Businesses may well believe that pricing strategies are the end-all be-all of transforming potential customers into actual customers, as well as convincing frequent customers to spend more money. Businesses that are convinced that customers are purely rational and that they will always attempt to purchase products that will give them the best quality and level of worth for the amount of money that has been spent.
Only focusing on pricing is extremely short-sighted because customers are not entirely rational. Rather, customers tend to be driven by their feelings.
Emotions and Making Decisions
Emotions are one of the most powerful factors that govern how humans make decisions because they are so pervasive. A person might decide to purchase an item that he or she can’t afford in order to cope with the negative feelings caused by a breakup. This is known as “retail therapy,” a tongue-in-cheek reference to a very real phenomenon. Feeling disgusted can cause a customer to be less willing to pay a certain price for a product, while sadness might result in a willingness to pay a higher price. It’s often a point of pride when people feel that they have been savvy about spending money on the products that they have purchased, increasing overall satisfaction and mood levels.
If a person working in sales is able to harness the power of these emotions and manipulate them to his or her advantage, it will be much easier to close a sale.
Use Deals to Motivate Customer Purchases
This is one of the most basic ways that a salesperson can use to maximize the benefits of customer emotion. Customers have a very difficult time determining how much money at which a certain item ought to be priced. As a result, they almost completely depend on the information they have from the past: how much similar items have cost in the past. Customers tend to have laser focus surrounding this number and will be delighted if they find a price that is lower than it.
A marketing team can use is to have a higher set price than what most customers would expect that is at a near constant sale price that is equal to or lower than what most customers expect.
Note, there are limits to “a sale” and also be aware that you follow Sale guidelines in the Consumer Protection Act.
Customers really like discounts. Even though it might reduce the process of shopping to a much simpler form, getting rid of discounts is never a good idea. This is because a company will lose the advantage mentioned above. Customers will never feel as though they are getting a great deal and will therefore be less likely to shop at a store that does not offer discounts.
Make Bargain Hunting Into a Game
Bargain hunting naturally feels like a game, but there are ways that marketing team can use to enhance the overall experience. Providing coupons for the customer to print from you website and other print publications, online promo codes that can be discovered on social media sites, and using games that yield different percentages off when played well are great ways for companies to make it feel as though customers are earning great deals. This is widely considered to be more satisfying than if a customer passively receives deals due to a store’s everyday low pricing efforts.
Use Sales to Engage the Customer
Sales should cause a customer to actively engage with the company. Different methods, such as online treasure hunts for promotional codes located in several designed areas of your site or social media sites and encouraging caption contests for discounts essentially gives the customer a platform to engage with the company. This will allow the customer to put more into the company and therefore increase his or her overall loyalty.
Essentially, marketing teams can use sales to their advantage in order to convince and cajole customers into purchasing more products. Customers love sales simply because they make them feel competent and knowledgeable about the company and products, as well as fully in control of their money. This will cause them to engage more strongly with the company and increase both customer loyalty and revenue.
Danny Chard is the Managing Director of Assigns Point-of-Sale and Graphic Display Systems in both standard and customised formats and sizes. Our range of Retail Display Stands is designed to enable retailers to get their products and services noticed on all levels, whatever the retail environment.