For every company, the question is always the same: what do you have to do to get more customers? It’s a vital question that needs answering because it has the direct effect on your sales and profits. Without sales and profits, you have no money, and without any money you are quickly out of business. You see the bigger picture? There are tried and tested methods, but some methods are little bit contemporary and new age. Take psychology as an example. The effects are very hard to quantify but there isn’t a big company that doesn’t employ psychological techniques. Do they work? Well, here are the psychological triggers and you decide for yourself.
- Break The Action Paralysis
Many customers find it find to take the first step and get their wallets out. Of course, for you as a businessman it is the last thing you want so you need to break down this particular barrier; if they aren’t spending money you are not making any money. A great way to do it is to set a minimum spend to a request to encourage customers. This has two effects. It either makes them feel guilty, or it makes the commitment seem less daunting. For example, you will often see ‘no payments for the first month’ on expensive purchases or ‘just donate two dollars a month’ for charities.
- Big Offers
Again, to break down spending barriers companies will often have sales and big offers to encourage spending. The obvious ‘two for one’ or slashing everything to half price is used by big firms and does work. If you are a small or medium type business, however, you might not be able to afford these psychological techniques. A great example of this in action is gambling affiliation programmes like Ladbrokes partnerships. Bookmakers know once they have you signed up they are bound to get a lot from you. The best way to do it is to entice you with an offer that is too good to refuse.
- Light Up The Brain
The frontal cortex plays a big part in customer purchases because it is active when people think about waiting for something. This is obviously not a good thing for you, so you need to battle the brain and come out on top. You need to remind their brain that you can solve the problems, and solve them quickly. That’s why free next day delivery and fast shipping is huge business for businesses.
The term enemy isn’t meant to be used in a literal sense, but you do want to create an atmosphere where it is ‘them versus us’. This inspires loyalty, and loyalty is essential in business. The best example of this in action is Apple. Apple play on the fact that their products are better than PCs and unique, so if you have one you are unique and better than everyone else. Companies play on your ego, like the chocolate bar commercial which explains ‘it’s not for girls’.
If you thought that psychology didn’t work, you might want to think about that one again.