Knowing your audience is a part of e-commerce marketing. Regardless of your product or industry, you should have a full view of your customers – who they are, what their needs and pain points are, and what motivates them. Marketing is largely about influencing how potential customers think, act, and feel, so it’s common for social proof psychology to be incorporated into different strategies.
Understanding human psychology is extremely important as it helps you reach the right people and send the right message. This helps you create more relevant copy that lead to higher conversions. Fortunately, several psychological techniques can be incorporated into your marketing strategy, with one of the simplest yet most effective being social proof.
Social proof taps into people’s natural tendency to ‘follow the crowd,’ making it a powerful marketing tactic that you can incorporate into different types of copy to drive more conversions. Continue reading to learn more about what social proof is and why it’s important in e-commerce marketing.
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What Is Social Proof?
The term social proof was first coined by Robert Cialdini back in 1984 in his best-selling book Influence: Science and Practice. Social proof, also known as informational social influence, is a psychological concept that describes people’s tendency to follow the actions and behaviors of others, especially when they’re unsure of what to do.
Early records of this concept date back to the 19th century. In 1895, French social psychologist Gustave Le Bon discussed the characteristics of crowds and how they are influenced by different principles in his book “The Crowd: A Study of the Popular Mind. From here, many others have made studies about the influence of other people’s actions on human behavior, which led to the creation of the term.
Today, social proof is used even in e-commerce marketing because aside from browsing or shopping for products online, people now look for reviews and recommendations before purchasing.
Psychology Behind Social Proof
To better understand why social proof is so powerful in marketing, it helps to break down the psychology behind the concept. Why do people look to others for how to think or what to do – almost as a form of validation? To respond to this, get to know more about Cialdini’s four key principles, which he talks about in his social proof theory:
- Uncertainty
Uncertainty is one of the main driving forces behind social proof. It talks about a person’s tendency to seek guidance and take social cues from the crowd when they’re in a new or uncomfortable situation. In these cases, different forms of social proof like reviews and recommendations provide a “shortcut” for the brain to make quick decisions. - Similarity
Similarity is another concept that enhances the effect of social proof. It describes a person’s natural tendency to look for like-minded people because they can relate to them. Whether they be friends, family, or even random users with similar goals, these people’s opinions can influence your buying decisions. - Expertise
Social proof is especially persuasive when it comes from people who you see as more knowledgeable and experienced than yourself. This is why there’s more impact when experts recommend a particular product or provide good feedback about it. - Number
The last principle that guides people’s decision-making is numbers. It states that the more people believe a certain thought, the more likely an individual perceives it as true. In e-commerce, this means that customers are likely to choose the most popular option recommended by others when deciding between products.
Overall, the main psychology of social proof is that it taps into people’s deeply rooted need to belong and make decisions that are approved by others.
Why Is Social Proof Important For E-commerce Brands?
Social proof is a great addition to any e-commerce brand’s marketing strategy. According to Globe Newswire, 95% of consumers read online reviews before purchasing products. This number supports the power of reviews in influencing customer behavior, especially in e-commerce stores where there are no physical touchpoints to convince prospects.
Whether it be on your landing pages, social media ads, or email newsletters, it helps to add some form of social proof into your conversion points to compel readers to take action more quickly. Doing so can lead to several benefits, including the following:
Builds Trust And Credibility
Customer reviews, feedback, and testimonials all help boost a brand’s credibility, in turn building trust. Based on a Nielsen report that surveyed over 28,000 Internet respondents, 92% said that they trust recommendations from friends and family more than any other type of advertising. Similarly, other forms of social proof like positive customer reviews, case studies with concrete results, and industry expert opinions will also make your brand appear more trustworthy.
Increases Conversions
Incorporating social proof into your marketing copy has also proven to be effective in boosting conversions, as shown in many studies. For example, the Spiegel Research Center found that having five reviews on a product increased the likelihood of purchase by 270% compared to having no reviews. The same research also showed that displaying reviews on higher-priced products increases conversion rates by 380%.
Reduces Purchase Anxiety
Nowadays, it’s easy for customers to feel overwhelmed with the countless options they have online, triggering some form of purchase anxiety. Using social proof alleviates this concern by providing customers with reassurance about your brand and product based on other people’s experiences. It also helps your product stand out from competitors, giving customers more reason to purchase it over others.
Fosters And Amplifies Word-Of-Mouth
Satisfied customers who share positive experiences with a brand or product instantly become valuable brand advocates. This is the last stage of the customer journey and often the most challenging to achieve because it requires a high level of satisfaction and loyalty. Once customers reach the advocacy stage, you accumulate more social proof through reviews and testimonials, which then generates word-of-mouth to grow your reach organically.
Boosts User Engagement
Social proof boosts user engagement by encouraging potential customers to interact with or purchase from you. For example, they may check online reviews, view photos of real customers on product pages, or read case studies before deciding whether they want to make a purchase. Whatever the case, these all increase engagement rates on your e-commerce site.
Additionally, one type of social proof – user-generated content – is especially effective in creating engagement. Customers who post about your products on their social media platforms attract their own following, giving your brand a much wider reach.
Differentiates From Competitors
Using social proof allows you to stand out from competitors by positioning your brand as more trusted and credible than others. It provides users with reasons to choose your products, especially if competitors do not have the same level of endorsement as your brand.
Types Of Social Proof
Now that you understand the importance of social proof in e-commerce marketing, it’s essential to know the many types of social proof that can be implemented. Choosing the right type depending on your channel, content, or strategy can incite different emotional triggers and impacts, so you should plan carefully.
Case Studies
Case studies are long-form social proof that provides a deep dive into how you’ve helped specific clients. They are detailed success stories that focus on a particular client’s problem, outlining what their problem and objective were and how your brand or product helped them, particularly what tangible results you delivered.
When prospects or potential customers see and hear real-life stories about how others have benefitted from your product, they feel more confident in trusting your brand. The key to writing an effective case study is to identify top clients you’ve had success with and highlight key performance indicators (KPIs) to provide more concrete measures for the results.
Case studies are especially effective when marketing innovative concepts as they help demonstrate your product’s value to customers more concretely. Generally, they work best when the decision-making process is more complex, and when it requires more long-form and substantial evidence for users to commit to a purchase.
Testimonials
Testimonials are statements or endorsements from satisfied customers, which can come in multiple forms. They’re often displayed quotes on a brand’s website, paid ads, email newsletter, or social media platforms to entice users to purchase their product. In other cases, testimonials may also be presented in audio or video format. Videos are especially effective since they add a human touch and create a more genuine connection than your usual promotional videos.
The power of testimonials lies in their authenticity. By adding them to any kind of marketing communication, you give your audience the extra push to buy your product by addressing potential objections and boosting their confidence.
The best way to gather testimonials is to proactively reach out to satisfied customers and kindly request their feedback. You can offer some incentives or rewards to encourage them to share their positive experience in more detail, making it easier to get compelling testimonials that will help attract new customers and conversions.
Reviews And Ratings
Online reviews and ratings are some of the most influential forms of social proof in e-commerce. They serve as virtual assessments or recommendations that give potential customers more insight into your brand and product. They go hand-in-hand, providing users with a quick snapshot of the general sentiment around your products.
Displaying reviews on your website increases the likelihood of purchase and promotes transparency – an important factor that many consumers look for in brands today. On the other hand, ratings are usually presented in a star format, with higher ratings indicating a better customer experience. This design makes it easy for users to assess your product at first glance.
Transparency is so important these days that Trustpilot indicated that 62% of consumers will not engage with brands that censor their online reviews. This means that users may be skeptical if reviews and ratings have perfect scores and trust brands more if they show a mix of positive and negative sentiments.
It’s also worth noting that reviews and ratings don’t just come from brands inviting users to leave a note on their website or platform. You can also check forums and review sites like Google and Yelp to monitor customer sentiments and take note of their feedback for future improvement.
Influencer Endorsements
Influencer marketing is a massively growing space today, with the industry expected to reach $24 billion by the end of 2024. Influencer endorsements count as social proof because they leverage the popularity and impact of influencers to vouch for your product. As the term influencer implies, these individuals have a sway over their target audience and have managed to build a loyal following.
Nowadays, you’ll find countless influencer endorsements scattered across social media platforms. Influencers may range from nano-influencers with 1,000 to 10,000 followers, all the way to mega or celebrity influencers with millions of followers. Regardless, their recommendations carry a significant weight as they’re perceived to be authentic and trustworthy by their followers.
User-Generated Content
User-generated content (UGC) pertains to content created by customers or other unpaid individuals who don’t officially represent your brand. They’re usually published on social media or other similar channels and can come in many forms, such as unboxing videos on TikTok, tutorial videos on YouTube, or simply Instagram reviews.
UGC is a powerful form of social proof because it’s created by real customers rather than the brand, making it extremely genuine and relatable to the audience. It’s a great way to build your community and foster brand loyalty, especially since UGC is highly shareable and can thus expand your reach easily.
In a way, you can think of UGC as the opposite of influencer endorsements since it’s organic and unpaid. While both are equally important forms of social proof, UGC may sometimes be more effective than paid influencers due to its unbiased nature. The authenticity of the content resonates strongly with other users – and as a plus, UGC is less expensive and easier to manage.
There are many strategies you can try to encourage users to create UGC. Examples include running contests or giveaways to prompt users to make posts using a certain hashtag or offering incentives like discounts for submitting UGC. Whatever the case, consider showcasing UGC on your website or social media channels – much like any other social proof – to help drive more conversions.
Awards And Certifications
Awards and certifications are external and tangible forms of validation that give users reassurance about your brand’s reputation in the industry. They serve as a strong type of social proof that enhances credibility and instills trust in potential customers by showing the legitimacy of your brand or product. To make sure your recognitions are visible, display them on your website and social media channels, or even publish them in a press release for maximum impact.
Data/Numbers
Any form of data or numbers can be considered social proof because they provide solid evidence of your brand’s success, popularity, and credibility. Placing important numbers strategically on product pages, homepages, or email marketing campaigns can attract readers and give them more confidence in your products.
Popular examples of numbers that are effective for e-commerce brands include the number of products sold, number of people subscribed to a newsletter, or even social media followers. These all give users a hint into how well-known your brand is and how well-received your products are with the public.
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