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10 Psychology Studies That Will Boost Your Conversions

To thrive in the world of online sales and conversions, marketers need to understand the basic principles of human psychology.

You don't have to corner a "specific niche" — you just need to understand how our minds work, which can go a long way toward helping us figure out how to (ethically) get people to say "yes."

Research in consumer social psychology has come a long way, surfacing plenty of lessons worth learning — ones that smart marketers can put to use right away.

Here are 10 fascinating psychology studies that will help you understand how people think, and how to apply it to increase your conversions.

1. Asking for just a little can move your conversions dramatically.

Even though at first glance it might seem like it would backfire, one of the best ways to uncover insights that can increase conversions is to stop focusing on why people say "yes," and instead dig into why they say "no."

One study looked at whether donations to the American Cancer Society changed when the asks were made in person (door to door) but the opening line was different. The researchers tested two different request lines:

  • "Would you be willing to help by giving a donation?"
  • "Would you be willing to help by giving a donation? Even a penny will help."

A small, subtle change that seemingly wouldn't be statistically significant. Surprisingly, the researchers found that those asked with the second line were twice as likely to donate to charity — about 50% versus roughly 28% of those asked with the first line.

The researchers concluded that people sometimes hesitate to act when the parameters are undefined; in this case, they may be "paralyzed" when they aren't given a minimum "acceptable" amount to choose to donate, and so they choose not to donate at all.

The takeaway: Setting clear parameters (or a minimum) can help people break through "action paralysis."

2. A personal touch makes the customer happy.

Waiters can boost their tips by 23% or more by changing just one aspect of their service. Which aspect do you think it was? A bigger smile? Surprise of the month: by handing the customer mints, their tips grew.

In a study published in the Journal of Applied Psychology, researchers examined the striking power of mints and how they affected how much customers tipped. The study ran in three variations:

  • The first group had waiters bring a single mint along with the check. This led to a 3% increase in the tip.
  • The second group brought two mints separately and called attention to them. This led to a 14% increase in the tip.
  • The last group brought the check with a pair of mints, then came back a short while later with more mints "in case anyone wants extra." This group saw a 23% increase.

The researchers concluded it was the personal touch that won customers over. People enjoyed the attention far more than the mints themselves. Almost anything can serve as that kind of follow-up: a free training session, a complementary guide, or a small gift.

The takeaway: A personal follow-up (especially with small gifts) creates happy customers.

3. Getting ahead and leading earns loyalty.

Gamers know that earning "points" (levels, upgrades) has a powerful effect on them. When it comes to conversions, people tend to show greater loyalty if they get "points" early on.

The experiment showed that good results early on increase loyalty, even when the final outcome is identical. Two types of car-wash cards were handed out: one required eight stamps, the other required ten but came with two free. A far larger percentage of those who got the second card completed the task.

The takeaway: To earn loyalty, show quick wins early on that encourage people to stick with the process.

4. Admitting mistakes works when you highlight your strengths.

A study by Fiona Lee examined whether admitting mistakes has a positive effect. Participants read reports from fictitious companies: one blamed its failure on its own poor marketing decisions, the other on external factors.

Subjects viewed the company that admitted its mistakes far more favorably. Admitting mistakes shows shareholders that the company is in control of what's happening and isn't at the mercy of external factors. The second company bred skepticism and distrust in its competence.

The takeaway: When mistakes happen, owning them builds trust — as long as you show you've learned from them.

5. Urgent calls need a clear answer.

Urgent, fear-based messages are useless without specific instructions. Howard Leventhal's tetanus study showed that only the participants who also received "how and where" information about getting vaccinated actually took action.

The conclusion was that people tend to suppress frightening information if they have no way to deal with it. Those who are given the tools prefer to use them and be ready for the "urgent threat."

The takeaway: Urgent calls to action work when you give people clear information on how to solve the problem.

6. People love being given labels.

Labeling people as part of a group influences their behavior. In a voting experiment, those labeled "politically active" voted 15% more than the control group, even though the labeling was random.

We like to stay consistent with the label we've been given. Tap into the human need to belong to a group and create a connection between new and existing customers. For example: "Join over 2,000 website marketers."

The takeaway: People will act to stay consistent the moment they've been given a particular label.

7. Our brains love instant gratification.

The brain craves instant gratification to a degree that's hard to control. MRI studies have shown that the frontal lobe lights up when we think about something we'll receive right away.

Use phrases like "instant" and "fast" to activate these areas of the brain. If there's no physical product, offer incentives like an instant "free trial."

The takeaway: People respond positively to instant gratification and are more likely to act when an immediate reward is in sight.

8. Over-emphasizing low prices hurts conversions.

An explicit price comparison (when the marketer pushes it) can hurt sales. In an eBay experiment, when customers were proactively prompted to compare prices, they became suspicious and tended not to buy at all.

An implicit comparison (when the customer does it themselves) works far better. A forced price comparison undermines trust in the product and service.

The takeaway: An approach that lets the customer compare prices on their own works better than a forced comparison.

9. Try selling customers time, not money.

People value their time more than their money. In the lemonade experiment, the sign "Spend a little time and enjoy" significantly outperformed signs that focused on the low price.

Time is tied to positive experiences, while money is tied to cold calculation. That's why brands like beer focus on friends and the experience, not just the price.

The takeaway: Emphasizing time saved or an enjoyable experience works better than emphasizing money saved.

10. Too much choice kills conversions.

Too much choice kills conversions. In the jam study, a stand with 6 flavors sold far more than a stand with 24 flavors.

When people are overwhelmed by options, they tend to go with the default — nothing. Marketers have to be careful not to offer too much variety so they don't scare customers off.

The takeaway: Customers are more likely to act when they're presented with a focused selection rather than an overwhelming one.