Aaron Wall over at SEOBook.com has some interesting thoughts about what he calls “trust eaters.” Now some of these things you can’t help (if you’ve only been in business a month, you’ve only been in business a month) but AdSense on your home page? For a store?? Be sure you’re not doing any of these things.
Friday, November 16, 2007
Saturday, October 13, 2007
Free Shipping
Smart Money is talking up free shipping in their latest issue:
Surveys suggests that many consumers are obsessed with free-shipping deals. “Fifteen percent off might be a better deal, but people prefer free shipping,” says Dealnews.com CEO de Grandpre. The good news: It’s getting easier to get bargains.
When in doubt, remember “math is hard.” The optics of free shipping are compelling – even I get sucked in to spending “$11.43 more to get free shipping on Amazon.”
Wednesday, October 10, 2007
Sensitivity to small fees
I saw this article on Valleywag that quoted a New York Times analysis of the effect of small fees on e-commerce transaction size and volume. It seems that reducing small fees can greatly increase revenue. Money quote:
Overstock.com has found other, somewhat puzzling, behavior among its customers. The company has for years offered $2.95 shipping fees on all sales. But according to Patrick Byrne, Overstock’s chief executive, the site will occasionally drop the fee to $1, “and suddenly people start ordering $400 bookcases and beds,” he said. “The average order size goes up unbelievably.”
Seth Godin argues that anything other than free shipping will deter customers, particularly repeat customers.
… Amazon has taught millions that free shipping is the way the world should work. As a result, anything more than free just feels wrong.
This article from FastCompany.com about firms charging customers for bags is also instructive:
The Swedish retail giant encourages customers to use fewer bags by charging shoppers 5 cents for each disposable bag they take. … In the United Kingdom, the policy, which started in June 2006, cut bag use by 95%.
Are people so loss-averse that a nickel will factor into their decision making process? Apparently so.
Tuesday, October 9, 2007
Where would Jesus BOGOF?
In an appeal to the better angels of our nature, Tom’s Shoes offers a BOGOF with a twist: you buy a pair for yourself, and a poor child in a developing nation gets a pair free. I think this is a brilliant approach, and so does Seth Godin.
Thursday, October 4, 2007
Keys to selling to tightwads
Just because they’re cheap doesn’t mean they won’t buy. Neuromarketing has some good tips:
- Create packages or bundles
- Express prices using small units of measurement (per day instead of per year; per half pound instead of per pound, etc.)
- Describe extra charges in terms that make them seem picayune (“only five dollars” instead of “five dollars”).
Saturday, September 22, 2007
The Right Digit Effect
According to this article in Science Daily, discounts are perceived to be larger when the digits to the right are small. Quick: which is a better deal, A or B?
| Item | Regular Price | Sale Price |
|---|---|---|
| A | $222 | $211 |
| B | $199 | $188 |
Most people pick A, even though the dollar amounts are identical and B is a greater percentage discount.
