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8 Cognitive Biases to Boost Conversions
Simple psychology tricks to grow your business—backed by real examples and easy steps!
OutBean
November 16, 2024
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Hey there! 👋 Welcome to the latest edition of The Beanstalk!
Today, we’re diving into a topic that sits at the crossroads of psychology and marketing: cognitive biases—those subtle mental shortcuts that influence how people make decisions.
🧠 What Are Cognitive Biases?
Cognitive biases are your brain’s way of simplifying complex choices. For marketers, understanding these patterns can be a game-changer, influencing user behavior, decisions, and conversions.
Applied thoughtfully, these insights can encourage meaningful actions like:
Signing up for a free trial
Booking a demo
Completing a purchase
Upgrading to premium features
But with great power comes great responsibility. Cognitive biases are incredibly powerful tools—but they must be used ethically.
✅ DO guide users with clear, honest, and helpful information.
❌ DON’T mislead, manipulate, or pressure people into decisions they might regret.
The goal? Play fair, build trust, and create value. That’s how you win in the long run.
So today, we’re breaking down 8 cognitive biases you can put to work in your marketing, with real examples to make it all click.
1️⃣ Social Proof: “If Others Love It, I Will Too”
Social Proof is one of the most well-known cognitive biases in marketing. It’s rooted in our natural tendency to trust what others do or recommend—it’s reassuring to see that others have tried (and loved) something before we take the plunge ourselves.
How to Use It:
Testimonials: Display glowing reviews from happy customers on landing pages or during key decision-making moments.
User Counts: Show off your numbers! For example, “Join over 100,000 users who trust our product.”
Logos: Feature logos of well-known brands or companies that use your product.
Social Mentions: Include a live feed of tweets, posts, or stories mentioning your product.
Examples:
- TickTick, a productivity app, prominently showcases a testimonial from tech reviewer MKBHD, along with logos of top publications on its homepage, signaling trust and credibility.
- Substack highlights subscriber counts on its newsletter sign-up pages, making users feel like they’re joining a popular, thriving community.
2️⃣ Authority Bias: “Because the Expert Said So”
We naturally place more trust in opinions or endorsements from figures of authority, whether they’re experts, institutions, or well-respected brands.
How to Use It:
Display awards, certifications, or badges that showcase credibility.
Share research or studies that back up your product’s benefits.
Highlight endorsements from industry leaders or influencers.
Examples:
- Theta proudly displays its Product of the Day badge from Product Hunt, signaling its popularity in the startup community.
- Rise Science, a sleep app, includes a “Learn” section featuring scientific research to validate the importance of reducing sleep debt, reinforcing the app’s core value.
3️⃣ Scarcity: “Get It Before It’s Gone!”
Scarcity works because we value things more when they’re rare or hard to get. It taps into our fear of missing out (FOMO), creating urgency to act quickly.
How to Use It:
Limited-Time Offers: Create sales or discounts with a clear deadline.
Low Stock Alerts: Display messages like “Only 3 left in stock!”
Waitlists or Exclusive Access: Introduce a VIP or invite-only model for new features or products.
Examples:
- Notion used a waitlist for its AI feature launch, creating buzz and driving tens of thousands of sign-ups.
4️⃣ Anchoring Bias: “The First Price Sticks”
Anchoring refers to our tendency to rely on the first piece of information we see as a reference point. In marketing, this is often price-related.
How to Use It:
Highlight discounts (e.g., “Was $50, now $30”).
Show the most expensive plan first to make others seem more affordable.
Use before-and-after visuals to show the benefits of your product.
Examples:
- Columbia displays discounted prices alongside the original ones, anchoring users to view the discount as a great deal.
- Mailchimp places its priciest subscription plan on the left, making mid-tier options feel like a better deal.
5️⃣ Loss Aversion: “Don’t Lose What You’ve Gained”
Loss Aversion focuses on our fear of losing something we’ve worked for or enjoyed. It’s a powerful motivator to retain users and reduce churn.
How to Use It:
Show what users will lose if they cancel or stop using your product.
Remind users of their progress or achievements (e.g., streaks, savings).
Examples:
- Adobe reminds users of the benefits they'll lose access to if they cancel their plan.
6️⃣ Bandwagon Effect: “Everyone’s Doing It!”
When people see others doing something, they’re more likely to follow along. The Bandwagon Effect is all about leveraging popularity to influence decisions.
How to Use It:
Add “Best Seller” or “Most Popular” labels to your products.
Showcase trending items or features.
Examples:
- Amazon uses "Bestseller" badges to highlight the most popular items in a category and help guide purchasing decisions.
7️⃣ Choice Overload: “Too Many Options = No Decision”
Too many choices can overwhelm users and lead to indecision. Simplifying options makes it easier for users to decide and act.
How to Use It:
Limit choices (e.g., offer 3–4 subscription plans).
Highlight recommendations (e.g., “Top Pick”).
Provide default settings to streamline decisions.
Examples:
- Netflix uses a “Top 10 in Your Country” feature to make browsing quicker and easier.
8️⃣ Framing Effect: “How You Say It Matters”
The way you present information can completely change how users perceive it. Positive framing can boost conversions by making options feel more appealing.
How to Use It:
Focus on outcomes and benefits (e.g., “Save time and money” instead of listing features).
Offer risk-free options like free trials or money-back guarantees.
Use positive wording (“95% fat-free” instead of “5% fat”).
Examples:
- Nord VPN offers a 30-day money-back guarantee, making it easier for risk-averse users to commit.
That’s all for this week! Which of these cognitive biases are you most excited to try? Hit Reply and let me know—I’d love to hear your thoughts.
📚 Related Highlights
10 DARK PSYCHOLOGY Tricks To Sell Anything to Anyone
What Is Cognitive Bias? Types and Business Examples
How to Tackle Cognitive Bias in Product Development – By Christine Itwaru
Check out these dark patterns that act as conversion blockers for ecommerce websites.
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