How to turn psychology into profit
You can spend a lot of money on improving the effectiveness of marketing communications. But it doesn't have to be. Implement the principles of behavioral science into your marketing messages and see how your customers will automatically respond.
What is behavioral science?
It is the study of human behavior, and in particular, the reasons for this behavior. People often act reflexively, without making conscious decisions. This is great news for marketers because these automatic reactions can be triggered by the right messages.
Using the principle of reciprocity to increase revenue
People feel the need to respond to good deeds, even if they have not asked for them. The principle of reciprocity helps to harness this behavior to the benefit of business. One financial advisor sent a personalized gift to inactive partners, which resulted in an additional $68 million in revenue.
Action: Do something useful for your customer or provide a bonus.
Example: Give a discount or a trial product. When a customer receives something of value, they will most often want to reciprocate, perhaps by making a purchase.
A simple "shortcut" technique increases the rate by 65%
A label can instantly change a person's self-perception. When people are told that they belong to a certain group, they begin to conform to that role.
Action: Give your customers a special status or name.
Example: Call your loyal customers "VIP customers" and offer them exclusive offers. This will not only strengthen their loyalty to the brand, but also motivate them to act in accordance with the "label".
Magnetic center increases sales by 459%
An insurance company used a "magnetic center" tactic to sell life insurance. By showing customers that their current coverage was below average, the company motivated them to increase their coverage, improving results by 459%.
Action: Show customers where they stand in comparison to others.
Example: If you sell subscriptions to online courses, show users how many courses they've taken compared to others. This can motivate them to take more courses or purchase additional materials.
Bringing the principles of behavioral science into marketing can give you that extra boost that marketers are looking for. You're sending marketing messages anyway. Why not make it as effective as possible?
