On my last blog post, I talked about the importance of setting parameters and labels. This time, I will add more in-depth analysis regarding other consumer behavior studies. I will discuss whether it is okay to reveal your mistakes or not. Also, I will talk more about creating a sense of urgency.
Acknowledge your weak points.
- You might say that’s suicide! No one likes the word “mistakes.” We have to avoid the committing mistakes, right? Customers won’t love a faulty brand.
- Fiona Lee, a social psychologist, shared that admitting deficiencies is actually a tremendous way of focusing on your effectiveness and ableness.
- In one study, there were 2 sets of fabricated company reports. Both reports had detailed explanations on why the company business had performed incompetently the precious year.
- The 1st report cited that some strategic decisions are the root cause while the 2nd report indicated external factors such as the dwindling economy, the powerful competitors, and so on.
- Upon reviewing both reports, the readers favored the first report compared to the second one. By admitting that the company miscalculated the strategies, it was admirable that they were honest about their shortcomings. It gave an impression that even though the performance was not good; the company is still in control despite the chaos.
- What is more surprising is that the stock prices of the companies, who owned up to their own shortcomings, went up. This is a clear indication that people don’t like blaming external factors. It seems like it’s just an excuse if you do so. However, if you know that there is a problem, you can address it right away.
- The moral lesson here is that IT IS OKAY TO MAKE MISTAKES. It is part of life. The important thing is that you admitted that you made a mistake and you are doing your best to correct the mishap. Be quick to admit mistakes because it means that you are in control of things.
Create a sense of urgency.
- According to Dr. Robert Cialdini, urgency is one of the 6 critical pillars of influence. Of course, when prices of a product go down, the demand for it will go up. Since the product is now cheap, people will hurriedly buy it.
- When there’s a huge demand for the product, it would also imply more money for you! Thus, creating “scarcity” is probably the oldest psychological trick yet it is still the most effective.
Related: How Limited-Time Offers Boost Sales.
- There should be a set of instructions given to maximize the effect of the perceived “scarcity.” The sense of urgency can be intercepted if you don’t give specific details on how to take action. Tell your customers what to do when there’s a sale or limited-time offers on your website.
- Make the “add to cart” button visible and obvious. Also, let them know the time limit of the promo to emphasize the urgent need to take advantage and buy the products while they are on sale.