By John Stevens
According to research from Eisenberg Holdings, for every $92 spent on generating traffic only a measly $1 is spent on converting it.
Interestingly, this explains why a lot of “research” on what works in conversion do not have a strong basis and, as a result, cannot be replicated. For example, various researchers have found the “best color” for boosting conversions to be red, blue, orange, green, etc. Why are different researchers getting different results? Perhaps there is another underlying factor most conversion research is ignoring? Thanks to psychology, we have the answer.
In this article, I share four simple hacks — backed by psychology — that will help you get a serious boost in conversions.
#1. The Jam Study: Leverage the “Less is More” Principle to Boost Conversions by up to 10 Times
When trying to boost sales and conversions, may seem like common sense that the more options or choices you give people, the better your conversion rate, right? Not necessarily, according to science. While that rationale makes “common sense,” psychology shows that a lot of human action is not influenced by common sense.
Contrary to logic and common sense, psychology shows that the best way to boost conversions is by significantly reducing people’s options and available choices. Instead of giving people 20 options, give them just three. Of course, the average marketer would advocate giving people more choices — other than it being the “right” thing to do, it also supposedly gives them more avenues to make a decision.
A whole book was dedicated to this particular dilemma. In The Paradox of Choice, American psychologist Barry Schwartz analyzed a lot of research done on the subject of choice and came to the conclusion that giving people more choices not only makes it difficult for them to decide, but it also increases their anxiety and mental anguish.
When trying to boost conversions, give people fewer options. Giving more options can be psychologically paralyzing. A great study that shows just how effective giving people fewer choices can be for boosting conversions is the Jam Study. Conducted by Psychologists Sheena Iyengar and Mark Lepper in 2000, the study involved two tables of jam in an upscale supermarket. The first table displayed 24 varieties of gourmet jam, while the other table displayed just six varieties of jam. Both tables were then shown to an approximately equal number of people.
Naturally, the table that displayed 24 varieties of jam was more attractive and appealing due to all the choices, but conversions were poor: 145 people stopped by that table, but only 4 people bought. That’s a conversion rate of 2.8 percent. On the contrary, a much smaller 104 people stopped by the table with six varieties of jam, but a whopping 31 people bought. That’s a conversion rate of 29.8 percent. That’s a 10 times increase simply by reducing available options.
While people will be naturally attracted to more options, they are less likely to convert due to choice paralysis.
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Source:: Business 2 Community