8 ways to convert high value purchases online

Understanding your customer journey is key to success. However, with an increasing number of touchpoints, understanding your audience is getting more and more difficult. It’s critical to know not just their interests and opinions, but also their habits, behaviours and interaction points in both the online and offline worlds. With big ticket items, such as expensive holidays and luxury cars, the customer journey is even more complex to comprehend. Consumers decisions on these items are processed differently to lower value items, people take more time over the decision, compare more alternatives and refer to many trusted sources for advice, but how do they make a decision? Do these sources really make a difference? What psychological tips and tricks can you employ to sell big ticket items to consumers?

Why are high ticket purchase decisions different?

Unlike lower value items, high cost purchases are more risky purchases for a number of reasons:

  • High price. They cost more so it takes more time to save up and pay for the item, consumers want to make sure their hard earned money is not wasted on a bad decision.
  • High risk. When it comes to experience purchases such as the annual family holiday or a honeymoon, there is a great deal of pressure on the person booking to ensure the experience is memorable and that everyone has a great time.
  • Longevity. A car will be something that’s used daily, for a number of hours and will remain in their life for a number of years.

68 days is the average time it takes users to research high ticket purchases

The fragmented but shortening customer journey

The customer journey in the digital era is no longer linear. With the rise of digital technologies and the connectedness that typifies the shopping experience, the costumer decision making process has become more fragmented.

However, the customer journey is also showing signs of shortening for high price items. Research over the last few years shows that consumers may be becoming more decisive. This may be because evidence indicates they are researching much earlier and spending much longer in this stage of the process. From 2013 to 2015, the average time taken in the research phase decreased by 14% for high cost purchases, from 79 days to 68 days (GE Capital Retail Bank and Synchrony Financial).

User experience in the digital world is no doubt contributing to this shortening timeline. The more that digital experiences, such as websites and apps, are designed around user needs, the more likely it is that the customer’s questions and concerns are answered and they’ll more likely reach the moment of truth. The key is ensuring that your website is the one to do this so that you keep the customer in your website as opposed to them going back to Google and a competitor to meet their needs. You need to identify and prevent all those barriers that can make people bounce, and work to actively keep them engaged with your product.

Rational and irrational decision making

“95% of our decisions are emotional, and 5% are rational. So even with all of these touch points we tend to go with our gut.” (Kahneman)

In the decision making process we think we are being very rational, researching the product, collecting information, comparing what’s included and prices, reading reviews, looking at photos and watching videos… but unbeknownst to consumers, their final decision to purchase is driven by emotions (irrational).

M.Talks of Ignition One states “We may be getting more decisive, but it doesn’t mean we’re getting any more loyal. Perhaps we’re just using all the information to filter down to a decision, but it’s still going to be an emotional decision. We’re not going to be any more [rational] about it… with some items we’re going to look at all the facts a bit more, but we’re still going to go with our emotional reaction to things. When it comes to marketing, it’s all about how you feel. If you don’t feel towards a certain brand, then you don’t want anything to do with it. You want to make sure you’re playing up all of your marketing campaigns to play into those emotions. The thing about the big-ticket items where you have to make a big financial commitment is that naturally, you want to make more time about that decision and have as many opportunities to verify your decision as possible. But our decisions are mostly driven by emotion rather than rational thought.”

Still likely to purchase in-store, despite their increased use of digital

88% are likely to purchase a high priced item in-store, not online. So, despite the increased use of digital throughout the customer journey, the final transaction is mostly still being made in a physical store.

8 ways to convert high ticket consumers online

1. Focus on mobile customer experience

With 50% of consumers using their mobile at some point during the research and purchase of a high ticket item, it’s more important than ever to focus on your mobile customer experience. Mobile is by far the most difficult platform for brands to get right due to the small screen space, so it’s worthwhile investing in expert help to focus on analysing your online user experience, identifying barriers and opportunities to engage and convert your consumers.

Mobile shopping CX

2 Limit choice

The potential for your consumers suffering from the paradox of choice increases the more options you give them and the less likely they are to make a choice. And when they do finally make a choice they’ll be less satisfied with it – this is called Buyers Remorse. This is what happens when you book your holiday then a week later see a better deal that you wish you’d booked instead.
Parados of choice

3 Have a clear call to action on each page

It’s important for you to guide your customer when they’re on your website. Have one clear call to action button for each page. If you need other buttons, make these secondary buttons by decreasing their visual appearance and enhancing the appearance of the primary button to clearly stand out on the page.

4 Use video

High consideration purchases are driven by emotions. “The richer the emotional content of a brand’s mental representation, the more likely the consumer will be a loyal user.” (Psychology Today). The best way for you to communicate emotion is through video.

5 Personalisation

People want to feel that their purchase is unique, tailored on their needs, something that makes them proud to show and tell others about. People enjoy the fun aspect of personalising their product to their needs. It’s an external reflection of themselves. It also enhances their commitment and likelihood to purchase – personalisation can deliver 5-10 times the ROI on marketing spend and increase sales by 10% or more (McKinsey, 2013).
Audi R8 personalisation

6 Post purchase experience

The final purchase decision, especially for expensive purchases can be followed by buyers remorse; Have I made the right decision? Is it the best product? Buyer’s remorse (or buyer’s regret) is the sense of regret a person feels after having made a purchase. It is frequently associated with expensive items or when when customers have made a choice from many different options. A feeling of self-doubt and remorse can emerge after the purchase process. To lessen the risk of buyers remorse, keep in touch with the customer after their purchase, reassuring them of the good decision they made to buy their product and the benefits it’s going to bring them. They will become a loyal customer. Also this goes without saying but ensure you send reminders to them to leave a review!

7 Giving meaningful context

Give context to your customers experience, make your product come alive in their eyes, giving meanings that are relevant and timely for them. In a study, international travellers were asked ‘How much would you pay for insurance that pays $100,000 in case of death for any reason?’ versus ‘How much would you pay for insurance that pays $100,000 in case of death in terror incident?’. Travellers were willing to pay more  in the second condition because of the time and context (the unfortunate questions were asked during a period in which the risk of terror attacks was high).

Context matters

8 Utilise Virtual Reality

To give customers the experience before purchasing. Car makers such as Audi are offering consumers virtual test drives that enable consumers to test drive their cars without the need to visit a showroom. This approach disrupts the standard customer journey of research then test drive, as consumers can fast track straight to the test drive before doing their research. Once consumers finally go for their real test drive it will feel like a familiar experience and remove some of the friction, resulting in a higher chance of purchase. Fashion retailers are already looking at how VR could help to ease changing room friction and queues and utilising technology such as smart mirrors.

Virtual reality

Other posts you may find interesting:

Using the Pareto Principle to improve your user experience
Call to Action Buttons: 5 Psychology tips to increase conversion

Free Generation Z Shopping Report Download

You need to understand how young people shop if you’re going to convince them to buy from your brand.

Generation Z make up 10% of UK population (aged 16 to 24) and they’re of great interest to marketers, UXers and conversion specialists because Gen Z are the first generation to be born and raised in the digital age.

So, how does this effect their shopping behaviour?

How do they feel about shopping in a physical shop versus shopping online? How do they shop? Is there a difference in what they buy online versus offline? What concerns do they have and what does shopping mean to them? How does their shopping behaviour differ to previous generations and how should you engage with them as consumers? Which is their platform of choice for shopping and how do they prefer to be contacted by companies?

We discovered all this and much more!

Suitable for: Marketers, UX designers, Customer Experience, Product Managers, Conversion Optimisers, Brands targetting Generation Z

Just press the button to go to the site to download the full 20 page report for free.

Creating meaningful experiences: an Introduction to User Experience design

“Good design is actually a lot harder to notice than poor design, in part because good design fits our needs so well that the design is invisible.” Don Norman 

What is UX?

‘An experience is a story, emerging from the dialogue of a person with her or his world through action.’ (Hassenzahl 2010, pp. 8)

Each person has their own definition of User Experience (UX) so it can be difficult for newcomers to understand what is meant by the term UX. UX refers to the experience a person has and who they feel when interfacing with a system.

Technologies have become progressively more complex as the industry advances and they are embedded into people’s everyday life to such an extent that our experiences are mostly created and shaped through digital devices. What used to be a one-way medium has evolved into a very rich and interactive experience and from this arises the importance to not just test the product but to test the interaction between users and the product. Users’ needs are always changing as they continually evolve their expectation, so continuously testing the user experience of your product is vital to stay relevant and ahead of the competition.

Working in UX requires many skills, below is just a small subset.

UX design disciplines

What is UX design?

UX design is the process of enhancing the end user satisfaction with a product or service as well as increasing business KPIs (if you have a great UX designer they’ll deliver both). In simple words, UX design is about how to create technology that can fit human needs, solve problems and make life simpler.

The more you understand your users the better you can design a product that is attractive and meaningful. User-centred design (that aligns your design to your users needs) will ensure the design of a successful product and an enjoyable user experience.

A UX designer will ensure a product logically flows from one step to the next. UX design experts study and evaluate the ease of use of the product, the perception of the value of the interface, the efficiency in performing tasks coupled with business needs.

The checkout process of an e-commerce website is frequently evaluated in terms of the user experience because it’s often a major jumping off point when customers are transacting. Testing how easy and pleasant users purchasing something on the website can be utilised to identify the challenges and obstacles that users face.

As human beings, we are all different. What works for one person might have the opposite effect on another. For this reason the aim of UX is to design for specific user groups (personas) experiences, promote certain behaviours and habits; user experiences will be different and unique for every product. The design process must be tailored to goals, values, needs and expectations related to a specific product.

What’s the difference between UX and usability?

There is some confusion around UX and usability; they are often used synonymously, however in reality, usability is a part of UX.

UX addresses to how the user feels when using an interface; it is more related to the overarching process and interaction with the product, whilst usability is about whether a task can be achieved in a satisfactory time and manner. In fact, according to ISO 9241, usability is purely regarded as efficiency, effectiveness and satisfaction.

Whereas UX entails everything that effects how a person interacts with something and can include a whole variety of psychological and social factors; social proof, trust, emotions, frustrations and satisfaction. Usability is just one part of UX.

Which research methods are involved in UX?

The methods for researching UX are numerous and they are strictly related to the nature of the research and the final aims of the testing. Each research is tailored to which aspects of the interface is to be evaluated.

Some of the research methods in UX are:

  • One-to-one interviews: gather deep insights from real time behaviour, interaction, personal experiences, opinions and perceptions.
  • Focus Group: this group research method allows the researcher to investigate behavioural patterns and the influence of group interaction.
  • Concept Testing: testing a concept directly with users allows designers to understand expectations about the product and to transform early ideas into more solid concepts that have been adapted for user needs.
  • Card Sorting: used to inform structure and categorisations based on how users perceive them to be. Utilises understanding of the users mental model.
  • Usability testing: is a research method to evaluate the efficiency, effectiveness and satisfaction of a product based on empirical evidence.
  • Diary study: this technique gathers deep information about feelings, habits and behaviours across a period of time.

Is the setting of the research important?

The setting of the research is very important – a poor environment can undermine the validity of the test. As in psychology, the success of research is also based on the environment in which it has been run. A comfortable, cosy and natural environment will help users feel relaxed and behave naturally, as if they were in their natural setting: their own home. Keep It Usable pioneered the home style UX lab – our Home UX Lab has a living room design and cosy, relaxed feel to put people at ease and gather deeper insights so you get more value from your UX research / Usability testing.

Keep It Usable Home UX Lab

What are the benefits for your brand?

Knowing your users and designing for them has a lot of benefits for your brand image, the engagement of your users and on your revenue.

UX design deals with users emotions and feelings and it has long term effects as well as immediate ones. For example, a simple improvement in the checkout process of a website can massively increase the revenue and, at the same time, it will grow loyalty resulting in repeat customers and referrals. If users find the product useful, pleasant and easy to use they will return and use it not just once but whenever they need it.

A positive user experience will make users wonder how they could live without your product!

  • Increase sales and conversion: your user interfaces will be more effective at selling your products and therefore will increase your sales.
  • Improve credibility and trust in the brand: good UX is associated with increased brand appeal and positive brand associations.
  • Decrease bounce rates: people bounce for many reasons. During the UX design process, as many of those reasons as possible will be identified and designed out, keeping people on the site, taking them further down the funnel.
  • Increase visibility (no. of new and return visitors): UX experts are not only looking to increase new customer conversion, but they’re also focussed on improving retention and longer term conversion.
  • Avoid costly redesign: testing the product in the early stages of the design process will avoid redesign costs later and lost revenue.
  • Increase business intelligence and ease decision making: If you understand your customers opinions and needs, everyone in the business will be able to make better business decisions that are more in line with your customers needs. The more user research you do, the more aligned you’ll be with your customers thinking.
  • Better reviews: Online reviews are read by everyone, they’re the word of mouth of the internet and they are trusted because they come from ‘people like me’. Through an increased understanding of customer needs and improving accordingly, you will create a better experience that leads to better reviews.
  • Improve user satisfaction: a satisfying customer experience is related to positive emotions due to the fulfilment of fundamental psychological human needs: self-esteem, autonomy, competence and relatedness (Self-determination Theory, Deci & Ryan). Moreover, the feeling of satisfaction gathered during a positive user experience, will create an emotional and affective bond between users and your brand, as well as a sense of engagement and motivation to use your brand in the future (for more about how to engage with your customers emotions, take a look at ‘How do you feel? Understanding emotions to craft satisfying experiences’).

In the digital era, a website is often the first point of contact that costumers have with your brand. We have evidenced in our research, that first impressions have a big impact on user behaviour and their decision making process. It takes just a few seconds for users to judge if your brand is worth their time; remember that a bad user experience will put them off, undermining their trust in your company and compromising future use of your brand.

Help!

Would you like to evaluate and measure the UX of your website or product?

Do you need help improving your online sales and conversion?

Would you like to understand your customer behaviour and opinions, discovering the whys behind your data?

Do you need to get your business thinking from the customers perspective so you can make informed, strategic decisions to increase sales?

Do you want to improve the quality of your customer research so you get deeper insights and more true-to-life behaviour?

Contact our UX and Conversion experts >

 

12 reasons to invest in UX

Knowing your users and designing for them have a lot of benefits on your brand image, the engagement of your users and last but not least on your revenue as well as on the engagement of customers with the product.

1. Increase sales and market share (conversion)

The crucial reason for all businesses to invest in their UX is the value of the return. Successful companies such as Amazon, Google and Apple all invest in their customer experience and the evidence is in their huge success. To give you an idea, every £1 you spend on UX returns on average £100. Importantly, it’s also an investment that keeps paying for itself in the longer term, unlike acquisition costs.

The evidence:

From 1993 to 2004, the UK Design Council tracked share prices. They found that design-aware companies out-performed other companies by more than 200%.

ux_share-prices

Case Study: Netflights

One of our travel clients, Netflights, invested in the UX of their website. Over the space of a year, all of their KPIs increased significantly. This included their revenue increasing by an impressive 26%, and their customer satisfaction rate rising to 95%.

2. Decrease bounce rates

People bounce from your site for many reasons – do you know these reasons? Are you just guessing? During the UX design process, as many of those reasons as possible are identified and designed out, keeping people on the site, taking them further down the funnel.

3. Avoid project failure and costly redesign

Investing in a user centred design process is the most effective thing you can do to lessen your risk of project failure and redesign costs. If you include user testing throughout your design process, you can rest assured of validation in the design. This will result in 25% less rework and bug fixes post-launch. Why risk leaving that user validation to launch and having your project sink like a led balloon. Test sooner rather than later!

ux-project-failure

4. Increase business intelligence and ease decision making

If you understand your customers opinions and needs, you and everyone else in the business will be able to make better business decisions that are fully in line with your customers needs. The more user research you do, the more aligned you’ll be with your customers thinking.

Business intelligence

5. Decrease your acquisition costs (advertising spend)

A good user experience is the best advertisement your business can have. “If a lot of people use that website then it means that it’s good”, we hear this hundreds of times during research. Nothing is as strong as a user that has had a good experience, suggesting to other users to use your brand. Social proof is a crucial factor for your business to be successful. And best of all, it’s FREE!
When your bounce rate decreases and you have more people coming to your site based on great customer reviews and a whole host of other positive side effects from your improved UX, you’ll spend less on your marketing channels but you’ll be converting more. This also has a longer term impact.

Decrease advertising costs

6. Increase basket size

Have you noticed how you spend more time on sites that you enjoy using? You buy more from them too. Through focussing on your customers and improving the design of your site, you’ll notice an increase in your average basket value. Focus on improving cross sells and up sells as part of your strategy to further increase basket size.

7. Better reviews

Online reviews are read by everyone, they’re the word of mouth of the internet and they are trusted because they come from ‘people like me’. Of course offline reviews and word of mouth still exist, but online is where people have the most reach. Upset one person and thousands of people can read their review and decide not to buy from you. Through an increased understanding of customers needs and improving the website accordingly, we create a better experience that leads to better reviews.

Better reviews

8. Improve customer satisfaction and NPS score

A satisfying customer experience is related to positive emotions due to the fulfilment of fundamental psychological human needs: self-esteem, autonomy, competence and relatedness (Self-determination Theory, Deci & Ryan). Moreover, the feeling of satisfaction gathered during a positive user experience, will create an emotional and affective bond between users and your brand, as well as a sense of engagement and motivation to use your product further in the future (for more about how to engage with your customers emotions, take a look at ‘How do you feel? Understanding emotions to craft satisfying experiences’).

Customer satisfaction

9. Decrease customer service and support costs

If your users can find the information they need on your site, they’ll be more happy and won’t need to contact your customer service staff for further help. We all know how frustrating it is when you can’t find something on a website and have to phone up a call centre, most likely waiting on hold for ages just to get a simple answer. We’ll tell you a secret, most people won’t do this. They’ll simply press the back button and go to your competitor. The problem is that you have no idea why this has happened, unless you do regular user testing.

Support costs

10. Make your site / product reach it’s full potential

Apple didn’t invent the smartphone (we know because we part of the design team of the first Ericsson smartphone), and Facebook wasn’t the first social network, but what made those products so successful? The usability and good user experience were instrumental for their exponential growth and it can be the same for your business!

Ericsson R380

11. Increased customer retention

If a person enjoys using your website or product (if they have a good experience) they will come back in the future again and again… We hope you’re starting to understand that UX is not just a one off benefit. It keeps paying for itself over and over again.

Increase customer retention

12. Motivate your team

When your team can see the value of what they are building, so will your users.

Team motivation

Need help or advice?

If you’re curious about any of the above and how ux can help you to create a more successful product, contact our experts for free, friendly, no-ties advice.

Other posts you may find interesting:

What is User Testing?
5 user tests every Product Manager should commission
5 reasons to continuously conduct user research

8 Technology trends you need to know for 2015

2015 is looking to be a really exciting year for innovation.  We get excited by new technology and the challenges that brings, especially with regards to designing for challenging smaller screens – how you can engage users and showcase information without sacrificing the experience? Here are some technologies and trends we’d recommend keeping your eye on in 2015.

1. Wearables

Wearables are becoming big business and the growing trend will continue to thrive in 2015, particularly in fitness, fashion and health.  More affordable wearables are likely to hit the market and will bring wearables to the masses.

Keep-It-Usable-Wearable-Tech-Nike-Fuelband

2. Apple watch

A handful of companies such as Google, Samsung and Sony have launched wearables in the form of watches.  This year, will see the Apple watch hit the market which will disrupt and put smart watches on the map.  This will have huge implications for how we communicate, interact and consume information.  The potential is vast, particularly for connectivity and health.

Apple-Watch-sport

3. Digital health

2015 will be the year that healthcare finally wakes up to digital!  Wearables that can monitor everything from measuring steps in fitness to improving your hearing.  Rings, hearing aids, headphones and much more will hit the market.  Could we even see the first digital implant…?! There is already a digital pill.

Health-Wearables

4. Internet of things

From controlling lighting and heating, TVs, appliances and even connecting your body. We will use technology to increasingly monitor and intelligently improve our lives.  The promise of major connectivity and intelligence is exciting and we expect to see this technology grow rapidly in 2015.

Keep-It-Usable-Internet-Of-Things-Philips-Hue

5. Major growth in mobile e-commerce

Mobile will be huge in 2015 and will continue to disrupt e-commerce.  8 in 10 smartphone users use their phones at some point during the purchase process and with mobile screens increasing in size, their popularity is projected to grow enormously in 2015, meaning users will consume even more data on mobile.  Mobile growth is larger than tablet with 186% average growth in sales via mobile compared to 131% in tablet e-commerce.  Read our e-commerce insights for 2015 >

Keep-It-Usable-Mobile-Shopping

6. Mobile wallets

2015 will be the year that contactless payment methods like NFC (near-field communications) really start to take off.  Larger banks are likely to offer NFC payments via smartphone by the end of 2015 with 5% of NFC enabled mobiles being used to make contactless payments.

Apple-Pay

7. Omni-channel retail experience

The future of retail will be a seamless approach to the consumer experience through all available shopping channels, i.e. mobile devices, computers, physical stores, television, radio, mail, etc. Omni-channel retail represents an experiential change for the connected consumer as all touchpoints with a brand become one. Example: Customer browses products online then when they enter a physical store they get these products retargeted to them as ads or offers in-store. Read about how digital tools will change the in-store shopping experience >

Keep-It-Usable-Omni-Channel-Retail-Experience

8. Usability

With the rapidly changing technological landscape and continuing explosion of digital into more and more products, it has never been so important to focus on user needs, psychology and behaviour.  Great usability will no longer be a nice-to-have, it will be mandatory in order to create a successful product. There’s never been a more important time to Keep It Usable.

Keep-It-Usable-Mobile-UX