As consumers and business owners, we’ve seen all shapes and sizes of sales and marketing campaigns. Some more successful than others. There are those that fail and those that are successful. But then there are others which are timeless. They continue to work even when consumers know whats happening. But why? Surly consumers would have caught on by now, right?
It’s simple, the best marketing campaigns and sales tactics in the universe are grounded in psychology and experimentation. Some of these tactics are so powerful that they affect us even when we know what their intent is. Let’s take one of the most powerful pricing strategies ever created. It’s called “Odd Even” or “Odd” pricing. You see it all the time. Products priced at $9.99 instead of $10.00. You know what’s happening when you see the price. You may think, “they are obviously trying to make me believe it’s a better deal than $10.” But in the end the psychology this tactic is rooted in is so powerful it still works on you, even when you don’t realize it.
So why is this? Simply speaking, our brains have many different centers, each is responsible for something different and works in different ways. For our brains to work the most efficiently and make decisions quickly it relies on certain centers to simply do their thing without reporting back to the other centers. For example, right now as you read this article your brain is using it’s shape center to identify words rather than each letter individually and combining them like you learned in kindergarten. Tahts one of the raeosns yuor biran can raed tihs snentnce even thuogh msot of the wrods are msiseplld.
Understanding how our brains work is so important when offering products and services to our customers. Not because we can take advantage of them or “trick” them into doing something. But so that they see our products and services as they were intended to be viewed. Odd and even pricing for example is a great way to show your customer quickly how you want to be seen in the market. If you want to compete on price then price your products as $59 or $9.99. This helps convey quickly that you’re a lower-cost solution over someone else. On the other hand, if you want to offer a premium service, price it at $60 or $10.00. It’s a quick way of telling your customers that you are higher quality than your competitors.
Of course, this all comes back to referrals as well. What we say about sending thank you cards, welcome notes and other important communication is not simply something that would be nice to do. They are all important things that have been grounded in research to appeal to specific centers in someone’s brain to quickly and effectively convey the message you really want to send. After all, you know that once someone understands what you offer and it’s value, the rest is easy.