{"id":1595,"date":"2021-07-28T18:34:04","date_gmt":"2021-07-29T01:34:04","guid":{"rendered":"https:\/\/www.agiliron.com\/blog\/?p=1595"},"modified":"2025-09-25T03:25:52","modified_gmt":"2025-09-25T10:25:52","slug":"5-ways-to-use-cognitive-bias-to-your-ecommerce-or-retail-stores-advantage","status":"publish","type":"post","link":"https:\/\/www.agiliron.com\/blog\/5-ways-to-use-cognitive-bias-to-your-ecommerce-or-retail-stores-advantage\/","title":{"rendered":"5 Ways to Use Cognitive Bias to Your eCommerce or Retail Store\u2019s Advantage"},"content":{"rendered":"

Your practical guide to cognitive bias and marketing.<\/strong><\/h2>\n

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\"YourSource<\/span><\/a><\/p>\n

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In a time where we can access a wealth of information at the swipe of a screen or the click of a button, consumers are in the driver\u2019s seat.<\/span><\/p>\n

Today\u2019s tech-savvy digital natives are less likely to fall for cheap sales messaging. Modern shoppers command more from brands<\/span>, with flawless<\/span> customer experiences<\/span><\/a>, personalized content, and shared values at the top of the priority list.<\/span><\/p>\n

But even the most discerning or savvy consumers have a tendency to think and act a certain way. This is referred to as cognitive bias. As an eCommerce or retail store owner, you can use cognitive bias to your advantage.<\/span><\/p>\n

Here, we\u2019re going to explain what cognitive bias is and show you five biases you can tap into to engage more customers and earn more sales.<\/span><\/p>\n

Let\u2019s get started.<\/span><\/p>\n

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What is cognitive bias?<\/b><\/h2>\n

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Cognitive bias refers to specific human thought patterns. We all have a particular way of viewing or processing the world around us or the information before us, and these internal processes can influence our actions or decisions.<\/span><\/p>\n

Most cognitive biases are shaped by our personality, beliefs, social interactions, and life experiences. While some biases may be glaringly obvious, many are subtle and hard to detect.<\/span><\/p>\n

The reason we all have cognitive biases is that our attention spans are limited (especially in a world rich in choices and information), so we take mental shortcuts when making decisions. These decisions are often led by cognitive biases because they\u2019re instinctual.<\/span><\/p>\n

As an eCommerce or retail business owner, you can use this concept to attract shoppers to certain offers, products, or pieces of content, influencing more sales as a result.<\/span><\/p>\n

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5 ways you can use cognitive bias to your eCommerce or retail advantage<\/b><\/h2>\n

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Now that you understand what cognitive bias is and how tapping into certain thought processes can influence a shopper\u2019s decisions, we\u2019re going to explore five examples of \u201cconsumer sway\u201d and how you can apply them to your business.<\/span><\/p>\n

1. The backfire effect<\/b><\/h3>\n

Also referred to as confirmation bias, the backfire effect is based on the notion that when consumers connect with hard-hitting facts that go against the grain of their beliefs, they\u2019re likely to reject the information and go elsewhere.<\/span><\/p>\n

Most consumers search for products, services, and information that sits comfortably in line with their beliefs<\/span> and find it difficult to break away from them, particularly when they\u2019re \u201cin the moment.\u201d<\/span><\/p>\n

There are two ways that understanding the backfire effect can help you earn more sales:<\/span><\/p>\n

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  1. You can use data to segment your customers and get to know them on a deeper level. Doing so will empower you to deliver hard facts and stats that align with your customers\u2019 preferences or beliefs and earn their trust or engagement. Our <\/span>guide to proper customer segmentation<\/span><\/a> will help you get started.<\/span><\/li>\n
  2. You can analyze your existing content or messaging to see whether it\u2019s too strong or hard-hitting and soften it with a more conversational, emotional approach. Doing so will alienate fewer of your prospective customers and is likely to result in more sales. Our <\/span>guide to emotive marketing<\/span><\/a> will tell you all you need to know to refine some of your existing messaging.<\/span><\/li>\n<\/ol>\n

    You can use both of these approaches in unison. For website content and landing pages, taking the emotive route will prove most effective. And if you\u2019re branching out to customers through email, mobile apps, or social media messengers, using segmentation will work in your favor.<\/span><\/p>\n

    2. The decoy effect<\/b><\/h3>\n

    The decoy effect plays into direct choices and how we perceive certain services or products. When we compare options, it\u2019s not unusual to become torn and overthink our decisions. This often results in shoppers giving up and abandoning their potential purchases. No product for the customer and no sale for you.<\/span><\/p>\n

    But, by using the decoy effect, you can influence your customers\u2019 buying decisions without them knowing.\u00a0<\/span><\/p>\n

    For instance, if you have two similar products or bundles, you can add a third as a decoy. The decoy product, option C, will have a higher price point than options A and B<\/span>, offering little extra value for money.<\/span><\/p>\n

    By adding this third decoy option, you will make either option A or B look more appealing, influencing more customers to commit to buying your preferred product.<\/span><\/p>\n

    Example:<\/b><\/p>\n

    Customers looking for a new Android phone arrive at a product page. Option A is $400 for 32GB, and option B is $350 for 26GB. Some people will sway towards option A and others B\u2014depending on budget or storage preferences.<\/span><\/p>\n

    But, by adding an option C\u2014a slightly more \u201cadvanced product\u201d with a $500 price tag but less storage (say, 24GB)\u2014you\u2019ll instantly make option A more attractive or, at the very least, cement your customers’ original decisions, inspiring them to press the \u201cbuy\u201d button. This is an effective method of removing hesitation from the decision-making process.<\/span><\/p>\n

    3. Hyperbolic discounting<\/b><\/h3>\n

    The human brain responds to potential rewards, and it’s usually the more immediate incentive or \u201cpayoff\u201d that works best. This cognitive phenomenon is known as present bias, and as an eCommerce or retail business owner, you can tap into it by using a little something called hyperbolic discounting.<\/span><\/p>\n

    When presented with two similar rewards or incentives\u2014a smaller discount to use the next day or a slightly larger discount to use in 3-5 days\u2014most shoppers will go for the more immediate option.<\/span><\/p>\n

    By using hyperbolic discounting, you can use peoples\u2019 preference for immediate rewards to your advantage, earning more sales in the process. Here are a few ways you can do so:<\/span><\/p>\n