Free Demo, Try For Free, Free Trial…
We see these words everywhere, every day. Of course, we get the concept- people like to get an idea of what they’re about to spend money on. Even buying clothes, people hum and haw in the changing room and send pictures to friends asking for approval.
Being able to trial a product has a powerful effect on the customer’s buying process. This is down to a phenomenon known as the Endowment Effect.
The Endowment Effect is simple; people consider things they own more valuable than things they don’t.
Let somebody hold something in their hand and they will value it at 20-50% more than if you had just asked them to price it without letting them touch it. Thanks to the human condition we feel a greater attachment for things we have more ownership of. Makes perfect sense. So… How can we use this to our advantage in the sales world?
Try Before You Buy
Offering a free trial of your product is a great way to really pull the customer into the product so they get a good feel for their potential purchase. This creates a sense of loss aversion within your potential customer. Now that they have had the chance to use it, they don’t want to lose it.
Tip: Make your free trial as customisable as possible. Letting your customers personalise their demo account will help make your product more sticky. Encourage them to add profile pictures and fill in as much information as possible.
What Else Can You Offer?
Sometimes it’s not always possible to offer a demo or trial to your customers. In this case, it’s time to get creative with what you can offer. Is there something you could couple with your service that provides real tangible value? Think of ways you can compliment your offer with something they could use again and again. Think cheat sheets, training manuals and other materials that will help people put your service into practice.
If a customer has had the chance to use a product and understand the way it works and the benefits it will bring to their work process the chances of them returning the product are very low.
Many online services adopt a pay later approach. Fill in your credit card details but there is no charge for the first month.
By physically entering in their details their psychological attachment to your product grows.
All of these methods increase the Endowment Effect, your customers now see your product as being more valuable than before thanks to a deeper level of engagement. All of this will help boost your negotiation powers when the time comes to make a really great pitch
For more insights into how you can build really powerful selling techniques, contact the Social Talent team today and ask about our Social Selling learning platform!