With so many customers purchasing your product or services, it’s almost impossible to get to know everyone on a personal level. Good news! You can leverage proven research on consumer behavior. We are all different, no doubt. But somehow, we are mentally configured to respond to certain instances in similar ways. For the 10 simple secrets, here we go!
Paralysis by Analysis in Consumer Behavior
“Would you be kind enough to help by giving a donation?”
“Would you be kind enough to help by giving a donation? Every penny will help.”
Research has shown that more people would be willing to give in to the second sentence. When you simplify actions and set minimal parameters, it ultimately eliminates analysis paralysis that comes from overthinking or over-analyzing, a situation that often causes prospects to end up not taking any action.
Internal labeling Can Be Quite Powerful
We aren’t talking about brand labels here. Rather, we are advocating labeling, consumers into groups. If you’re wondering whether this is a good thing to do, research has shown that not only do people like to be labeled; but they are also more likely to participate in a group if they feel included.
The part of your customers labeled superior customers would end up spending more than those labeled regular customers. It’s our human nature. Once people feel like they are part of a group that implies the superiority of their status, they are more inclined to take further actions to have a sense of belonging to this elite group.
3 Types of Buyers Exist, Understand Each Group
Consumers in every industry experience buying pain and buyers can be categorized into three classes based on these levels. Spendthrifts making about 15% of your consumers would spend more before hitting their pain level. A whopping 61% will be average spenders while the remaining 24% will be the Tightwads. The tightwads spend less on average before hitting their pain point.
Which type of buyer is most difficult to convert?
Of the three groups, the TIGHTWADS are the hardest to convert.
Well, it makes sense to minimize the buying pain for this group and the others. By reframing value in a way that splits the payment into smaller increments, increasing value with bundling so consumers can pay in one fell swoop, and using the right choice of words, response rates among tightwads can be significantly increased.
Admitting Shortcomings to Highlight Strengths
If you’re wondering whether it would make sense to admit your faults to consumers, you can ultimately turn this into an opportunity to highlight your strength. Blaming external/other forces for your shortcomings may make you appear helpless to your customers.
On the other hand, admitting honest errors and highlighting how you could do better will make you seem in control of the situation and not prone to making flimsy excuses.
Urgency Still Works, But Use it the Right Way
Urgency is one of the older tricks in the books, but it still works quite right. However, it can only be effective when your prospects also get clear follow-up instructions on what actions they should take.
Don’t just invoke that sense of urgency, drive them to take specific actions they should take and not just dish out vague instructions.
Use Immediate Stimulation to Instantly Light Up Their Minds
Customers feel instant gratification when they are rewarded after doing business with you.
From research, we’ve come to understand the power of instant gratification and immediate stimulation in getting people to take action. Humans are wired this way and are more willing to take action when we feel our problems can be solved quickly.
When you are able to make consumers feel instant rewards, they will be more willing to purchase your product or services. Words like “instantly”, “fast”, and “new”, etc will easily light up the switch in most people. Just be sure to keep to your word.
Establishing a Rival to Define Your Audience
To carve out a loyal customer base, you’ll need to find you’re the true voice of your brand. How else would you be able to do this without identifying what you stand against?
To define and divide your ideal customers, you’ll need to identify those ideas, beliefs, and perceptions you stand against.
It did work wonders for Apple. The company took a stand against PCs that were deemed “boring and not quite cool computers”.
Standing for a Meaningful Cause or Ideal
Have you seen how Zappos emphasizes its commitment to customer service all day long? Have you seen how TOMS would donate a pair of shoes for every pair they sell?
Both of these companies have created a brand that reflects their values and ideals. While they may like your products, your most loyal customers will be those who absolutely love what your brand stands for.
Playing the Devil’s Advocate to Reinforce Customer Loyalty
When people are confronted with someone who truly appears to oppose their position, they begin to try to understand their point of view.
You might have heard of how the Catholic Church would usually appoint a lawyer to dig out reasons against an individual to be canonized. Research from human behavior has shown that this can actually have the opposite positive effect.
Well, you can also play your own devil’s advocate. You can bring out peculiar objections and issues and then confront this with clear solutions. While this will dismiss your audience’s apprehension, it can also help reinforce their loyalty.
Rather than hinder their decision-making, this can end up increasing their resolve.
Using Reciprocity & Surprise for Customer Retention
Surprise them with something — even something small will do.
Reciprocity is a powerful force in business and it is little wonder that lots of businesses are trying to utilize it to their advantage. On your own, you can stand out by adding an element of surprise to your strategy.
Surprising them with something, even the smallest of gestures can have a profound effect on consumers when you try to show appreciation for their patronage through reciprocity.
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