The aim of every company on this planet is one, and that's improving sales. Countless blogs and ebooks are there to solve your problem, but you are not getting success.
First, remember the bitter truth, there is no one size fits all in sales, and it depends on various factors. The bottom line of sales is to solve customers' problems, and there is no shortcut.
In this guide, we will show you the exact methods to understand customers' psychology, and how to prepare strategy according to this.
Understand customer psychology
If you want to know the sales strategy, the first thing you should do is to understand customer psychology. We are not talking about any lame prediction, what you should or shouldn't. Here, psychology means their behavior towards your product. There are only three types of customers; Spendthrifts, Tightwads, and Unconflicted.
From this picture, you already have an idea, but the real question is how to know if a customer is from the above category.
A spendthrift spends money on a huge without thinking twice and often live a life of extravagant. Their percentage is less, but spending habit is not.
How to identify a spendthrift
They feel good when they spend high on quality, and luxury, and this is where you can attract them.
Create a premium package: Depending on the nature of the product, you can offer them some extra features in the name of premium versions.
Offer another product: Though it's a usual practice, but, you should apply it differently. Here, you can offer another product free of cost, but it should relate to the product they are buying. In short, it will help them. For example, you can offer a power bank with a smartphone. But keep in mind, you should not sell that power bank without that smartphone. This strategy will create an impression that you are providing something extra value to the customer. You can offer some extra service in the name of premium products.
Attractive package and design: Spendthrifts always love luxury, and the best way to attract them is to make the product design impressive. A beautifully designed product with impressive package gets more attention.
Show them related items: Another way to identify them is by showing them related products/services that sound premium. You can show them different variations, and in most cases, a spendthrift will pick the expensive one instead of a cheap product.
In other words, you can say miser who doesn't like to spend, and it's not easy to convert them as your customer.
How to identify a tightwad
Tightwads don't like to buy unless there is an emergency or they need it desperately. It's not easy to convince them to buy something even if that is valuable. They take too much time to recover their "buying pain", and to deal with them, you need to be creative.
They want more information and do extensive research before making a decision, and here, you should produce informative content that should clear their doubts. Offer them discounts and something valuable without affecting their pocket. The best way is to identify them by showing a great deal without compromising the quality.
Average spenders fall into this category, and they keep a close watch on their financial decision, but they don't hesitate to spend if the quality is good. 61% of customers fall into the unconflicted category.
How to identify an unconflicted customer
They can afford moderate buying pain that means they will give up something to purchase something. They research before making a purchase decision, but you won't face difficulties like tightwads.
They focus on the value, and you can't sell anything by tricking them.
Unconflicted users are careful about their spending, and though they don't hesitate to buy, however, they need assurance.
For example, you can offer a warranty/guarantee or moneyback to convince them.
For such customers, your award, customer testimonials, reviews, and brand influence matter.
Bonus point to identify the category
Make sure that you have three variations ready and show to the customer. The easiest way to understand their purchase ability is the offer they first pickup or want to know more about it. Based on that you can show other products and offer.
Understand why customers will buy your product
The basic rule for business is to solve a problem or create a habit that people will like. Facebook solves our communication problem, and Jio increased our spending time on the internet. We were using the internet, but the limitation of data was the biggest problem that Jio solved.
Before creating a product, think from a user perspective, whether they will buy or not. Just because you like doesn't mean they will purchase.
Quality and price are not the first things a customer think; as long as it solves their problems or fulfills their wants (needs), they will buy it.
Why should customers buy?
If they desperately need it
They think you are a specialist
If somebody tells that you are doing better
If it fulfills their emotional requirements
Offer a trial or freemium version
The main problem is the customer wants to try the product before deciding to pay for it. Though it's a genuine process, however, not possible for all sectors. Companies have two options either they will follow a trial or freemium method.
For example, if you visit a mall and want to purchase perfume, the first thing you will do is to test whether the smell is good enough or not.
Why Freemium models are good for business
If you are creating digital products, you can follow either a trial version or freemium method to attract customers. We all know how popular products like Skype, OneDrive, Zoom video call, survey monkey, and Spotify are capturing the market.
The secret of their popularity is that they all allow their users to use their products free of cost. If you still have doubts, look at two internet giants Facebook and Google; 90% of their products are free or open to all still, they are able to make billions of dollars.
The best part of the freemium model is that it allows users to use their product for a lifetime without paying anything. If your product solves their realtime problem, it will grow like fire. Users get something worth, and they will recommend it if this is good enough or upgrade to advance version.
Why trial versions are good for business
Trial version is good for both brick and mortar business and software industry. There is no problem for a SaaS-based company to follow either a trial or freemium method to increase sales, but for brick and mortar business, trial versions are the only way to attract customers.
Though not all businesses can follow trial methods; for example, a restaurant business can't follow a trial or freemium model.
But apart from that, most of the business can follow this method, and the best part of a trial version is customers can use all the features for a limited time. It could be for a moment ( consumer goods) or seven days/fourteen days trial (SaaS-based companies).
Free trial vs Freemium
Even though you read the difference still, you can't decide which method to choose. Here is the conclusion that will help to choose according to your business needs.
Freemium: Limited features, limited users, may include advertisements, free for lifetime, can be used for cross-selling
Trial version: Full features for a limited time, no ads, may ask for credit card information (some companies allows without credit card)
Use local numbers to contact
While you get a call from any company, chances are responding less if the number is not local and the same thing happens with your customer too.
According to softwareadvice survey,
Toll-free numbers get the lowest response
Calls from other states numbers get better responses than toll-free numbers
Call from local numbers get the highest response
Why people respond to local numbers
It makes an impression of local presence no matter how big or small the company is.
It creates trust among local users
Cautions if you use a local number: The survey also revealed that people will react negatively if they know the company has no local presence. So make sure that you or your representative is available to serve them locally.
Partner with other business
It may sound difficult but in reality, not as difficult as you think. The reason is partnership will work as a referral or we can say cross-selling and is effective.
Many small businesses are struggling to make sales during the initial stages; even big companies also face downfall in sales. Because sales are unpredictable always and you have to be strategic always.
Here, partnership with like-minded organizations will help you to boost your sales.
How to partner with other businesses
Understand your business DNA: You need to understand your target audience and their requirement that is indirectly related to your business, but you are not offering those products/services. Here you can tie-up with another organization and this will act as a referral program for each other. For example, you are dealing with computer hardware, but not with repairing. Here, you can make a partnership with a service center to increase your sales or vice versa.
Make a deal: You may not be in a situation to give a discount on your product/service, and strategic partnership will act as a rescuer. Instead of offering a discount, you can offer a deal to your customer that will drive sales for your partner organization. This will help both to boost sales as your partner organization will do the same for you.
Follow Channel Sales: You can follow channel sales approach where you can partner with resellers, distributors, individual retailers, consultants, agents that are dealing with your industry.
Advantages of partnership strategies
Increase sales: As it will work as a referral program, your sales will grow depending on the quality of your products and services
Create trust: If your partner has a good reputation in the market, his/her referral will act as an advertisement
Customer satisfaction: If your customer needs a product-related help that you are not offering but have the intention to sell it, you can refer them to the partner organization that is offering the solution. This will help you to focus on your business instead of losing a customer just because you are not offering that service.
Disadvantages of Partnership strategies
Partner reputation matters: If your partner organization doesn't have a good reputation, that will affect you.
Affect revenue: While closing a deal, you may have to offer something to your partner which will affect your revenue.
Changes will be difficult: While you are partnering with different organizations, you need to inform all your partners in case you are making any major change regarding your policies or products/services.
Contact leads within 5 minutes
Whether you are in B2B or B2C, your time to respond leads matter most. The quicker your response, the sooner you will close the deal. If you respond to them after a long time, the chances of losing sales are higher.
It doesn't matter whether you are doing business online or offline, no one likes to wait for a long time. Imagine you want to purchase a shirt from a showroom, but the salesman is not present. Instead of waiting for a longer period, most of the time you will choose another showroom or buy from online.
78% of customers buy from the company that responds to them quickly. Customers are humans like us, and they can change their mind at any time like us, and it's better to respond to their queries within five minutes instead of following a boring procedure.
Don't be a salesman always
The first and most important rules of sales; don't act like a salesman. Yes, we can understand that your company is forcing you to increase the sales, but customers don't like spammers at all.
Instead of forcing them, offer something valuable. Whether your business is running online or offline, you should offer more than selling a product/service. It can be anything, social awareness, running a blog that covers your industry-related topics or engaging them in social media regularly.
According to Harvard Business Review, customers want to know three things before making their purchase decision
Intentions: They want human interaction instead of random sales pitch and here, we are talking about human emotion. They will try to understand your intention, and here, your behavior towards them matters most. They may want to know your suggestions while selecting something though they don't express it. Neither you nor me like a salesman talk even if we want to purchase something. Instead, everyone is looking for a suggestion and yes, from a human without having sales intentions.
Authenticity: Why Apple's products have a unique image even though they are expensive? It's because of their authenticity. You need to take care of users' problems and your product. Customers want to know your intention and assurance regarding your products/service and unless you have full faith in your products, they won't show their interest. You need to provide the same value and quality continuously else you will lose your authenticity. The best way to gain trust is to give them the legal assurance that they can use in the future if something goes wrong.
Efforts: Customer will want to know the effort you are putting for your products/services; in other words, they want to know how much human involvement happens. People value more if they see/realize the efforts behind the scene.
Improve your customer support
The biggest asset of any business is customer support, and you should not ignore this at any cost. Big or small, try to fix their query at any cost. As long as customer demand is ethical, you should do your best. You may face some loss financially, but that will improve your brand image.
Amazon is the best example when it comes to customer support.
Here is how to improve customer support
Make sure that the refund policy is hassle-free
Be available during the working hours at least
Offer faster replacement if the quality is bad
Don't take more than 48 hours to solve their problems
Ask them for feedback
Increasing sales is not a month or year work; it takes your time and effort, and most importantly dedication. Customers are not just looking for a product, they are looking for the values and trust you are creating. Remember, it takes 18 hours to make a Toyota, but 6 months for a Rolls-Royce.
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