The relationship between psychology and marketing is becoming Increasingly stronger and many successful sales and marketing professionals regularly use psychology to attract consumers.
Here is a list of incredibly effective psychological strategies to radically increase your sales.
The ‘Anchoring’ Effect
This term refers to the tendency, when a decision has to be made, to rely excessively on the first information offered to us (the anchor).
During decision making, anchoring occurs when people use initial information to issue subsequent judgments.
For example, if I create value in my client’s mind through my initial pitch, he will tend to appreciate the rest of my conversation.
In the case of a purchase, the initial price will give the basic setting to the whole negotiation, so that lower prices than the anchor price may seem reasonable even if they remain higher than the actual value of the asset.
In cognitive psychology, loss aversion refers to the tendency of people to prefer to avoid losses than acquiring equivalent gains:
In a sales context this is a very powerful and frequently used technique: If I offer the customer a discount for the purchase of a product by a certain date, the customer will tend to speed up the purchase for fear of losing the discount.
The ‘Bandwagon’ Effect
It is a psychological phenomenon in which people do something mainly because others do it,
Most people are driven to follow the actions of the people around them, not to feel inadequate.
If I want to apply this strategy I could for example talk about how Emily, my client, is happy with my product or how most of my customers tend to buy that particular product or service.
Other strategies that I can use include the following:
* Promote your product through testimonial.
* Use Case History and real examples.
* Encourage customers to leave reviews.
The ‘Decoy’ Effect
The “decoy effect” is a psychological dynamic that occurs when the addition of an option changes the choice of a decision maker.
This option is perceived as dominant, and behaves like a bait.
For example, if I sell cars and want my client to choose a specific model, I will start offering the first two cars with similar characteristics and at the end I will offer a third choice that represents a car with extra options including things that the customer might appreciate at a price slightly greater than the 2 previous cars.
The Peak-End Rule
The “peak-end” rule was elaborated by Daniel Kahneman: He discovered that people judged experiences based on their “peak” (an intense moment of experience) and at their end, rather than as an overall average of the whole experience;The duration of the experience had no effect on the evaluation of the overall experience.
How to apply this technique to your interactions? Be sure to build strong emotions at the beginning and at the end of your pitch and by doing so your customer will tend to remember and link good feelings to you and your product.
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