Using Psychology to Boost Sales

You might already find yourself using methods of selling that alter the way your customers think. The reality is that your customers have many choices when it comes to their buying decisions. That’s why it’s up to you to understand your customers so you can figure out what will make them want to buy your product. By using psychology, you can study the mental processes and behavior of your customers to develop a sales plan that will allow you to exceed your sales quota. These are some psychological tactics that you can employ in your sales plan.

The Decoy

Source: Jeremy Said

Do you have a more expensive or exclusive version of your product that you’re trying to sell? A great way to sell that premium product is to present other options that are not as effective or relevant to the customer so they think they are getting the best deal. This phenomenon in psychology is called the “decoy effect”. The decoy effect is when consumers change their preferences between options when a new inferior option is presented. The presence of this inferior option prompts consumers to develop a preference for the dominating option. Using this method can help you introduce new plans or upgrades of your product to your customers. This may seem a little manipulative, but in reality, you are presenting a better or more relevant product while eliminating the fear associated with the larger price tag.

Loss Aversion

Source: The New York Times

Losses and gains greatly affect the way people make decisions. Think about a day when you lost $20 or had to spend it on something useless. Now think about a day you randomly found a $20 bill while walking down the street. The former may have ruined your entire day while the later may just seem like a lucky break. This tendency of human beings to have a greater desire to avoid losses rather than acquire an equivalent gain is called loss aversion. This way of thinking has been around since the very beginning of the human species and is hardwired into every single one of our brains. There are some people out there who are thrill seekers and may risk the loss but the vast majority of consumers want to keep the assets that they already possess rather than gain something that is not guaranteed. A great way to appeal to this mental process of your customers is by offering a free trial or some way to sample the product before they actually spend money on it. That way the customer will know exactly what their resources are going towards when they officially make a purchase. It may seem costly to offer a free version of your product but it will increase overall revenue by bringing in long-term customers who trust your product.

Scarcity

Source: World Atlas

Invoking a sense of urgency on customers can drive them to make decisions that they may not normally make. When products are presented as being “for a limited time only” or “in high demand but low supply”, it causes 25% more customers to flock towards that item due to a fear of missing out on a great product. This phenomenon is caused by the fact that humans put a much higher value on products that are scarce and a lower value on items that are in abundance. This appeal to scarcity can even be heightened when it is introduced that the deal could be lost to competition. Along with a sense of urgency, your customers will also feel as though your product is desired by others which provides social proof of its quality. As a salesperson, you have the ability to frame how the consumer views the product you’re selling. Limitations on the duration of a deal or the supply of your product will drive excitement and sales to your company.

It is important to remember that using psychology to boost your sales is an intricate process because no two customers are the same. You have to alter your methods for each customer that you interact with in order to fit their unique behaviors. Taking the time to learn about your customer is a great way to know what their habits may be. This could be accomplished by doing your research online or having a meaningful phone call to learn more about their interests. By using these psychological tactics, you will be able to see a noticeable boost in sales with your customers and possibly nurture new prospects.

Looking for additional ways to boost your sales? Check out these additional resources or sign up for a free trial to see how Map My Customers can help you reach your sales goals.