Using the principles of gestalt psychology to increase the conversion of sites. Part 3: Cost Benefit Analysis
Part 1
Part 2
Part 4
Part 5
Elliot Schmukler (from LinkedIn and Wealthfront) once said that the success of a site can be reduced to three main levers:
1. Increase exposure (reach more people)
2. Reducing friction
3. Increased stimulus
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The principle of cost-benefit analysis explores the interaction between the last two levers. Human behavior depends largely on the ratio of potential benefits (book download) and the estimated cost (the need to enter an email address).
It is possible, especially to go deep into the principle of operation of this law does not make any sense. From the title it is clear that before taking any action, a person evaluates the necessary effort and estimated results. If the outcome of the assessment suits him - the action will be committed.
The work of this principle has a solid foundation, which has been formed throughout the whole period of human existence, beginning with the times when the incorrect correlation of risks and benefits almost guaranteed cost the life of a person who made the wrong decision. Therefore, although some “costs” may seem small, such as the time and effort to fill in several fields on an order form, their “psychological cost” may affect the decision-making process.
In addition, the law strengthens the principle of "now and then." In most cases, efforts must be made now in order to receive rewards. Such a time gap greatly increases the subjective assessment of costs and reduces the attractiveness of benefits.
Example number 1: Official store Vancouver Olympics 2010 (21.8%)
One study found that more than 67% of online stores lose about 67 percent of potential revenue, and the official store of the Vancouver Olympics 2010 was no exception.
In order to get out of this situation, the store team decided to reduce the level of friction (lever number 2).
The original order form contained 4 pages: enter, create an account, details, payment confirmation. For testing, an option was proposed in which all four stages were reduced to one page.
Both options require the same information, but the layout of the fields on the same page may have reduced the psychological friction that prevented the purchase. Also, the fact that the account creation form appeared after placing the order also played a role, and the value of the work already done on filling out the order form added to the psychological value of the goods being purchased.
Together, these two changes increased the number of orders by 21.8% due to a decrease in friction, i.e. improve the benefit / cost ratio.
Case 2: Meebox (121% revenue growth)
Meebox, a hosting company in Denmark, decided to check its pricing structure.
To the original tariff plans were added decent discounts, which reached 40% for those who purchased the package, involving two years of service.
After the introduction of changes, a 121% increase in income was observed (the conversion rate increased by 51%, the average cost of the order increased by 46%).
Given that the company is able to provide a high level of service, such a way to quickly attract customers will help create a reliable customer base. After the expiration of the offer, it will be much more difficult for the customer to switch to another hosting. The psychological value of such a transition will be lower than the cost of its implementation (search, testing, the risk of unstable work, and so on).
Example No. 3: Soocial (28%)
Soocial decided to focus on expanding the top of the funnel (simplifying the first contact with the product), because they knew that this element was of paramount importance in the early stages of the company's life. The test button has become the object for testing. They did not change the design, just two words were added to the right of the button: “it's free.”
These two simple words increased the CTR by 28%.
“Free” is a powerful word, but you have to be careful about two things:
1. If the product is not really free (or partially free), you will disappoint many customers.
2. “Free” often means “cheap.” If the value of your proposal is built around the high quality of the services provided, such an approach can badly affect your image.
Sample # 4: Expedia (12,000,000 profit increase)
Expedia practice has proven that the introduction of one additional field can significantly increase the friction in the path of an order.
This is a form with data for sending an invoice. The original version required, among other things, to specify the name of the company. In the test version, this field was remote.
This is a simple change - the removal of an additional field led to an increase in revenue of $ 12 million.
Although the field was optional, it still increased the friction. Besides the fact that the form looked longer, the user had to make a decision about whether to fill in the field with the name of the company, which also has its “energy value”.
Part 2
Part 4
Part 5
Elliot Schmukler (from LinkedIn and Wealthfront) once said that the success of a site can be reduced to three main levers:
1. Increase exposure (reach more people)
2. Reducing friction
3. Increased stimulus
')
The principle of cost-benefit analysis explores the interaction between the last two levers. Human behavior depends largely on the ratio of potential benefits (book download) and the estimated cost (the need to enter an email address).
A little information
It is possible, especially to go deep into the principle of operation of this law does not make any sense. From the title it is clear that before taking any action, a person evaluates the necessary effort and estimated results. If the outcome of the assessment suits him - the action will be committed.
The work of this principle has a solid foundation, which has been formed throughout the whole period of human existence, beginning with the times when the incorrect correlation of risks and benefits almost guaranteed cost the life of a person who made the wrong decision. Therefore, although some “costs” may seem small, such as the time and effort to fill in several fields on an order form, their “psychological cost” may affect the decision-making process.
In addition, the law strengthens the principle of "now and then." In most cases, efforts must be made now in order to receive rewards. Such a time gap greatly increases the subjective assessment of costs and reduces the attractiveness of benefits.
Example number 1: Official store Vancouver Olympics 2010 (21.8%)
One study found that more than 67% of online stores lose about 67 percent of potential revenue, and the official store of the Vancouver Olympics 2010 was no exception.
In order to get out of this situation, the store team decided to reduce the level of friction (lever number 2).
The original order form contained 4 pages: enter, create an account, details, payment confirmation. For testing, an option was proposed in which all four stages were reduced to one page.
Both options require the same information, but the layout of the fields on the same page may have reduced the psychological friction that prevented the purchase. Also, the fact that the account creation form appeared after placing the order also played a role, and the value of the work already done on filling out the order form added to the psychological value of the goods being purchased.
Together, these two changes increased the number of orders by 21.8% due to a decrease in friction, i.e. improve the benefit / cost ratio.
Case 2: Meebox (121% revenue growth)
Meebox, a hosting company in Denmark, decided to check its pricing structure.
To the original tariff plans were added decent discounts, which reached 40% for those who purchased the package, involving two years of service.
After the introduction of changes, a 121% increase in income was observed (the conversion rate increased by 51%, the average cost of the order increased by 46%).
Given that the company is able to provide a high level of service, such a way to quickly attract customers will help create a reliable customer base. After the expiration of the offer, it will be much more difficult for the customer to switch to another hosting. The psychological value of such a transition will be lower than the cost of its implementation (search, testing, the risk of unstable work, and so on).
Example No. 3: Soocial (28%)
Soocial decided to focus on expanding the top of the funnel (simplifying the first contact with the product), because they knew that this element was of paramount importance in the early stages of the company's life. The test button has become the object for testing. They did not change the design, just two words were added to the right of the button: “it's free.”
These two simple words increased the CTR by 28%.
“Free” is a powerful word, but you have to be careful about two things:
1. If the product is not really free (or partially free), you will disappoint many customers.
2. “Free” often means “cheap.” If the value of your proposal is built around the high quality of the services provided, such an approach can badly affect your image.
Sample # 4: Expedia (12,000,000 profit increase)
Expedia practice has proven that the introduction of one additional field can significantly increase the friction in the path of an order.
This is a form with data for sending an invoice. The original version required, among other things, to specify the name of the company. In the test version, this field was remote.
This is a simple change - the removal of an additional field led to an increase in revenue of $ 12 million.
Although the field was optional, it still increased the friction. Besides the fact that the form looked longer, the user had to make a decision about whether to fill in the field with the name of the company, which also has its “energy value”.
Source: https://habr.com/ru/post/230417/
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