Humans are so irrational. Yes we are. But how irrational and how can we determine and use the cognitive biases as eCommerce marketers? See in this presentation:

1. I am Valentin

2. > 5 years old Romanian Startup
> Part of a bigger family
> helping 17870 websites convert more
> backed by European Investment Fund
> handling >500M visits/month
> a team of 35 digital experts

3. Proud to work with
www.omniconvert.com

4. How to use this in eCommerce?
> Start with a higher price - that’s made at any new collection / product launch - with
the purpose of selling it in the discount period
> First mover’s advantage
>

5. Humans are born
irrational, and that
has made us better
decision-makers
Humans are born
irrational, and that
has made us better
decision-makers
Humans are born
irrational, and that
has made us better
decision-makers

6. 84% of People Hold Onto an Irrational Fear
1 in 10 fear using the photocopier, 1 in 12 believes it's "out to get them"

7. Cognitive Biases
in eCommerce

8. 1. Anchoring
The tendency to rely too heavily, or “anchor”, on one trait or piece of information when making decisions
(usually the first piece of information that we acquire on that subject).
How to use this in eCommerce?
> Start with a higher price - that’s made at any new collection / product launch - with
the purpose of selling it in the discount period
> First mover’s advantage matters
>

10. 2. Attentional Bias
The Attentional Bias is our tendency to pay more attention to emotionally dominant stimuli, and to
neglect other relevant data when making decisions. So the more something touches us, the more
attention we pay to it.
Use cases in eCommerce:
> Remarketing ads - familiarity sells
> Repeat the call2actions
>

12. 3. Framing Effect
Drawing different conclusions from the same information, depending on how that information is
presented.

14. Participants were asked to choose between two treatments for 600 people infected with a deadly
disease. Treatment A would result in 400 deaths. Treatment B had a 33% chance that no one would
die, but a 66% chance that everyone would die.
Each treatment was presented in a positive and negative frame. For example, for treatment A:
● Positive: Save 200 lives.
● Negative: 400 people will die.
Treatment A was chosen by 72% of participants when framed positively, dropping to only 22% when
framed negatively.

15. Treatment A was chosen by 72% of participants when framed
positively, dropping to only 22% when framed negatively.
Framed positively Framed negatively
Treatment A 72% have chosen it 22% have chosen it

17. 4. Hyperbolic discounting
Discounting is the tendency for people to have a stronger preference for more immediate payoffs
relative to later payoffs.

18. 4. Backfire Effect
When people react to disconfirming evidence by strengthening their beliefs.

20. 5. Loss aversion
Loss aversion refers to people's tendency to prefer avoiding losses to acquiring equivalent
gains: it is better to not lose $5 than to find $5

23. 6. Post-Purchase Rationalization
The tendency to persuade oneself through rational argument that a purchase was good value.

27. 7. Decoy effect
Preferences for either option A or B change in favor of option B when option C is
presented, which is similar to option B but in no way better.

30. 8. Humor Effect
That humorous items are more easily remembered than non-humorous ones,
which might be explained by the distinctiveness of humor, the increased
cognitive processing time to understand the humor, or the emotional arousal
caused by the humor

31. https://www.youtube.com/watch?v=QDflqzRC3m4

32. 9. Authority Bias
Authority bias is the tendency to attribute greater accuracy to the opinion of an authority
figure (unrelated to its content) and be more influenced by that opinion

33. Avon is the world's largest direct seller in the beauty industry, with over $10 billion in
annual revenue.

34. Challenge: To increase the performance of make-up category.

35. Step 1: Research
Why this category is not performing so well?

36. After deep diving in Google Analytics +
surveys with Omniconvert...

37. We’ve found out that the main micro
conversion for this category was the usage
of the “eyes color” filter.

38. And that the visitors weren’t
sure enough that the products will match their
eye colours.

39. Step 2: Web Personalization
So, they’ve added the help of an expert to
get visitors down on the funnel

41. They have re-engaged the visitors on
exit-intent to increase the number of
respondents

43. They’ve stayed consistent on the cart page
by showing their eyes colour.

45. Engagement results
+292% more page views
+111% more page views
+73% more page views

46. +43,60%
Add to cart Rate
100%
Statistical significance
+98,2%
Conversion Rate

47. 10. Availability Heuristic
The tendency to overestimate the likelihood of events with greater "availability" in memory,
which can be influenced by how recent the memories are or how unusual or emotionally charged
they may be

48. Summary of results
An additional 26% increase of revenue
2% of those that saw the creative made a purchase within 2 weeks
The creative had a 7.6% click through rate (CTR)
60% of visitors further stayed on the website instead of leaving

51. Valentin Radu
valentin.radu@omniconvert.com
Thank you!