IKEA Effect: How Online Customization Adds Value
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We've all experienced it before: the sense of pride and accomplishment that comes from assembling a piece of furniture with our own two hands. But did you know that this feeling of attachment and ownership applies to digital products as well? In this article, we're going to unravel the mysteries of the IKEA effect, how it works, and how e-commerce companies and product owner can harness its power to their advantage.
What is the IKEA Effect?
The IKEA effect is a psychological phenomenon where people place a higher value on products they have helped create themselves, even if the quality of the product is not as good as something they could have purchased elsewhere. The term was first introduced by three psychologists in 2011, who described it as "when labor leads to love."
In their study, the psychologists asked participants to fold their own origami paper, giving them as much time as they needed. Afterward, they were asked to rate the value of their origami. Those who made the origami themselves offered nearly five times more for their own piece of "art" than others.
Another example is that of instant cake mixes in the 1950s, which made it possible to bake a cake by adding only water. Because this made the baking process too easy, people no longer felt they had actually baked the cake themselves. In response, manufacturers removed the eggs from the mix and people had to add them back in themselves. It worked perfectly: people regained the feeling of baking a cake themselves and popularity skyrocketed. The difference was just one egg.
Psychological Explanation of the IKEA Effect
Psychology explains the causes of the IKEA effect. One is that effort (effort) creates asense of ownership. The more work we put into making something, the more we think it is our own. And we tend to place more value on things that are our own. This way of thinking is explained by the so-called effort justificationbias. It works like this: suppose you are applying for a new job and you have two options: one of the positions is offered to you after five intensive rounds of interviews and case studies, the other offer is after a brief chat with themanager. Which job would you value more? Regardless of the outcome, probably the first option. This is a classic example of the effort justification bias.
Online Applications of the IKEA Effect
Neuro-usability research shows that we don't only experience the IKEA effect when putting together furniture, but also in digital experiences. This can be observed in brain activity, which is readily apparent in the results of a neuromarketing study on Nike's website conducted in our neurolab in Amsterdam. Participants were instructed to use the Nike-by-You shoe customizer, a tool that allows you to create your own sneakers, on the website. As participants worked with thetool, eye-tracking recorded their eye movements and emotional responses were detected through EEG scans.
The results showed that when participants viewed their creation both during and after customization, there was a significant increase in positive emotional reactions(joy): a response that is strongly related to purchase behavior. It also showed that this joy response was much stronger for customized sneakers than for standard options. The more effort participants put into customizing their shoes, the stronger this relationship.
The lesson is that when you can make products customizable, it generates a lot ofengagement. The above insights enable you as a digital/online marketer ore-commerce professional to apply the IKEA effect to your website. Of course, don't forget to validate (implicit) user behavior with new features orprototypes.
How to apply Effective Customization
Now that we understand the IKEA effect and the benefits of customization for e-commerce companies, let's look at some tips for effectively implementing customization on your website.
1. Make Customization Easy and Intuitive
One of the key aspects of successful customization is making it easy and intuitive for customers to use. If a customization tool is difficult to use, customers are less likely to engage with it, and they may become frustrated andabandon their purchase altogether.
Therefore, it is important to ensure that your customization tool is user-friendly and easy to navigate. You should also provide clear instructions and guidance on how to use the tool to create their custom product.
2. Offer a Wide Range of Customization Options
To provide customers with a sense of ownership and pride in their creation, it is important to offer a wide range of customization options. The more options a customer has, the more control they feel they have over theproduct, and the more invested they will be in the final result.
This does not mean that you should overwhelm customers with too many options, however. It is important to strike a balance between offering enoughcustomization options to make the experience engaging and rewarding, withoutoverwhelming customers or making the process too complex.
3. Focus on the User Experience
The key to successful customization is providing customers with an engaging and enjoyable user experience. This means that you should focus on creating a seamless and visually appealing interface that encourages customers to engage with the customization tool.
In addition, you should focus on creating a sense of excitement and anticipation throughout the customization process. This can be achieved through features such as progress bars, countdown timers, and visual previews of the final product.
4. Showcase Customized Products
Once a customer has completed their customization, it is important to showcase their creation in a way that is visually appealing and inspiring. This could include high-quality product photos or 360-degree product views that allow customers to see their custom product from all angles.
You could also consider using social proof to showcase how other customers have customized their products, or incorporating customer reviews and testimonials to highlight the value of customization.
5. Test and Optimize
As with any aspect of e-commerce, it is important to continually test and optimize your customization tool to ensure that it is driving conversions and providing a positive user experience.
This could involve conducting user testing to identify areas for improvement, analyzing customer data to understand how customers are engaging with the tool, or running A/B tests to determine which customization options oruser interface elements are most effective at driving conversions.
Conclusion
Customization is a powerful tool for e-commerce companies looking to improve customer engagement, drive conversions, and increase revenue. By leveraging the IKEA effect and providing customers with a sense of ownership and pride in their creations, you can create a more meaningful and rewarding shopping experience that encourages customers to return to your website time and time again.
However, it is important to remember that customization is not a one-size-fits-all solution. Every e-commerce website is unique, and customization tools must be tailored to fit the specific needs and goals ofyour business. By following the tips outlined in this article and continually testing and optimizing your customization tool, you can create a truly unique and engaging shopping experience that sets your e-commerce website apart from the competition.
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