5 cognitive biases you can use for your sales
The cognitive biases or psychological are subjective perceptions to which we turn when we process information. Whether you realize it or not, many of the decisions you have made throughout your life have been influenced by them.
Some are harmless and even comical; others can be expensive.
In this article, we are going to share some of the main psychological biases that influence sales that can help you understand why people buy.
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It’s every direction that every sales or marketing professional should understand and be willing to take when the opportunity arises.
Here are five cognitive biases that can be harnessed to drive sales:
Take advantage of the image advantage effect
Humans are visual creatures.
We connect with images much more deeply than with text. However, sales teams often present slide after slide of nothing but text, with no graphics or images to support what is being said.
In countless studies, scientists have found that images are easier to remember. Therefore, when addressing potential customers, try to replace your presentation text with graphics. John Medina, the author of Brain Rules, reveals that “multitasking, when it comes to paying attention, is a myth.”
People have a hard time reading and listening at the same time. So don’t force them to do it. Give them pictures that are easier to remember.
Embrace the idea of communicating with graphics rather than just text.
Use the “Bandwagon” effect to boost sales
The “bandwagon” effect is what we call it when people buy a product, adopt an attitude, or embrace a certain behavior simply because everyone else is doing it.
As more people follow the trend (eg Crocs, Meerkat, pet rocks, etc.), others are inspired to jump on the bandwagon.
Sales professionals can use the wagon effect by advertising how many other brands are using their product or service. In B2B, this occurs as follows:
- Putting the logos of the companies that are using your service on your website
- Highlighting a price level as the most popular
- Referencing Competitors Using Your Solutions in Outreach Emails
- Embed third-party reviews on your website
- E-commerce sites often use the “bandwagon” effect by showing buyers what other people have bought.
Use high and low price anchors
There is an old question in advertising: How do you sell a 2,000 euro watch?
The answer:
Put it next to a 10,000 euro watch.
That is the anchor price.
The anchor is a cognitive bias that says that we rely heavily on the first information that is offered to us (in this case, the anchor price) when making decisions, that is, we use the initial price as a reference, regardless of how high it is .
Adopt accurate pricing
Most of us think we want our prices to be nice and round:
In a study conducted at Cornell University, researchers found that people judged accurate prices to be lower than rounded ones.
In reality, studies have found that buyers will pay more if the price tag shows an accurate number rather than a clean, rounded number. For example, € 354,294 is more likely to attract a buyer than € 350,000.
We have a clear bias against round numbers in high-priced transactions. So, when developing your proposals and communicating the prices to the company’s clients, consider the influence that the precise prices will have on the perception of value of the buyers.
The irrational escalation of commitment
We have all seen this in the workforce.
You make a serious investment in a project, but the project has difficulties. Or maybe you have a successful project, but the leadership thinks you could do even MORE with a little more investment.
For years, organizations have grappled with situations like this, and have found it difficult to find when to stop. Why does this phenomenon occur?: It is a cognitive bias called the irrational escalation of commitment.
It leads people to buy lottery tickets over and over again. We are used to believing that after investing in something once, our chances of success increase. We think adding a little more money to a problem can fix it.
We believe that adding a few more licenses to an account can accelerate growth. We believe that purchasing one more add-on will increase our return on investment.
This bias is something that sales teams and salespeople can take advantage of. It is something they can use to increase the lifetime value of their customers and impact the bottom line.
This is achieved by facilitating wholesaling. As a buyer is going through the buying process and buying your solution feel free to include opportunities where they can add cheap functionality to their plan.
By accepting a call to action like this after you’ve selected a larger plan, they are more likely to continue adding benefits to your order.
There are several cognitive biases that can shape your sales strategy
Familiarize yourself with the main cognitive biases that affect your buyers (like the ones on this list) and use that psychological acumen to design launches, show prices and create great proposals.
Soon you will see how taking advantage of this can increase sales, and you will be more aware of your own direction so that your brain does not play tricks on you.
