It’s a cultural trope to “want what you can’t have,” but it’s also a principle based on decades of psychological research.
That principle, scarcity, is incredibly powerful in marketing, persuasion, and conversion optimization—when done right, especially in a free market with limited resources. If people believe that they’ll be missing out on something, they’ll be prompted to act more quickly to get it.
A few years ago, I launched a kind of “Groupon deal for musicians.” I gave away $1,250 worth of products, including recording time and iTunes distribution, for just $69.
I had spent four months building it, and invested a significant amount of my personal savings into ensuring the campaign was everywhere.
It had to work, and I obsessed over conversions. This obsession paid off when I managed to increase conversion rate from 2.5% to 10.8%.
Do you remember when Slack launched? At the time, I was a diehard HipChat fan. Needless to say, I wasn’t interested in trying Slack.
I considered it nothing more than a passing trend. Now? I use it for an average of 10 hours a day for personal and professional reasons. (Sorry, HipChat.)
What’s going on here? How’d I go from loathing something to using it daily in the span of just 3-4 weeks? It’s called the mere-exposure effect, which means we tend to develop a preference for things just because we’re familiar with them.
You put tons of time into creating your product, experimenting with acquisition channels, and honing your messaging.
Yet here I am, about to tell you that consumers are often swayed by such subtle nudges as the order in which you present your products, or the “serial position effect.”
“Never interrupt your enemy when he is making a mistake.” —Napoleon Bonaparte
When your competitors make mistakes, it makes winning so much easier. But what if it’s you who is making a mistake, while your competitors are off to the races? You won’t know until you figure out what your competitors are up to.
Knowing what the competitors are doing—how they’re thinking about the market, which tactics they’re using, how they’re crafting messages and design—can make all the difference in the battle for customers.
Color is an essential part of how we experience the world. But do colors really matter for conversion optimization? Can a button color guarantee better performance for a call to action (CTA)?
No single color is better than another. Ultimately, what matters is how much a button color contrasts with the area around it.
Freemium to paid conversion rates for SaaS businesses hover around the 2% mark on a good day. That means that 98% of your free users will stay that way forever—never diving into their wallet to provide you with the MRR that will lower your CAC.
Now, there are many methods you can use to try and increase your conversion rate. You can create a sense of urgency with a well-timed offer (e.g., “Get 50% off your annual plan, this weekend only”). Or you could work on your upselling, in order to close the penny gap. And these are both effectives strategies.
If you think people might buy your products or services without checking out the competition first, think again.
More choice equals freedom, right?
Well, yes, but there’s a good body of evidence that the more choices presented to us, the less happy we are with the one we make.
What does that mean for conversions? Or retention? Or revenue?
According to Econsultancy, up to 30% of ecommerce visitors use internal site search. Due to the increased level of purchase intent from searchers, they’re known to convert up to 5–6x higher than the average non–site search visitor.
Site searchers account for up to 14% of all revenue, and case studies have shown increased conversion rates of 43% from site search optimization.
Yet how many sites pay attention to site search? Too often, it gets ignored. This post walks you through opportunities to improve your internal site search.