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One of the big mistakes I’ve seen businesses make is writing about their products using their competitors’ copy as inspiration.
So apart from looking exactly like their competition, they are also offering a very similar service. Which begs the question: How should the customer decide which one they are going with?
Sure, having different price points can be a good selling point, but what if they aren’t strategically and psychologically placed in front of your prospects’ eyes? More importantly, how do you know what they have written and how are they bringing the conversions they need?
On that note, I’ll go ahead and get into five proven psychology tips that I always follow when writing copy for my clients, which will help you optimize your copy so you stop leaving money on the table. .
These tips can help you whether your business is service-based, product-based or software as a service (SaaS).
1. Anchoring Bias
One big mistake businesses make when showing off their pricing options is showing their low-priced, or even free, options first.
I understood. They believe that by showing their lowest offer first, they will position themselves as market leaders serving everyone with competitive price points. This is, however, not the case.
Studies show that people’s decisions are much more influenced by what they see first. Therefore, in this case, their decisions will be influenced by the first pricing option they see, which will become a subconscious reference point for other pricing options.
Of course, anchoring bias can be implemented in marketing and copywriting in a number of ways. In fact, I could just write an entire article on anchoring bias. But right now, I’m only sharing one action item.
What do you do: Show your most expensive pricing option first. This will become the reference point (your noose) and prompt them to choose another plan.
RELATED: 4 Psychological Techniques That Can Improve Your Product Pricing
2. Serial positioning and primacy effect
Now that you know which pricing option goes first, how do you organize the benefits of each offer? Welcome to the serial positioning and primacy effect.
As I said before, studies show that people remember the first and last few items on a list. This is known as the serial positioning effect; The first few get stored in their long-term memory, and the last few get stored in their short-term memory.
However, the last few items diminish over time, leaving them with only the first few items. This is known as the primacy effect.
What do you do: Now that you know the proper ordering (most important first), you need to voice customer research and figure out what benefits your customers want the most. Once you do, you’ll be one step closer to optimizing your offer positioning for more conversions.
3. Avoiding Loss (FOMO)
The “FOMO” (fear of missing out) of modern times is actually loss avoidance. However, it goes deeper than just the fear of missing out. The feelings associated with losing something are twice as strong as those involved in gaining something.
Our desire to avoid pain is more important than our desire for enjoyment and gratification. Avoiding the negative feelings that come with loss is a strong motivator for us to do something.
We can also be very irrational when making decisions based on the fear of losing what we want at the moment. It’s easy for marketers and business owners to add crunch to their offerings without understanding what it means, but now you know.
What do you do: Offer limited time pricing. Offer a competitive pricing deal that’s closing soon, or decide to increase your pricing and lock them at today’s current pricing.
RELATED: The Role of Memory in Customer Support
4. Time vs. Money Effect
What do you value most: time or money?
One study shows that people respond more positively to sales pitches that refer to time rather than money.
My theory is that time is limited, whereas money is the exact opposite. That’s why business owners value time more than money. Also, I firmly believe that time has more emotional meaning than money. When it comes to positioning your product, you want to consider it.
What do you do: Instead of focusing on your copy how much money they will save, focus on how much time they will save. How many hours of their day will they get back? How many days of the week will they get back so they can spend more time with their family?
5. Center Stage Effect
This psychology tip complements the anchoring bias, which is first on this list.
Research shows that when we are presented with several options we often go with the middle option, especially when the choices are not vastly different, and the benefits of each are clear to the person making the decision.
What do you do: Let’s say you have three pricing tiers. The first one will be your most valuable, probably a noose. The middle one will be the one you really want them to choose, aka your money maker. The last one will be a low cost offer with basic benefits that will only work for a small number of individuals.
RELATED: How to Choose a Pricing Strategy for Your SaaS Business?
Now take a look at your current copy and see where you can apply the psychology tips mentioned above. Ease!