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How to Use Psychology to Boost Sales, Part 2

January 30th, 2013 ::
This entry is part 1 of 2 in the series Using Psychology to Boost Sales

psychologyIf, like me, you didn’t major in psychology, then we’re in the same boat: running a small business and doing our best to understand our customers and prospects.

I always thought I should have taken at least one psych course, so I got super excited when I saw an infographic on the SocialFresh blog called “10 Ways to Convert More Customers Using Psychology.” No need to take a course, just read an infographic!

In the first blog post in this two-part series, I detailed the first 5 ways to turn a no (the problem) into a yes (the solution). Here are 5 more ways to do so:

Problem: Customers hate waiting

Solution: Provide instant gratification by pointing out how your product or service will solve their problems quickly

Example: Fast shipping, quick turnaround times, very short learning curve

Problem: Distinguishing yourself from competitors

Solution: Instead of slamming the competition, label your customers (see my previous blog post)

Example: Because you’re a Mac person, you’ll love my product; If you want to travel the world, my photography class is perfect for you

Problem: Unclear company values

Solution: People love brands who share the same values as them, so clearly state your values and weave it into your messaging.

Example: Donating a portion of every sale to a specific charity; only selling products made from sustainable or recycled materials

Problem: Customer is not completely confident in decision

Solution: Play the devil’s advocate and lay their concerns to rest with stats, information, examples, and case studies.

Example: “93% of our business is due to referrals from happy customers.”

Problem: Customers get bored

Solution: Surprise your customers when they least expect it.

Example: Handwritten thank-you note, box of samples, free product or service.

What have you learned about customer behavior over the years?

Image courtesy of psy.ed.ac.uk

How to Use Psychology to Boost Sales, Part 1

January 28th, 2013 ::
This entry is part 2 of 2 in the series Using Psychology to Boost Sales

psychologyI majored in business administration, and looking back, it amazes me that at least one psychology class wasn’t a required course for business majors – especially those of us focusing on marketing. So much of marketing and sales is based on what people respond to – which of course has its roots in psychology.

So I was delighted to stumble across a great infographic on the SocialFresh blog called “10 Ways to Convert More Customers Using Psychology.” If you have a chance to check it out, do, but if you don’t, you can rest easy knowing I did the work for you.

Here are the first 5 ways to turn a no (the problem) into a yes (the solution):

Problem: Action paralysis, in which we avoid making a decision for no good reason

Solution: Set minimums that are easy to attain.

Example: Purchase 2, get 1 free; First month free

Problem: Not feeling special; just feeling like a number

Solution: Label your customers so they feel like part of a special group.

Example: VIP; platinum, gold, silver levels

Problem: Convincing tightwads to open their wallets

Solution: Since tightwads (yes, that is an actual psychology-based term) make up 24% of buyers, you need to appeal to them by reframing the value of your product or service.

Example: Bundle products for a better price, reframe value ($2 per week instead of $110/year), roll fees into the price

Problem: Not admitting to fault

Solution: Because buyers trust companies who admit a problem is their fault, take the blame, even if it’s not your fault (really!).

Example: If a product is not available temporarily because shipment from a vendor is delayed due to a manufacturing problem, apologize and explain what you’re doing to fix the situation.

Problem: Incomplete calls-to-action (CTA)

Solution: Sales messages that convey urgency and scarcity work, but only if buyers are told how to make the purchase.

Example: Add a phone number, email address, or link to a landing page in your CTAs.

Look for my next blog post, in which I share the final 5 ways to turn no’s into yes’s.

What are your favorite tricks and tips to boost sales?

Image courtesy of psy.ed.ac.uk