Knowledge is power! Having access to the best available information is a vital aspect of almost any operation, but especially important in the competitive market.
Let me tell you my personal story. A few year ago, I got a task in building a marketing plan. Without ideas and effort, I choose a marketing strategy from a foreign agency and imitate slavishly for my business. If only I knew the marketing landscape changes rapidly. Lack of being up to date, none of them is efficient or adaptable for my business process. As a result, wasting stacks of money and missing countless sales opportunities! All that I did were so stupid.
Thus, before putting any marketing tactics or marketing strategy into place, check the date of the information you are using and consider whether it’s suitable or not to apply for your business at the time.
All old marketing strategies are rubbish… Thrown them in the bin!
Fewer Options, More Sales!
Believe it or not? If you give customer too many options, they often choose none and move on to something else because they slip into analysis paralysis. However, it doesn’t mean that you’re selling 50 products and eliminate 47 of them. That would kill your business.
So, how can you give people fewer options while maintaining your current catalogue?
Have you heard the term the chunking process? Instead of telling people “here’s all of my stuff”, you say “here are 5 categories of stuff”.
When you go shopping in a supermarket. There’s a deli, a dairy area, a fruit area, and so on. In each section, there’s thousands of products. Instead of showing everything, they chunk all of them into similar categories. According to an experiment, people see that when 24 flavors of jams are on display, 60% of the customers stopped for a taste test, however, only 3% of those bought. When 6 jams are available, 40% of the customers stopped for a taste test, 30% bought some. The sales increases by 600%.
Don’t forget: The larger display attracted more people while the smaller display sold more jam.
[yellowbox]What’s the chunking? Chunking, in psychology, is a mnemonic trick. For instance, need to remember exactly a random line of letters, for instance, M O P H I R V S P O E C H D. Easy? Absolutely not. But what will happen if we group all of them as MR PHD VS CEO IHOP? The same quantity with fourteen letters but five chunks. This helps anyone remember these letters easily. It’s the chunking![/yellowbox]
Online the same thing applies!
When you’re designing your mobile app, don’t simply create 1 million different categories. Instead, focus on the main areas by building specific resource pages like List Building. Instead of showing everything you’ve got, direct customer to the right places. Use resource pages and call out that send people to smart groups of products and services. Use no more than 7 different choice buckets.
Amazon is the best practical lesson for you. They are known with rigorous sales testing. Only showing up to a maximum of 6 books in their “customers who bought this also bought section.” I’m sure they tested it. Customers who buy jam are similar to those who buy books. (And your customers, too). They browse before they purchase.
As a primal urge, we look to others to determine what action to take. The less something has, the more people perceive it as a highly valued commodity and the more they want to buy it.
Marketers try their best to trigger cognitive quirks, like the scarcity to influence behavior.
A study conducted by researchers Worchel, Lee and Adewole found that
Scarcity can backfire if it’s not used carefully. The value of a product decreases if it first appears scarce and then becomes abundant.
You don’t want your audience to think that your product is for only an elite few at first and will open up to all people at a later date.
Eliminate any possibility of future abundance in the minds of your prospects. Either maintain the scarcity or gradually increase the level of abundance, without revealing it to your audience ahead of time.
Use a countdown clock on your product page with a limited number of products in a given time frame, or create a limited level of access.
Groupon, for one, does this with every single product. Right under the buy button, they say “limited time only,” with a countdown clock. So I know that if I want to buy this product, I have to act now.