Sales psychology indicates understanding the psychology of buyers to sell goods and services. It is about understanding and relating to customers’ needs instead of convincing them. It can also be termed consumer psychology, retail psychology, preoccupation psychology, purchase psychology, or customer psychology.
For being human, we can find psychology in every aspect of our life, even in business. To sell goods or services, any business entity or salesman needs to observe & analyze buyers’ psychology and respond to their needs.
In the era of capitalism and the open market, people have more choices and options to enter and exit from a market. If a company fails to figure out customers’ psychology, it will fail to sell products or services. This failure leads the customers to find out another option and shut down the given company. That’s why in today’s world, the concept of ‘Sales psychology’ is an area of great concern in business.
Concept and Necessity of Sale Psychology
As human beings can be characterized as boundless emotions, most of them buy goods and services based on emotions. After buying, they intend to rationalize their purchase decision with logic. So their purchase decision depends not only on the quality of goods but also on the attitude, behavior, and other aspects of a salesman or a business organization.
According to Seth Godin, “People do not buy goods and services. They buy relations, stories, and magic.” That’s why understanding & analyzing customers’ psychology and putting oneself in customers’ shoes is crucial for surviving in the marketplace.
Basically, the notion of sale psychology, which Brain Tracy coined, refers to understanding customers’ emotional choices rather than highlighting the quality or value of products. It is a process of understanding buyers’ psychology and relating to a business entity’s attitude and approach to increase sales.
People make decisions for purchasing products in different ways. Some of them buy goods or services based on logic, and some buy on emotions. However, due to having bundles of emotions, most of them make choices based on emotion and then rationalize it.
Moreover, people buy products is influenced by their social company or groups. Sale psychology helps business entities figure out its target group’s psyche to increase sales instead of highlighting their products’ value.
Psychological Triggers for Boosting Sales
According to Brian Tracy,” When people think that someone likes them, they become more open to listening to him and to what he/she is selling.” So, buying a product or service depends on the emotional choice of customers to a large extent. That’s why a business entity or salesman must observe what customers think, how they think, how they feel, what they feel, and why they feel this way. And this business entity must approach according to their prospect to increase sales.
To influence customers’ prospects, business scholars have mentioned several tricks. Some of them have provided three tricks, and some provided seven tricks, and so on. Most of the world-famous business companies follow these strategies to keep their sale triggered.
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Last update on 2021-05-15 / Affiliate links / Images from Amazon Product Advertising API
The psychology of selling (Sales Techniques):
These psychological strategies for boosting sales are described here:
By nature, human tends to return something when they take something from others. It is called reciprocity. Likewise, it also prevails in business literature. After trying a free sample or getting gifts, customers feel compelled to buy products from this business entity. But in terms of online business, it isn’t easy to offer free samples to customers.
Salesman or any business organization can make reciprocity work through initiating free gifts with purchase, the gift of contention, or surprise gift. Due to getting free gifts after purchasing goods, people feel grateful and tend to buy products from the given organization.
For example, a few days ago, Sunsilk offered a 1 GB free internet package with 600 ml shampoo. After getting the free gift, customers feel obligated to buy Sunsilk shampoo.
Commitment and Consistency
People make several commitments to changing a habit like quitting smoking, losing weight, and so on. They need to express their commitment publicly to get incentives. They tend to be consistent with their commitment, even though irrational actions to some extent. If a company can get the customers to make a small commitment to its brand, they are more likely to purchase from it eventually.
Nowadays, some automobiles, insurance, or technological company get this commitment by making customers sign up for their email newsletter. The business entity also can apply the principle in terms of the return policy because most people feel free to buy goods and services from the company, which holds a ‘ no question asked’ return policy.
Liking, Storytelling & Relatable Models
The principle of liking has a great effect on the psychology of selling. People tend to purchase this product when they feel any connection with a person whom they like. That’s why companies endorse a product or inaugurate a shop by inviting celebrities so that people can transfer their love for celebrities to the product they endorse.
Moreover, it is a must to develop every good of a shop and build a brand story. Basically, ‘About us’ indicates the personality of a brand, which attracts the target group.
Again people have the ability to identify when they find a new thing. That’s why instead of supermodels, it is better to add models who look like customers. It will provoke them to purchase goods from the company, which makes them assimilate with the models.
For example, now online jewelry or cloth business tend to add relatable models for their goods rather than supermodels.
Social Links and Display of other Related Things
Being a social being human tends to purchase goods when recommended by others they know and trust. That’s why it is mandatory to have links in social media for a company so that its customers can easily tell their friends about its great product.
Again now, online business pages present products that are similar to what the person is browsing. It accelerates the purchase of goods. Amazon is famous for this approach.
This principle calls for the famous Halo effect. When a company evokes something familiar like a celebrity or industry experts, people believe its products have similarities to the familiar entity. When a product is highlighted with a quote or citations of experts or celebrities, people’s interest is to purchase it.
For example, Sensodyne toothpaste is highlighted by ‘dentist suggested.’ Thus it grabs people’s attention and provokes them to purchase it.
Human beings fear missing something good by nature. They want to enjoy everything well. When a company gives a scarcity announcement, uncertainty provokes people to buy the given product.
A company and its customers may have shared values and visions. The principle of unity accelerates it. When there is unity between company and customer, it will boost up sales of products.
For example, a cosmetic company sells makeup to customers who love makeup. When the company adds the unity principle, it will add a new dimension that accelerates business.
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Last update on 2021-05-14 / Affiliate links / Images from Amazon Product Advertising API
Conclusion: The following strategies are based on the psychology of customers. So business or attracting customers is more than ensuring the quality of goods or values. It depends on the thoughts, emotions, and attitudes of customers. People like to buy products from a company that perceives their thoughts and behaves accordingly. A company must observe, perceive, and analyze customers’ thoughts and how they feel to boost the sale of its product and survive in the competitive market.
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