Ever wonder why some sales techniques work better than others, even when the products are virtually identical? What if we told you that the key to unlocking more sales lies in the quirks of human psychology — cognitive biases that influence every consumer’s decision? At Credico, we know that understanding these biases can differentiate between closing the deal or losing a customer.
Our brains are wired in ways that often defy logic. In fact, according to Harvard Business Review, when a popular bank introduced a product that was designed in such a way as to create an emotional connection, product use increased by 70%, and there was a 40% increase in new accounts. This shows that purchasing decisions are often based on emotions rather than rational thought. This is where cognitive biases come into play. These biases can shape, sway, and sometimes completely transform the path a consumer takes before they ever reach the checkout line.
What Are Cognitive Biases?
Cognitive biases are mental shortcuts that help the brain process information more quickly, but they often lead to systematic errors in judgment. While this might sound like a flaw, these biases are actually what marketers and sales professionals tap into to guide consumer behavior.
From the “Anchoring Effect” that makes consumers latch onto the first piece of information they see to the “Scarcity Bias” that drives urgency when supplies are limited, cognitive biases can have a huge impact on how customers perceive value and make decisions.
At Credico, we’ve honed our understanding of these psychological factors to optimize every stage of the sales process.
Anchoring Bias: The First Impression Sets the Stage
Ever notice how the first price you hear about a product becomes the baseline for comparison? That’s the anchoring effect. Consumers subconsciously cling to the first piece of information they’re given, often skewing their perception of value.
For instance, if a customer sees a product originally priced at $500 but marked down to $350, they’re more likely to view it as a great deal—even if $350 is still a steep price for that item. Expert sales teams know how to leverage this bias by presenting a carefully crafted sequence of information. The first price or offer sets the mental stage, influencing how consumers judge everything that follows.
Scarcity Bias: FOMO in Action
No one wants to miss out. Scarcity bias plays on that very human fear of being left behind. When consumers believe a product is limited in quantity or available only for a short time, they’re more likely to act quickly and buy.
Sales promotions that use phrases like “limited time only” or “only a few left in stock” are classic examples. Good marketing taps into this bias by training sales teams to create a sense of urgency, turning indecisive shoppers into motivated buyers. It’s about timing and understanding when to introduce scarcity to close the deal.
The Power of Social Proof: Everyone Else Is Doing It
Many consumers rely on social proof to guide their decisions in a world overflowing with choices. People look to others to decide what’s good, popular, or trustworthy. When we see that a product is highly rated or endorsed by others, we’re more likely to trust it ourselves.
Credico understands the importance of social proof and encourages businesses to use tools to build trust through testimonials, reviews, and real-life success stories. Leveraging this bias can turn hesitant customers into enthusiastic buyers simply because they see others doing the same.
Framing Effect: It’s All About How You Say It
How information is presented can be just as important as the information itself. The framing effect refers to how the context or phrasing of a message can influence decision-making.
For example, consumers are more likely to buy a “90% fat-free” product than one that contains “10% fat,” even though they’re the same thing. Business success lies in understanding the subtleties of language and how small shifts in wording can impact consumer choices.
Commitment and Consistency
The commitment bias makes consumers more likely to stick with something once they’ve already committed—even if it’s just a small step. Getting customers to agree to something small upfront makes them more likely to agree to bigger commitments later.
This strategy can be used by breaking down the sales process into manageable steps. Small wins build trust and pave the way for larger commitments, ultimately leading to a sale.
The Credico Advantage: Turning Psychology into Sales
At Credico, we sell solutions and use cognitive biases to create an effective, smooth customer experience that drives results. Understanding and using cognitive biases is a critical component of modern sales strategy. By acknowledging and leveraging the quirks of human decision-making, Credico helps its partners not only meet but exceed their sales goals.
So the next time you wonder why a certain sales technique works, remember: It’s all in your head—and Credico knows how to use it.