Ask The Mompreneur: Boost Sales By Using The Psychology Of Business

By Jennie Wong
The Charlotte Observer.

When you own a business, you’re in sales. And when you’re in sales, you’re in the business of human psychology.

Whether you’re selling candles on Etsy, peddling T-shirts out of the trunk of your car, or inking million-dollar consulting deals, your success or failure will often come down to how well you understand the mind of your buyer.

Sure, every customer is different, but there are certain universal levers that can be pulled to increase your chances of getting the business.

SOCIAL PROOF

Kit Yarrow, a professor of psychology and marketing at Golden Gate University in San Francisco, calls this crowd cred. Her new book, “Decoding the New Consumer Mind,” reveals that trust levels in the modern consumer are on the decline, making the opinions of similar others more important than ever.

How can your business put this insight into action? For starters, make sure you are collecting and using testimonials from happy customers. For more impact, make sure your featured testimonials are from not just happy customers, but happy customers who resemble your ideal customer. If you’re marketing to vice presidents of procurement, make sure you’re showing them positive reviews from other VPs of procurement to create the most powerful social proof.

SCARCITY

While textbooks refer to this principle as scarcity, you might recognize the phenomena as FOMO, or fear of missing out. However much we desire something, the threat of losing it will usually make us want it even more.

Are you using the powerful pull of scarcity in your business? Typically, entrepreneurs focus their communication, both online and offline, on benefits.

“Work with me and you’ll get XYZ!”

But don’t forget the other side of the equation, what will your customer lose by not working with you? Alternatively, if you’re in a product business, let your customers know when something has been flying off the shelves and is almost sold out.

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