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Pre-order my new book – Click.ology

Click.ology - my new bookThe Psychology of Online Shopping

Click.ology is the psychology of online shopping. It is my latest book showing you how to engage with your online customers and sell even more to them. Click.ology reveals the psychology of why we click and what businesses can do to encourage more of us to buy online.

This book shows why we buy online and how Internet retail businesses can tap into that behaviour to sell more. With examples from online shops from around the world, this book also reveals the differences in online shopping behaviour in different cultures and exposes how global business can improve international sales if they adapted their online shops to suit local needs. Click Here for more information.

Categories: Books

Get your customers to pay in advance, they will enjoy it

Paying a bill in a restaurantWhere do people argue most about what they have to pay? The chances are it is in a restaurant. Eating out is generally a pleasurable experience. You spend an evening chatting with friends, laughing, smiling and having fun. You choose your food carefully and savour every mouthful, saying “this is lovely” and “what’s yours like?” Then, with a warm replete feeling you sit back in your chair. You are nice and relaxed and suddenly along comes the waiter with your bill.

You take one look and go “how much?” Then you notice that those cheese and biscuits you had were more expensive than a pudding. Ouch. All of the feeling of warmth and comfort has been eradicated because you now need to get out your credit card and pay “extra” for having cheese and biscuits instead of a pudding. Or worse than this, you are all paying your own way and an argument ensues as to who owes what; “remember I only had two drinks while the rest of you had three”, or “don’t forget I didn’t have a starter”. Goodness me, you were having a lovely evening and the bill has spoiled it completely.

Imagine doing something else pleasurable and paying for it afterwards. You could go to the theatre and have a lovely evening enjoying the show then have to queue up to pay. You might then think, “hang on, I didn’t quite get some of the lines in Act 2, why am I paying for them?” And what if you went to the cinema and had to pay for your pick and mix sweets after you had eaten them? “Wait a minute,” you think, “I didn’t really like those chocolate mice as much as I thought I would; shouldn’t I pay less?”

Paying after the event, lessens our enjoyment because it makes us focus on aspects of what we were doing that we do not consider if we pay in advance. Restaurants would almost certainly do much better if they had fixed prices that we paid in advance.

For online businesses, this is a lesson we can learn from. When you get the “money bit” out of the way quickly and seamlessly, you can then get people to focus on the pleasurable aspects of whatever it is that you are selling. Even online, businesses seem to labour the “this is what you will get for your money” aspects of what is on offer, thereby focusing people on the money, rather than the pleasure.

However, at least if you are selling digital goods you do have to get them to pay in advance. But if you are selling services, perhaps “business to business”, there is often the “call us and we we will quote” kind of system in place online. So they call you, then you quote. They accept the quote, you start the work, then you invoice them. Oh dear, all the pleasure of what you did for them is forgotten and now they start picking at your bill, line by line, thinking negatives about your service, rather than the positives.

Get your customers to pay in advance; they will enjoy it much more – plus because they remain positive about you they are likely to come back.

The research that backs this up is explained in the book, Happy Money.

Categories: Online Business

It’s official: Internet Addiction DOES NOT exist

Woman snorting cocaine or amphetamines, symbol of internet addictionFor several years now the popular media has liked to talk about people being “addicted” to the Internet. Indeed you will find that I have been interviewed several times about this “condition” and that my views have appeared in many articles on the topic. I have always cautioned people against thinking they are “addicted”.

Even though several schools of psychological and psychiatric thinking define addiction slightly differently, there is a common theme which helps clinicians determine whether or not someone is truly addicted to something. This is what happens on withdrawal of the addicted substance. If you take alcohol away from alcoholics they shake, for example. If you remove tobacco from cigarette addicts they become irritable, put on weight and find it difficult to sleep. If you stop gambling addicts from being able to bet they sweat a great deal and develop itchy skin. True addictions, like these, lead to physical and obvious changes. This is one of the ways that psychiatrists can use to assess whether their suspicions about someone being addicted are true – they can withdraw the substance and see if any symptoms arise.

If you take the Internet away from people who are supposedly addicted, there are no real symptoms produced. This suggests that “Internet addiction” is not a true addiction because withdrawal of the Internet from people who use it a lot is not a major issue.

There are hundreds of studies that talk about “Internet Addiction Disorder” (IAD). Indeed, back in 2012 I wrote that there was “proof that Internet Addiction does exist“. Research suggested that there were brain changes in people who were online for hours on end and that those changes were the same as those seen in addicts to other substances such as drugs. Also back in 2012, I wrote about “social media addiction” being more of a problem than cigarettes or alcohol.

However, all these studies about online addictions have flaws. They have, for instance, only handfuls of people, or there is bias in the choice of participants – amongst many other weaknesses. The popular media, of course, do not dissect the problems in such studies. But the American Psychiatric Association and the World Health Organisation do. They are the organisations that classify and codify mental health conditions and are the “bibles” by which psychiatrists and clinical psychologist work.

The latest “Diagnostic and Statistical Manual” from the American Psychiatric Association has just been published and it does NOT include “Internet Addiction” in spite of pressure from many researchers and some clinicians. Indeed, the DSM does not even include Internet addiction as a term “worthy of future research”.

In other words, having assessed all the research and data on this much-hyped condition, the APA has come to the conclusion that it does not exist. And they are not alone; the condition does not feature in the competing manual to DSM produced by the World Health Organisation, the International Classification of Disease (ICD).

So, sit back and use the Internet without fear – you cannot become addicted to it. However, you might be obsessed by it, you might fell compelled to use it – oh dear, I sense another debate coming on…does Internet OCD exist? Watch out for the headline in the Daily Mail soon…!

Categories: Internet Psychology

5 ways to understand customer behaviour online

Word cloud web analyticsIn the “olden days”, before the Internet, businesses used to take considerable efforts to understand each individual customer. Often, though, this was at a subconscious level; sales staff did it without realising it. For instance, they would ask questions, they would get to know the customer and they would respond to non-verbal feedback from the people in their shop or office. Indeed, good sales people went out of their way to understand each individual customer.

Nowadays, the whole world of online business has largely eliminated this subconscious, human analysis and understanding of the people we are selling to. Instead of working out what each customer really wants from them, many businesses simply “dump” every possible product or solution on a website and then let the hapless customer sort it out for themselves. Back in the “olden days” that would be like giving your customers a pile of bits of paper with details printed on them of every product and service and then simply saying to the people “sort it our yourself”. Businesses never did that in the “olden days” – they “pre-sorted” all the information, providing customers with exactly what they wanted.

How did that happen? Sales staff spent time understanding each individual customer, getting to know their needs and finding out the specific things they were interested in. So how can you understand the behaviour of your online customers, to get “inside their head”, just like you did in the “olden days”? Here are five ways of doing that.

1. Speak to your customers

It’s all too tempting to use online forms, emails and comments to get “feedback” from your customers online. But these methods do not really let you get as far inside their thinking as a conversation would do. Talking to people – even in a wholly online business – is helpful.  As anyone who has used focus groups before will know, they do not give you the whole picture because in reality they are far from focused, have potential for bias and are not fully representative – but they do help shape your thinking. Speaking to customers alerts you to the ways your customers behave and provides a stimulus for thinking about your business. You cannot easily get such thought-provoking information from metrics and analytics. Only talking to people can do  this.

2. Measure interaction

People do not always use your web pages in predictable ways and often do not travel around your web pages in the ways you envisaged. You need to understand how your visitors use your web pages and so you need to track their eye and mouse movements that reflect this. If you can afford it, eye-tracking studies are a help. But a more practical and cost-effective way is to generate heatmaps showing page by page activity on your website. Two companies that offer this are Crazy Egg and Clicktale.

3. Create alternative behaviour pathways

Instead of creating a web page that provides just information about your products or services with no further action required, ensure that your pages have multiple action possibilities. Instead of one “call to action” on a page, have two, leading to distinct and obviously different outcomes. One may lead to a “buy now” kind of action while another may lead to a “more information” action. Different behaviour pathways will alert you to the kind of customers you are attracting – those, for instance, that want instant outcomes, or those who are more cautious individuals.

4. Use split testing

Pictures, headlines and even the text on a page can appeal to different kinds of customers in different ways. Split testing the images or the headlines, for instance, can let you know what kind of people are using your website. Some people, for instance, prefer empathy in the headlines, whereas others have a more analytical approach to buying and prefer your page headings to be more intellectual in approach. Do you know exactly which kind of people your products and services attract the most? Split testing headlines, for instance, can lead you to a greater understanding of your customers.

5. Analyse data

Your web hosting account and your analytics service produce between them a vast amount of data about your website visitors. Looking at it to see how many people visited your site is worthless and meaningless. Inside the vast amount of data is detailed information about how your website visitors used your site. Mining that data gives you a clue as to what they are looking for and how they go about finding it. Analytics and data alone are not the solution that “big data” experts might make you think. Such information is only historical and doesn’t tell you what people actually want, rather it tells you what they did. Yet there are clues inside your data as to how your customers behave with your website. Regular analysis of that data will help you gain a greater picture of your customers.

In short, understanding your customer behaviour online is a combination of gathering and analysing data and talking to people. Goodness me – that’s what people did in the “olden days”. Bring them back to your website and you will improve your sales.

Categories: Internet Psychology, Online Business

Facebook is for older people

I love me phrase handwritten on the school blackboardThere is little doubt that social networking includes an element of narcissism. All around the social web you can find people who appear only to be interested in talking about themselves and promoting their activities. Partly, this does make them likeable because they demonstrate their interests so openly that we can understand them better. In return, they like us because we like them and boost their ego. In reality, there is an element of narcissism in all of us.

Online, however, it turns out that age and narcissistic tendencies are related to the social network of choice. According to new research from the University of Michigan, our age and narcissism affects our choice of social network. Younger people tend to prefer Twitter for narcissistic displays, whereas people described as “middle aged” tend to prefer Facebook to write about themselves.

This goes against the assumption that Facebook is a young person’s world. Part of the reason is probably due to the fact that Facebook is more about relationships, rather than overt displays of “look at me”. Twitter, however, makes it easier to simply provide a “look at me” kind of activity. Younger people are much more in the “look at me” stage of life because they are trying to attract new relationships; once they have an established relationship they need less of the narcissistic type displays and probably head over to Facebook to deepen and extend those relationships. However, once they are there and need to be in “look at me” mode, they probably only want their friends to notice such displays. It’s an age thing…!

This research shows, however, that we should not assume we really know anything about the way people use the Internet. We need to dig deeper and try to consider how a variety of human behaviours contribute to our online choices. It means that if you are in business you are likely to do less well if you start assuming things about the online world.

Categories: Internet Psychology, Social

Get to know your customers first, connect with social networks second

Cartoon making fun of social mediaOne in three divorces in the UK now cite Facebook as a factor in the deterioration of the couple’s relationship. Five years ago, it wasn’t a problem. Facebook appears to have become the new “mistress”. Of course, appearances can be deceptive as new research into the impact of Facebook on relationships demonstrates.

According to the study conducted in Columbia, Hawaii and Texas, Facebook certainly does have a negative impact on relationships BUT only if those relationships are less than three years old. In other words, Facebook is not an issue for people who already have established relationships. It is a source of conflict, however, for couples in a newly-established relationship.

Of course, that makes perfect sense. Many divorces are in the early parts of relationships as couples get to know each other and gradually realise they were not really made for each other after all.

Yet, the same can be seen in business relationships too. Think about your client list. Some people you will have worked with for ages, decades or more perhaps. Others, in the fledgling stage are a bit more troubling. Some of these new customers you discover are more demanding than you thought, they take up more time than you had planned and you feel less inclined to keep them for the long-term. Many businesses have a high “churn” of customers in those early years of developing a relationship because the two sides discover they are not always meant to be together.

However, businesses can miss out on long-term, beneficial relationships when those early years have conflict. Enter social networking.

This new research on relationship conflict and social networking suggests that for new customers it is a bad idea to use social networking. Social networks in those early years of a developing relationship appear to introduce additional conflict making the likelihood of a long-term relationship much less likely.

It all points to one thing. Forming a real, face-to-face, real world relationship with your customers is the true solution to long-term success.

Categories: Social