Here are 9 Psychology Tactics You Need To Get Better At Marketing Your SaaS

1. Loss Aversion

Modern Day Studies show that Human’s are preferred to avoid losses to acquiring equivalent gains.

In Practice: “Save X amount of money by adding this to cart with your current Product”.

Another Example is Amazon’s Deal of the day where using a timer they make you buy faster and quickly.

2. Zeigarnik Effect

Most People forget about unfinished tasks and they need constant reminders of unfinished tasks to get it done.

In Practice: E-Commerce platforms use SMS marketing to remind their previous customers about their left in cart items to get them to complete that purchase.

Another Example is Morning Brew’s referral campaign where they use progress bars to remind people that they are so close to their next reward.

3. Cognitive Dissonance

Cognitive Dissonance is a common human trait, using conversations and visualisation. You have to either show change your action and make it suitable for customers or you have to connect with their state of thinking.

In Practice: When you promote your product based on what they read or see they might put their own mind to work which might not help in selling your product more efficiently. That’s why you show they how the product works and makes their life easier.

What will happen is the cognitive load on the customer will be less and the buying decisions will be easier to make.

The Best Example is Ikea you go to the store and they have a clear visualisation for you to imagine how it will look like and you make the decision faster and less for you to worry about how to make it on the first sight!

The key is don’t make your customers think!

4. Decoy Effect

This Psychology Hack is ruined now as its not just limited to marketers. Viral videos have educated everyone about this but it still works.

In Decoy effect, you use a product with 3 Tiers and the price of 2nd and 3rd product tier has a small difference which makes customer go for the 3rd and most expensive tier.

A common example is Starbucks Pricing strategy A large coffee is $6.5, Medium is $6 and the Small is $5. This pricing makes you go for the large as the difference is small and you think you are actually saving on choosing the large coffee.

5. Price Anchoring

Pricing your product right is the easiest way to get more customers from existing traffic to your site.

The best pricing story of all time is Apple’s IPad launch when Steve jobs announced IPad for $999 that made audience sad but after few minutes the original pricing of $499 was announced.

What’s the effects and how to use it?

Over all these years, Most people at this point knows when will prices of their favourite products decrease or increase.
Black Friday, Christmas and many other Events. Increasing prices before Black Friday and then dropping it low on the date is an old trait.

You don’t have to wait for Black Friday to do that you can use price anchoring effect by emailing your list that price is about to go up in few next days. Grab the deal on this product!

The key is to Based on the upcoming event, anchor your pricing to make people buy more often.

6. Hick’s Law

The law says that the more choices you have, the harder the decision to make. Like When I had a normal TV, it was easier to stick to a single channel on the weekend while with Smart TV I just wasted extra 30 minutes finding the best option.

While Upsells Also tend to increase conversions but Heck’s law works more effectively as with less to focus on users can buy that single offering of your product faster and easier.

A Great Example is YouTube Ad Surveys. Short and easygoing while most Brands ask too many questions about products to get the most out of their audience. Keep it simple on the landing page and also in surveys.

7. Endowment Effect

This human trait tells us that we humans value products we own more than we do the same product owned by someone else.

In practice, Free Trials are the best way to get users in and they work to convert free users into paid. It’s because of the Endowment effect, over the free trial time when that product effects the consumers life it’s harder to get rid of it. That’s why they converting a free user into paid becomes easier.

A Great Local Example is A German Brand giving free house cleaning trials twice a week to customers and making them realise how much difference they were making with their service.

This Tactic is going on in most industries and it works very well.

8. Don’t use commas if you want to make your product price look less expensive.

$2,400 ❌ $2400 ✅

9. Reciprocity

I grew up in a society where reciprocity is heavily practiced. Most people do things that, makes you give them something in exchange.

Reciprocity works pretty well. Like In a restaurant, an act like Chef coming to ask you about the dish and having a chat with you can make you live a generous tip.

The same is for Online World, To make your customers refer or leave a generous review. Your Welcome Email or the checkout process determines a great role.

A simple act of sharing a useful resource about product can make a significant difference.

A Common Example nowadays is sharing a freebie right after you sign up for their email or newsletter.

Bonus: 10. Using “Social Proof” in a different way is the new trait.

Base camp uses Number of sign ups for social proof.

Twitter Creator use Testimonial AI to find tweets mentioning them and use it as social proof.

While most of marketers now use Video Reviews in funnels to get more conversions!

—-
I don’t think marketers who don’t love psychology exists and without learning psychology you can never reach higher levels of marketing.

If you liked this, I share marketing related content and updates here with. 1,928+ marketers. You will receive the best marketing content every Sunday for free!