Rishi Rawat - Frictionless Commerce
Frictionless Commerce: Specializes in helping brands convert first-time buyers? How do we do this? We use a process called AEJR (amplify desire, establish trust, justify price, and reduce cognitive load).
About Rishi: When I started in 2008 my core thesis was that most purchase behaviors were rational. 8 years on and 212 experiments in we know nearly ALL purchase triggers are irrational. And this is good news because it means we can influence purchase behavior.
"How Reducing Cognitive Load Increases Sales" with Rishi Rawat
Interview Excerpt Below:
“Grant: It sounds like if you give the justification and it makes sense to the end-user, the consumer, they’re usually okay with that and you don’t have to follow the herd of people that are out there giving free shipping because that’s what they’re told to do. Right?
Rishi: That’s exactly right. We have a framework internally. We call it AEJR. It’s an acronym and it stands for amplify desire, justify price, establish trust, and reduce cognitive load. Those are the four pillars on which we do all conversion optimization. I think that the first three are pretty obvious. Amplify desire, obviously, people get it. Establish trust, people get it. Justify price, people understand as well, but reducing cognitive load is something that I think not enough businesses think about.
One of the things that I’ve found is when I talk to clients and I look at their page and I say, “Who is your audience?” They have a very clear definition of who their audience is, and I say, “But when I read the description, it seems like you’re trying to satisfy many different audiences.” What they tell me is that, “Well, three years ago, we were also focused on this audience and we also think that this customer, even though they represent 10% of sales, that’s still 10%. We can’t ignore it.”
But when I look at the page, I realize that this person or this person is 10% of sales, yet they’re getting 30% of the real estate of the page. To me, there’s a disconnect there. I think one of the things that happen over time, and this is natural to any business, is that as they learn more about their business, as they learn more about their audience, they keep on adding more and more stuff on the page. For example, if there’s a website where there is a product and they’ve listed five features, as they start selling this product and they sell thousands and thousands of units, their customer service comes back and says, “Hey, we’re kind of hearing a lot of people in Florida say that one of the features they really like about the product is the fact that it’s portable.” They’ll be like, “Oh, that’s really interesting. That’s an important feature. Let’s add it to our list.” It’s this additive nature where we’re constantly adding more and more stuff because we want to make sure that we’re talking to all potential customers.
To me, that is really dangerous. It’s one of the most common mistakes I see with retailers or with online businesses, is they just put too much stuff out there. As a result of that, it doesn’t necessarily speak clearly with effectiveness to that one audience. What we do is when we talk about reducing cognitive load, what we do is we actually eliminate everything that we feel can be eliminated without shutting the business down. Then we start adding it back in and we ask for justification for each of those elements and as a result, without much effort, we’re able to reduce the amount of content or the amount of information being propagated on that page by 30%. Just a simple act like that has a magical effect on conversion rates.
Grant: Wow. That’s pretty interesting there because less is more. What’s the old adage? “Less is more.” I don’t know who said that, but it sounds like that’s what you’re doing.
Rishi: That’s right.”