How To Use Psychology With email Marketing To Create Conversions In Ecommerce

It’s important to understand how to use psychology with email marketing if you want them to convert into ecommerce sales. 

 

Here’s a breakdown of how to use psychology in your email marketing offers to drive conversions without cheapening your brand.

Why Less Is More: The Dangers of Overusing Discounts

The temptation to offer frequent discounts is strong, especially when you’re aiming to boost sales.

 

But here’s the thing: overuse discounts, and you risk training your customers to expect deals at every turn.

 

This can lead to a “wait-for-the-next-discount” mentality, where customers only buy when a deal is available, ultimately decreasing your average order value and diluting brand perception.

 

Think of it like a favourite coffee shop: if they constantly offer half-off deals, soon that’s all you’ll be willing to pay.

 

Instead, aim to create offers that add value and make your products feel special.

 

By keeping discounts occasional and purposeful, you’re more likely to attract customers who value your brand at its true worth.

1. Choosing the Right Offer Type: Why “Free” Is Powerful

When deciding on an offer, remember that the psychology of receiving something for free often creates more excitement than a simple discount.

 

Research shows that people perceive “free” as a great value, even when it’s relatively minor compared to other deals.

 

Offering a “Free Gift with Purchase” or “Free Shipping over $50” can be more enticing than a 10% discount.

 

Consider the difference in customer reactions to “20% off” vs. “Free Tote Bag with Purchase.” For many, the free item seems more tangible and appealing. People love getting something for “nothing,” and it’s a powerful motivator.

 

Actionable Insight: Try testing a “freebie” offer on a segment of your list and compare the results to a traditional discount.

2. Monetary Discounts vs. Percentage Off: Which One Works Best?

Here’s an interesting point about using psychology with email marketing: sometimes different variations of the same mathematical offer performs better, such as “$10 off orders over $100” performs better than “10% off.”

 

Why? For one, a dollar amount can seem more concrete to certain customers. While a 10% discount might sound modest, $10 feels more impactful and easy to visualize.

 

The key here is to test both styles and find out what resonates most with your audience.

 

Another approach is to adjust your offer based on the order value.

 

If you know your average order size, you can tailor an offer that gives customers a clear incentive to spend just a little bit more.

 

Example: Let’s say your average order is around $75 Offering “$15 off on orders over $100” encourages customers to add that extra item to qualify, which can increase your average order value while still providing a valuable deal.

3. Switch It Up: Avoid Offer Fatigue

Seeing the same offer over and over can cause customers to tune out.

 

A “20% off” deal is only exciting the first few times. After that, it can lose its impact.

 

Instead, vary your offers to keep your audience interested. Try “Buy One, Get One 50% Off” or “Earn Double Loyalty Points Today.” These add variety and help prevent offer fatigue.

 

By switching up your approach, you’re also gathering data on what drives conversions.

 

Some segments of your audience might respond better to a free gift, while others prefer percentage-based discounts.

 

The key is to maintain an element of surprise.

 

Real-World Example: We’ve run the same split test across multiple industries for discounts versus free gifts.

 

Almost every time, the free gift option outperformed by around 15% on average. 

4. Segment-Specific Offers: Different Strokes for Different Folks

Not every customer segment has the same spending habits or motivations.

 

Tailoring offers based on segments (such as VIP customers, first-time buyers, or frequent shoppers) can significantly boost engagement and conversions.

 

For instance, VIP customers might appreciate early access to new products rather than discounts, while new customers might be more inclined to purchase with a “First Order Discount.”

 

Testing your offers on different segments helps you understand what works for each group.

 

Some customers may respond to discount offers, while others may never purchase, regardless of the offer type.

 

For those inactive segments, you might try re-engagement emails offering exclusive content or personalized recommendations.

5. Testing and Refining: The Key to Finding Your Winning Offer

Ultimately, there’s no one-size-fits-all approach to email marketing offers. The best strategy is to keep testing, analysing, and refining your approach.

 

Here’s a quick rundown of some elements to consider testing:

  • Discount vs. Freebie: Track which offer types generate more conversions.
  • Dollar vs. Percentage Off: See if your audience responds better to specific dollar amounts.
  • Different Offers by Segment: Test various offers for VIPs, new customers, and dormant subscribers.
  • Limited-Time Offers: Experiment with urgency-driven language like “Today Only” or “Ends in 24 Hours” to see if it spikes engagement.

Key Takeaways of how to use psychology with email marketing

  • Use Discounts Sparingly: Too many discounts can train customers to wait for sales, diluting brand value.

     

  • Experiment with Freebies: People love getting free items, so consider trying this instead of discounts.

     

  • Switch Up Offer Types: Avoid using the same promotion repeatedly; offer variety to maintain interest.

  • Segment for Success: Different segments respond to different offers—test to see what works for each.

  • Test and Refine Constantly: No single offer works for everyone; use data to find what resonates best with your audience.