wooing consumers (when Selling is about Killing)
How can you explain “two for the price of one”, “easy monthly payments”, “money back guarantee” gimmicks? Marketers have been using these tricks and there is no scientific proof why people prefer free incentives when in the back of their minds they know that there is nothing free, they will have to pay for it, this way or that.
Consumerism is irrational. Consumer is irrational, illogical and that’s how he thinks about his money. He applies different “mental models” for money coming from different sources, for example, he finds it easiest to spend pocket money, harder to spend his income, and hardest to relinquish his savings. Every rupee is different. Now, isn’t that irrational? Counter intuitive? Yes, but that’s how it is.
But no matter what, money going off his hands is always painful.
- Make a less-painful product: Choosing not to choose is in itself a choice.
A consumer can always defer to purchase, saving money for another day. And that’s a problem, worse that your competition. So, allow delay payments, or easy installments. A mitigated way for consumer to part with his money. Incorporate window shopping. Let customers have a feel of the product, generate emotion for it, feel attached and then worry about the money.
- Assert your offer, sell by default. Idea is to make your consumers feel the ownership before you ask them to make a decision. If you have a service to sell, don’t ask him to sign up for it. Instead, sign him up by default, and then ask him whether he wants to cancel it? For a telecom company, it would be better to ask, “We have already credited your account with 100 calls, how do you want to use them?” A consumer would not like to let go of calls he already owns. You will have more acceptance rate.
- Limit his choices: In a classic field experiment, some grocery store shoppers were offered the chance to taste a selection of 24 jams, while others were offered only 6. The greater variety drew more shoppers to sample the jams, but few made a purchase. By contrast, although fewer consumers stopped to taste the 6 jams on offer, sales from this group were more than five times higher.
- Comparatively placement: Many restaurants find that the second-most-expensive bottle of wine is very popular—and so is the second-cheapest. Customers who buy the former feel they are getting something special but not going over the top. Those who buy the latter feel they are getting a bargain but not being cheap. The power of relative positioning explains why marketers sometimes benefit from offering a few clearly inferior options. Even if they don’t sell, they may increase sales of slightly better products the store really wants to move.
Read more here: Mckinsey Quarterly