Understand This Human Behavior To Boost Sales

human behavior

What’s up ? This is THE stephane ANDRE !!! I watched an Olivier Roland’s video  and I learned some good stuff.

There is human bias that needs to get around to get your company up to the next level. What’s interesting with marketing is that it exposes human behavior. Marketing allows us to understand good and bad human behavior

Lazy

This one of the most common human misbehavior. Take the example of a registration page for online training. There are 200 prospects interested in this training who gave you their emails to know the start date.

You divide the prospects into 2 groups, group A and B. For group A (100 prospects), you ask them to write their first names and emails and click on the OK button in the form to register. For group B (100 prospects), their first names and emails are already pre-filled in the form, just check the information and click on the OK button. In group B, there will be about 10% more registration compared to group A.

Which means that in group A, there are about 10% of prospects who don’t have enough energy or motivaton to write their first names and emails in the form.

Honest

honesty

This is one of the most common good human behaviors. Take the example of a guarantee of 30 days without conditions satisfied or refunded. Technically, there are plenty of people who could benefit from this guarantee by saying : « I’ll use this product for 29 days and I’ll ask for a refund ». Of course, there are people who do that, but it’s always surprising to see that it’s a small minority. It’s something nice to see.

Psychology

Unfortunately, there are limits in honesty and it’s necessary to understand some human bias to have a good company. Otherwise your company is in jeopardy.

In a detective tv show, there is a perone who is looking for the best detective for his problem. The hero of this tv show is a detective.

The person sees the hero and says : « I did some research and you’re the best in your field ».

The tell him : « You did some research, but what exactly did you do ? ».

The person answers : « It’s simple, I went to see all your competitors, I asked them who was the best detective and they all said it was them. Then I asked them who was the best second detective after them and they said it was you, that’s why I realized you were the best ».

Did you see the human bias in this example ? When you ask a pro who is the best, he’ll answer you : « Me ! ». The pro does this because he wants to sell, he has his personal pride and maybe he really believes he’s the number 1 compared to others.

Which shows that it’s difficult to have the most objective answer possible with this question. By understanding this human bias, you can use a question that gets around that. This question is : « Okay, it’s obvious you’re the best but who’s second best after you ? ». In the majority of cases, the answer is objective.

Price

price

Let’s take another example. An entrepreneur conducts a survey with his prospects to determine the selling price of a product. The question is : « What is the price you would pay to buy this product ? ». If you ask your prospects how they want to help them, they’ll be honest but when you talk about the selling price, it become complicated. When you ask the question about the selling price, they will always tell you a lower price compared to the price they could pay.

There are 2 reasons :

  1. When a person ansers this question, she thinks : « If I tell him I’m willing to pay 100 dollars, he’ll sell it to me at $100. So, I’ll tell him $50 like that it will be cheaper ». It’s a behavior that all human beings do (me and you included).

  2. There are people who don’t know how much they would be willing to pay because they can’t see the product. When they see the product and see what it can improve in their life, they’ll decide whether to buy it or not.

To solve the problem of the 1st reason, ask the question this way : « As you’re one of the people who helped me to create this product, you’ll have a special price, but what do you think the price is that the rest of the world should pay ? ». With this question, the prospect knows that he is going to have a special price so he can give a more objective answer.

To solve the problem of the 2nd reason, there is only one way. It’s showing the product to prospects.

When you do a survey to prospects for the sale price, it’s very important that prospects understand that they’re going to have a special price. Ask the questions : « What price would you pay to buy this product ? » and «  As you’re one of the people who helped me to create this product, you’ll have a special price. But what do you think the price is that the rest of the world should pay ». You will be surprised by the different answers you will have. Test it !

Obviously, it’s not only with this question that you will determine your selling price, it will be just a clue. It’s very useful to understand human psychology otherwise you risk choosing a selling price really too low that should be and earn really less money.

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-Steph

P.S. If you’re in Miami and you like Caribbean food, go to my cousin’s bistro to eat Haitian food, click here.

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Online Guarantee

online guarantee

I watched an Olivier Roland’s video  and there is good stuff.

In Europe (yes, I’m living in Europe), the law says that a consumer has 15 days to return a product he bought by mail. Products bought on internet are part of these purchases by mail as digital products, training or softwares.

The law also says that a consumer may waive the guarantee by checking or unchecking a checkbox to receive a product faster. Some companies have a procesure to wait until the guarantee’s period is completed before sending a product to allow time for the consumer to think about if he/she changes his/her mind.

The most interesting guarantee to make is a 30-day guarantee for online training. If you do a 1-year training, you can make a guarantee on results with conditions. If after 1 year, a person doesn’t have expected results despite that person has seriously followed and applied the training’s content by showing evidence, that person may claim the refund.

For the 30-day guarantee, there aren’t conditions. Whatever reasons, a person is systematically refund. It’s true that is interesting to know why a person wants to be refunded but it’s not obligatory.

A guarantee for success

guarantee for success

Yes, it help you to have success because guarantee is a trial period for the entrepreneur and the consumer.

Consumer

Many people are anxious to buy a product on internet, especially if the product is digital. The guarantee make it possible to reassure them.

People who have hesitated to take an online training will continue to hesitate for 30 days but more intelligently. Because the 30-days guarantee are free trial days so they can see how it works, how is the content’s quality, how the community interacts with coaches, how is the track’s quality of each participant, etc. If your product is good, you’ll have more sale than refund.

Entrepreneur

This allows you to filter out annoying consumers. If during the 30 days, you see a consumer who demands weird stuff or complains, criticizes all the time or isn’t polite, you can say it’s better to stop and pay him/her back.

It’s like for a job, the employer sees if the employee corresponds to the workstation and the employee sees if the job is suitable for him/her. This for both side and it’s a good method to avoid having unnecessary problems.

Attention

I don’t advise you to filter consumers when you start your company. You need to accept all consumers to reach your break-event point. Once you have reached a certain threshold of success, you can filter your consumers.

The guarantee is also a legal protection. When consmers aren’t happy, they leave, it’s simple.

Marketing

human behaviour

With marketing, we can see human behavior and there are some surprising things. Here an exemple with a form to receive an eBook. We can have 10 % more conversion when we fill in the first name and email of a person in the form. We can do it only if the person is subscribed to our newsletter but this is show how people are lazy by nature.

Yes, 10 % more only because people just have to press the button « OK » instead to type their first name and email, surprising !

Something else. It’s true that you’re going to have people who will just register to enjoy the 30 days free but reassure you, it’s a very small minority. Most people are honest and if you gave a product that gives value and quality, you’ll have more sale than refund.

It’s easier to use this kind of guarantee with digital product but it’s possible to do it with physical products.

How do you set up this type of guarantee for your product ?

-Steph

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Sacrifices To Be An Entrepreneur

sacrifice

I watched an Olivier Roland’s video  and there is good stuff.

Olivier Roland spoke with a girl who had left her job for 18 months to create her company. This girls had left her job with a negociation to have a social assistance for 2 years. The problem is that her company doesn’t work well, she doesn’t earn enougn money and her soacial assistance will finish in 4 months. They talked together to analyse the problem.

It’s not Disney’s World

disney world

This girls didn’t work effectively and quickely for several reasons. She was lazy because she thought was going to succeed. It’s a good mindset but nobody succeed at the first shot. She thought she was in Disney’s World. Create a company is just the first step. It’s like having a stick for a hike. You have this stick to start to climb the mountain but it will be another stick at the top of the mountain. And the mountain is very hard to climb. When you have a company, it is not Disney’s World, but it’s instead « it’s the war and I want to survive ! »

This girls spend to much time to have a perfect design for her blog, a perfect design for her newsletter. It was not the most important thing to do. The most important thing to do is to grow your audience. If your content is good, your design’s blog doesn’t matter. Don’t do intelligent procrastination like her.

Entrepreneur

When you’re an entrepreneur, you’re not an employee. You face reality in a way that doesn’t forgive. That means that as your company doesn’t make money, it’s just an untested hypothesis.

Have faith and be optimistic is great but you need to test your product in the market as soon as possible. And you need to have this mindset « it’s war and I want to survive ! » like a warrior, like a samourai. Be an entrepreneur doesn’t means you will be the next Facebook, Amazon or Google because you’re an entrepreneur. Results will not come naturally because you’re an entrepreneur. You must give everything you have everydays like an ahlete.

Fight for

fight

You must be ready to sacrifice your time (miss parties, birthday party, marriage, etc) and your energy to have all the chance on your side. You must do have huge motivation, by this way when you see an obstacle, you’re excited. And if you’re not excited, this obstacle will not stop you. Everydays act, act, act, act, track your act and adjust.

Have a strategy with key actions to have first sales as soon as possible. If your product don’t work, it’s not a problem. Refund customers, use audience feedback about your product and change characteristics. Try, try, try, try and must be ready to word 10 hours per day for your company.

Spend your time to act and learn. Track your actions and adjust to improve results. Devote all your time to grow your company.

Do you propose a prototype of your product/service to your audience ?

-Steph

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