I sucked at marketing
Even after reading dozens of marketing books.
When I learned about people, my marketing improved.
Here are 5 human psychology basics you need to know.
Even after reading dozens of marketing books.
When I learned about people, my marketing improved.
Here are 5 human psychology basics you need to know.
Let's kick off with an easy example.
It's called Anchor Bias. Picture this:
It's called Anchor Bias. Picture this:
You're at a car dealership looking at your dream car.
The salesman whispers in your ear, "This baby was 100K yesterday.
But today we're running a discount- 20% off! So it's yours for just 80K!"
Your brain screams, "Deal of the century!"
The salesman whispers in your ear, "This baby was 100K yesterday.
But today we're running a discount- 20% off! So it's yours for just 80K!"
Your brain screams, "Deal of the century!"
This brain scream is called Anchor Bias.
Your mind is stuck on the 100k and thinks the 80k is a steal.
But if the car was priced at 82k and you got a 2k discount you'd move on.
That's the power of psychology.
Here are 5 more examples to use human behavior to your advantage:
Your mind is stuck on the 100k and thinks the 80k is a steal.
But if the car was priced at 82k and you got a 2k discount you'd move on.
That's the power of psychology.
Here are 5 more examples to use human behavior to your advantage:
1. Decoy Anchor:
You walk in a coffee shop and are see 3 choices.
1. Small Coffee (8 oz) for $2.50
2. Medium Coffee (12 oz) for $3.00
3. Large Coffee (16 oz) for $3.20
Which one are you more likely to have?
You walk in a coffee shop and are see 3 choices.
1. Small Coffee (8 oz) for $2.50
2. Medium Coffee (12 oz) for $3.00
3. Large Coffee (16 oz) for $3.20
Which one are you more likely to have?
Most people would choose the large coffee.
Which is precisely what the barista wants.
Here the medium coffee is the decoy.
Because in comparison to the medium coffee large seems like a better deal.
Which is precisely what the barista wants.
Here the medium coffee is the decoy.
Because in comparison to the medium coffee large seems like a better deal.
Here's how you make the Decoy Anchor work:
1) Spotlight your main product.
2) Introduce a slightly cheaper decoy.
3) Offer a budget option with fewer perks.
The decoy makes your main product the better choice.
1) Spotlight your main product.
2) Introduce a slightly cheaper decoy.
3) Offer a budget option with fewer perks.
The decoy makes your main product the better choice.
2. Pricing Anchor:
In 2010 Steve Jobs revealed the first-ever iPad.
After highlighting its benefits.
Jobs said that Apple considered pricing iPad at $999, and a large $999 appeared on the screen behind him.
And then, he revealed the actual price of $499.
Jaws dropped.
In 2010 Steve Jobs revealed the first-ever iPad.
After highlighting its benefits.
Jobs said that Apple considered pricing iPad at $999, and a large $999 appeared on the screen behind him.
And then, he revealed the actual price of $499.
Jaws dropped.
This $999 was the Price Anchor.
Which would you choose: an expensive product or an affordable one?
Obviously, the latter, right?
That's how you anchor your customers.
Which would you choose: an expensive product or an affordable one?
Obviously, the latter, right?
That's how you anchor your customers.
Here's how you make the Pricing Anchor work:
1. Set your target price
2. Set a higher anchor price
3. Display the anchor price prominently
4. Introduce your target price and show the benefits
5. Emphasize the savings
6. Reinforce the benefits
7. Monitor and adjust
1. Set your target price
2. Set a higher anchor price
3. Display the anchor price prominently
4. Introduce your target price and show the benefits
5. Emphasize the savings
6. Reinforce the benefits
7. Monitor and adjust
3. Feature Anchor:
When you go to a car dealership, you will notice that the displayed cars are all high-end models.
Why?
Because then you compare everything else with the features of the highest model as the reference point.
That my friend is the Feature Anchor
When you go to a car dealership, you will notice that the displayed cars are all high-end models.
Why?
Because then you compare everything else with the features of the highest model as the reference point.
That my friend is the Feature Anchor
Here's how you make the Feature Anchor work:
1. Identify standout features of your product/service
2. Highlight them boldly.
3. Find your competitors' product
4. Make your features look better
Sell like crazy.
1. Identify standout features of your product/service
2. Highlight them boldly.
3. Find your competitors' product
4. Make your features look better
Sell like crazy.
4. Time Anchor:
Actual Price: $300
Current Price: $200 only for 7 days.
This is a time anchor.
or
3 hour left.
2 hour left.
1 hour left.
Actual Price: $300
Current Price: $200 only for 7 days.
This is a time anchor.
or
3 hour left.
2 hour left.
1 hour left.
The high price anchors your customerโs expectations.
The discounted price then seems more tempting.
And the limited time acts as a strong incentive to purchase.
This powerful combination drives more sales.
The discounted price then seems more tempting.
And the limited time acts as a strong incentive to purchase.
This powerful combination drives more sales.
Here's how you make the Time Anchor work:
1. Set a higher anchor price.
2. Create urgency with limited-time offers.
3. Highlight the target price as a discount.
4. Implement clear countdowns.
1. Set a higher anchor price.
2. Create urgency with limited-time offers.
3. Highlight the target price as a discount.
4. Implement clear countdowns.
5. Bundle Anchor:
Sir, would you like a combo meal with your burger?
umm. yea.. sure
This is how you are trapped in the bundle anchor.
Sir, would you like a combo meal with your burger?
umm. yea.. sure
This is how you are trapped in the bundle anchor.
Here's how you make the Bunde Anchor work:
1. Bundle your products as packages.
2. Offer different price points for each package.
3. The premium package serves as the anchor.
4. Lower-priced packages appear more enticing in comparison
And your customer ends up buying more.
1. Bundle your products as packages.
2. Offer different price points for each package.
3. The premium package serves as the anchor.
4. Lower-priced packages appear more enticing in comparison
And your customer ends up buying more.
I hope you learned something today.
1. Follow me @Yannick_Veys for more of these
2. Click the quoted tweet below and RT it to share it with more people
1. Follow me @Yannick_Veys for more of these
2. Click the quoted tweet below and RT it to share it with more people
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