Today we bring you second and final part on psychology of sales. If you haven’t seen part one already be sure to check it out before you read this one.
How do you sell an expensive toy in January?
Here is a trick that toy retailers have been using for a long time: Promote heavily before Christmas a top toy that parents will promise their children as a gift under the Christmas tree. However, keep a smaller number in stores than expected sales.
By the time parents come to pick up the toy, it will be sold out. They will buy something else, because it is Christmas after all. Then that toy will magically reappear on the shelves from Christmas, and in January the ads will say the same thing. Since you promised to buy it for the child, you now feel obligated to fulfill the promise. In this way, you teach the child that promises must be kept, but in reality, you have fallen for a trick.
The 80/20 rule: focus on repeat customers, sell a little first
We know that about 20% of your customers bring you about 80% of your sales. That’s why it’s important to invest in long-term relationships.
The hardest (and most expensive) part is convincing someone to buy something from you for the first time. When someone does buy something, they are more likely to come back if the user experience was good. So, a good tactic is to sell the customer something small first, build trust, and then turn them into a bigger customer later.
Track who your customers are and offer them more targeted offers through email marketing.
Bestsellers are a hit!
95 percent of people imitate, only 5 of them create, and that’s why people are most convinced by what other people do, is the statement of Robert Cavett, author of the book Success with People.
People like to click on the most read, most sold, people like to buy bestsellers. Because that means it works for a lot of people!
Merchants advertise that something sells excellently, because the message that the product is good is the best motive for others to buy it, we believe the so-called social proof, so we act like it.
We look at where others throw empty popcorn boxes, how they eat something, how they behave in different situations, because in general, if most people do something a certain way, that way is right.
That’s why waiters always put a little money in the tip jar, so people can see that others are doing the same thing. That’s why some clubs intentionally form lines at the doors even though the club is realistically half empty.
Get the doctor, put on a heel
People like to listen to authority: doctors, judges, professors. They also love uniforms; people in uniforms are listened to more. So, it’s not surprising that we see doctors or other authorities recommending something in advertising.
Moreover, people who are taller are awarded with higher titles, as the research showed. Therefore – if you are short, wear heels. If you are a man, maybe a pair of shoes with a higher sole will not be out of place.
Rarity is attractive
The way to love something is to realize that you might lose it, is a statement by G.K. Chesterton that really makes sense.
The opportunity to buy something seems more profitable, better, more valuable when the availability of the product is limited. That’s why limited collections are a hit, that’s why Booking only ever has two rooms available at that price, and usually only one, that’s why they have a deal of the day. Because if you do not book now and at that price, you lose the room, you lose the money, and you lose the ideal vacation.
In communication, “you will lose xy” is a stronger motive than “you will win xy”… We humans just do not like to lose.
This method is a classic department store method when you want to buy a new TV or washing machine. So, you stand there and look at a model, but you are not sure if you would buy it. You do not call the salesperson because you do not want to bother them since you are undecided… but that’s why the salesman comes to you and says – Excellent model, unfortunately we do not have it in stock at the moment, it was the very last one sold this morning.
And that’s when you, the customer, get your wish! Ask the seller to check if there are more in stock, whereupon he says – “So, you are only interested in this model, let me order it immediately from my colleagues, if they have it, you take it?”.
And immediately they give you a promise, so do them the favor and they will not bother you anymore if you are not very determined… Yes, yes, we will buy!
It is the same with the items on the shelf. Put 20 of the same items on the shelf and they will not be that interesting, but leave only 2… and remember that this is the last chance…
Be a partner/colleague
When someone thanks you for your service, do not dismiss the thanks with the words – “Oh, no problem”. Instead, say something like – “Of course, colleagues do this for each other”. This shows that it is an act of collegiality. This person will remember you when they need a service that they want to pay for in front of others.
Beware of self-praise
We know that LinkedIn is a platform where everyone brags about their business successes. But research has shown that this annoys people because that’s how you grow.
When someone praises your work or you, it’s better if it’s from a client. Then people do not feel anything negative towards the person being praised. But if you praise yourself, people will perceive you as a braggart. Especially if you are a woman. Self-praise hurts them the most.
Make sure there are reviews on the Internet
Just like bestsellers are a great example of social proof that promotes further sales of the same products, product reviews are also great for promoting products.
None of us really want to buy something first, we prefer it when someone recommends something to us. If we do not have personal friends who can recommend us something, we trust the mass of unknown people who review products and services. If you have a web shop, pay attention to the user reviews!
We hope you could take something useful from this article to improve your own sales.
Do not forget that with all income and/or expenses, it is always important to take care of monitoring. That’s why Invoice Crowd’s team is always there to help you, inform you and guide you through its tool on a daily basis.