5 Psychology Hacks That Can Help Growing Business Scale
Updated on September 7, 2021 | by Alex Smith
Customer psychology can sometimes be the difference between a sale and no sale. Believe us; it is a fact rather than a conjecture.
But did you know that applying a few psychology hacks can help you scale your business too? No? Well, brace your luck as I will share five amazing hacks that help you scale your business.
So, let’s get started!!
Limit the Options
Businesses often feel that giving customers a variety of options will increase their likelihood of finding something they like. But that’s not quite the case.
When you give people too many options, the odds of them buying decreases ten folds.
Iyengar attributes this effect as “choice overload”, and some people also coin this phenomenon as “decision paralysis”.
Choice overload and customer confusion may result in non-returning prospects and declining sales.
To avoid this, business leaders should limit the options and focus more on delighting the customers.
Also Read: Why AI is Important For Humanities Students
Start Small, But Aim to Build Big!
The psychology behind selling should not always be “Go big or go home”. Sometimes “slow and steady wins the race” also works wonders. This is mainly for companies that are selling a big-ticket size.
This is what psychologists call the foot-in-door technique. It is based on the idea that if you want people to commit to bigger things, get them to do smaller tasks.
The trick is simple: if you have difficulties converting prospects, try shifting your focus and going after small wins.
Where to apply this concept? Use concept while designing your conversion funnel. Think of the buyer journey in small steps: every small action they take (on your website or otherwise) should lead to the ultimate goal – purchase.
Make ’em Elite!
If customers feel included, they are more likely to participate.
However, they are likely to spend even more when you make them feel valued and important and reward their repeat business.
Let me explain!
The human brain seeks to maintain a sense of consistency. If we are told that we are a part of a group, it makes us more receptive to its messages, given it is something we approve of. Even if you give them an artificial reason, they will tend to take action to feel that they belong to an elite group.
That’s why points, status on customer loyalty programs can be something you can focus on.
The Concept of Suprise Reciprocity
You might have heard of the concept of reciprocity and how it helps businesses convert a successful sale.
If you have not, the idea is simple: when a business goes out of their way to love a customer, they get motivated to return the favor. Thus, building a connection between you and the customer that can be nurtured into a long-term collaboration.
Although reciprocity is a powerful force, somehow, the business world has over utilized it. The right way to leverage it is by surprising your customer, i.e., Surprise Reciprocity.
This type of reciprocity is a little more subtle. It is a part of the brand experience but somehow comes as a surprise to the customer. It can be as small as upgrading your client’s shipping or sending them a handwritten note or something extra in their delivery box that they can appreciate.
It should motivate them to either give you a good review or share a tweet, or even spread the word. Anything and everything that works in favor of your brand should be your focus while implementing this.
Using Urgency for the Win!
It is no news that urgent situations push us to act.
These situations evoke what marketers call loss aversion or FOMO (Fear of missing out).
However, for this to work, you need to either give a kickass deal or your service/product needs to be helpful, important, or valuable to the customer. Urgency won’t work on prospects that don’t want what you have to offer.
How to use this tactic for your business?
- Use deadlines when you are offering sales
- Have time-limited and seasonal offerings, maybe during the holidays.
- Offer something like “first *something* customers get a gift”.
With all these hacks, the bottom line is always your product and services. If they delight your customers, them coming back for more is inevitable. First, find what your read informative? Then read everything about selling and handling a small business at Kylas.
Also, let me know some other hacks that you find helpful. And what strategies do you use to keep customers happy?