How to use sales psychology to boost conversions

Businesses constantly look for new ways to increase their conversion rate. It is what drives the success of the business, and what builds your customer base. Without conversions, there would be no business. There are many different strategies at your disposal, but the most essential one is to understand your customers and what it is that they truly want. If you learn to properly use sales psychology to boost conversions, it will have a positive impact on your ability to gather leads and convert them, thus increasing your revenue at the end of the day. Here are some of the most important things that you need to keep in mind.

The worst thing is a missed opportunity

“Oh no! There was a discount on this programming course and I forgot it expired yesterday.”

Even though a client will probably buy the course at its regular price, they will remain unsatisfied because they spent more money. Another scenario is that they give up on buying the course. People don’t like a missed opportunity. The fear of loss is greater than anything. Once you understand this, you will understand the importance of free trials and limited offers.

If you ever wondered how to increase user engagement on your website, this is one way to do it. Loss aversion is a real thing, and people will jump at the opportunity to not lose their money.

An illustration of a human brain.
Understanding the behavior of your clients will help you to boost conversions.

You can use the same psychology trick by lowering the cost of a specific product you know your clients can get at a competitor for a higher price. If your competitor sells a service at $100 a month, and you do it at $80, people will save $240 a year by using your service. Let them know this!

Another way to use this strategy is to offer a higher price for a one-month deal and a lower price for a full-year service. For example, if you are selling a subscription to an app, you can charge $10 per month, but also offer $100 for a full year. This way your clients lose $20 if they choose to pay every month, and save $20 if they buy the app access for a full year. It is even better if you are offering a monthly subscription fee versus lifetime access. This way you can even charge a couple of hundred dollars for the app.

Learn how to deal with your worst enemy – confirmation bias!

One of the most difficult things to do is to change peoples’ minds. Once someone decides something, it becomes virtually impossible to persuade them into a different belief, even if they are wrong. This is confirmation bias.

Let’s say you are trying to pitch your product to a person who’s been shopping at your competitor’s place for years. They formed a strong set of beliefs around their products. Even though you are giving them enough proof that your product is superior, they simply won’t switch vendors.

This is a very common situation that happens to everyone. Confirmation bias has strong roots in peoples’ psyche, and you need to know how to address it. We want to show you how to increase lead conversion rate by applying the right approach in this situation.

Apply an epistemic approach

The first thing you need to do is step back. The harder you try, the harder you fail. One of the common pitfalls in this situation is that you start to argue with the customer, and that will not lead to anything good. That will not change their mind, and neither will challenge them.

A photo showing black and red question marks.
It is always better to ask the right questions than to tell people facts.

What you need to do is listen. Listen to what their goals and needs are. What are the things they see in your competitor’s product? What they don’t like about your product? The goal is to have an honest conversation and not a debate on whether your product is better or not.

Another thing you need to do is empathize with them. If you connect on a personal and emotional level, you have a higher chance of truly understanding their perspective. Act as if they are right and you are wrong. Try to see things through their eyes.

If all goes well, you will encourage that person to re-evaluate their opinion. You don’t want to change their mind. You want to apply an epistemic approach that will help them understand whether their beliefs are founded or not.

Pay attention to how you look – the halo effect

The first impression matters, and it cannot be changed. This is a very short rule, but a simple one. Sales reps need to look impeccable. Their clothing, speech pattern, and body language need to reflect all the best things about your business. It is important to:

  • be well dressed;
  • speak without long pauses or slang;
  • maintain eye contact;
  • keep your body posture calm and straight;

Provide social proof – the bandwagon effect

People need proof that what they are buying is good. No one wants to be a guinea pig. This need is so strong that people might do a lot of things just because “other people are doing it”. This is known as the herd mentality. While it can be a bad thing for the customer, it can also be a good strategy for your business. Provide links to testimonials, reviews, and references from trusted sources to show that your products are widely used.

Using fake discounts – the anchoring effect

Woman working on sales.
Speak with your sales team about what strategies to use to boost conversions.

This is a very common strategy today, and many people don’t like it because it feels like lying to the clients. However, it is very efficient.

If you sell a product at $50, but you tell your clients the original price is $100 and you are lowering it to $50, you are creating an anchor. This comparison point tells the client that $50 does not look that bad when compared to $100.

Use software to support your sales team

Even with the best psychology tricks, it is wise to use software to help your sales team. For example, adding a callback software widget to your app makes it easier for clients to reach out to the sales team. There is also an added benefit because you are adding an easy solution to make communication better. One of the things that people don’t like is when they visit a website and cannot find contact information.

That’s how to use sales psychology to boost conversions

We hope that this article has helped you better understand how you can use sales psychology to boost conversions. Understanding your clients will help you build a stable and profitable business for years to come. For more useful sales insights, be sure to consult our blog or simply reach out to the experts at ConvertMore.

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