Six psychological principles of good offer
I continue sharing non typical usages of Acumatica ERP with along explanations what is behind the implementation.
One of the companies wanted to have tracking inside of Acumatica ERP following principles, and they described to me them in a way similar to this:
1. Fear of loss. People hate to loose. Fear of loss is stronger from desire to gain. Sometime we refuse from some new opportunity because we are scared to loose something. It resounds in proverbs as well. Take for example this saying: a bird in hand is worth two in the bush. From that standpoint it's better to focus the offer not on benefits, which customer will gain, but on lost from not working with you. Add to this arguments on how to object regarding risks ( loses ) during cooperation.
2. Choice stuck. In 2000 Sheena S. Iyengar from Columbia University and Mark R. Lepper from Stanford University made a test. In one day in local supermarket they placed table with 24 kinds of jam, and on the second day only six. Which day gave more sales? Second! While first day had bigger crowds noise and interest. People have tendency for putting into offer plenty of options for cooperation, ways of usage of product believing that it will make their offer stronger. While in reality that increases level of interest, but decreases sales.
3. Social proof which was formulated by Robert Cialdini at 1984. I labeled it as fear of looking stupid. If person can't make a choice, then he looks on what others do. It's easier for self esteem to fail with others, then to fail in solitude. It's easier to make the same mistake that others do and fail, then fail and discover that you the only one who made this mistake. Based on this, include in your offer real life examples of your other customers in order to avoid such a problem.
4. Standard for comparison. In 90-th company Williams-Sonoma presented to market break making machine. All market research showed that 275$ is ideal price. But sales didn't happen. Marketing agency suggested them to bring to the market second model of bread making machine, but with double price. And suddenly they've got sales. How do you think, which of those bread making machines become best seller? Cheap or expensive? The first one for 275$. Coming back to offer and take home point is this: suggest to your customer other options of solving the task which cost much more or much less. Otherwise your customer will be puzzled is it good, or bad, cheap or expensive. But keep in mind point 2.
5. Fear of loosing something important. According to statistics it is known fact that as usually a bit more then 50% of tickets on events are sold in the last two days. The only important detail is not to create fake feeling of rush. For example saying like on the on line course left only X slots. Any offer may be strengthened with valid reason on why your offer has limited duration. And fake reason will make it weaker.
6. Old evil is better then new evil. It is actually unknown if something new is really good, or will become new and worse evil. That's why don't make huge pushing on words modern and new. It's better to compare with something familiar and understandable but with a new features. Your task is not to get recognition, that you are cool. Your task is to sale something. Raymond Loewy used in his designs similar principle, which he named MAYA - Most Advanced Yet Acceptable.
Now you may wonder, if those six principles are already implemented in Acumatica? Out of the box not. But just want to say that with one company we implemented those six rules over configuration of marketing campaign with validation of those six steps, usage of approval map and with adding of needed KPI. Does your ERP have it?