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During one iconic scene in Star Wars, the character Obi-Wan Kenobi talks his way out of trouble at an enemy checkpoint by employing a hypnotic “Jedi mind trick” on the stormtroopers. Think this strategy doesn’t apply to business and sales? Think again.
Imagine you could make a sale simply by waving your hand and telling the customer, “You want to purchase that product.” What a superpower that would be! But luckily for business owners, you don’t need to be a Jedi to close a deal. Certain psychological hacks have been proven by science and experience to turbocharge revenue.
In recent years, behavioral science has taken the economics field by storm. Psychologist Daniel Kahneman and economist Richard Thaler have both won the Nobel Prize for work that examines the irrational quirks of human decision-making, especially when it comes to consumer behavior.
But for entrepreneurs and salespeople, the research merely confirms what they have known for their entire careers: Retailers have employed mind hacks to boost sales for over a century. Understanding the psychology of sales is critical if you want to take your business to the next level.
One way to lift sales is by simply raising prices (and, by the way, there are lots of dos and don’ts for that.) But it’s certainly not the only method. The four tricks below tap into consumer consumer psychology and behavioral economics, and they can bolster your top line.
A 2022 Swedish study published online by Sage Journals found that supermarkets that played light background music generated significantly more sales during the week than those that didn’t. On average, customer purchases in the music-playing stores were worth 50 percent more than those in the quiet supermarkets. Interestingly, this effect existed Monday through Thursday only; music made no statistical difference on the weekends. Why might this be?
During the week, customers do their shopping after they’re tired from work. Music causes people to linger longer when they’re in a “depleted state,” as the researchers called it, which means that they browse longer and thus spend more money. Meanwhile, people tend to feel more alert on weekends, which means they maintain the mental discipline to reign in their spending.
Interestingly, the study’s authors also found that the type of music didn’t make a difference, so queue up the best business songs and start pumping out the beats.
We’re all familiar with the tactic of setting a price at $9.99 instead of $10.00. As the lore goes, retail entrepreneur James Cash Penney – yes, that J.C. Penney – was among the first to notice in the early 1900s that goods with a price point ending in 9 sold better than other numbers.
Today, psychologists call it the “left-digit effect,” where the left-most digit on a product’s price tag disproportionately affects consumer perception of value. A product priced at $2.99 rather than $3.00 is unconsciously perceived as being closer to $2 rather than almost $3. Furthermore, in the age of online shopping, beating your competitor by even a single cent can rank your product higher in search results.
According to one MIT/University of Chicago study shared online by Springer Link, sales of a dress priced at $39 actually outperformed the same dress priced at $34. Learn more about the game of pricing and the role played by the number 9.
But here’s the caveat: If your business sells premium or luxury goods, it’s better to end your price tag with an even number. Consumers perceive even numbers as signifying greater brand quality and trust, while odd numbers are more associated with value and a good bargain.
So you’re regularly making sales? Great. But you’re probably missing out on opportunities to generate even more revenue.
Upselling is a technique where a business entices customers to purchase upgrades or a more expensive product, such as a premium audio system for a new car. With cross-selling, the business attempts to sell related products that complement the original purchase (“Would you like fries with that?”)
The key is to frame your upsell and cross-sell as a value proposition. The reward center of the brain lights up when we think we’re getting a good deal, and consumers will often shell out more money if it means snagging a bargain.
Time-tested methods for upselling and cross-selling include offering free shipping and bundling items.
Want to get a customer’s attention quickly? Offer something for free.
In his book Predictably Irrational (HarperCollins, 2008), economist Dan Ariely describes an experiment where participants were offered the choice of a Hershey’s kiss or a Lindt chocolate truffle. In the first round, the kiss was priced at 1 cent, while the truffle was set at 15 cents. The vast majority of people chose the truffle, which makes sense — most of us see a Lindt truffle as a special treat, and 15 cents is a fantastic bargain.
But in the second round, the researchers lowered the price of the Lindt truffle to 14 cents and made the Hershey’s kiss free. In that case, the results reversed themselves — most people chose the free kiss over the truffle.
The word “free” is like catnip for our brains, triggering a dopamine release at the prospect of obtaining something for zero effort. That’s why BOGO (buy one, get one) works so well. Even if a retailer structures the deal to make a profit — after all, nothing is truly free — the mere mention of free remains overwhelmingly enticing for the consumer.
Another effective tactic is the free sample. One study found that in terms of boosting sales, free samples decisively beat out other forms of in-store marketing, such as endcap displays in aisles. Furthermore, the sales lift from the free sample persisted for many weeks, while the effects of the endcap display fizzled after just two weeks.
Speaking of free things, take advantage of free POS systems that can help your business process and track sales.
Although Star Wars is a story of science-fiction, the tips presented here are rooted in science-fact. These Jedi mind tricks don’t tap into the mythical Force, but instead leverage consumer psychology. Savvy salespeople and retailers have used these tricks for generations, and for them, there’s nothing magical. But in today’s Big Data-driven world, it pays to understand the science of why these tactics work so you can fine-tune your business’s sales system.
You don’t need to wave your hand around like Obi-Wan Kenobi to persuade customers. Just give them a free sample.