Key Behavioral Principles We Use
Behavioral principles describe an individual's psychological traits and biases. These are all derived from empirical research and translated to be applied in the retail environment. We leverage many of these principles in our Dynamic Messages.
Behavioral principles inform psychologists, marketers, and behavioral economists of ways to drive consumer behavior. Be that in directing attention, nudging products, or spreading a message.
These psychological motivators boost your Dynamic Messages on-site. They are the principles on which you base your Dynamic Badge copy to see how different customers react to different psychological drivers.
Understanding which principles drive purchase behavior will enable you to collect valuable psychographic data about who your shoppers are as individuals.
Let’s take a closer look at the six key behavioral principles we use here at Crobox. These will help inform your Dynamic Badge copy, and general on-site messaging.
1. Social Proof
Social Proof is the psychological principle that explains how people look towards others to determine the correct behavior, especially when they are unsure of what to do. We use the concept of Social Proof to determine our Dynamic Badge copy, for example, “Bestseller”, “Popular”, or “Most Bought”.
Social Proof messages aim to bring attention to products that are widely purchased or often viewed. By bringing attention to these factors, shoppers can make their purchases with greater ease that the product is a socially correct choice.
Scarcity works by signaling when a product is listed as limited, exclusive, or soon unavailable to boost purchasing confidence. Labeling products as scarce will help customers make decisions quicker.
There are four types of scarcity, which are:
- Exclusivity Scarcity: Products that are available for a limited time or stock will e.g., Dynamic Messages like "Limited" and "Low Stock".
- Urgency Scarcity: Offers that are time-limited create a sense of urgency, e.g., Dynamic Messages like countdown banners or "Don't Miss Out".
- Excess Demand Scarcity: When the demand for a product outweighs the supply, this drives a shopper's fear of missing out. Dynamic Messages like "Only 4 left. Don't wait" will leverage this.
- Rarity: These messages are geared for products that have a limited supply and will point out products that are unusual, stimulating the consumers' need for uniqueness. You can leverage this in the Dynamic Message "Rare" or "Limited Edition."
3. Price Sensitivity
Value-driven individuals are susceptible to price drops and products instantly become more attractive if they are discounted. We principle is leveraged in the copy of our Dynamic Messaging such as, “lower in price”, “sale”, “discounted”, or even, “temporarily reduced in price”.
When a product is sanctioned by a credible source, trust increases, often making the product more appealing. We leverage this in our Dynamic Badge copy like “Staff Picked” or “Our Favorite”.
Novelty, like the name suggests, leverages the cognitive bias that people like things that are new. Naturally, messaging promoting new products fall under Novelty and can be highlighted by Dynamic Messages that show new products, product lines, or collections.
6. Innovation (Novelty)
From brands offering cutting edge tech or design, Innovation messaging is a great way to bring attention to these features. Messages such as "Innovative tech", "Dri Tech", or "FLYTEFOAM™" leverage Innovation.
7. Endowment Effect
The Endowment Effect is the psychological theory that explains how we attach greater value to things that we own. This sense of ownership and possession can be fostered already from touching a product. You can leverage the Endowment Effect by using the second person “You” to make products feel they are already owned by the customer, i.e. “Excited to wear your future gear? Complete your order”.
Anchoring is based on the cognitive bias that people use initial information as a baseline to make decisions about a compared piece of information. For example, we use price anchoring by showing a higher price crossed out before showing the discounted price.