- Darjan Hren
Conversion rate optimization (CRO) is the process of increasing the number of website visitors who take a desired action — such as making a purchase or signing up for a newsletter — and thus converting into customers. Conversion rate optimization is an important part of any business’s digital marketing strategy, but it can be difficult to get right. One concept that can help is hyperbolic discounting bias, which states that people often prefer short-term rewards over longer-term rewards even though they know that long-term rewards are more valuable in the long run. In this blog post, we’ll discuss how understanding this concept can help you optimize your website for conversions.
What is Hyperbolic Discounting Bias?
Hyperbolic discounting bias refers to a phenomenon where people often prefer short-term rewards over longer-term rewards, even though they know that long-term rewards are more valuable in the long run. This bias means that people will choose immediate gratification over delayed gratification if given the option. The reason for this bias lies in our evolutionary programming—our brains are wired to focus on immediate needs and desires because it was critical to our survival thousands of years ago. Although there have been significant advances in technology since then, our brains still operate in much the same way when it comes to basic decision making.
How Can You Use Hyperbolic Discounting Bias To Optimize Your Website For Conversions?
Understanding hyperbolic discounting bias can help you optimize your website for conversions by ensuring that all incentives are clear and obvious from the start. People tend to make decisions based on what’s most immediately attractive or beneficial, so if visitors don’t understand why they should convert right away then chances are they won’t bother doing it at all. Here are some tips for leveraging hyperbolic discounting bias when optimizing your website:
1. Offer Immediate Rewards
Offering immediate rewards such as discounts or free shipping can be very effective in convincing visitors to convert right away rather than waiting until later (when their resolve may waver). Make sure these offers are prominently displayed so visitors don’t miss out!
2. Use Social Proof
Testimonials, customer reviews and ratings all act as social proof which helps convince potential customers that your product or service is worth buying now rather than later. Make sure these types of content are prominently featured on your site so visitors have no doubts about whether or not they should convert immediately or wait it out awhile longer.
3. Create Urgency
Creating urgency around an offer by setting an expiration date helps encourage people to make decisions quickly rather than taking their time and potentially changing their minds later on down the line (which tends to happen with delayed gratification). If you want customers to take advantage of an offer right away, make sure you provide them with enough information about it but also set an expiration date so they have incentive to act fast!
4. Leverage Fear Of Missing Out
Leveraging fear of missing out (also known as FOMO) is another tactic marketers use to create urgency and convince potential customers to make quick decisions rather than waiting around too long (which could lead them astray). Try adding countdown timers next to products with limited availability, emphasizing scarcity on certain items or offering “last chance” deals before an event ends – these tactics will help create urgency which leads leads back into conversion optimization success!
Conclusion on Hyperbolic Discounting Bias
In conclusion, using hyperbolic discounting bias when optimizing your website for conversions can be incredibly beneficial when done correctly. By offering immediate rewards such as discounts or free shipping; leveraging social proof through customer reviews; creating urgency by setting expiration dates; and utilizing fear of missing out tactics; you can increase engagement levels among potential customers and ultimately drive more conversions through your site quickly and easily!