How to Use The Psychology of Money to Make More Sales

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To be successful, you have to know who your customers are and, more importantly, what motivates them to spend money. 

When you understand the psychology of money, you zero in on your customers’ emotional needs instead of highlighting your product’s value. Why? Because EMOTIONS DRIVE PURCHASING DECISIONS.

Rather than convincing people they need your services or products, you find a way to market to their needs and wants. Your customers want to be understood, and being able to relate to them increases your sales.

 

5 Psychological Sales Tactics to Boost Revenue

The psychology of money studies our behavior with money and how it affects buying decisions. Robert Cialdini’s iconic book, ‘Influence,’ dives into the dynamics of money, purchase behavior, and critical sales strategies for success.

You can apply the psychology of money and his persuasion techniques to gain an edge in your business!

1. Play on Customers’ Aspirations

To quote American entrepreneur, author, and investor Peter Thiel: “People don’t buy products; they buy better versions of themselves.” So, if you’re an image consultant or personal stylist, what you’re selling to people is a future version of themselves where they are full of confidence and self-assurance.

Your clients will only buy something that justifies their investment of time and money. There’s a big difference between saying, “here’s what my product can do,” and “here’s what you can do with my product.”  

A powerful emotional truth; most people want to feel they are living their best lives. If you can tap into this sentiment, you’ll automatically boost sales. Therefore, you must MARKET YOUR SERVICES TO AMPLIFY YOUR CLIENTS’ POSITIVITY AND SELF-CONFIDENCE – show them how they can achieve more exciting and fulfilling lives! 

2. Use Reciprocity 

Reciprocity is a powerful tool in marketing that entices customers to give back to a business after taking advantage of the benefits they’ve received. This tactic capitalizes on the human instinct to repay kindnesses and favors. 

For example, you can attract customers with free samples, helpful content, or discounts, inspiring them to purchase or hire your services.

Giving away small gifts for free creates a social obligation for customers to return the favor – like an inverted loyalty program, except the freebie comes first. You can even USE RECIPROCITY TO GENERATE REVENUE without spending too much on ads by offering incentives for customer referrals.

3. Showcase Social Proof 

We’re all familiar with the idiom “Keeping up with the Joneses,” which describes our desire to own the same expensive objects and do the same things as our friends and neighbors. Because we’re social creatures, we have a cognitive bias towards things other people already like or have. 

Thanks to the power of word-of-mouth, many consumers rely on their friends’ input before making a purchase. To capitalize on this, you can leverage influencer marketing, customer reviews, and testimonials. When potential buyers view positive feedback from individuals like them, they will be confident that your product or service is the perfect fit for their needs.

4. Pull the Scarcity Trigger

Scarcity is a tool used by marketers to create urgency in customers and prompt them to take action quickly. OFFERING PRODUCTS OR SERVICES WITH LIMITED SUPPLY OR A LIMITED TIME WINDOW PROMPTS THEM TO ACT before the opportunity slips away. 

These offers might include limited-edition products, limited-quantity sales, or even services with time constraints. For example, some style and image consultants may encourage clients to book consultations quickly before their calendars get filled up. 

By using scarity technique, customers may feel a sense of regret if they don’t take advantage of the offer, leading to a spike in sales.

5. Pricing Bundles

The cost of your products or services is a reflection of how much a potential customer is willing to invest. Without a doubt, people are more judicious when considering an item that costs $10,000, as opposed to one that costs just $1. 

Consumers don’t part with their hard-earned money easily, so marketers often turn to product bundling as a way to get them to buy things. 

For instance, image consultants may combine their services with makeup products to create a product package that customers can purchase for one price. BUNDLING TWO OR MORE SERVICES OR PRODUCTS TOGETHER CAN DRIVE SALES! 

 

Use Psychology of Color to Increase Sales

The psychology of money plays a prominent role in an advertising campaign’s overall design and success. In the real world, people don’t make financial decisions on a spreadsheet.They make them at the dinner table, in a meeting room, or while scrolling on social media, where personal history, world views, ego, pride, and marketing incentives mix. 

INCORPORATING BASIC PSYCHOLOGICAL PRINCIPLES CAN HELP YOUR MARKETING ACHIEVE ITS DESIRED EFFECT. For example, did you know color affects 85% of customers’ purchasing decisions

Learn from THE Color Authority: Ferial Youakim

ByFERIAL’s 4×4 Color System® has helped countless image consultants worldwide improve their consulting services and business branding. It can broaden your customer base and elevate your sales figures too. Find out more about our certified 4×4 Color System® training course today!

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