- Darjan Hren
Are you looking for ways to improve your conversion rates? One of the most overlooked tactics is the use of money illusion cognitive bias.
Money illusion is a psychological phenomenon in which people's behavior and decisions are influenced by the way monetary values are presented. It works on both an emotional and subconscious level, and it can be used to influence consumer behavior.
Understanding Money Illusion Cognitive Bias
Money illusion cognitive bias is based on the idea that people often don't think about money in terms of its actual value but instead as a representation of something else.
For example, when making a purchase decision, a consumer may not weigh their options in terms of how much they will actually pay for an item, but rather how "expensive" or "cheap" it looks. In other words, they are more likely to be swayed by the appearance of price rather than its true value.
It's important to note that money illusion cognitive bias doesn't only apply to purchase decisions; it also extends to other areas such as investment decisions and loan agreements.
People can be influenced by perceived danger or potential gain when assessing risk-reward situations involving money.
Using Money Illusion Cognitive Bias in Ecommerce Now that we have an understanding of what money illusion cognitive bias is and how it works, let's look at how you can use this knowledge to improve your conversion rates. Here are some tips:
1. Introduce discounts for large orders
Offer customers bigger discounts if they buy more items together – this will create a perception that they’re getting a better deal and make them more likely to complete the purchase.
2. Create “bundles”
Another way to leverage this concept is by grouping multiple items together into one package at a discounted rate – again creating a perception that customers are getting more for their money despite paying less overall.
3. Use visual cues
Use visuals such as large numbers or dollar signs next to products or collections – this will draw attention and create an impression of higher value even if prices remain unchanged.
4. Promote payment plans
Divide product costs into smaller chunks over several payments – this will make prices seem lower than if customers had to pay one lump sum upfront.
Money Illusion Cognitive Bias Takeaways
Using money illusion cognitive bias can be an effective tactic for improving your conversion rate — whether it’s boosting initial sales or upselling existing customers — when done correctly.
The key is recognizing what kind of visual cues you should use and how you should present pricing information so that it appeals both logically and emotionally.
By leveraging the power of psychology, ecommerce store owners, designers and marketers can create more compelling offerings for their customers that result in increased conversions!