Empower Your Business With The Magic Of Machine Learning!
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Empower Your Business With The Magic Of Machine Learning!
These whims, or Cognitive Biases are:
This refers to the tendency of people to follow and copy what most people do.
They are heavily influenced by emotion and instinct, rather than by their own independent analysis.
There are countless examples of this cognitive bias, especially in situations where consumerism is at its peak.
To cite a well-known case, the Black Friday craze comes to mind.
A study once concluded that the shopping experience can be enhanced when there is a large crowd around a person, turning an otherwise bad experience into a pleasant one.
How to use this cognitive bias in your e-shop and advertising :
・ Display customer comments in advertisements, on your site and e-shop.
・ Show numbers about the number of sales and/or number of customers for your product or company.
・ Showing the most desirable and bestsellers
People remember tasks that have been interrupted more than tasks that have been completed.
In other words, the desire to complete a task can make someone remember it until it is completed, because its completion leads to forgetting it completely, as well as giving them satisfaction (dopamine)
LinkedIn is a good example of using this cognitive bias to persuade its users to complete their profiles.
Netflix also uses the above bias , creating movies whose end is not completed, thus pushing the viewer to watch the next episode.
How to use this cognitive bias in e-commerce and advertising:
・ Advertisements and emails reminding customers of the products they have in their cart
・ Notification with discount code that can be used later
・ Reminder for the products on the wishlist
・ Loyalty program and reminder to customers for the
unused rewards/bonuses/discounts
It is the tendency to attribute greater accuracy to the opinion of a person of authority (not related to the content). and influence more our opinions .
n advertising, this cognitive bias is common.
Celebrity endorsed ads are very favourably received by consumers.
However, with time, knowledge and practice, this bias can be overcome to make an unbiased assessment.
How to use this cognitive bias in e-commerce:
・ Showing a statement from a special , public person or another client.
・ Adding credibility statements
・ Numbers of satisfied customers
・ High ranking from existing customers
This is the tendency for people to prefer more immediate payments over later payments.
This cognitive bias is most often identified in the concept of “buy now – pay later”.
How to use this cognitive bias in e-commerce:
・ Free service offer
・ Give customers the ability to pay less within a period of time
・ Give your customers the opportunity to experience your product first hand, once they express interest (free trial or free sample)
・ Create a loyalty program around smaller rewards
・ Allow your customers to try before they buy or take the product home for an extended trial run and return it for free if they are not satisfied
It is possible using recommendation engineering , Machine Learning and customer purchase data to predict what products customers want to buy now.
You can see who wants to buy a new product , a new arrival , to pay a little more and not wait for discounts or later.
To learn how the top companies in the world increase revenue up to 30% from existing customers using Recommendation Systems and Personalization read the book below.
https://mobiplus.co/ebooks/customer-rediction/
Automation bias refers to the tendency to favor the proposals of automated systems.
Applications that use Artificial Intelligence are becoming incredibly good at “personalizing” our content, and are usually followed by consumers.
The consumer doesn’t want to dig in .
Every time we dig, we get tired and we get a negative feeling,
The System 2 of thought , that which digs and calculates consumes a lot of energy and by design tries to work in special cases only.
On the contrary, System 1 works automatically, decides automatically.
Here you need shopping Recommendation engineering , predict what he wants to buy, recommend it on the e-shop , in store , mobile app and he buys without effort.
After a few repetitions becomes a habit (System 1) and he buys from you automatically and happily!
This cognitive bias refers to our tendency to place a higher value on things we help to create.
It was recognized in 2011 by Michael Norton (Harvard Business School) and his colleagues.
Nike incorporates this bias into its products.
The footwear company offers a range of customizable Nike By You products where customers pay a price to have shoes designed for them, using the company’s related app.
Get the customer to give his wish items in your e-shop with a promise to make his life nice afterwards.
By giving him personalized recommendation, discounts, new arrivals and even Gifts!
Asks for the customer’s needs when they walk into your store and they will then feel better about their choices.
Let them talk to your call center and they’ll be happier afterwards.
Let them to be involved in their product selection.
The halo effect is a cognitive bias where our first impressions significantly influence how we interpret further information about things or people.
T
his is why a great company with an ugly e-shop will struggle to sell more online than a shoddy company with an excellent e-shop.
Once people land on the page, they make a quick decision about each product and determine everything else they learn about you
Imagine if he enters your e-shop and sees the product he wants to buy.
Imagine how nice it is when you go home, turn on Netflix and out of the 4000 movies it recommends the movie you want and shows it to you right there.
Aren’t you very happy?
Don’t you think this is a great company?
This is how your customers will feel when they enter your e-shop and store and using Artificial Intelligence and mobiplus shopping Recommendation they will see the products they want to buy.
We tend to give enormous weight to past events, believing that they will somehow influence future events.
The classic example is the coin toss game.
After five consecutive heads, our tendency is to predict an increase in the probability that the next coins will be tails.
But in reality, the odds are still 50/50.
As the statisticians say, the results in different processes are statistically independent and the probability of any one result is still 50%.
Relatively late, there is also the positive expectancy bias , which often fuels gambling addictions.
It is the feeling that our luck must eventually change and that good luck is coming.
Similarly, it is the same feeling we have when we start a new relationship that makes us believe it will be better than the last one.
So the customer experience with your business is very important.
If the first experience is good, it is assumed that the next one will be good.
If he found what he wants in you he assumes he will find it in the future.
So use Artificial Intelligence and machine learning to predict what he wants and recommend it.
Not to search, because it’s hard to find what you want from 10,000 products in 3 minutes sitting in your e-shop.
People tend to pay more attention to bad news.
Social scientists believe that it is due to our selective attention and that, given the choice, we perceive negative news as more important or more profound.
We also tend to give more credence to bad news, perhaps because we are suspicious (or bored) of proclamations to the contrary.
Receiving bad news is more interesting than missing good news.
I want you to think about it for yourself.
Have you thought about it?
Doesn’t it hurt a little?
As humans we find it difficult to imagine ourselves in the future and to change our attitudes and expectations accordingly.
Most of us would rather experience pleasure in the present moment, leaving the pain for later.
Indeed, a 1998 study showed that, when choosing food for the following week, 74% of participants chose fruit.
But when the food choice was for the current day, 70% chose chocolate.
We choose to get 100 euros today too 2000 euros in a year.
We want delivery of products today, even if more expensive to delivery after 10 days with less cost.
We want a mediocre job today too a good one tomorrow !
We want to finish our purchase today than find a better product tomorrow.
Delivery tomorrow if you order by 1600 today is a message you see in e-shops that exploits our cognitive weakness.
Ordered Now…also
Used Artificial Intelligence and mobiplus shopping recommendation so that system automatically and quickly predict what customer wants , recommend it , make the purchase today , and be happy.
For other cognitive biases see here.
Contact us now to see how the mobiplus shopping recommendation platform can give you the above features and increase your revenue. 30%.
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