Anchoring effect

Don’t you love when you go to book a holiday and the booking site has suddenly displayed a price drop? The cost is still high, but it’s half the price it was before. That’s surely reason enough to justify handing over your credit card, right?

This is the anchor effect and we have all fallen victim to it at one point or another.

We have a habit of relying too heavily on the first piece of information we’re given and then we use that information as a base for subsequent decisions.

‘Our irrational behaviors are neither random nor senseless – they are systematic and predictable. We all make the same types of mistakes over and over, because of the basic wiring of our brains.’  – Dan Ariely

How can you exploit it?

Whether your first point of communication involves a call or email, the very first thing you say matters. Carefully plan out how you want to introduce yourself and make sure the first piece of information your prospect receives about your product sets a positive tone for the rest of the conversation.

Play to this bias by unveiling the price of your solution in stages. If you are offering a discount, start with the full price and follow with the discount cost. Alternatively, demonstrate a price comparison by referencing a competitor price that’s higher. When your prospect sees the second price, they’re more likely to view it favorably as they still have the initial quote in mind.

Strengthen your case by sharing testimonials that show how customers have earned or saved far more than they paid for your solution.

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4 comments

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