Can your business operate successfully without any customers? Of course, not! Customers are the key to success and popularity of any business and therefore, plays an increasingly significant part in the successful working of the business. As a famous saying by Peter Drucker also quotes, “The purpose of a business is to create a customer”. Without customers, businesses would shut down and might even suffer bankruptcy.
The only way to win customer’s heart is by knowing what they want, how they want it and when they want it. For this reason, social psychology plays an important role in helping businesses understand their customers and come up with a product accordingly.
ATB works with many different types of clients, ranging from those who need our assistance on a one time project to those who utilize their complete IT support team. This branch of psychology basically deals with studying how people think, feel and behave in a specific social setting. Studying the human behavior in a certain situation allows businesses to function exceptionally well by designing proactively formulated kick-ass strategies.
For several decades, businesses have been deploying the knowledge, generated as a result of social psychology studies, in a number of areas from management to marketing to product placement, selling of a product or in becoming an efficient and charismatic leader.
If you are a business looking to expand the sales, ace on negotiation and become an excellent leader, don’t worry you won’t need a Ph.D. degree in psychology but an elaborative view and keen interest in the top social psychology tactics for 2018 can help you win the game. Let’s have a look at the hottest tactics for 2018:
Social Pressure Likely to Be Increased
Humans are, as a matter of fact, social beings. Humans prefer not being left behind their group of peers and social gatherings. 2018 will embark increased buying as a result of social pressure. This generation of today, i.e. the Millennials, like to be considered an important part of the group and for that reason, they try and nurture a ‘know-all’ kind of attitude.
It is vital in this turbulent market, where numerous options are available for the customer to switch to, to foster a positive and influential word of mouth regarding your business and products. Social psychology allows you to create a situation where potential customers feel the need and pressure to become real customers. This can be best seen if one friend buys an iPhone, every friend in the group wants an iPhone too. This is a great area for businesses to capitalize on.
Try Using the Foot-In-Door Principle
The market and its dynamics have altered largely. Previously, people were less involved in their buying decisions and seldom performed any research. This market of today is much more informed and usually get annoyed if any information is bombarded with them. They like to take their own time in getting to know the product rather than a sales pitch being hit at them. To cope this up, the key is to deploy the foot-in-door principle. This is the best technique to convince people.
This technique refers to getting people do something major if they have already done something smaller. Several companies are already using this technique in malls where they set up their small kiosks. Instead of continuously selling the product, the salesperson makes the customer try the product. This way, the salesperson gets their foot in the door and the customer is most likely to purchase from you.
The Lasting Effects of Reciprocity
The effects of reciprocity are extremely efficient and the phenomenon works almost every time with the majority of people. This aspect of social psychology is gaining ground as more and more studies are conducted on it and its positive impacts are becoming widespread. As a study suggested, 20% people send back Christmas cards to people they don’t even know because they received a card from them.
This is an area that can be capitalized by businesses where they can create an environment, marketing campaign and even make this a part of their ethos showing that they care about their customers and their prosperity. This is likely to increase the customer base by 78% because customers will feel that the company cares about our needs and requirements and will reciprocate the favor by purchasing your company’s products.
The Scarcity of a Star Product Might Actually Increase the Sales
A human trait that has existence decades, they don’t like to be left out and they want themselves to be socially accepted. This is especially true when being left out would make them one of the few people who doesn’t own a specific product.
Businesses in 2018 are deploying this technique and advertising scarcity of a product that has been experiencing sales boost to make the potential customers hit the order button. Motivators, such as, “Stock selling fast. Get yours now”, have proved to increase the customer conversion rate by 65%.
An actionable tool for social media & social psychology
Social media serves as an excellent medium of social interactions and a number of people, in this digital age, rely on the social media platform to get product reviews and research. These social media platforms help businesses connect with the customers and interact with them, fostering a friendly and caring environment.
This is where the concept of reciprocity also steps in. If a business arranges a Facebook or Instagram giveaway, many people will take part and a lot will show interest. This way, your company will appear in people’s newsfeed as a company which takes care of the customers. And as human nature, customers will reciprocate by purchasing your products and by becoming positive brand ambassadors.
The market today is majorly comprised of the millennials and marketing the company’s message across to this generation requires a smart approach. As social psychology also advocates, a cold-call or bombardment of advertisement can actually drive the potential customer away. Similarly, anything that might come off as a sales pitch may also irritate the customer. Research shows that few people were contacted to become a volunteer at the American Psychological Association (APA).
People who were warmly welcomed before the call agreed to the volunteering whereas, people who were given a cold-call refused. This is very critical for businesses to understand because the selling of their product depends majorly on how the message is passed on to the customer. Customer must feel related and linked to the product. This way, they will not only buy the product themselves but will also help you increase the sales as a result of positive word of mouth.
Understanding the psyche of the customer is of utmost importance for any business to achieve heightened success. Customers are at the center of any business and exploring their changing dynamics can help your company become the best in the business. Social Psychology plays an increasingly important role to gauge different human behaviors in different situations. In 2018, upfront and personal interaction with the customer is extremely important. Customers prefer those companies which have a giving attitude and, in return, the customers reciprocate by becoming a loyal customer.