One of the most important skills a small business owner must have is effective selling of products and services.
Product and service sales are essential to generate revenue, increase profit, diversify the portfolio over time, retain employees with the right perks, and support several other business functions.
However, despite being so important, several small business owners fail to develop and implement an adequate sales strategy. One of the reasons is not understanding the psychology of selling. Knowing how the potential customer psychology works when buying a product or service will help you understand the psychology of selling. They are interdependent.
To decode the same, we sat down with our business coach Melbourne. Here’s what they had to say.
First Impressions Matter
The way you present yourself, your business, your products and services, your proposal, your business website, your social media profiles, and more have an impact on your potential customers.
It will tell the customer about how reliable, professional, and knowledgeable you are about the business and its services. As simple as the lack of GST registration can impact the way customers perceive your business.
Losing or Missing Out
When you provide a product or service, make sure it conveys the feeling of losing or missing out if not purchased. For example, promoting products as “limited edition”. This conveys to the customer that the product is available for a short period and if not purchased they will lose out on something exciting and valuable.
Give an Exchange Offer or Something Extra
Giving something extra with your actual product will automatically bring the customers to the shop. People are more attracted to the exchange or extra product offered with actual products or services. For example, buy 1 get 1, or subscribe this month, and get 13 months for the price of 12.
Don’t Provide Too Many Choices
Business advisor Adelaide always advises their clients not to provide too many choices for the customers. This can confuse the customers and possibly deter them from buying.
The ideal number is at least two options with your actual product or services. We do want them to have a choice but not feel overwhelmed by it. Hence, 2 options are minimum and ideal. Moreover, subtly direct the customers toward the best choice by providing reasoning.
This is important as several customers respond when provided with facts and reasoning whereas some act based on how they feel. Giving 2 options with reasoning will help you target both types of users.
Learn Your Customer’s Buying Goals
You will usually find customers with two types of buying goals. One wants to invest in a product with long-term benefits whereas others are looking for short-term benefits. This buying outlook dictates what they value in a product.
Business advisor Melbourne says that for a customer with a long-term buying goal, product value will be of the utmost importance. Whereas for a customer with short-term buying goals, the product price will be of the utmost importance. This will govern their buying behaviour thus affecting your product sales.
Develop Trust and Like
Before you even start selling your products, you need to develop trust and liking for your brand in your potential audience.
You can do this by providing samples of your products to the customers. Once they use the product and find it worth the value and formable, the customers will trust your brand more and invest in the products.
Be Honest and Confident
One of the elements of building trust is being honest and confident in your products and services, including the value it adds to the customer.
But ensure that you demonstrate confidence humbly rather than ego. Be calm when you talk about your products and services making the customers feel more comfortable buying your products and services.
Wrap it Up
These are just a few tips to understand the psychology of selling.
Want to know more?
Get in touch with us at Keystone Executive Coaching now. Our team consists of experienced and professional business coaches. We have previously worked with small business owners to understand the psychology of selling and developing the right sale strategy. Moreover, we also provide business coaching Australia on other business functions such as marketing, finance, human resources, retaining employees, and more.
Contact us now to know more.