solution is able to meet the requirements for your business.

Before you research a solution, decide: do I want a simple editor or one that will allow me to code the changes in? Do I want intuitive, drag and drop style features or more complex elements? Do I want to AB test, split test, or run a multivariate test, and which platforms support these? How much support do I want when creating and running tests?

Don’t leave conversions to chance!

It is clear that A/B testing is worthwhile for businesses trying to maximise the value of visitors to their website. It forces you to pay closer attention to how your business appears to hard-earned website visitors, and the process of experimentation may also highlight other elements of your business that may need revamping. It can also help with team building within the company as it requires input from a variety of team members regarding new ways of engaging customers online.

The post Can A/B Testing Maximise the Value of Website Traffic? appeared first on PerformanceIN.

Every online retailer aims to convert online baskets into sales and this is not an easy task, in fact according to Baymard Institute, a web research company, two out of three (67.45%) of online shopping carts are abandoned. So beyond discount codes and flash sales what exactly can performance marketers do to help retailers push customers over the line and convert these baskets?

Anyone who works in marketing is often aware that 95% of our decisions are steered by our subconscious and it is important to recognise this when it comes to targeting customers effectively. This is why applying simple changes to a website which play on basic psychological conventions, such as adding additional pricing packages or adding details on product popularity, you could find significant uplifts driving customers to commit to buying a product or service online. Here are seven simple principles based on neuroscience advertisers can apply to a website to boost conversion and performance. 

Predictive notifications

In online retail, subtle notifications that manage to promote a sense of urgency, without being disruptive to a customer’s shopping experience, can really drive them to click that ‘add to basket’ button. 

By using a website’s real time data you can create a predictive notification which attracts the users’ attention and persuades them to take action. For instance, if a customer clicks on a particular product more than once you can tell they have an interest. By applying a notification which says ‘less than ten available’ the notification is playing on the current interests and behaviour of the customer, creating a sense of urgency to purchase a service or product. 

Need for certainty 

Ambiguity at the checkout stage of a sale puts customers off quickly. By providing clear information on what will happen when a customer clicks on a link or avoiding vague information around offers you can prevent this. 

By simply running a user testing, you can pinpoint any areas where there may be confusion and fix them straight away. You could try offering a free trial of your service or display reviews clearly, so wary customers have more reassurance when committing to a purchase. 

Decoy effect

A common issue for customers when picking between packages on a site is hesitation or confusion between two options. Presenting a third option or ‘an ugly brother’ can strongly influence choice by providing a decoy. 

Consider providing an option significantly less attractive than the one you would like to sell. By offering a service which is far more expensive and only marginally more lucrative, customers are more likely to feel they are getting a better deal by picking the mid-range option you want them to purchase, bypassing the cheapest option. 

Hyperbolic discount 

Hyperbolic discounting is based on a desire for an immediate reward, rather than a higher valued, delayed one. Put simply, people would rather receive £5 right now rather than £10 in a month’s time.

To play on this principle you can use tactics such as providing instant small discounts and rewards with a time limit or a value like ‘free delivery on all orders over £50’ or ‘10% off today only.’ This can subtly incentivise your customer to make a quick decision rather than holding out for a larger discount. 

Paradox of choice 

An abundance of choices can lead to consumer anxiety, if there are too many links or pictures to click on one page, or if there are many desirable options to choose from, it can cause users to become overwhelmed and leave the page. 

By drastically simplifying your options you can prevent this. Displaying your best selling or ‘new in’ options first, means you are showcasing your best products, as well subtly guiding your customer’s eyes to the item or service you would like them to purchase without causing stress by offering too much choice.  

Curse of knowledge 

If you’re selling a product, you probably know everything there is to know about it. However, this can be detrimental when writing descriptions, as you can sometimes assume consumers know as much as you do. When a new customer reads a description that is over complicated or doesn’t have enough information, they can be put off very quickly. 

To avoid the ‘curse of knowledge’ make sure you’re fully aware of the gap between your knowledge of your product or service and your customers. Try to put yourself in their shoes and remember to always think ‘clear and effective’ as well as boldly highlighting USP’s and keywords. 

Information bias 

The more information we receive, the more confident we feel when making a purchase. It makes us believe we are making a well-informed decision based on a more rational basis, even if said information isn’t that relevant. 

By using the information bias, you make your customers feel secure by providing plenty of detail. Apply this rule when displaying all products and offers, and treat your product images with a similar mindset, if you can provide several angles, or even a video, customers will feel more secure. 

Conclusion 

With analysts at HSBC claiming that online shopping has surpassed the high street in popularity, it is more vital than ever that buying on the web is a smooth experience for customers. The role of neuroscience in consumer experiences has often been overlooked. These simple psychological techniques can easily be implemented by marketers to optimise online sites and to boost conversion of sales, resulting in fewer abandoned baskets.

The post How Basic Neuroscience Can Boost Performance Marketing Results appeared first on PerformanceIN.