Optimism bias

Optimism bias, digital marketing and Conversion Rate Optimization (CRO)

As a major result of the optimism bias, we not only tend to overestimate our capabilities, but also overestimate our control over the environmental factors. This is not a great initiative in the context of marketing. Therefore, it is of great importance for every digital marketer to understand the optimism bias, its impact on marketing and how to prevent it to make a difference towards the Conversion Rate Optimization (CRO). As the definition and the impact were already discussed, let's have a look at how to avoid it!

Setting benchmarks based on the statistics from an appropriate reference class

Before you initiate planning your marketing activity, identify a reference class of the same context of your marketing campaign; preferably a successful competitor or a set of historical case studies. Learning from competitors is one of the key success factors, as it prevents you from experiencing the failures that your competitor faced during their learning curve. The benchmarks you set may differ based on the nature of your marketing campaign. However, as general you can choose metrics for planning activities and time management. Then create a report summarizing your benchmarking details. As per the findings of your research, adjust your marketing campaign accordingly based on customized predictions. This methodology can greatly reduce the possibility of being framed to the Optimism bias as now your decisions are based on a profound foundation.

Use different analytical tools to gauge performance to make decisions

Coming to conclusions based on valid information is the way out from the optimism bias. You can use online tools such as Google analytics, Facebook analytics etc. to have a clear picture on your target audience's behavior to assess the strength of your digital marketing efforts before making decisions blindfolded out of faith.

Optimism bias, target audience and Conversion Rate Optimization (CRO)

By approaching the customers tactically in accordance with the optimism bias, the conversions can be definitely boosted. Here are some top tips that can be implemented.

Always, address your target audience positively: In order to support the fact your target customers don't have a risk of experiencing a loss from your end, convey your brand message on a positive note.

Put customers' desires first, not yours: You may see things differently than your customers and for you highlighting the strengths of your product and services might be the key purpose. It is indeed understandable, but it should be done walking in the shoes of the customers, not solely based on your preferences. As you create your social media or the web advert, align them with the desires and dreams of the customers as to further the case of the optimism bias towards the Conversion Rate Optimization (CRO).

Address negative feedback carefully: People making decisions with optimism bias, never stay around if they are threatened with a loss. This is when successful negative feedback handling comes into play. As you address the negative feedback, be sure to clarify that the impact extends beyond the individual concerns.

Final thought

With or without our knowledge, our decisions can be framed with the optimism bias which is our tendency of thinking that there is a less likelihood for us to face negative events. However, as a marketer, if you are framed to this bias, then your business is at a risk! It's not only vital that you hop out from the bias to make decisions, but also to alter your marketing activities to influence the consumer decisions to your favor.