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Psychological Concepts To Grow Your Business Effectively

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Feb 12, 2020

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Psychology is an important part of business, and therefore you see many businessmen learning more about it.

It plays a big part when the customer is deciding whether to work with a given business or not. The last time you opened a book on psychology might have been back in college. Studying psychology means learning how people think and what can deter or motivate them.

Some psychology concepts have been shown to be effective when running a business. You will increase your chances of success by using them.

Psychological Concepts To Grow Your Business

When properly applied, psychology will help in motivating your employees, hiring intelligently, expanding and growing, effective negotiation of contracts, improving the performance of your staff, marketing better, bringing in more customers, and helping your business reach its goals

Below are some psychology concepts that will go a long way.

Reciprocity

This is where when you are given something by someone, you start getting a sense of indebtedness and you start getting the sense of giving something back.

Start by coming up with your objective then identifying the thing you want from the other person. Look for something you can give them.

Using the psychological concept of reciprocity is going to be effective when it comes to dealing with customers and partners. You should invest time in the process because it determines the results you are going to get. Try looking at things from the point of view of your customer or someone you need a favor from.

Commitment And Consistency

The principle of this concept is that people go to great lengths to be consistent in their actions and words. If you commit to something, there is a good chance of going through with it, even if what you are committing to is irrational

You can apply the concept by getting people to commit early, whether in writing or verbally. It can be as simple as getting them to sign up for their emails. There is a good chance they are going to purchase from you.

Social Proof

The principle behind this concept is people tend to like something that other people like as well, regardless of whether we know them or not. There is a higher chance of people purchasing something when it has been recommended by someone they know and trust.

You can do this by creating a “buzz” about the product. Look for influential people in the industry to support the product. Use testimonials and ratings in your marketing materials because they can help in demonstrating your popularity.

You can also include the number of people using your product. You should also ask the customers to leave reviews and talk about the product on their social media platforms.

Liking

People tend to be influenced by the people they like. There is a higher chance of someone saying yes when asked for something by someone they feel a connection with. It is important to focus on building trust with prospective customers and behave consistently.

You should work on creating a brand personality that customer finds happy, professional, and sociable. Make sure there is an “About Us” section on your website so that the prospective customer can start feeling connected with the company. You don’t have to invest all your time and effort in selling your products.

Authority

People tend to respond to people who have more authority. Therefore, employees will always do what they are told by their boss. Things like job title or uniform can easily determine the influence of a person.

Try getting support from people considered influential. Network a little more, especially with people who might be good contacts. During the marketing of your products, you can be able to increase your sales by using this psychological concept.

Highlight some of the influential customers using your product, get comments from experts in your industry, abs discussing data-backed findings. Some other things that have been shown to help with authority are clothing, impressive offices, and hand-outs.

Scarcity

This principle behind this is that items become more attractive when it is harder to get them, or someone might lose the chance of acquiring it. The thought of losing out on something motivates people. One way of using this concept is reminding people what they stand to miss out on if they don’t act fast.

Have a clocking date for a special offer, limit the availability of your product, or creating a limited edition of your product. You should make sure people know how they can find your product or service, especially when you use this concept.

Final Thoughts

Psychology can be one of the best tools to use in running your business. You will start noticing some improvements both in your employees and customers. Use the above psychological concepts and you will start to see great results.

Chris Scott

Chris Scott

SEO Professional, Internet Marketer

I am the owner and founder of Brand That Name SEO. I have over 5 years of experience in search engine optimization and internet marketing. I am always learning new techniques and testing them on my own websites. I have a burning passion for SEO and helping business owners grow and achieve their goals. Get in touch with me and let’s have a chat about how I can generate your website more traffic, leads and sales.

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