New York
CNN business
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Saving money may require a little extra effort, such as clipping coupons, looking up promo codes, and signing up for mailing lists.
However, Amazon may check a box to save. teeth? The orange “coupon” banner that appears below the price on Amazon’s online store gives me headaches.
Why does Amazon have to go through the extra step of clicking a box and saying “Apply this coupon and save $2”? Why isn’t the coupon automatically applied?
The answer lies in the subtle but highly effective ways Amazon and other stores use shopping psychology to influence our purchasing decisions.
By making you click a box, Amazon hopes to avoid the “cart abandonment” problem, where shoppers add something to their virtual shopping cart but don’t end up buying it.
This is a big challenge for online retailers. Because shoppers think twice about buying products, they lose billions of dollars in potential sales annually.
About 70% of online shopping carts that contain at least one item are eventually abandoned, according to Copenhagen-based e-commerce consultancy Baymard Institute.
According to the company, the number one reason customers are leaving is that they were just browsing and not ready to buy.
So businesses are looking for persuasion tactics to persuade shoppers to follow through and click the “buy” button.
Amazon coupon display strategy optionnot only automatically displays discounted prices, but also gives shoppers an extra incentive to buy right away, marketing experts say.
Customers also want to be rewarded for the effort they put into shopping. Clicking a box may not be a big deal, but it does make a difference.
Tamara Masters, an assistant professor of marketing at the University of Utah’s David Eccles School of Business who studies shopping psychology, says Amazon’s coupon boxes encourage customers to be more proactive and willing to earn rewards. It becomes an instinctive thing.
By consciously looking at and clicking on the coupon box rather than automatically applying the coupon, Masters said, “you can expect a more tangible reward.” “You are Apply it and see the happy effect.
This is good for Amazon in the long run. When consumers feel rewarded after making a purchase, they are “more willing to buy and more willing to pay” from the company in the future, she said.
In a statement, Amazon said the coupons can be easily clipped. Coupon boxes are just one of the ways Amazon targets bargain-seeking shoppers.
Amazon’s website also has standalone pages for coupons for some brands. When shoppers land on that page, they can virtually clip the coupon, eliminating the extra step of checking a box.
Amazon’s approach is designed to reach shoppers who shop exclusively based on which brands offer coupons. This is different from products on sale, price promotions, or discounts.
Having a dedicated coupon page also keeps coupon clippers from staying on Amazon’s website and not using popular coupon sites like Groupon (which can be redeemed at any retailer).
“Instead of letting coupon sites make money, Amazon earns it themselves,” says Masters.
Offering coupons is also an effective strategy for third-party sellers on Amazon, said Jason Boyce, founder of seller consultancy Avenue7Media.
He said coupons are more successful than offering simple discounts to convince shoppers to complete their purchases. It also helps sellers move up in Amazon’s search rankings, he said. “Sale prices don’t give the same results as coupons.”
