Example of an individual user approach in eCommerce

Intelligent and human

4 Examples for an individual user approach in eCommerce

AI and behavioural economics in eCommerce

With AI and behavioural psychology to a personalised user experience

In the first part of the blog series about the partnership between KPS and behamics, we showed how important personalisation is for online retailing and what contribution artificial intelligence and behavioural economics make to this. In this follow-up, I would now like to illustrate with a few examples how an individual, supportive and purchase-motivating user approach can look. In doing so, I will again draw on the insights and knowledge of Valon Xhafa and Thilo Pfrang, founders of behamics and experts on the topic of AI-supported behavioural control in eCommerce.

The price

Purchase motivation 1: Price and its influence on the willingness to buy

Price is one of the most important criteria for the purchase decision. Here, the motivation to buy is usually not influenced by economic considerations, but by social preferences, norms and heuristics. Sometimes customers want to save money and are looking for a bargain. For many consumers, the price reflects the quality and they are willing to pay more. Those who value individuality believe that a high price is a sign of exclusivity. 

Prices and interventions in pricing must fit the product and the intended target group in order to have a sales-promoting effect. 

Price perception of everyday goods

Signal price advantage

Voucher or discount offer can increase willingness to buy

If consumers have a fixed idea of the price of everyday goods and the desired product exceeds this threshold, they usually shy away from making a purchase. A voucher or discount offer can help at this point and signal an advantage. The willingness to buy increases.
Exclusivity of luxury goods

Signal exclusivity

Luxury goods, on the other hand, must not lose their value

Coupons for discounts and rebates, on the other hand, can have a counterproductive effect when applied to luxury goods. The target group, which is keen on exclusivity, will hardly appreciate it if a product with distinctive features suddenly loses value and perhaps even becomes available to the general public. The willingness to buy decreases.

Narrow down choices

Purchase motivation 2: Narrowing down the offer through customised options

Price plays a decisive role when consumers are already sure which product they need or want. But it often doesn't get that far.

When customers don't know which offers fit their needs or get lost in an overabundant selection, they tend to abandon the purchase or order on spec and return bad purchases later. A choice with too many options is one of the most common reasons for postponing the decision for a product and withdrawing from the purchase.

Search and selection of the right product
It's not sustainable to have to ship three products and take them back. By combining AI with behavioural psychology, we can help customers make decisions that lead to fewer returns.
Thilo Pfrang Founder behamics

Individual advice

Purchase motivation 3: The personal conversation strengthens the willingness to buy

In bricks-and-mortar stores, expert sales staff can help with this kind of uncertainty. In a personal conversation, customers can clarify unanswered questions and clear up doubts - the best prerequisites for reaching for the right product.

Individual advice

Individual advice

For Valon Xhafa and Thilo Pfrang, this is reason enough to attach the highest importance to the human factor in online retailing as well. And what could be more suitable than the use of behavioural psychological findings in a self-learning system to offer customers support during the shopping experience that comes close to human assistance in versatility and individuality. 

Live reactions

Purchase motivation 4: Individual dialogues provide orientation and awaken the desire to buy

In online retail, live reactions are among the most important instruments for personalising the user experience. Intelligent algorithms can reach the customer just as directly as the personal approach when shopping in the shop. With AI support, open questions can be answered and uncertainties dispelled. In addition, it is also possible to present new products, awaken a need and strengthen motivation in the case of spontaneous interest in buying.

The application of AI algorithms to customer and behavioural data is not only to be used for the selection of custom-fit product suggestions. Dynamic playout of the right psychological mechanism in the right situation, for example with live reactions, improves the customer experience and helps customers to make a decision in the first place. This is exactly the advantage we use to optimise the customer journey. Accessing a multitude of information and producing reliable real-time results - to align these processes at the retailer, our KPS User Experience Team is the right foundation.

Future vision

The avatar as an intelligent companion: a vision of the future

In the future, chatbots could develop an understanding of the context of a situation. They will know what a target group is talking about and what interests are typical for them. Customers could receive answers even before they ask questions.

We believe that AI technologies will permanently change the shopping experience.
Valon Xhafa Founder behamics

KPS Optimize Track

Integration of behamics AI into the KPS Optimize Track

The collaboration with behamics is part of the Optimize Track of the KPS User Experience Portfolio. Within this framework, the KPS UX team offers further services for KPI optimisation. Only by embedding the functional interaction triggers in the overall flow of the customer journey does incentive framing unfold its full potential and can contribute to avoiding shopping cart abandonment and conversion optimisation.

With KPS and behamics at the forefront of user-centred UX

AI and behavioural economics

With KPS and behamics at the forefront of user-centred UX

KPS immediately recognised the potential of behamics' AI and behavioural psychology-based eCommerce solutions. Their integration into our UX Operating Model is a consistent step towards a holistically optimised customer journey. The cooperation with behamics fulfils our claim of making cutting-edge technology available to our customers for a future-proof digital transformation.

Benefit from the advantages of a behaviourally psychologically controlled visitor approach within a very short time.

We accompany your UX transformation individually and tailor our user-centred concepts and design solutions precisely to your requirements. This way, you can quickly and safely benefit from the advantages of a behaviourally psychologically controlled visitor approach. As a rule, the integration of behamics AI takes less than a week, so that you will feel the effects of conversion optimisation in the shortest possible time.

If you would like to find out more about how AI and behavioural economics are enabling conversion rate growth, our whitepaper is available to download.

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Two women shop together on a tablet in an online shop with the help of digital nudging.

Conversion rate optimisation

AI and behavioural psychology in eCommerce

AI makes it possible to play out precisely those triggers from an extensive pool of scientifically developed triggers that have a purchase-motivating effect at a given point in the customer journey. A groundbreaking process that has already proven itself in KPS practice.
Partnership KPS and behamics

Blog Part 1

KPS and behamics

Valon Xhafa and Thilo Pfrang are the founders of KPS partner behamics Behavioral Economics. As a spin-off of the University of St. Gallen, the innovative company specialises in combining insights from behavioural economics with AI methods to optimise the user experience in eCommerce. KPS works together with behamics to successfully bring the course of the customer journey closer to the user's expectations.
User Driven Growth

Customer Experience

User Driven Growth

Today, more than ever, the user's individual experience when interacting with a digital touchpoint is crucial to the success of any digital product or service. You too can use every facet of this multiplier for your business success - through our experienced UX managers and the use of certified UX processes and methods.

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