Brand leaders looking to grow their businesses should turn to consumer behavior to create sales offerings desired by their audiences. Because behavior has a psychological component, digging deeper into why buyers behave the way they do might help sales and marketing teams create offers that turn into sales.
People’s days are stuffed with emails, social media messages, and radio and TV spots trying to sell them something. Most learn to tune out the noise. If you wish to stand out in the cacophony of “buy this” and “try that,” you would like to dig deeper and craft your message to solve the buyer’s problem.
Fortunately, there are a few things you possibly can do to make the most of the data you have on your customers’ psychographic characteristics. Solve customer problems, overcome objections, and add a few things to show them that you just understand them on a deeper level than the competition.
1. Take advantage of the scarcity effect
Behavioral scientists have wondered why brands like Shake Shack and Chick-fil-A keep people wrapped around the block waiting for food, while other establishments offering tastier options lack customers. Part of this has to do with why and how people spend money. The Product Marketing Alliance reports about 71% of Americans don’t save enough money retire.
Why do people spend money on various things and keep looking for much more amazing experiences? The scarcity effect causes people to value things that are limited. So when a company like McDonald’s brings out a McRib or Shamrock Shake for a “limited time”, customers flock to get theirs before they’re gone.
2. Build social proof
Most people in developed countries use social media platforms. They may turn to social media methods before making a purchase, reminiscent of asking the group what others bought and whether or not they liked it.
We are much more willing to imagine what our colleagues say than what the company itself says about itself. If you wish to create attractive sales offers, you would like to develop an excellent status on social media. Paying attention to what your customers say also gives you helpful insight into how to solve their problems.
Bombas uses social proof to attract more customers. They invite people to share sock photos or post reviews. The more people talk about the quality of the socks and why they like buying them because the company gives back, the more likely others will follow suit.
3. Be personal
Successful salespeople understand that you just need to know your customer before you possibly can sell them something. Golf is a good example of building relationships. Around 90% of top management team play golfand 80% say it helps them create lasting business relationships.
A golf course is a way to invest time and energy in customers. As you go from one hole to the next, you talk and see how people play the game and what motivates them. Of course, golf is not the only way to collect customer data. You also needs to send out surveys, host events, and invite consumers to chat.
HelloFresh is a meal subscription service. They harness the power of personalized offers by showing you different meals based on different dietary preferences. If a consumer visits their website, the company also offers options to receive a discount. The user can select the one that suits him best.
4. Anchor prices
People love to feel like they’re getting a good deal. An anchor pricing strategy provides a start line for purchasing the item that may command the highest retail price. The top cost should not be ridiculously high, but ought to be the premium the company receives, assuming all aspects are perfect.
Tarte Makeup offers retail prices for its cosmetics. However, they provide discounts, bundle packages, and other attractive offers.
Start with an anchor price and then offer discounts to make people feel like they’re getting great value. Combine anchor pricing with techniques like scarcity to get higher conversion rates.
5. Build relationships
Building strong relationships with your customers makes your offers seem more attractive. When a customer knows that you just consistently provide great value and can trust that you just mean what you say, they might be loyal to your brand. It’s much easier to sell to an existing customer than to someone who doesn’t know you or your work/product.
Customer relationship management (CRM) software has two benefits. First, it helps you stay in touch with your regulars. Secondly, also an excellent CRM system tracks shopping habits and spits out analytics that may enable you to create sales offers that your customers might be more than likely to use.
Chewy sends messages based on customers’ past purchasing behavior. They also send birthday cards to registered pets and offer loyalty advantages reminiscent of auto-ship discounts.
6. Offer lures
The bait strategy for price anchoring is to offer something expensive or of lesser value before presenting a higher offer that lures the customer. They leave with the feeling that they received a bargain offer.
If you’ve got ever visited a product page, scrolled through the details, and decided the cost was too high, it’s possible you’ll have come across a second offer. Apple uses decoy prices. When you click on the latest iPhone, you might be offered a cost-effective, mid-range and high-end option.
Do you remember the story of Goldilocks and the three bears? Goldilocks stated that the middle option was “just right” for her. When implementing bait, you need to consider that individuals will more than likely select the middle option and make it very attractive to get more conversions.
7. Use FOMO
Many people experience fear of missing out (FOMO). Psychology in the back FOMO has to do with our need to belong or our “social hunger.” When you understand why people respond to the impression that everybody else is doing something, it becomes easier to create marketing messages that allow them to belong.
If you are on Amazon and see it’s down to two pieces, you are more likely to add it to your cart. Other ways to leverage FOMO include making hourly deals, creating a social media frenzy where influencers post about your product and why they like it, and asking people to tell others about your brand.
Combine creativity and psychology for irresistible offers
The best offers take into account customer behavior and the psychology of their actions. Marketers then try to come up with something that no competition has tried and that might be unique and enjoyable for users. The more research you do and the higher you understand your audience, the easier it’ll be to prepare an enticing offer.