5 neuromarketing TIPS for your business
This text is part of a new category of neuromarketing texts, in which we will explain small tips based on neuromarketing that can help you sell more in your business. In this text we will focus more on the part of the product and prices, and how small modifications in these can help your results to be better.
Because thanks to this new category of texts you will understand how the consumer’s brain works and how to focus your campaigns and messages.
To start this new section I wanted to ask you a question.
Do you think your customers buy rationally?
We always believe that our decisions are based on good reasons and acting mostly from rationality, but in reality this is not so. Often most of our decisions and actions that we make every day have a small rational participation, and according to studies our decisions are already practically taken before we are really aware of it.
Neuromarketing is accompanied by these studies on the human brain to develop techniques that if used in the right way, help you to better convey with your ads, products and consequently greater customer satisfaction. And as we explained earlier in this article we will show you some neuromarketing tips in relation to product and price.
1.Avoid several pain points in the price.
When it comes to pricing, try to offer your products or services in packages, which include several of them. For example if you have a restaurant, you could generate more cash per customer if you manage your different pieces of food by menus, this removes some of the pain from the customer’s shopping experience. Since if the customer sees that as he consumes the final price increases, he would probably not order all the dishes which contain the price of the menu separately, because that pain at the time of purchase is much greater.
Another clear example of this technique is the case of streaming platforms, which include their services in packs that are around 14€/month, unlike how it was before where it was rented by movies. In most cases people are spending more now with this type of platforms than they did before in the video stores, but as the service they offer is a pack in which everything is included, you do not have the pain of multiple individual points as in the case of video stores, in which you rented per piece of content.
2. The anchor effect
This effect is based on a cognitive bias caused by the human tendency to give more weight to the first piece of news when making a decision, and in this case we will explain it in relation to the price.
For example, you are walking down the street and in a shop window you see an evening dress for an initial price of 400€. And right next to it you see a new discounted price for the dress in which it is for 199€, this price for your brain is much more attractive than if it were only 199€. All this because you have put an anchor of 400€ to value this product, and seeing it then for 199€ makes the price cause a feeling of pleasure and much greater savings. If the previous price were not shown, there would be no comparison possible and, therefore, there would be no feeling of savings.
This tip can be used very easily in your business, but use it in the right way without misleading your consumer, since the most important thing in a business is to build customer loyalty.
3. Accuracy in pricing
The third neuromarketing tips for your business is price accuracy. As we commonly see in most large stores, prices like 19.99 are usually displayed more than round prices like 20. This is because studies over the last few years have shown us the reasons for the better response to the first price, and it has nothing to do with the apparent lower price, but rather the accuracy of the price.
This is due to our creation of a mental yardstick. Simply put, if you set a price of 20€, our mental yardstick, if it considers it to be overpriced, would value other prices such as 18 or 19. However, if the same product is worth 19.95, this yardstick is more accurate, also valuing prices such as 19.55 or 19.25, which implies that this change in the price that the customer considers your product to be worth and the real price would not be so different.
4. Use a lure
Offer your customers a similar, but inferior service at about the same price. Although it is quite unlikely that they will actually buy this decoy item you will see a possible jump in sales of the product or service you are really trying to sell.
Relativity is the element of decoy marketing. Our brain is not a good judge of absolute values, so it is always comparing benefits, and this is where decoy marketing comes in.
Lures change the customer’s possible decision when a subject is choosing between two practically equally attractive options.
Online magazine subscription – €59/year.
Print magazine subscription – €125/year
Online and print magazine subscription – €125/year
Studies by Dan Ariely prove that thanks to the lure of the print version for €125, most people, instead of subscribing to the online-only version as before, subscribe to the version that contains both.
5.Reduce the options in your offer
If there is too much choice in your business it is likely to reduce your customer’s purchases. Choice tires the chooser’s brain and can make the decision more difficult, so you have to make it easier for your customer to make the decision. It’s not a matter of having only one option, the goal is to offer enough options to ensure customer satisfaction, but not so many that the customer feels disoriented.
Customer orientation can be helpful in facilitating the customer’s decision in the event that you have a broad offering, as this can help alleviate the confusion created by this broad offering.
Another thing to avoid is similar choices, this causes customer frustration similar to when there are too many choices, as very similar choices do not offer the consumer any easy means to make that purchase decision.
As you can see these tips can help you improve your customer’s experience, and also make it easier for you to sell. In future articles on this topic we will discuss other neuromarketing tips focused on branding, direct selling, and many other areas of your business.
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