3 sneaky tactics that websites use to make you spend | Your Money and Your Mind

TL;DR

In this content, we discuss three tactics used by online retailers to increase sales and provide tips on how to counteract them.

Transcript

Transcriber: Worldwide, online retail has been on the rise. In 2019 alone, shoppers spent nearly 3.8 trillion dollars online. And to keep those figures climbing, some companies are pulling out all of the stops to hold your attention and to keep you spending. To help you regain control of your shopping environment, I'll identify three of their tact... Read More

Key Insights

• 🎮 Gamification is a dangerous tactic used by online retailers to entice customers with the chance to win, increasing dopamine levels. Unsubscribe from shopping emails to avoid temptation. ⏳ Scarcity is another tactic employed by online retailers, making items seem popular and limited. Combat this by stepping away and sleeping on the decision to buy, and use an incognito browser to avoid ads.
• 💳 Payment installments may seem convenient, but they can lead to debt and additional costs. Avoid using these plans, and instead, use browser plug-ins to find the best deals and discounts.
• 🌐 Online retail has seen significant growth, with shoppers spending nearly 3.8 trillion dollars in 2019.
• 💰 Companies are using various tactics like gamification, scarcity, and payment installments to keep customers spending.
• 🎯 Gamification uses game design elements to increase time and money spent on websites, taking advantage of the human desire to win. ⏰ Scarcity creates a sense of urgency and competition, increasing the perceived value of products and willingness to buy.
• 💳 Payment installments psychologically decrease the cost of items, leading to impulsive purchases and potential debt.
• 👍 By unsubscribing from shopping emails, sleeping on purchase decisions, and avoiding payment installment plans, consumers can regain control over their shopping environment and avoid falling for retailers' tricks and gimmicks.

Questions & Answers

Q: What is gamification in the context of online retail?

Gamification in online retail refers to the use of game design elements on websites to engage and entice customers to spend more time and money. This can include features like virtual wheels to spin for discounts or earning loyalty points based on user interaction.

Summary & Key Takeaways

• Online retailers use gamification tactics such as virtual wheels and loyalty points to entice shoppers to spend more time and money on their sites.

• The tactic of scarcity, where websites create a sense of urgency by showing how many other customers are viewing the same item or using timers for the shopping basket, increases the perceived value of a product and a shopper's willingness to buy.

• Companies offering payment installment plans for less important items can lead to increased spending and debt, so it is recommended to avoid using such plans and instead utilize browser plug-ins to find the best deals.