Increasing Activity and Improving Conversion (Part I)

Understanding the fundamental principles that drive human behaviour is crucial. In this article (part one of two), we will break down psychologically validated methods for increasing activity and improving conversion.

The studies referenced include data from 1961 onwards. Each of the studies raises principles which help persuade users to click or convert.

Some of the experiments included were controversial at the time and still are. Either way, the lessons learned are valuable and have been in practice ever since in many different industries.

Including marketing, design, and development. Many companies currently use multiple of these techniques. Their approach and methods will change over time as public perceptions and behaviour towards some of these techniques swing in favour of another, which is more effective.

Authority Principle

In 1963, Stanley Milgram wanted to explain the cruelty of the Second World War. At the time, the prevailing belief was that Germans were particularly obedient to authority figures, a result of their upbringing. He conducted an experiment to determine how people react when instructed by an authoritative figure. To do this, he placed an advert inside the local American newspaper. He also hired actors to play the role of the stooge in his experiment. Once the applicants were received, Stanley created two groups: learners (the actors) and teachers (the applicants).

Milgram set up the learner in a room, separate from the teacher and the researcher (Milgram), so the teacher couldn't see them, but they could hear them. The learner was attached to an electric shock machine.

Milgram instructed the teacher to administer an electric shock every time the learner answered a question incorrectly.

The actor was asked multiple questions and provided incorrect answers intentionally. With each wrong answer, Milgram told the teacher to administer an electric shock. With each wrong answer, the voltage increased and the actor's part became more horrific.

65% of the applicants continued with the teacher's instructions all the way to the maximum voltage of 450 volts, even when the learner pretended to pass out and breathing had stopped. When the authority figure (researcher) was replacedwith a normal person, the compliance to increase the voltage dropped to 20%.

Showing that people will go to great lengths to obey orders if they believe the person giving the instructions is a figure of authority.

How can this be used?

In a digital world, it's relatively straightforward to establish yourself as an authority figure. Just tell people you are one. There aren't many people who would read a bio or LinkedIn profile and say, "they're lying" or "they don't know that".

With politics the way it is, much attention has shifted towards fake news on the internet and social media. Unfortunately, once written, people often assume it must be true because it usually comes from a place of authority. Why would Facebook lie to me?

Another way to gain authority is to have someone of authority endorse you or your product.

Simply put, brands pay celebrities or experts to endorse their products. Good enough for Oprah, it's good enough for you, right? Oprah wouldn't lie, would she?

Jam Study

A study on shoppers and the effect of choice was published by psychologists Sheena Iyengar and Mark Lepper, in 2000. Conducted with over 750 shoppers who passed through a high-end shop. The study aimed to investigate how shoppers responded to the choices presented to them. The study was performed on two consecutive Saturdays in the same shop in the same position.

On display was a variety of jams ready to be tasted by passing shoppers. On the first Saturday, the shoppers were exposed to 24 varieties of jam. On the second Saturday, the shoppers were exposed to only six varieties of jam.

The study found that the table with 24 jams attracted more attention (60% of shoppers stopped to try the jam) than the table with six jams (40% of shoppers stopped to try the jam).

However, interestingly, the table with six jams sold more jars by a factor of 10 to 1, resulting in a 900% increase in conversion compared to the table with fewer jams.

How can this be used?

The human attention span is declining, shrinking from 12 seconds in 2000 to 8 seconds in 2016. Providing more options to users or customers may actually harm your chances of conversion.

Giving users or customers more choice often garners more attention, but research from multiple studies shows that people actually respond much better to fewer options. Limiting a customer's actions or choices will lead to the desired action sooner or immediately.

This does not mean simplicity; it means more clarity of choice or action.

Anchoring

In 1974, Amos Tversky and Daniel Kahneman created a survey, asking people to estimate the percentage of African nations that are part of the United Nations. However, before they were asked this question, the people surveyed were asked to spin a wheel with numbers from 0 to 100 on it. The people surveyed were unaware that the spinning wheel was rigged to stop at 10 or 65.

Amos and Daniel found that the people surveyed who landed on 65 were more likely to guess a higher percentage of African nations within the United Nations, 45%. The surveyed people who landed on 10 averaged the African nationsat just 25%.

How can this be used?

A product's Pro plan is priced at $99 a month. This high price is placed at the top of the queue, with a user likely to read this price and package first.

Once $99 is read and processed by the user, it's stuck. Their perception of the value of this product now has a starting/anchoring point. After this, in comparison, the Plus plan now seems so low at $49.

The first piece of information is of massive importance. Users seize upon that information instantly, using it as the arbiter and determinant of all future considerations.

When brands or companies try to sell you a product, they love to shout about the millions of benefits their product or services have.

This can be a mistake. We am not suggesting that you remove lists or areas about benefits and features. This is all hugely important information that affects every person when making decisions. It's the first piece of information that has the most significant impact on a person's decisions after reading.

If you first present that number or information, then you've won the anchoring game. A conversion now has a much higher chance of happening because we have dropped the correct anchor.