F E AT U R E A R T I C L E
SnapSHOT
Psychological Strategies
Techniques that drive customer purchasing decisions
by Melissa Kalan – Founding Director, ARMA
I
n todays’ competitive digital business
environment, you absolutely must take
advantage of all leverage tactics available to
convert visitors to your website into paying
customers. That can often mean using powerful
psychological tactics to do exactly that.
Savvy marketers all over the world are
making use of pricing psychology to improve
their bottom line. Let’s take a snapshot look at
a couple of these powerful tactics:
Social Proof
Consumers today can be wary and even distrustful
of traditional marketing and advertising. These
savvy buyers assume businesses will say anything
and everything to boost sales, which is why getting
your customers to do the heavy lifting for you is so
important.
Leverage the power of social media to boost your
conversions by getting buzz and conversations going
about your products and your services. When you
say things about your business its boastful and can
be discounted, when customers say the same thing it’s
powerfully persuasive.
Scarcity
By leveraging scarcity effectively (especially in the
form of “timed offers” that disappear when the timer
hits zero) you’re able to boost sales much more than
if no psychological tactics had been used. Nothing
motivates people to decide and buy faster than the
chance of missing out.
Beware though, this tactic can fall apart in
spectacular fashion when it isn’t seen as authentic.
If you have a “timed offer” (or a limited quantity)
you must honour this scarcity. Yes, you might miss
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out on some sales, but if you use phony scarcity
your customers will feel they can’t trust you, that
you mislead them and will instantly be wary of such
campaigns in the future.
Displaying how many individuals recently viewed
an offer and how many offers are still available, can
also lead to positive outcomes.
Comparative pricing
Comparative pricing is another pricing strategy that
is often utilised to tug on the psychological processes
of those viewing the offers. Comparative pricing is the
strategic placement of the more expensive offers next
to the standard priced offers. By making one option
appear to be more “attractive” when compared to the
other, potential customers are more likely to follow
through and make the purchase when they feel they
are getting a good deal.
ARMA
TM
G E T
C O N N E C T E D
www.revenuemanagement.com.au