First Financial breaks down the psychology of sales to help your business

Sales Psychology: Deciphering The Customer’s Mind To Unlock Your Sales Potential

First Financial Customer Service, Sales, Starting a Business

What is the difference between top sales techniques and normal sales strategies or methods? The obvious difference is that the former gets the job done and achieves the sales targets while the latter are futile. But how are the top sales techniques devised. Is there a specific way to create winning sales strategies? Selling is one of the toughest jobs in the world and every company knows how significant it is. Interestingly, selling doesn’t have to be so difficult once you understand sales psychology.

Sales psychology is simply human psychology that steers the actions and reactions of an individual when something is being sold to them, or an attempt is being made. Once a company trains its sales teams and every salesperson understands sales psychology, every approach will be among the top sales techniques.

Guide to Sales Psychology

Here is a comprehensive guide to help you understand sales psychology and to illustrate them we would shed light on some top sales techniques as well.

To Many Choices

Customers want more options. But you should give fewer options to your prospective customers or target audience. In any industry or category of product and service, there are at least half a dozen brands and more than a dozen companies of varying repute. Every company has at least a couple or a few choices for their customers. When you factor in all the companies in a given niche offering multiple choices then you know how many options a customer has. The more options you provide, the more confused your customer would get. With limited choices, a customer is likely to actually settle for one. With too many choices, the customer may not choose any that you offer and may not even choose any other brand either because of this confusion. Steve Jobs famously said that the customers don’t know what they want. So, when you try to sell something to your customer, don’t keep offering an alternative. Stick to a few of your products and try to close the deal. You may be tempted to offer some more options but that way you would be leading your customer away, simply because he or she would become indecisive.

The Value of Free

Freebies are hyped. They aren’t something that customers want always. When you offer something for free, customers may appear to be happy but they don’t really hold the product or service in very high regard. The most precious things in life or the best products and services don’t come for free. This is the reality and everyone knows. So when you keep offering something free or at ridiculously low prices, your customers would start to doubt its quality. That is how the human psyche works.

Loss Aversion, Give Them Small Victories

Loss aversion is the basis of many top sales techniques. No customer wants to lose money. They would rather avoid buying something than spending a dollar more. There are instances when negotiations come at a standstill and for some reason they don’t move forward until one party relents. At times, the difference may be insignificant for either party. Yet, human psychology is such that those little demands become very important and when they are met one feels like a victor. These little victories are very important for most customers. They wouldn’t mind if they don’t get the best product because of their preference for bargain deals. They would be happier knowing that they did not spend more. Hence, when you come across customers who would rather be on a stringent budget, don’t try to harp on quality to convince them of a high price. They wouldn’t agree to pay that price. Give them something marginally or considerably inferior but they would be happy because of the price. In the jargon of psychology, this is known as loss aversion.

Spare me the Details

Mystery is more effective than clarity. Salespeople have been told, always, that customers should understand everything that they need. Clarity is indeed good for branding and also helps a customer to know as much as is possible about a product or service. But the truth is that the human mind is wired in a way that everything doesn’t matter at the time of purchasing. Only a few things matter. It may be the price, the visual appeal of a product, the primary spec or just the way something works. One major impressive factor is good enough to convince someone to buy. The top sales techniques would always have this element. The most important point would be harped on again and again. The rest would remain a mystery. The human mind is thrilled at the idea of the unknown and that kind of intrigue will always drive sales.

Human psychology also reveres authority, social proof, scarcity and fear of losing out. Have your product sound like Hercules among weaker minions, provide social proof of that superiority, express scarcity even if the product is abundantly stocked up in your inventory and instill a fear of losing out. All top sales techniques would be incomplete without these facets of sales psychology.