customer psychology

Understanding Customer Psychology: 9 Ways You Can Use It To Increase Sales

Khyati Hooda
By Khyati Hooda 13 Min Read

If you’re reading this, you probably have an idea for a product or service that you want to sell. You may not be sure how to choose the best marketing channels or pick which products to sell. No matter your business, there will always be something that keeps you up at night: who are my customers? How can I convince them to buy from me? How can I get them to tell their friends and family about me? And most notably, how can I know about my customer psychology?

Luckily, we live in a time where technology provides us with all sorts of data on our potential customers, so we know exactly what they want. This blog post explains how to understand your customer’s customer psychology and sell products and services that meet their needs.

Understanding your customers 

There are five ways to understand your customers better. Understanding them is the key to giving them good service, resulting in strong customer relationships and word-of-mouth recommendations that lead to new sales through positive feedback. 

However, understanding what drives them can be difficult. It requires a thoughtful analysis of their preferences or purchase patterns so you can anticipate their needs and exceed expectations for more purchases from your business.

Step-1: Analyze The Behavior Of Customers In Real-Time

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Today’s expectations are for a seamless experience across traditional and digital touchpoints. A business needs to anticipate the customer’s need to serve them on all platforms even before placing their requirement.

And this can only happen when you have a tool that gives you insight into how customers behave, so that is why experts suggest investing in Customer Relationship Management software (CRM) with robust features such as email marketing functionality – one of the best 

examples being real-time tracking. 

Many renowned CRMs offer email marketing functions with real-time tracking capabilities, allowing you to track each campaign result through fields such as Total Sent/Attempted; Opened/Viewed; Link clicked; Unsubscribed from your list(Bounced); etc.

Companies can now use simpler and “easier-to-use” CRM technology to extract, blend, analyze real-time customer data for their preferences. They can also identify customer preferences and purchase patterns to predict future needs before customers say so. This is mainly attributed to prominent players like Amazon (and others).

Step-2: Analyze Your Customers According To Their Categories

Putting your customers in the same category will only lead to cross-marketing campaigns that do not provide any valuable results. It’s essential to understand the different parameters to segregate and categorize your customers. 

For example, what type of product or service they buy, how often they purchase products/services, their location. These are some parameters on which we can classify our shoppers for better marketing and cross-selling campaigns targeted at them. Such campaigns drive more value for both your business and your customer base!

Step-3: Use Social Media To Engage Customers

As seen in IBM’s study, consumers are active on social media channels for no less than six hours per day. This means that social media is an indispensable factor in shaping and influencing people’s opinions. 

In this situation, every company should invest exhaustively in engaging with their target audience and customers through all social media platforms because they represent the best place to reach them. 

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Tip: Avoid using push-marketing techniques like other traditional platforms where these tactics can work well; instead, use compelling campaigns that include natural elements here instead of misinformation or “fake news.” We recommend using Social CRM tools for running a campaign across different leading networks without having to log in to each one separately!

Step-4: Take Advantage Of Interactions With Customers

This is one of the best times to get a peep into your customers’ psyche. So frame a questionnaire and hand it over to your customer service representatives. On every occasion when they contact you, they can ask queries about their likes and dislikes about how your product or service is used – for example:

  • How are we using the product? 
  • Are we satisfied with our usage? 
  • What changes would be good in regards to this product/service? 

Practicing this experience regularly will help accumulate data that can be used to frame targeted messaging.

Step-5: Consider The Preferences And Tastes Of Customers

Nurturing your customers with informative content about your product/service is good, but don’t limit yourself to that. Sometimes facilitating the generic interests of our customers serves a great purpose too. It gives the impression that you are attentive to our customer’s needs and brings them closer to us! 

Many startup ventures follow this policy where they use consumer data in CRM databases to frame materials or resources that resonate with their clients’ other interests. 

For instance, sharing articles about the newest trends happening in some industries unrelated to the company’s products or services generate multiple opportunities for creating conversations threads with those who buy from us and those we interact with on social media platforms such as Facebook and Twitter.

9 Ways You Can Use Customer Psychology To Increase Sales

Humans share the same psychological and emotional triggers, such as gravitating toward pleasure instead of pain or amusement rather than boredom. Retailers can utilize various techniques to influence shoppers’ behavior, like increasing conversions during the holiday season and year.

Step-1: Always Use Reciprocity As A Principle

The principle of reciprocity is the idea that when you give to others, they are more likely to want to give back. Retailers have been using this technique for ages in their stores- from grocery store samples which lead customers into purchasing items, all the way up to gift with purchase promos.

Customers who receive free samples or trial-size items are much more likely than before to return and make other purchases and share positive feedback through social media.

Step-2: Design Your Content To Appeal To The Senses

Consumers want a complete, multisensory experience when they visit a retail store. Appeal to their senses and maximize your sales! We all know that what we hear and smell can significantly affect our mood.

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When it comes to holiday shopping, shoppers expect the classic sounds of Christmas carols in stores or other background music, which boost moods and embody the season’s spirit. Such as hot cocoa scented aromas or festive visuals like artificial snow on walls or fake twinkling lights on trees.

Step-3: Take Advantage Of Novelty

It is now known that dopamine- a natural “feel good” chemical- is not released when you receive a reward but rather when the anticipation of the reward. Waiting in line for hard to get concert tickets or being one of the first people at an event is all about feeling good before it happens.

Retailers have found ways to capitalize on this by using novelty and creating hype around release dates for new products or styles they want to sell more of. They plan big reveals for recent items/events with plenty of built-up anticipation!

Step-4: Create A Sense Of Urgency

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Nobody likes to feel like they are missing out, whether on a great deal or the newest “it” item. Retailers can encourage early holiday shopping by creating urgency. Limited release products, doorbusters, and special one-time-only in-store events are ways to get shoppers to purchase now, which helps boost sales.

Step-5: Offer Discounts 

Year-round, but especially during the holiday shopping season, consumers can’t get enough of little extras. Beyond a gift with purchase, these extras are all about enhancing their experience. Offer water or coffee while they are browsing. Provide seating near change rooms for companions and consider creating an area for children to participate in coloring and crafts while parents shop unhindered.

Step-6: Create A Sense Of Community 

Giving back to the local community is a great way to show your customers that you care about them. This year, sponsor a toy drive or card shower for military individuals serving overseas during the holidays. Foster that sense of community all year round with customer appreciation events and loyalty programs such as “Buy One Get One Free” sales on certain items.

Step-7: Expand Exclusivity 

People want in on the “thing” that’s exclusive; we all like to feel special, and exclusivity is critical. It’s easy to showcase an item and promote it by including visual merchandising. Set up a prominent display, use signage that highlights the importance of the product (something only offered for holidays or something solely available at your store), or even hold a customer appreciation event after hours!

Step-8: Show The Social Proof

Worldwide, 3 billion people are active on social media. They use it to find out about brands and new products. If they’re unsure of what to buy, they might turn first to social media before visiting the brand’s official website for more information.

People post regularly on Facebook or Instagram about what they like and dislike with a product or service- this is called “social proof.” Tracking these posts and sharing them in-store via digital displays can be helpful for shoppers who want an opinion from other consumers than just their thoughts!

Step-9: Create Tranquility And Calmness

When we’re sitting wrapped in a cozy blanket on the couch, sipping wine, and shopping online, it’s easy to take for granted that customers can enjoy an equally as luxurious experience when they shop at your store. Clean stores provide the opportunity to create a calming environment; clutter isn’t calming!

Utilize other psychological tactics such as providing sensory stimulation opportunities like appealing to shoppers’ senses by including decorations and displays with color, sound, scent, or taste. 

These retail techniques will help increase sales during this chaotic holiday season where retailers have not just one but many competitors -namely those who are selling products from home via eCommerce sites. Try these customer psychology tricks this Christmas season and see how well they work out for you!

Conclusion

Customer psychology should inform your marketing strategy how you run your company. Understanding others and speaking their language will positively impact all aspects of a business, including product quality, sales numbers, and customer satisfaction.

We hope we helped you think more about the importance of understanding customer psychology to create better products for customers, leading to increased revenue at work!

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Posted by Khyati Hooda
Khyati is an entrepreneur, marketing consultant and growth hacker. She helps sustainable revenue growth through marketing for SaaS and subscription companies. Her expertise lies in building scalable customer acquisition strategies and implementing effective digital marketing campaigns that drive high-quality, low-cost leads for startups. Khyati has managed over $50M in marketing budgets across various industries including technology, finance, education, retail, consumer goods and more - successfully delivering over 15x ROI for her clients.
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