Psychology is an essential element of modern selling. Understanding what triggers people to buy makes the difference between a sale and a failure. A desire to buy involves more than logic - it involves emotion as well as deep human psychology.

According to master copywriter Joe Sugarman, 95% of buying decisions are subconscious and "knowing the subconscious reasons why people buy and using this information in a fair and constructive way, will trigger greater sales response - often far beyond what you could imagine."

Much of the knowledge in this tactic comes from two experts in the science of psychological persuasion. The first is Robert B. Cialdini, a Professor of Psychology at Arizona State University. Cialdini's book, Influence: Science and Practice is perhaps the single most important book on business one could read.

The second expert is Joseph Sugarman, the best-selling author and top copywriter who achieved legendary fame in direct marketing and ran a highly successful mail-order company in the 1980s, JS&A (the forerunner of The Sharper Image).

Joe learned on a mass scale which ad approaches worked, and which ones didn’t. He studied the ads that achieved a high degree of success, and discovered that they were clearly successful because of certain underlying psychological triggers. He identified 30 of these triggers that activate psychological forces buried deep within the subconscious brain, and cause people to buy. His book "Triggers" is also highly recommended.

Before we build or launch any new website we analyze our business concept to see how well our idea will sell. Our framework for this discussion is based much on the works of Cialdini and Sugarman.

In this tactic, we'll share with you how we think about products and how to design websites that convert based on the understanding of human psychology. How powerful can these factors be?

In the words of Joe Sugarman:

"I recall a time when I applied one of these subconscious devices by changing just one word of an ad, and response doubled. I refer to these subconscious devices as psychological "triggers." A psychological trigger is the strongest motivational factor any salesperson or copywriter can use to evoke a sale."

The Six Factors of Influence

When designing a new site and business model we develop our site around 6 elements of influence identified by Cialdini. These are psychological factors that help make a product desirable and push people to want it.

Is it unethical to use these factors?

It depends on what you're selling. If your product is flaky and useless and you refuse to honor guarantees and refunds, then you're being unethical.

But if you sell a product that's of high quality, you provide a fair way for consumers to return the product if they are not satisfied and only make claims that you can meet - then you're being fair.

These 6 factors however, can be manipulated. When you read about these tactics and understand how they work, you'll also help make yourself immune to unethical businesses that chose to use them to unfairly sway buyer behavior.

Here are the six factors of influence. As you read this, we want you to think about how each of these factors can be used to enhance your site, product or service.

1. Commitment and Consistency
2. Reciprocity
3. Social Proof
4. Liking
5. Authority
6. Scarcity

We'll discuss each factor in detail in this tactic and show you how to use them to boost your sales. Let's start with Commitment and Consistency.

1. Commitment and Consistency

The principle of Commitment and Consistency implies that people rarely go back on their word. It means that when you say you're going to do something, you generally do it.

Here's a powerful example of this principle at work: Psychologist Steven J. Sherman called a sample of residents in Bloomington, Indiana, and asked them what they would say if they were asked to volunteer 3 hours of their time to collect money for the American Cancer Society.

Of course, not wanting to seem uncharitable, many of the survey takers said that they would agree to donate the time. The consequence of this subtle commitment was a 700% increase in volunteer rates a few days later when members of the American Cancer Society came knocking on doors asking for volunteers.

Companies such as Toys-R-Us use this same principle in marketing. Toys-R-Us ran a competition for children, asking them to complete the slogan "I Like Toys-R-Us because __________."

Winners would get a 3 minute all-you-can-grab shopping spree at a local branch. Of course, given the rewards, many parents eagerly jumped in to help their children complete the slogan (or to write slogans themselves and then say these came from their 12 year old). But Toys-R-Us did not seem to mind - because it gained huge sales from this marketing experiment.

Toys-R-Us not only received hundreds of customer testimonials from parents and children alike - but it psychologically got these children and parents to commit to shopping at their local Toys-R-Us branch. After all - they had written down why they loved the store. Why shop anywhere else?

You'll notice many brand name companies running such competitions. Why? Because they work wonders in helping people commit to a brand psychologically - whether they intend to or not.

Here are some examples of how various websites use the commitment and consistency principle.

Many ecommerce sites use checkout systems that offer upsells. You buy a product advertised and just before checking out you get a message "If you liked Product X, why not add Product Y to your Cart for only 30% more?"

These types of upsells can have high acceptance rates. The customer has already committed to making a purchase. Once they do, it's easier to get the customer to commit to adding more items to their shopping basket.

You sign up for a free course or download a demo software. After several days you get an email asking you if you liked the course or software. The email goes on to suggest that if you liked the product you might want to upgrade to a full version.

We've seen this type of strategy boost sales by 96%!

At the end of a free course or software trial period the customer gets an email from the site not asking for a sale, but asking for the customer to respond with feedback on the product. These feedback emails are then read and if the customer says anything positive, a customer support agent sends them a pre-written email thanking them for their endorsement and offering them 10% off if they make a purchase immediately.

Because the customer has already typed out an email message stating they liked the product, a very high percentage actually act on the thank you offer. After all, if they do not act, they would be going against their own word.

2. Reciprocity

The principle of reciprocity implies that people dislike feeling indebted to someone else and have a strong desire to repay this debt. The rule requires us to repay in kind what another person has given us.

Businesses sometimes use this rule with stunning efficiency. A good example is Amway Corp. Amway sells households products and grew from a basement operation to a behemoth worth $1.5 billion. Part of its sales strategy involved a device called a BUG - which was nothing more than a basket containing free samples of various Amway household products.

A confidential Amway Career Manual instructs its salespeople to leave the BUG with prospective customers "for 24, 48 or 72 hours with no obligation to her. Just tell her you would like her to try the product...that's an offer no one can refuse."

At the end of the trial period the Amway representative is to pick up the BUG and take orders on the items the customer wishes to purchase. Since few customers use up the entire contents of the BUG, the rep can then pass the BUG to the next customer down the line or across the street.

Of course, when the customer receives the BUG and starts to use the free products they get trapped in the reciprocity rule. Orders soared. The bug created sensational sales growth for Amway with one distributor calling it "the most fantastic retail idea we've ever had. On average the customers purchase half the total contents of the BUG when it is picked up....in one word, tremendous!"

The reciprocity rule is deeply powerful and influences us in many way. A variation of it is the "Reciprocal Concession" sales tactic.

Let's use an example from the hit TV Show South Park to illustrate. The character Cartman and his friends are knocking on doors to offer snow-shoveling services. Cartman asks his first prospective customer "Ma'am, would you like us to shovel your yard? It's only $15,000." The kind lady replied, "I'm not sure I'd pay $15,000 for a shoveling service."

Cartman replied, "Well, would you pay $15 then?" and the lady agrees. $15 is a lot more than shoveling services usually charge and Cartman, delighted, turns to his friends and says "See, I told you it would work."

Cartman just applied the old "reciprocal concession" sales strategy. This works on the principle of reciprocity. By conceding to come down from $15,000 to $15, Cartman made the lady feel like he had done her a favor.

This in turn compels her to return the favor by taking him up on his lower, yet still significantly overpriced offer.

Reciprocity in Ecommerce

Free Downloads

Giving away free training courses or free software downloads works wonders partly because of this rule. Giving a visitor a few free chapters of an ebook can make the customer desire to repay you by purchasing your book at a later date.

Many ebook sellers on the internet employ this tactic.

Many websites, knowingly or unknowingly, use this rule in email marketing. Often, when you subscribe for an online email course, you will be sent an email at the end of the course suggesting that if you liked the free course, you might want to invest in the full product. This email employs the principle of reciprocity and the principle of commitment and consistency. The next step of the sales tactic is the reciprocal concessions tactic.

If the subscriber does not buy, they get an email a few weeks later with the subject line "John, What went wrong?" The email goes on to ask why the subscriber did not take the site up on its first offer. The merchant then offers to lower the price, provide a bonus gift or offer a payment plan. This type of email usually generates further sales - often a boost of up to 20% or more.

3. Social Proof

Social Proof states that we view something as being correct to the degree at which we see others doing it. In other words, people decide if something is good or bad in a given situation by observing what others are doing.

The principle of social proof can be used to influence someone to act on something by showing them that others are also doing so.

Social Proof is strengthened under two conditions. The first is ambiguity - if people are uncertain about something, they are more likely to look to others for guidance. The second is similarity. People tend to follow others who are similar.

One common example of social proof in action is television laugh tracks. TV studios add fake laughter to many sitcoms because they know that the audience at home will find the scene funnier than it should be - simply because of the canned laughter.

You'll also notice this principle in many ads where the manufacturer states that their product is the 'fastest-growing' or 'best-selling.' They do not need to speak about features - often just the idea that others are clamoring for the product makes the ad viewer desire it more.

Social Proof in Ecommerce

Testimonials on Websites

One of the best examples of this rule in action on the web is the prolific use of testimonials on ecommerce websites. The testimonials let a visitor know that the product is in demand and that others are desiring it too. They do wonders for increasing sales.

Another use of this rule is on ecommerce sites that have large online communities. The site owners let the new visitor know about the size of their communities - this is another indicator that others are using the service or product. If you have a large online community discussing your product or service - announce this fact on your site.

Many sites make announcements such as "20,000 downloads in the last month" or "250,000 subscribers since 2003." These too, help convince new visitors to make a purchase or subscribe by relying on the power of the principle of social proof.

4. Liking

We are influenced to do things for people we like. It sounds simple and obvious, but this principle has profound effects on how companies sell their products.

Individuals are more likely to say 'yes' to people they know, they like and they see a similarity with. Many companies use this principle and increase their overall attractiveness and likeability to induce more sales.

One of the biggest examples of using the liking factor to generate sales is the Tupperware company. Tupperware was selling $2.5 million dollars a day of their plastic food storage containers through an ingenious scheme called 'Tupperware parties.'

Tupperware would encourage women to host Tupperware parties during which the host would invite a few friends over and a Tupperware representative would demonstrate the features of the Tupperware products. The environment is usually friendly and food and drinks are served. The guests know full well that the host benefits by gaining a commission on all sales of Tupperware products that occur at the party.

Cialdini mentions the frustration that some of the guests go through. One guest commented:

"It's gotten to a point now where I hate to be invited to Tupperware parties. I've got all the containers I need, and if I wanted more I could buy another brand cheaper in the store. But when a friend calls up, I feel like I have to go. And when I get there I feel like I have to buy something. What can I do? It's for one of my friends."

The Tupperware company likes to boast about their air-tight seal that bonds the lid and container on their products. But it isn't the seal that drives their sales - it's the bond between the guests and the host of the Tupperware party. This is the factor of 'liking' used in its purest form to influence sales. The guests buy because they know and like the host.

The liking factor can also be observed in restaurants when it comes to tipping. Studies show that a waiter can get a larger tip out of a customer by simply including a mint or sweet on the tray when they bring the bill. This seemingly small gesture can bring huge dividends by making the waiter more likeable - and by inducing the principle of reciprocity.

The principle of liking extends to association. A company can create a positive association with their brand and use this principle of likeability to influence consumer behavior.

A good example is Google - their feel good environment and "don't be evil" motto gained them a lot of loyal followers and helped them drive their market capitalization to a giddy $100 billion.

The principle is also used very effectively by credit card companies.

Have you ever wondered why credit card companies insist on plastering their logos almost everywhere? Consumer researcher Richard Feinberg did a study to see if the presence of credit card logos induced people to spend more. What he found was highly disturbing.

First he discovered that restaurant patrons tended to tip more when paying by credit card rather than cash. In a second study he found that students were willing to spend up to 29% more on items in a mail-order catalogue when they examined the same items in a room that contained some MasterCard insignias.

Yet another study shows that when diners were presented with bill trays that contained credit card logos, they paid significantly more in tips - even when paying in cash. What's going on?

It seems that merely seeing a credit card logo can induce consumers to spend more. Could this be a reason why so many websites insist on plastering credit card logos all over the checkout process?

The Principle of Liking in Ecommerce

Offering Free Gifts, Lessons or Software Downloads

In addition to employing the principle of reciprocity, this tactic also uses the principle of liking. If you're giving something away for free you make yourself more likeably in the eyes of the consumer.

We discuss this in detail in the tactic on Creating Trust. Kate Schoeffel runs a successful site called Family-Pets.com that sells Australian dogs. On Kate's "About Kate" page she not only sums up her qualifications as a dog breeder, she also includes pictures of her husband, children and pets. Seeing someone share their family photos like this builds a lot of trust.

In addition, by showing pictures of her family and pets she makes herself more similar to her target audience - people who love dogs and are looking for a safe family pet like a Labradoodle. One of the things that make the principle of liking work best is when the person who is the object of our liking is similar to us.

You can use this principle on your site if your product or service caters to a small niche. Let your target audience know why you're similar to them. For example, if you sell horseback riding books, mention your passion for horses on your site and make your personal profile relate to your audience of equestrian enthusiasts.

You'll notice many good websites keep their copy personal and chatty. They avoid business-speak and boring corporate terms. Corporate lingo does not reflect a personality - but personalized chatty writing helps you come across as a human being and makes you more likeable.

You'll notice many top ecommerce gurus doing this. One good example is Stephen Pierce. You can see an example of his writing style on: http://www.secretsofcreatingwealth.com.

Adding credit card logos to your checkout page encourages people to spend more.

When you receive a fast and personal response from an actual person regarding a question or purchase order, you are immediately more inclined to like the person and website that stand behind it.

5. Authority

We have a natural tendency to respect and follow people of authority such as politicians, religious leaders and doctors and to sometimes consider the advice and knowledge of these people as unquestionable. In his book Influence, Cialdini offers a number of stunning examples.

A researcher studying the influence of authority on the decision making process of hospital nurses pretended to be a doctor and called 22 separate nurses stations in various wards of a hospital. He identified himself as a doctor and ordered the nurses to give 20 milligrams of a drug (Astrogen) to specific ward patients.

There were a number of reasons the nurses should have questioned this advice from the so-called 'doctor.'

1. The prescr i ption was transmitted by phone in direct violation of hospital policy.
2. The medicine itself was unauthorized and not cleared for use or placed on the ward stock list.
3. The prescribed dosage was dangerously excessive - the medication containers clearly stated that 10 milligrams was the maximum daily dosage.
4. The directions were given by a man the nurses had never met, seen or talked to before.

Yet in 95% of the cases, the nurses went straight to the ward to secure the prescribed dosage and then proceeded to the patients room to administer it before they were stopped by an observer who explained the nature of the experiment.

The results are frightening indeed. The mere illusion of a directive coming from authority can get people to do seemingly stupid and dangerous things. In fact anything that we associate with authority can trigger this type of response.

For example:

1. We tend to associate dressing with authority. In one study conducted in Texas a researcher arranged for a 31 year old man to jaywalk across a road in violation of traffic lights on a number of occasions. In half the occasions he was dressed in a freshly pressed business suit. In the other half he wore work shirt and trousers. The researchers found that 3 and half times as many people would follow the man across the street when he was dressed in a business suit!

2. A study in San Francisco showed that when a luxury car stopped at a green light and refused to move, motorists behind the car would often wait patiently without touching their horns. Motorists had little patience with an economy-model car - nearly all sounded their horns. But when a luxury car made the same mistake nearly 50% of motorists stood by patiently without touching their horns.

It seems that human beings have a natural tendency to follow authority - or anyone we think has authority based on their title, clothing, cars or position.

This finding has strong implications in sales. Products can be made to be more appealing and attractive by simply getting a well-known public figure to provide an endorsement. Remember the George Foreman grill that sold millions of units?

The Principle of Authority in Ecommerce

Testimonials from Experts

Testimonials are one of the best ways to generate sales. Many ecommerce experts share testimonials across their sites. You'll notice the same people providing testimonials to one another all over the ecommerce training and software industry. It's done because it works.

If you're selling anything at all - a testimonial from an expert or a person with authority can create a significant boost in your sales. Go and seek out these endorsements.

Many software websites add logos from respected companies like Microsoft or Google to their site. For example, a Microsoft logo with the text 'Microsoft Certified Reseller.' Associating yourself with a well-liked company and brand helps make you look more established.

You will also see websites where people will give themselves titles such as "Affiliate Marketing Master" or "Acclaimed Internet Marketing Genius." This is another case where the author of the site wants to appeal to the customer looking for a sense of authority.

6. Scarcity

The scarcity principle implies that we are attracted to that which is hard to get. Opportunities seem more attractive to us when they are less readily available.

We see evidence of this human tendency in many places. Dating for one. Ever heard of the term playing hard to get?

We also see it in the market for rare toys and collectibles: parents go nuts fighting over Furbies, Cabbage Patch Kids and other toys that go into short supply during the Christman season.

It applies to censorship too. When a government tries to ban something they inadvertently make it more desirable and people find ways to overcome the ban. Think Prohibition in the 1920s.

Here's how some unscrupulous salespeople use this principle to sell products. A buyer walks into a store and inquires about a particular type of appliance - say a particular model of a mobile phone. The salesperson tells the buyer that the phone is completely sold out. This immediately activates the scarcity principle and makes that particular phone far more attractive and desirable in the eyes of the buyer.

The salesperson then tells the buyer that if he's willing to commit to the phone right now, he could check with his manager and see if they have any stock in the backroom.

Many do commit, given that at this particular time the phone is rare and desirable. The salesperson disappears and reappears a few minutes later with the model of phone - which mysteriously found its way into the stock supply. The buyer, now feels a compulsion to buy as they had previously committed to it (in line with the principle of commitment and consistency).

The Principle of Scarcity in Ecommerce

Timed Promotions

This much used technique works very well. Simply create an excuse to do a timed promotion. It could be a special offer for New Years, the summer, back-to-school or someone's birthday. Anything at all. And then let your visitors and subscribers know that for this period only, you're offering a special offer or limited bonus gift.

Amazon.com does this using their 'Goldbox.' If you have an account on Amazon.com, you'll see a special gold chest on the top right of the navigation menu. Each day you'll see 20 items in the chest - each with high discounts such as 20 - 40% off. But the catch is, the items are only valid at the discounted rate for one day only. If you do not buy today you lose the items and will see only new items tomorrow.

Subscribers receive an email notifying them that for whatever reason, the merchant has a limited number of product X available and if they act now they can grab one of these products. One of the most common excuses is "my warehouse experienced a leak and some of the copies of my book got soaked. We're selling these at 40% off - but we only have 80 copies to sell - act now!" Of course the entire excuse is a ruse. We've seen at least 3 merchants use this same over-used strategy.

Seminar sellers often do this. They state they're limiting the number of seats on their seminar to the first 100. This tends to generate more interest than just leaving the seminar seat number open-ended. A variation of this tactic is to do an online tele-seminar by phone and video and still limit it to a few hundred participants. There is little need to limit a tele-seminar: but it's done anyway because the illusion of scarcity boosts sales.

A Case Study

These 6 triggers can be used to transform a business and turn a poor-selling product into a wildly successful one.

Here's a true story of a small business that did just that. The product name, industry type and business name have been changed slightly to protect the owner's privacy and competitive edge but the rest of the story is true.

How a Stagnant Online Business Used these Triggers to Transform Its Business Model and Reach $20 million in Annual Revenue

Derek came up with a great idea for his web business. People fear getting their cars fixed. Auto mechanics are hard to trust and you never know if you're getting a good deal or if you are being ripped off.

So he decided to create a website that would allow people to post a mechanical issue with their car, and see offers from various mechanics in their local area who could read their posting online and provide a rough estimate.

Along with the estimate, the consumer could also see other consumers' ratings of each mechanic - a very useful way to ensure that the consumer was picking the right service provider, and someone who was qualified and trustworthy.

Derek's business model was to get mechanics to pay an annual fee to be listed on his service and to receive offers from consumers. The consumers in turn would get to use the service for free. Consumers were sought through online advertising on Google and Yahoo! and ads on websites related to cars.

But there was one problem...getting car mechanics to commit to a technology is tough. Especially one that's based on a new idea such as his.

Derek's business model stalled for a few years. He tried to get mechanics to sign up for free for one year hoping that they would fall in love with the service. But this required him to give away his technology for free. And without revenue he could not advertise to attract users to his site. The mechanics on the site received few offers and lost interest.

Derek however caught a lucky break. A friend who was fluent in sales offered to help him jumpstart his business model in exchange for equity in the company. Derek's friend John was an accomplished salesperson.

The first thing John did was to put a cap on the number of mechanics their site would allow in each geographic area. So in their home town of Ann Arbor, Michigan, they limited the number of mechanics to 3. They knew that they were getting only 20 requests a year from people located near Ann Arbor. 3 mechanics should be enough to give these customers sufficient choice. Indirectly - they created a scarcity principle within their business.

Next, John cold called several mechanics in the area and explained their business to them. He mentioned he had a handful of clients coming in yearly and he wanted 3 mechanics on board. The mechanics would need to pay an annual fee of $800 each - but John guaranteed result. If they did not make back their $800 within a year, John would issue them a full refund.

John knew that this $800 would go far. Using Google advertising, he could geo-target advertising in the Ann Arbor area and attract more customers to use his service. This would raise the number of requests coming from Ann Arbor and increase the odds that his mechanics would be happy.

On the phone with the mechanics John used the scarcity principle. He emphasized that he was only bringing in 3 mechanics and he wanted the best ones in the business. He also said that if the mechanic wanted in - he would have to pass a qualification test.

The qualification test was another aspect of the business model that used the scarcity principle. By making it harder for the mechanic to get into the program - John raised the perceived value of the program. Now mechanics felt a competitive need to apply to join Derek's and John's referral system.

John helped close the sale by employing the principles of liking. He got to know the mechanics and their business and discussed with them his interest in mechanics. He did anything he could to create a bond or similarity between him and the mechanic. In short - he tried to appear as likeable as possible.

He then promised the mechanics a favor. If they would apply and sign now, he would personally put in a good word for them in the qualification review. He would also deliberately hold off on finding additional mechanics for a month so that this first mechanic would get a chance to dominate the market for that one month.

This is the principle of reciprocity. By offering to do the mechanic a 'favor' he could increase the odds of the mechanic returning the favor by signing and putting in the application.

The combination of guarantee, qualification exam and limited spots made it easier for John to recruit his first mechanic. His use of the principles of likeability and reciprocity helped him close the sale.

Next he employed the principle of commitment and consistency. Rather than ask for $800 upfront - which might scare off the prospect - John requested that the mechanic fill out an application form, sign at the bottom of the form and include a check for $100 to cover the expenses of taking the qualification exam.

Do you see what happened here?

By making the mechanic sign a form and put up $100 he triggered the commitment and consistency principle. The mechanic was more likely to follow through and go ahead and pay the $800 after he passed the qualification exam.

John would then repeat this process with a mechanic in another town. He also worked to recruit sales people and teach them the same sales philosophy he used.

As Derek and John recruited more mechanics they started earning money in the form of annual fees. This cash could be put into advertising to gain more customers for these mechanics.

They used the principles of social proof and expert recommendation to help them attract more customers. They actively solicited testimonials from happy users and mechanics and put this on the site.

They also demonstrated their new consumer-friendly business model to consumer groups, automotive groups and mechanic unions and sought endorsements and testimonials that they could add to their site.

The result: in a period of 2 years, John and Derek created a company with $20 million in sales and 75 employees.

Summary

Commitment and consistency, reciprocity, social proof, liking, authority and scarcity all work to make your visitors do what you want them to do. Used ethically, these 6 psychological triggers can be highly effective in boosting your sales.

Use this tactic as a framework for designing your marketing and sales strategy. When designing promotions, free courses or bonuses these six psychological triggers come in very handy.

You could have the best product in the industry at the cheapest price but if your competitors know how to trigger these 6 factors and you don't, you're in for some unpleasant surprises. Make sure to positively influence your visitors and your bottom line will thank you for it.

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