What is Psychological Selling?
Psychological techniques are commonly used when people are shopping online or in the store. To this end, many companies use psychological sales techniques to help them sell their products and services. The basic idea behind psychological sales techniques is to get consumers to think they need a particular product or service. This technique is also used to help customers purchase more than they originally intended. While this is true, it’s also vital for you to understand that these techniques are frequently used against you, so before you buy anything, it’s best to know what you’re up against.
Below are some of the most common psychological sales techniques used in the marketing industry.
- The Reciprocity Technique: One of the most common psychological sales techniques marketers and salespeople uses is the reciprocity technique, commonly known as the rule of reciprocation. Companies will often send out free samples or give away products for free. This marketing tactic aims to get the customer to feel obligated to buy more.
- Fear of Missing Out: Another popular psychological sales technique that marketers use involves making customers feel “missing out” on something if they don’t purchase a specific product or service. When a company uses this method, they want you to believe that they’re offering a special deal or limited edition product so that you will feel compelled to buy it. For example, when Apple releases a new iPhone, the company always makes it a big deal. As a result, people will think they need to get the latest version; this is also why it’s crucial to do your research before buying anything.
- TheEndowment Effect: The endowment effect is another popular psychological sales technique companies use. Companies will use this technique to make you think you need to buy another product at a lower price to get a great deal.
- The Halo Effect: This is another popular psychological sales technique commonly used by companies. The halo effect is when a company makes one product seem better than it is by promoting other products. For example, if a company makes a lotion that claims to reduce wrinkles, they will often market their hair care products because they want you to believe that their hair products will help with your wrinkles.
- The Scarcity Technique: The scarcity technique is used when a company tries to convince customers that they should buy something now because it’s available in limited quantities. For example, a company may try to make you think that they will run out of a particular product soon and that you should buy it immediately. This is often used to sell rare items or collectibles.
How to Use Psychological Selling
Sales are an essential part of any business. But, first, you need to understand the psychology behind a sale. Various psychological factors influence a customer’s buying decision.
Leon Festinger developed the theory of cognitive dissonance in 1957. According to the theory, people experience dissonance when holding two conflicting ideas about a situation or object. For example, if you are trying to buy a new car because you need a reliable vehicle, you will experience dissonance. To reduce the dissonance, you have to decide between two factors that are in conflict. The decision process may change your perception of the situation and reduce dissonance.
Suppose you decide to buy a new car because it is reliable and comfortable. In that case, you will feel better about the decision than if you had decided to buy a new car because it is familiar and comfortable. Changing your perception of the situation through a decision could eliminate the dissonance.
The theory of cognitive dissonance is used in sales to reduce the buyer’s cognitive dissonance when they are faced with the decision to buy a new product or service. You can reduce the buyer’s dissonance by telling them that other customers have made the same purchase. If they believe that they will be missing out on something, they will purchase to avoid feeling regret.
The theory of price anchoring states that customers use the price of a similar product as a reference for their decisions about how much to pay for another product. Therefore, according to the theory, the first product acts as an anchor for the prices of other products. In other words, if a customer sees that a product is priced at $50, they will assume that other products for sale are also priced at $50.
The theory of price anchoring is used in sales to increase the likelihood of making a purchase. You need to provide customers with a reference price and then sell the product at a higher price to use the approach. For example, if you sell organic apples, usually priced at $1 per pound, you could sell them at $1.50 and still make a profit.
The theory of social proof states that humans look to the behavior of others to make judgments. This is also known as informational social influence. Humans are more influenced by the behaviors of a large group than a small group and are more influenced when the group is similar to them.
Social proof is used in sales by referring to the behavior of other customers who have made purchases. For example, if you are trying to sell software, you could tell the customer that other customers were satisfied with the product and we’re glad that they bought it.
Social proof works best when the other customers are similar to the customer (i.e., in age or income level).
The social norms theory states that humans conform to social norms and adjust their behavior accordingly. Norms are expectations about how people will behave in various situations. There are also descriptive norms that reflect how people behave, and prescriptive norms reflect how we think people should behave. Descriptive norms are used in sales to create the perception that other customers have made the same purchase. Prescriptive norms are used in sales to create the perception that customers should make the same purchase. For example, you could tell a customer that all their friends bought the same product.
Social norms are also used in sales to create a sense of scarcity. For example, if you are selling a product in high demand and customers expect to wait for it, you could tell them that there is the only one left and it is available for immediate purchase.
The Five Principles of Psychological Selling
Sales success requires you to understand the psychology of selling. Likewise, understanding the psychology of your customers is crucial to the success of any sales pitch. This article will discuss five psychological principles that will improve your ability to sell and maximize your income.
The Principle of Liking
The first principle of sales psychology to understand is the principle of liking. This principle states that we are much more likely to buy from someone we like. It all boils down to people’s willingness to do things for people they like and trust. Building this trust is by beginning the sales pitch by talking about yourself and your own life. This will help you get your customer to like and trust you. The more they feel they can relate to you, the more likely they will buy from you.
The Principle of Authority
The second principle of sales psychology is the principle of authority. Another compelling psychological principle says that we are more likely to buy from somebody perceived as an expert. People often buy products because they want reassurance that they are making the right decision. A salesperson who is perceived as an expert will give them this reassurance. The most effective way to be perceived as an expert is by being well-informed. You need to know everything about the product that you are selling, and you need to be able to answer all of your customer’s questions. Knowing everything about your product will also increase your self-confidence and make you feel like an expert.
The Principle of Scarcity
The third psychological principle of sales psychology is the principle of scarcity. This principle states that we value things more when we think we might not be able to get them later. This is why salespeople often try to create a sense of urgency when selling. By telling your customer that you only have a limited supply of the product and that it will not be available for much longer, you will increase the chances of buying it from you.
The Principle of Commitment
The fourth principle to understand is the principle of commitment. This principle states that when we commit to something, we are more likely to follow through. If your customer commits to buying something from you, they are more likely to follow through. The best way to get your customer to commit is by asking them questions about how they intend to use the product. By asking them questions about how they will use the product, you are indirectly encouraging them to commit to buying it. Once they have committed, it will be much more difficult to back out of their commitment.
The Principle of Consistency
The last principle of sales psychology is the principle of consistency. This principle states that we feel an urge to behave consistently with things we have already said or done. The best way to use this principle is by getting your customer to commit to something before you start selling them the product. The easiest way to do this is by asking them questions about how they plan on using the product before you start talking about it. Once they have committed, they will need to behave in a consistent way with what they have already said. This means that they will be more likely to buy the product you are selling.
People buy from people, not companies. Therefore, salespeople should find common ground with prospects and connect emotionally. Remember that humans buy from other humans. Therefore, your lead must feel an emotional connection to you and your product or service to succeed.