Online Retail - How To Know Your Customers Psychology

Success in online retailing is all about understanding online customers psychology and buying habits. Neuro-marketing techniques, comparative pricing, free shipping etc are some of the techniques that may help you to influence customers decision to buy your products.

An online store can bring completeness to your retail business. Through your online store, you can both mobilize your physical marketing resources to promote your retail business and streamline how your customers interact with you to purchase the product. However, the mindset of the customer becomes entirely different when it comes to purchase something over the web. In his sub-conscious mind, the customer usually looks for a better deal as his physical movement is confined (his shopping notions are somewhat ‘pre-programmed’ when he visits the online store).  Naturally, as an online retail store owner, onus is on you to present things in your store as per your customers’ psychological orientations.

A few things that govern customers’ psychology when it comes to online shopping and where you as an online retailer can take benefits are:

1. Neuromarketing techniques – Brain-research studies show that online shoppers are greatly influenced by the color of the background, location of the product on the screen, display of pricing etc. The shopper’s decision to buy a product or his spending limit is determined by these factors. For example, researchers suggests that a greenish pattern in the background of a product in an online store selling furniture, may help in firing the online customers’ neurons in a way that would make them sensitive to the price of the item. On the other hand, a blue-colored pattern may help in stimulating the online shopper’s neurons towards the comfort-angle of the product. In simpler words, for a low-priced product keep a green background and highlight the “low price”, similarly, if your product is highly-priced, use a blue background and highlight the “comfort features”.

2. Affinity for free-shipping – The phrase “free-shipping” is one of most sought-after characteristics of a any product sold online; at least a large section of the online shoppers just run for it! Consumers prefers free-shipping offers as they compare it to the shopping experience in the physical store; you take out your car, drive to the store, burn gas, buy the item, burn gas again, move through traffic, reach home, park your car and finally open the box on your living room table – well, the retailers mind compares all these with the phrase “free-shipping”. Even a $20 discount weighs less than a $10 waiver in the name of free-shipping. Discount? “Well, it’s ok; everybody gives.” Free-shipping? “Why, I will buy it!” This is the psychology of major chunk of online shoppers.

3. Comparative pricing of products – Online shoppers’ psycho-analysis report shows that most buyers give precedence to mid-range comparative pricing of a group of similar product.  For instance, if you place two similar items on the category page of your store (showing brief details of both), one priced at $100, and the other at $150, most customers will purchase the cheaper one. Now, add a third item priced at say, $200 (the one that you are not even interested in selling); you will be amazed to see that most people will purchase the item selling for $150! Moral of the story – always give your buyers something to compare!

Online shoppers also prefer the pricing in their local currencies (if you are selling globally) and they have a great love for coupons also. Moreover, the buying pattern also varies with various demographic parameters like age-group, income-group, sex, education, community and so on. So, while you sell – observe and know your customers!

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