How To Increase Impulse Buying On Your eCommerce Site

Hey,

Hope you find this edition on Impulse Buying useful.

It covers 1x visual framework for applying impulse buying practices,, 1x mental model on the underlying reason why we make impulse purchases (and what marketers can do to drive more of them), and 1x marketing research deep-dive on impulse buying differences between different gender groups.

Let's get 10% smarter (and 100% more impulsive)!

📝 Intro

You're casually browsing a shopping app on your phone, when suddenly a pair of white Nike Air Force 1’s catch your eye. They're perfect for summer, and the discounted price is some 30% lower than RRP. Before you know it, you've hit the “buy now” button - all without really planning to make a purchase in the first place.

If you can relate, you're not alone. A recent study in the Journal of Economy and Market Communication Review, sheds light on how our shopping impulses, especially on mobile apps, are closely tied to factors like gender and price sensitivity. The findings offer valuable insights for retailers looking to extract every possible dollar from their online stores.

In this post, we'll explore the key takeaways from this research and what the findings mean for retailers across verticals.

Impulse Purchase in Virtual Environment and Price Sensitivity of Young Consumers: Results of Empirical Research" (Journal of Economy and Market Communication Review, 2020)

Magdalena Stefańska, Poznań University of Economics and Business, Poland Grażyna Śmigielska, Cracow University of Economics, Poland

🎓 Findings

• Women are more prone to impulse buying than men, especially when using mobile shopping apps.

• However, Women are also around 31% more price sensitive than men when it comes to impulse buys.

• “Low impulse buyers” are 26% more price conscious than “high impulse buyers” overall.

• For women, convenient purchasing in apps drives impulse buying 30% more than product information.

• Men's price sensitivity is 27% more tied to how informative they find shopping apps, compared to women.

📈 Recommendation 

Develop dynamic pricing and flash sale campaigns specifically for female consumers, who exhibit higher price sensitivity and impulsiveness compared to men. For example, offer time-limited discounts of 20-30% off on popular product categories, promoted through personalized email newsletters and in-app notifications. As the research suggests, "women can be more susceptible to actions in the sphere of price promotions in sales."

Use machine learning to analyze consumer behavior data, such as browsing patterns, purchase history, and engagement with promotional content, to segment audiences into high, medium, and low impulse buying groups. Advertisers can then tailor their tactics accordingly, such as sending more frequent promotional offers to the highly impulsive segment and providing detailed product information to the less impulsive groups.

Don’t forget to include rich, informative content that facilitate quick decision-making. Implement personalized product recommendations based on browsing history, as the study notes that "apps making products recommendation based on my browsing history is useful to me." Additionally, provide comprehensive product details, high-quality images, customer reviews, and real-time inventory updates to create a sense of urgency and encourage impulse purchases.

✋ Limitations

• Study focused on university students in Poland buying smartphones. Results may vary for other demographics and product categories.

• Participants self-reported their behaviors. Actual impulsiveness and price sensitivity may differ from survey responses.

⚡ Steps to implement

1. Low impulse buying females:

• Provide personalized product recommendations based on their browsing history and past purchases to gradually nurture interest.

• Offer limited-time discounts or exclusive offers on products they have shown interest in to create a sense of urgency.

• Send targeted email campaigns featuring detailed product information, customer reviews, and user-generated content.

• Implement retargeting campaigns to remind them of products they viewed but didn’t purchase.

2. Low impulse buying males:

• Highlight product features, specifications, and performance benefits to appeal to their rational decision-making process.

• Provide detailed comparison guides and expert reviews to help them make informed purchase decisions.

• Offer extended return policies and product warranties to reduce perceived risk.

3. High impulse buying females:

• Create a sense of urgency and scarcity with flash sales, limited-quantity offers, and countdown timers to encourage immediate action.

• Provide personalized product bundles and "Complete the Look" recommendations to showcase how products can be used together and encourage additional purchases.

• Use high-quality lifestyle images and aspirational content to trigger emotional responses.

• Offer "Buy Now, Pay Later" options or installment plans to reduce financial barriers.

4. High impulse buying males:

• Offer exclusive, limited-edition products or collaborations with popular brands and influencers.

• Use gamification techniques, such as spin-to-win discounts or mystery gift with purchase, to encourage spontaneous purchases.

Want to get shoppers hitting "add to cart" faster than you can say "impulse purchase"? Then you need to get your FIGS in order! 

Follow these four key tactics - Flash Deals, Individualization, Gratification, and Seamless Checkout - and watch those unplanned purchases go to another level.

Flash Deals & Urgency

Limited-time offers, countdown timers, low-stock alerts - they all create a sense that the customer needs to act NOW or miss out.

The key is to make those deals impossible to ignore and the urgency genuine. Here’s your checklist for unbeatable offers:

• Run time-limited flash sales with attractive discounts

• Display countdown timers on product pages and checkout

• Show low-stock or "only X left" alerts

Individualization & Relevance  

By putting customer data to use to provide hyper-relevant, personalized product recommendations, content, and offers, you increase the chances of an impulse buy.

Think targeted ad retargeting, "you may also like" product suggestions, and individualized email campaigns. The more relevant and tailored the experience, the more likely that shopper is to snap up an extra item on a whim:

• Implement personalized product recommendations based on browsing and purchase history

• Use retargeting ads to show customers products they viewed but didn't buy

• Segment email campaigns based on customer preferences and behaviors

Gratification & Ease

When a customer is gripped by that impulse to buy, you want to make it as quick and easy as possible for them to complete the purchase before that feeling fades.

This means crystal clear calls-to-action, a simplified click-to-buy process, easily accessible product info, multiple payment options, and fast (ideally free) shipping. The less friction and more convenience, the higher the chances of an impulse add-to-cart:

• Offer 1-click ordering for registered customers

• Provide multiple payment options, including digital wallets and BNPL

• Display estimated delivery dates and tracking info prominently

Seamless & Swift Checkout

You've enticed the customer with a killer deal, wowed them with on-the-nose product recommendations, and made the purchase process a snap. They've loaded up their cart with glorious impulse buys. Now for the make-or-break moment - checkout.

A clunky, complicated checkout is the Bermuda Triangle of impulse buying. Too many steps, fields or distractions and - that buy-on-a-whim spirit vanishes, along with your sale. 

The secret to a successful impulse-driven checkout? Keep it seamless and swift. Think single-click ordering, progress bars, auto-filled forms, saved payment info, and guest checkout options. The faster the customer can complete the transaction, the less likely they are to second-guess that delightfully unplanned purchase:

• Implement guest checkout option to reduce first-time purchase friction

• Use progress bars to show steps completed and remaining

• Auto-fill form fields based on customer data or browser history

Remember, impulse buying is all about tapping into that fleeting, got-to-have-it-now feeling. The aim is to create an online shopping experience that's personalized, frictionless, and peppered with just the right amount of urgency.

In this edition, we're diving deep into the Stimulus-Organism-Response (S-O-R) framework and how it can help you unlock the power of impulse buying.

First up, let's break down what the S-O-R framework actually is.

1. Stimulus (S): This is the trigger that sparks the impulse buying process.This could be anything from a flash sale to a personalized product recommendation.

2. Organism (O): This is the internal psychological and emotional response that the stimulus triggers in the consumer. Think increased heart rate, FOMO, or a sudden sense of "I need this now".

3. Response (R): This is the action the consumer takes as a result of their internal response. In other words, it's the moment they hit that "buy now" button and make the purchase.

So, how can you use the S-O-R framework to drive more impulse purchases on your site? Here are a few tips:

1. Create a sense of urgency: Use countdown timers, limited-quantity notifications, and time-sensitive offers to tap into FOMO and spur quick decision-making.

2. Push social proof: Keep customer reviews, ratings, and real-time purchase notifications prominent to show that others are buying and loving your products.

3. Personalize the experience: Use data to recommend products that are most relevant to each individual shopper, increasing the chances they'll feel that "gotta have it" impulse.

4. Make it easy to buy: Reduce friction in the purchase process with options like one-click checkout, saved payment info, and guest checkout.

But not all shoppers are equally susceptible to impulse buying. Some folks are more prone to making those spontaneous purchases than others. So, how can you tell who's who? Here are a few key factors that can impact a shopper's impulse buying tendencies:

1. Emotional state: Shoppers who are feeling excited, happy, or even a little impulsive are more likely to make unplanned purchases.

2. Personality traits: Certain personality traits, like low self-control or a desire for novelty, can make some shoppers more prone to impulse buys.

3. Product category: Impulse buying tends to be more common for hedonic or experiential products (think clothes, cosmetics, or entertainment) than for practical, utilitarian items.

4. Demographics: Some studies suggest that younger shoppers and women may be more likely to engage in impulse buying behavior.

So, how can you put all this into practice? Here's a quick three-step plan:

1. Identify your impulse buyers: Use data to segment your audience and identify the shoppers who are most likely to make impulse purchases based on their behavior and characteristics.

2. Tailor your triggers: Create targeted stimuli that are most likely to resonate with your impulse buyers, whether that's a limited-time discount or a personalized product recs.

3. Test and optimize: Continuously test different triggers and see what drives the best response. Use A/B testing to optimize your impulse buying strategy over time.

The S-O-R framework is a powerful tool for any eCommerce marketer looking to drive more sales and revenue. By understanding the psychological factors that drive impulse buying and creating targeted stimuli to trigger those impulses, you can turn a higher proportion of browsers into buyers.

Different Types of S-O-R Stimuli in E-commerce:

E-commerce marketers can use various types of stimuli to trigger impulse buying responses:

1. Scarcity and Urgency

• Limited-time offers and countdown timers 

• Low-stock or sold-out notifications

• One-time-only deals and exclusive access

2. Social Proof

• Product ratings, reviews, and testimonials

• Best-seller or trending product labels

• Real-time purchase notifications or "xx people are viewing this" messages

3. Personalization

• Tailored product recommendations based on browsing and purchase history

• Customized email offers and retargeted ads

• Exclusive loyalty program perks and early access

4. Sensory Appeal

• Vivid, high-quality product images and videos

• Immersive AR/VR tools to visualize products in real life

• Enticing descriptions that evoke the senses or emotions