Behavioural psychology > Cosmetic changes

Behavioural psychology > Cosmetic changes…that’s what a new report on Ecommerce by Qubit claims. Now, the company it has to be said has somewhat of a play here selling behavioural technology. According to the company, “Qubit’s technology prioritizes the biggest opportunities for revenue generation so you can deliver personalization that makes an impact”. Yeah.

Regardless of this, the report itself is well worth your time. *Spoiler Alert*…these were the key findings in order of importance:

  1. Scarcity
  2. Social proof
  3. Abandonment recovery
  4. Product recommendations
This figures; some of the most successful ecommerce stores are classic examples of these e.g. Amazon’s product recommendations. Perhaps but not totally unsurprising is scarcity – this very concept is winning offline (Zara, HM etc). What’s worked for your ecommerce store? Let us know in the comments.

A Primer on Sourcing

What sets a successful production run apart from the rest is a company’s initiative to engage with a manufacturer while maintaining their relationship. If you’ve been looking to start producing your products overseas, it’s about time you tried. What are you waiting for!

Nathan Resnick has written an excellent piece on sourcing goods from China that can be applied to any business (regardless of sourcing country).

Go to A Better Lemonade Stand to read more.

The Extraordinary Effectiveness of SMS Coupons

The-Extraordinary-Effectiveness-of-SMS-Coupons

This is a guest post by Orla Forrest of Neon SMS, an SMS Marketing company (http://www.neonsms.ie/).

Marketing campaigns are measured not by how cool or flashy they seem, but by how much money they recoup for the company and whether the investment in the campaign is made back through customer engagement. Therefore, any decisions regarding the execution of the campaign need to be made carefully. For instance, the success or the failure campaign could boil down to the selection of medium through which it is executed.

That will depend on the specifics of the campaign and its target market, but by and large, SMS proves to be the most successful channel by a distance. Its average peak redemption rate is a staggering 85%, which is more than four times greater than any alternative channel, so SMS is a proven winner.

What makes it such an attractive medium for ecommerce? Its convenience is a major plus point, as customers will get the message on their phone and know exactly how to redeem the coupon. The timeframe from the sending of the coupon to its redemption is far shorter than with other channels, as people will have their phones on them the whole time and redemption is usually as quick as sending a short code or keyword. Email, by contrast, tends to go over people’s heads and be ignored, while paper coupons just seem old-fashioned and can easily be left at home by mistake. Your phone, on the other hand, always makes it out the door with you.

For ecommerce providers devising an SMS coupon campaign, the key is in its simplicity. Make it as easy and quick as possible for customers to redeem the coupon, or else they probably won’t bother. Be sensible about the timing and frequency of delivery, too. Send it during evening downtimes rather than first thing in the morning when people are at their busiest at work. Messaging customers once a week is usually the best balance between consistent engagement and not flooding them with messages to the point of nuisance.