Consumers, as we all know, love to buy things. They simply love to spend money on products and services that mean something to them, and in many cases that don’t even mean anything to them. But how do you get consumers to buy from your business? Understanding your consumers’ psychology can be largely used to your advantage. Small Business has been using consumer psychology for years on end to sell their products and services. Studying a consumer’s behavioural pattern will help you formulate a great message that has the ability to persuade them to buy from you. This is why it is very important to know a bit about the consumer decision making process, as it can help you devise a great sales plan that your customers’ just won’t be able to resist!
Consumer psychology is basically the study of consumer trends and behaviour and is an invaluable resource for anyone in Small Business. Experts in consumer psychology start categorizing customers by what they buy, how they use these products and services, and when they buy. Mastering the art of analyzing your customers’ behaviour will help your re business succeed by educating you about how your consumers think and the reasons they come up with when deciding on a purchase.
Knowing your Target Market
Like practicing archery with your eyes closed, doing business without knowing anything about your target market will not achieve any of your business goals. Ultimately, every Business wants the same 3 things: increased sales, increased market share and increased brand awareness. But none of this will be possible if you don’t know who your target market is.
By learning who your potential customers are and by finding out what they really need, and what their biggest problem is you can offer them tailored products and services that are guaranteed to solve their problem. This is why it is very important to choose a customer base that is in some way appropriate to your business. Once you are done with the right kind of market research and have conducted surveys, compiled the results and check to see which markets make the most sense to your business. Make sure that the target market that you choose has the following traits:
Will have easy access to your services and products, either through visiting your business or by ordering online and over the phone.
Will not waver away from your products that are similar to yours.
Will pay a price for your services that give you a reasonable profit margin.
Once you have zeroed in on an appropriate target market, it is very important to know and understand what your customers really want. Once you know what your potential customers really want, you can tailor your business to give them just what they want. If you can find out your customers deepest desires, you will be on the fast track to success.
Your first step should be to put yourself in your customers place and ask yourself what you find valuable in the products and services that different businesses offer. What kind of information would you be looking for before you make your buying decision? Once you know the response to all these questions, you will be able to make more sales.
One of the biggest problems that most low performing businesses face is the fact that they don’t know who they really are and who they should be. Every customer wants to deal with a business person who is amiable, reliable, honest, and likeable.The Customers decision to buy is emotional. Working on yourself and improving your character can largely add to your businesses success.
Why Small Business Fails
One of the least appreciated aspects of entrepreneurship is why young businesses fail, and there’s a simple explanation: They need to look at themselves. Why would they when it’s easier to blame others.
Of course, there are cases that where something out of the owner’s control has gone bad, but it was found out that those instances to be in the lowest level. What follows, according to some customer’s experiences and observations are the top 10 reason why small business fails
The math just does not work. There is insufficient demand for the product or service at a price that is a profitable enterprise. This includes, for example, start-up trying to compete with Best Buy and economies of scale.
Owners who cannot leave their own way. They can be tenacious, risk-averse adversary conflict – which means they must be liked by all (even the employees and suppliers who cannot perform their work). They can be a perfectionist, greedy, self-righteous, paranoid, angry or insecure. You get the idea. Sometimes you can even tell the owners problem, and they will realize that you’re right – but he continues to make the same mistakes again and again.
Out of control growth. This may be the saddest of all causes of failure – a successful company, which is being destroyed by overexpansion. This will include moving into markets that are not so profitable, is experiencing difficulties that increasingly affect the business, or borrow too much money in an attempt to maintain growth at a certain pace. Sometimes less is more.
Poor accounting. You may not be in control of a company unless you know what happens. With wrong numbers or numbers that a company is in darkness, and passed all the time. Why? On the one hand, it is common – a misconception that an outside accounting firm had been hired primarily to ensure the taxes that the company – and disastrous. In fact, it is the job of chief financial officer, one of the many hats employer shall take up a real commitment.
The lack of a cash cushion. If we learned anything from this recession is that the business is cyclical and that bad things can and will happen over time – the loss of a major customer or criticism of employees, the arrival of a new competitor, the filing of a lawsuit. All these things can highlight a company’s financial situation. If this company is already cash-strapped (and the potential for leverage), may not be able to recover.
Operation of mediocrity. I’ve never met an entrepreneur who has described his mission mediocre. But we cannot all be above average. Repeat and referral business is critical for most businesses, as is some degree of marketing (depending on the business).
Operational inefficiencies. Paying too much rent, labor and materials. Now more than ever, companies are lean in favor. It has no staying power or the abdomen to negotiate terms that reflect today’s economy cannot leave the company competitive.
Dysfunctional leadership. Lack of concentration, vision, planning, standards and everything that goes into good management. Take fighting partners or unhappy relatives in the mix and you have a disaster.
The absence of a succession plan. There is talk of nepotism, power struggles, the main actors being replaced by people who are over their heads – all the reasons that many family businesses do not the next generation.
A declining market. Bookstores, music stores, printing companies and many others are facing changes in technology, consumer demand and competition from big business buying power and advertising revenue.
Life could be indulgent of friends and relatives, but entrepreneurship is rarely forgiving. In the end, everyone is also reflected in the soup. If people do not like the soup, the workers stop working, and customers to cease doing business with you. And that’s why businesses fail.
Social Media Helps in Increasing Sales
Want to have an easy way to attract targeted clients/customers, increase sales and lessen your marketing costs, resulting to an increased profit?
For the past 10years, no matter how experienced you are or no matter how smart/great your ideas are, the truth of the matter is that selling has become that hard. We all know that there are plenty of targeted buyers/customers in the market waiting to buy, if and only if we could just get their attention. Having it the fact that it is almost impossible to get access to the target market due to call screenings, email filtering, ad blocking and not to mention the gatekeepers who are vigilant.
So, what’s the solution?
Attract more sales by cutting your marketing costs. To sell more, go to where the buyers are.
All fishermen knows it, if you want to catch fish you need to cast your line, drop your hook or set your net to where there are a lot of fishes.
Same goes to playing golf. If you want to hit the hole, play on the green one and not on the rough side.
It’s the way that it goes with business too.
No matter how eager or smart you try, if you are fishing on a pond with less or no fish at all, you will go home empty handed. If you want to have a great sale, you must go to where the buyers are.
Truth About Social Media
This new era, social media has been doing great help to businesses. The simple truth about selling is that your prospects are on Facebook, Twitter, LinkedIn, blogs, watching online videos, and other social networking sites. If you want to sell more, you have to be there too!
Facebook is the fastest growing social network now, with over 300,000 businesses using it. LinkedIn is the Premier B2B networking site. A networking tool to find connections to recommended job candidates, industry experts and business partners.
Over 80% of businesses of every type are using social media to attract buyers. For most of the people now are spending more time online socializing, and the rate of online purchases had gone so far that you can never imagine most of the people will buy online.
So now, if you want to have an increase on your sales, try doing what other businesses are doing, invest some time in advertising via social media.