9 psychological triggers for sales and brand loyalty
TRANSCRIPT
9 Psychological Triggers for Sales and Brand Loyalty
Trigger #1 - Confirmation Bias
How Apple Uses Confirmation Bias to Keep Us Brand Loyal
Confirmation bias leads us to interpret information in a way that reinforces our
existing beliefs
Apple’s “This is 7” campaign targets existing iPhone users.
It compares the iPhone 7 to the iPhone 6 and not to any competitor brand
After all, you’ve already convinced yourself that there is nothing quite like an
iPhone!
Trigger #2 – Contrast Effect
How PC World Uses Contrast Effect to Demonstrate Value for Money
Is a £1749 TV good value or not?
Contrast effect compares the price that you see now with a higher price that
you have previously been offered in the past or might expect to pay in the
future
This PC World listing shows a saving of over £1000 on a high end TV
It costs £1749 but contrasted with its previous price it seems good value
Contrast effect comes into play with early bird discounts, introductory offers
and “piggy backing” on competitors’ campaigns. It is most often seen at sale
time as the example from PC World demonstrates
Trigger #3 - Total Expenditure Effect
How Toyota Uses Total Expenditure Effect to Demonstrate Affordability
The total expenditure effect works by spreading the cost over time of a
product that would otherwise be prohibitively expensive to buy outright
The Toyota Auris actually costs £22,845 but is yours today for just £116
deposit plus £329 per month for the next 3 and half years
To actually own the car in 42 months’ time you will have pay a further £7740
but by then Toyota expects you to start paying for another new car
The total expenditure effect works for smaller purchases too such as gym
memberships, car insurance or magazine subscriptions
Trigger #4 – Scarcity Principle
How Moss Bros Uses The Scarcity Principle to Stimulate Sales
People act fast when offers expire quickly or supplies are limited
This scarcity principle compels us to buy products that we don’t need
now for fear they won’t be available in future at such low prices
Ecommerce sites display messages such as “only 3 left”, car
manufacturers bring out limited editions and clearance sales implore
us to buy at “never to be repeated prices”
Additional time limited money off offers such as in the example from
Moss Bros add to the sense of urgency
Trigger #5 - Bandwagon Effect
How Trip Advisor Uses The Bandwagon Effect to Influence Buying
The bandwagon effect works because we tend to think that “if
everyone has one, I want one too”
As consumers, we want to be part of the in-crowd, buying in to the
latest trends and showing that we are in the “know”. In the digital age,
this insight is worth its weight in gold.
It is what lies behind the concept of “social proof”, is a key driver of
celebrity endorsements and it explains why 90% of online purchasing
decisions are influenced by reviews on sites such as Trip Advisor
Trigger #6 – Authority Bias
Under Armour is a challenger sportswear company that until recently
was little known outside of the US. That was until it partnered with
global superstars in sports that were not associated with its brand
Authority bias kicks in when an expert recommends a product or
endorses a brand thereby influencing our own purchasing decisions
Under Armour’s partnership with World Number One Andy Murray
has conferred social proof on its range of tennis attire helping it to
penetrate this segment and grow overall market share by 20%
How Under Armour Uses Authority Bias to Create Social Proof
Trigger #7 - Reciprocity
How Amazon Uses Reciprocity to Acquire New Customers
Amazon Prime is insanely successful. It gives away a one month free
trial and converts 73% into paying customers at the end of this period
This is Reciprocity in action. Our innate desire to return favours
obligates us to buy after we have sampled a product for free
It is why FMCG companies such as P&G post out unsolicited samples
of their latest products, why subscription businesses offer free trial
periods and why coupons are still in use 130 years after helping to
establish the fledgling Coca Cola brand
Trigger #8 – Loss Aversion
How Norton Uses Loss Aversion to Encourage Subscription Renewal
Loss aversion drives us to hold onto what we already have rather
than give it up for something potentially even better
The longer we possess something, the less likely we will let it go
This ownership effect is used extensively with free trials, subscriptions
and product support packages
Do you want to lose your protection against cyber criminals? Norton
thinks not
Trigger #9 – Self-Serving Bias
How Axa Uses Self-Serving Bias to Sell Car Insurance
When we make mistakes or when things don’t turn out the way we
planned, we tend to blame others or forces outside of our control
This self serving bias is what causes us to overestimate our own
abilities relative to others and cover up our own personal faults
A few years ago Axa exploited our self-serving bias regarding our
driving abilities. Cleverly, this UK insurer highlighted bad driving as it
sought to attract “experienced drivers” that it could reward with
lower premiums
Summary
Cognitive biases drive consumers’ purchasing behaviour
Understanding these biases enables companies to trigger sales and
brand loyalty
This presentation outlines 9 psychological triggers. There are many
others
For more insights on sales and marketing strategy please visit
www.chrisdunnconsulting.co.uk
Chris Dunn Consulting Services Ltd
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