Remember the 4 Ps of marketing – Product, Place, Price and Promotion? There is one more ‘P’ that is absolutely critical to get your marketing mix right and that is “psychology”. By understanding why your customer thinks a certain way is the first step to interpreting their needs. Without this, a business will not be able to either make the right product or build the right positioning. Here are 5 tips that will help you to get your customer psychology right.
Herd Mentality : Why do you think Amazon is so popular? The prices are consistently low right? Actually, not. A recent study on Amazon’s dynamic pricing model showed that the company always made up for the low price in a promotional product by hiking the price on the rest of the products. The end result is that the average price of a product you pay on Amazon is not too different from what you would be paying elsewhere. Yet, customers flock to Amazon because everybody else tells them that Amazon offers the best deals.
People Want To Touch & Feel Before They Buy : When the ecommerce revolution started sometime in the mid-nineties, the first products to take off were books and CDs. The reason is because these are standardized products and do not actually change much. On the other hand, even today, buying a property or a wedding ring is done predominantly offline because people want to touch and feel before they buy.
While eCommerce customers have learned to trade this necessity for comfort over the past decade or two, they will still readily go back if the convenience of online purchase can be replicated. Marian Berege is the owner of Rianns’, a service company offering event planning and wedding chairs for hire. She tells me in a telephonic chat that understanding this psychological aspect is extremely crucial for business like hers – there is always the possibility of a customer believing that what they saw on the web (photos and videos) is not what they get. So she makes it a point to show her customers what they exactly will have before the event, and this enhances their satisfaction.
People Love Genuineness : My experience selling to people has taught me that the common belief that people do not want to be interrupted for a sale is wrong. I once had a Skype conversation with a UK based Sales Director who I had reached through a cold email. He had a word of advise when I apologized to him for the unsolicited email – “Never apologize for finding a prospect.” Yes, you may not always make your prospects happy through your reach out; but a genuineness in your approach definitely goes a long way in making prospects interested in your product. What people hate is being tricked into something.
Testimonial Is Power : The human mind is always on the lookout for validation. This is the reason why people “show off”. So unless you have customers already coming to you, the others are likely to wait and watch. This is a catch-22 situation for a new business. The trick is to get testimonials from people who have tried your product. This validation gives your prospects a reason to buy from you. Do note that you do not have to ‘cheat’ in order to build these testimonials. On the contrary, you can offer free samples and partner with businesses offering complementary services to get those first few customers who can give you those valuable testimonials. Once you have it, the other prospects are likely to convert into customers much sooner.
What are some other tips to make use of your understanding of the customer psyche to make more sales? Share it with us in the comments below.