9 Psychological Triggers for Sales and Brand Loyalty

Trigger #1 - Confirmation Bias

How Apple Uses Confirmation Bias to Keep Us Brand Loyal

Confirmation bias leads us to interpret information in a way that reinforces our

existing beliefs

Apple’s “This is 7” campaign targets existing iPhone users.

It compares the iPhone 7 to the iPhone 6 and not to any competitor brand

After all, you’ve already convinced yourself that there is nothing quite like an

iPhone!

Trigger #2 – Contrast Effect

How PC World Uses Contrast Effect to Demonstrate Value for Money

Is a £1749 TV good value or not?

Contrast effect compares the price that you see now with a higher price that

you have previously been offered in the past or might expect to pay in the

future

This PC World listing shows a saving of over £1000 on a high end TV

It costs £1749 but contrasted with its previous price it seems good value

Contrast effect comes into play with early bird discounts, introductory offers

and “piggy backing” on competitors’ campaigns. It is most often seen at sale

time as the example from PC World demonstrates

Trigger #3 - Total Expenditure Effect

How Toyota Uses Total Expenditure Effect to Demonstrate Affordability

The total expenditure effect works by spreading the cost over time of a

product that would otherwise be prohibitively expensive to buy outright

The Toyota Auris actually costs £22,845 but is yours today for just £116

deposit plus £329 per month for the next 3 and half years

To actually own the car in 42 months’ time you will have pay a further £7740

but by then Toyota expects you to start paying for another new car

The total expenditure effect works for smaller purchases too such as gym

memberships, car insurance or magazine subscriptions

Trigger #4 – Scarcity Principle

How Moss Bros Uses The Scarcity Principle to Stimulate Sales

People act fast when offers expire quickly or supplies are limited

This scarcity principle compels us to buy products that we don’t need

now for fear they won’t be available in future at such low prices

Ecommerce sites display messages such as “only 3 left”, car

manufacturers bring out limited editions and clearance sales implore

us to buy at “never to be repeated prices”

Additional time limited money off offers such as in the example from

Moss Bros add to the sense of urgency

Trigger #5 - Bandwagon Effect

How Trip Advisor Uses The Bandwagon Effect to Influence Buying

The bandwagon effect works because we tend to think that “if

everyone has one, I want one too”

As consumers, we want to be part of the in-crowd, buying in to the

latest trends and showing that we are in the “know”. In the digital age,

this insight is worth its weight in gold.

It is what lies behind the concept of “social proof”, is a key driver of

celebrity endorsements and it explains why 90% of online purchasing

decisions are influenced by reviews on sites such as Trip Advisor

Trigger #6 – Authority Bias

Under Armour is a challenger sportswear company that until recently

was little known outside of the US. That was until it partnered with

global superstars in sports that were not associated with its brand

Authority bias kicks in when an expert recommends a product or

endorses a brand thereby influencing our own purchasing decisions

Under Armour’s partnership with World Number One Andy Murray

has conferred social proof on its range of tennis attire helping it to

penetrate this segment and grow overall market share by 20%

How Under Armour Uses Authority Bias to Create Social Proof

Trigger #7 - Reciprocity

How Amazon Uses Reciprocity to Acquire New Customers

Amazon Prime is insanely successful. It gives away a one month free

trial and converts 73% into paying customers at the end of this period

This is Reciprocity in action. Our innate desire to return favours

obligates us to buy after we have sampled a product for free

It is why FMCG companies such as P&G post out unsolicited samples

of their latest products, why subscription businesses offer free trial

periods and why coupons are still in use 130 years after helping to

establish the fledgling Coca Cola brand

Trigger #8 – Loss Aversion

How Norton Uses Loss Aversion to Encourage Subscription Renewal

Loss aversion drives us to hold onto what we already have rather

than give it up for something potentially even better

The longer we possess something, the less likely we will let it go

This ownership effect is used extensively with free trials, subscriptions

and product support packages

Do you want to lose your protection against cyber criminals? Norton

thinks not

Trigger #9 – Self-Serving Bias

How Axa Uses Self-Serving Bias to Sell Car Insurance

When we make mistakes or when things don’t turn out the way we

planned, we tend to blame others or forces outside of our control

This self serving bias is what causes us to overestimate our own

abilities relative to others and cover up our own personal faults

A few years ago Axa exploited our self-serving bias regarding our

driving abilities. Cleverly, this UK insurer highlighted bad driving as it

sought to attract “experienced drivers” that it could reward with

lower premiums

Summary

Cognitive biases drive consumers’ purchasing behaviour

Understanding these biases enables companies to trigger sales and

brand loyalty

This presentation outlines 9 psychological triggers. There are many

others

For more insights on sales and marketing strategy please visit

www.chrisdunnconsulting.co.uk

Chris Dunn Consulting Services Ltd

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