Small Can Be Big
Behavioural economics is a powerful weapon which allows brands to harness the power of psychological insight to understand how consumers buy products.
By first understanding the economic decision-making process and then improving the buying procedure, brands can add millions to their bottom line.
In a well-documented study known as “The $300 Million Button”, an online retailer in the US struck gold by changing the wording on one button on their website from Register to Continue.
Before the change, shoppers encountered a Register button after filling their shopping carts. Hundreds of thousands of frustrated customers abandoned their carts at that point because all they wanted to do was pay – not register.
By changing only one aspect of the buying process and allowing shoppers to pay without registering, the company added $300 million in annual sales.
It’s amazing how a small change can make a huge difference to the fortunes of a brand!