A Ban on Misleading Countdown Timers; What Does It Mean for CRO?
The Authority for Consumers & Markets (ACM) recently announced that the use of misleading countdown timers on webshops is prohibited. After checking thousands of webshops targeting Dutch consumers, ACM has addressed the online stores and indicated that they must stop using timers in this way.
The Use and Impact of Countdown Timers
Countdown timers are often used to create a sense of urgency and thus stimulate (impulse) purchases among website visitors. The idea is that seeing a ticking clock puts pressure on consumers and encourages them to act quickly before time runs out. The use of timers is not prohibited in itself - but the timer must be accurate. A timer tells the truth when the offer is truly limited and disappears when the timer has run out. However, in dozens of situations, this was not the case: after the time was up, items remained available, or a new timer even started with the same message as the initial countdown.
The ACM considers tactics like this misleading, and thus a violation of the rules that protect consumers. The Authority aims to ensure fair and transparent practices in e-commerce, among other things by avoiding and addressing dark patterns. That is, techniques that entice consumers to make a purchase should not be to the detriment of the consumer. Similar techniques besides countdown timers include the design of the website or the use of pre-filled options. When these strategies benefit the website visitor's behavior and they are not misled, the strategies are permissible. When the visitor is misled (such as by restarting a limited timer), a webshop is reprimanded.
Dark Patterns or Persuasive Design?
Recently, Amazon was in the news after the Federal Trade Commission (FTC) sued Amazon for allegedly misleading customers into signing up for Prime subscriptions. The FTC claims that Amazon was deliberately unclear about the costs of Prime and unknowingly enrolled customers in the subscription. In Europe, the use of dark patterns or deceptive design is not allowed.
Dark patterns refer to design techniques intended to deceive, manipulate, or coerce users into certain actions that are not in their interest. These patterns are often used to entice users to share personal data, subscribe to services, or take other actions they may not consciously agree to. Dark patterns are seen as negative and misleading practices.
On the other hand, persuasive design refers to the use of design techniques and psychological principles to influence and persuade users to take certain desired actions. This can be applied to encourage users to purchase products or complete certain tasks. The goal of persuasive design is to influence users in a positive and ethical way and help them make decisions that are in their interest.
While both concepts aim to influence user behavior, the difference lies in the intent and ethics behind the design. Dark patterns are misleading and manipulative, while persuasive design aims to help users make informed decisions and improve their online experience.
What's Next After the Countdown Timer Ban?
Webshops are now required to remove misleading countdown timers from their websites. This means they must adopt fair and transparent practices when displaying product availability and offers. This measure aims to protect consumer interests and maintain and increase trust in online shopping experiences. Webshops that do not comply with this ban may face fines and other legal consequences.
Ethical and Effective Strategies for CRO Marketers
With the new, strict rules from the ACM that aim to protect consumers, it is important for CRO marketers to use ethical and effective strategies that comply with the regulations.
Here are three alternatives to countdown timers you can use:
- Social Proof
An effective way to persuade users to make a purchase is through the use of social proof. This can be in the form of customer reviews, testimonials, or case studies. Showing how others have used the product and what their experiences were can help convince potential customers of the product's value. You can also mention how many units have already been sold, if this is an impressive number, to demonstrate the product's popularity.
- Clear Value Proposition
Another effective method is to offer a strong, clear value proposition. This means clearly stating what makes the product or service unique and what benefits it offers the customer. This can also highlight the problems the product solves for the customer and how it makes their life easier, better, or more enjoyable.
- Limited Edition or Exclusive Offer
Instead of a countdown timer, you can create a sense of scarcity by offering limited editions of products or by offering special promotions or discounts that are only temporarily available. You can also add extra value by offering free shipping, free gifts with purchase, or other extras that make the purchase more attractive.
Each of these techniques must be used ethically and should not be misleading. It is important to always be transparent and honest in your marketing practices.
A Clear Future
The ban by the ACM on misleading countdown timers marks an important step in promoting transparency and consumer trust in the e-commerce landscape. As the online retail industry continues to evolve, it is crucial that companies prioritize consumer protection. This measure not only addresses the concerns raised by regulators but also sets a precedent for fair marketing practices. Looking ahead, we can expect further developments in consumer protection regulations aimed at promoting a safe and reliable online shopping experience for everyone.
Optimize Conversions with Follo's CXO Services
Follo's Customer Experience Optimization services are the perfect complement to the recent ACM ban on misleading countdown timers. With our expertise in customer-centric optimization and data-driven strategies, we provide websites with the key to fair and transparent e-commerce practices. Through in-depth customer research, audience segmentation, and conversion optimization, we help companies create the optimal customer experience. We understand the importance of building trust and loyalty with consumers. Discover today how Follo's CXO services can transform your website or app and elevate your online success to new heights. Do you have a CRO challenge for our experts? Contact us now to grow your website or app together.
```
