The best way to increase sales is by utilizing the principles of psychology. In this blog post, I will discuss three strategies that you can use to boost your sales using psychological principles.
1) The Principle of Reciprocity
Here, you give your customer a small favor. This could be an added bonus or gift for buying from you. The purpose of this strategy is to boost goodwill.
When someone feels gratitude towards you, he/she transacts more favorably with you in the future because of the positive feelings and sense of obligation that he/she has towards you. As people are irrational beings who are driven by emotions, it is best to appeal to their emotions rather than logical arguments if you want them to buy from you again! By doing this, they will have a favorable impression of your company as they associate it with a good feeling (receiving extra product) and think good thoughts about them!
2) The Principle of Remarkable Recovery
Here, a small mistake on your part is overlooked by the customer. This principle works in two ways:
- it boosts goodwill between you and the customer and
- it creates trust amongst other potential customers that you can be relied upon to deliver good products!
As people are irrational beings who are driven by emotions rather than logic, this strategy will create positive feelings towards you as a company. Giving them something extra for free will make them think of you more positively as they associate it with a good feeling.
3) The Principle of Other People’s Opinion
This is similar to the previous one except that here instead of someone else giving his opinion about your product or business, another person offers an entirely different product that compliments yours!
Since the person is already convinced that you are capable of giving good products or services, he/she will be more receptive towards your company and anything else that you offer. This principle works well for companies that sell complementary items as it builds up trust amongst potential customers.
4) The Principle of Authority
This is a very powerful principle. Here, you get someone to vouch for your product. This could be anything from celebrities endorsing products or testimonials by industry experts who are recognized within the community. In other words, it’s just getting people with clout to say that they like your business!
In this day where information is so readily available at the touch of a button, people want to hear from experts in their respective fields who can give them advice on how to choose the right thing for them. By having experts recommend you, it boosts trust and goodwill amongst potential customers as they associate these positive feelings with advice given by an expert which makes them believe that what they are doing is correct!
5) The Principle of Recency
This is when you remind your customer what he/she bought from you before. By doing this, it gets him/her to remember the positive experience that they had with you and it makes them feel obliged to transact more favorably with you again in the future! This works best for service providers as people are a lot more likely to do business again if they like the way that services have been rendered previously.
6) The Principle of Consistency
To increase sales, make sure that your product and company aligns with your customer’s values (the products can be value-laden too!) As being consistent with one’s beliefs leads to comfort, ensure that all aspects of your company fit perfectly into your customer’s value system.
To illustrate this point, think of those brands that usually have the most successful marketing campaigns — Nike for example. These companies ensure that their logo and name are consistent with their core values (speed, style etc.) so people will have favorable impressions of them!
7) The Principle of Authority
This is a variation on the previous principle. Here, your product aligns with another person’s authority in exchange for some sort of reward. You could just give it away for free or you can charge extra as well if you feel it is worth the price! To do this effectively, make sure that whoever vouches for your product has enough clout to influence others to buy from you!Last modified: August 11, 2021