Have you ever rushed to check out after seeing that there are ‘Only 2 Left!’ of the item in your cart? Your purchase may have been influenced by scarcity, a common strategy used by eCommerce brands to compel us towards action based on psychological triggers.

Scarcity is only one example of loss aversion – the human tendency to do all that we can to avoid loss, also known by the popular term ‘F.O.M.O.’ or ‘Fear of Missing Out’. When we see that a product is only available for a limited time or that there’s a chance we could miss out on an offer, we become more motivated to make a quick decision and act on it.

The following 3 strategies can help eCommerce brands use loss aversion to compel customers to take the final step towards checkout.

1.‘Next-day delivery if you check out in 01h : 10m : 25s’

Countdown timers are an excellent way to encourage customers to act quickly as they give a specific deadline to take the final step before losing out. This strategy can be used for many different kinds of offers, with next-day delivery thresholds being one of the more common ones. This is because the countdown can be shown on the site every day before a certain cutoff time, and it gives users a very narrow window for action. The next-day delivery offer allows customers to visualise receiving their items almost immediately, and this anticipation can make it feel like quite a loss to have to wait longer if they take too much time to contemplate the purchase. 

2.‘Items in your cart are not reserved – check out now!’

This messaging reminds customers that the items in their cart could sell out at any moment, which can motivate them to proceed to checkout as quickly as possible in order to avoid missing out. This loss aversion strategy can be particularly effective when combined with the aforementioned ‘Only 2 Left!’ scarcity messaging, as customers can imagine that the few remaining items could feasibly sell out if they hesitate too long. 

An alternative way to use this concept would be to hold the items temporarily and state ‘Items in your cart are reserved for 10 minutes – check out now!’, as this works together with the countdown strategy outlined above to give customers a more concrete vision of losing out if they do not act fast.

3.‘Sale ends tonight – don’t miss out!’

The final days of a sale period can be a great time to use loss aversion to nudge customers towards proceeding to checkout, as there is a risk of missing out on discounts if action is not taken before the sale ends. Onsite messaging such as banners promoting a sale can be updated to remind users when the sale is almost over, and the final hours of the sale can be particularly useful for providing concrete motivation to proceed to checkout. This can again be combined with the timer strategy mentioned above, as the countdown allows users to see the precise amount of time remaining to act before missing out.

These 3 psychology-based strategies can be powerful tools for giving users a final nudge towards making a purchase. Utilising them on your site can have a significant impact on your checkout conversion rates and ensure that potential revenues are not lost at the end of the funnel. For any follow up questions around psychological triggers, feel free to get in touch – https://fabric-analytics.com/contact/