- Email Marketing

Email Marketing: 6 Psychological Hacks to Help Boost Revenues

Marketers today believe that customer relationships are their biggest asset.

Andrew Davis, a bestselling author says that content builds relationships.

Your relationship with your customer is built on trust, and trust drives revenue. This shows that if your customers believe in you then only they would be willing to actively respond to your marketing campaigns.

This is where email marketing comes in. Marketers who use email marketing effectively have reported ROI of up to 119%, with 66% of consumers saying they have made a purchase as a result of emails that they received.

Of course, it’s also important how you collect email addresses. Because of their high conversion rates, exit-intent popups are always recommended. Just remember to keep your message consistent between your popups and your emails.

That way, you’ll be able to fulfill your customers’ wants and needs, stay on brand, and increase your sales consistently.

Believe it or not, this is really achievable through psychology. Here are the 6 psychology hacks you can use to boost your open and click rates of the emails and to improve your sales.

The Principle of Reciprocity

The human brain works in exciting ways.

In social psychology, the Principle of Reciprocity states that when you do someone a favor, they feel it’s their duty to return it in some way or the other.

In the year 1974, a researcher named Philip Kunz conducted an experiment. He sent over 600 greeting cards to absolute strangers. You know what happened? 35% sent him a card back!

Now, the next logical question to ask is how does this apply to email marketing and boosting revenues?

Well, the answer is simple.

Use emails to start campaigns where you give the customer a favor. For instance, give them a voucher for a free product the next time they visit your store.

Send out 600 vouchers and at least 35% will visit your store—maybe even more. Then, it’s up to you how you convince them to buy more while they are there.

Using the Principle of Reciprocity will help you build relationships based on customer delight—the delight and excitement come when they see that you care.

The fear of missing out (FOMO)

Have you ever felt the urge to buy something more than usual because of the “Limited time offer” sign? We all have!

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That is another psychological influence at work. People are more attracted to an offering when they know there is scarce stock available.

A study conducted by Worchel, Lee, and Adewole about FOMO/ scarcity show that two jars filled with similar cookies were shown to a group of students. They were asked to rate the desirability of the cookies in these jars.

Once 8 cookies were removed from one of the jar students said that the cookies in that respective jar were more valuable and desirable.

This study, when implemented in real life, seems to work really well. Almost 60% of millennials make reactive purchases because of the fear of missing out.

You can use this technique in your emails for marketing. Simply send emails either for a product that is available in a limited amount, or the sale on that item is only for a limited time.

You can also put your focus on some special offer that says that if you buy within 24 or 48 hours, you can get the product at 50% off. You are sure to experience a considerable spike in sales because of this.

To give these emails a more personal touch, you can add the name of the customer within the email body. This way, a lot of psychological factors will come together to motivate customers to come to you.

The appropriate use of colors

Psychologically, we have an amazing relationship with colors. Many studies have shown that colors can influence our mood and habits.

Have you ever wondered why restaurants have yellow lighting? It’s because it enhances the feelings of hunger.

Blue is a soothing color that calms our minds, and so on. This human relationship with colors is a creative marketing hack.

To use this technique in your email marketing you need to be careful and remember that the ultimate goal of an email is to get the user to click on the CTA.

This is why many experts recommend the use of complementary colors. The call-to-action should be 180 degrees apart from the text color on an HSB (hue-saturation-brightness) palette that is used to select colors in image editing or graphics application which makes it stand out.

As a result, a user is more likely to click on it as compared to a monochromatic color scheme.

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Taking it slowly: the foot-in-the-door technique

Next in line is the foot-in-the-door technique.

What this entails is that you ask for a small favor. After the other person has agreed to it, you bring up the bigger request.

While you actually want them to “open the door” so you can go in (the big request), you start off by getting your “foot” in first (the small request), then your “hand”, “arm”, and so on.

This psychology hack was researched by Freedman and Fraser back in 1966. They called some housewives and asked them about the products they used to clean their home. After a couple of days, they were again called and asked if 5 to 6 men came over to their place and inspected these products.

Women who participated in the first round were more likely to agree to this next request.

You can apply this technique in email marketing in a variety of ways.

You can ask them to sign up for a newsletter by providing you with the email address, fill out a survey, or provide you with feedback.

These are the small things that you can use to bring the customer closer.

Price Anchoring

This concept explains how people estimate the prices and value of products.

Placing two products that are alternatives to each other side-by-side and lowering the price of one shows that people are more inclined towards buying the cheap one as it seems like a good bet.

The execution of such a sale is based on the mere technique of price anchoring.

A study conducted by researchers Northcraft and Neale showed how price anchoring affects sales. They asked the participants of the research to estimate the value of a house. Pamphlets were also distributed among them that had normal and exaggerated prices mentioned in them.

Looking at the exaggerated prices, the participants dramatically overestimated the price of the house.

You can use this technique in email marketing. You can show the old and new prices of a product together, or you can display the more expensive item in the newsletter first and then show the lower priced product.

Your customer will be more likely to see the second item as the better deal.

Cut the number of choices

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In psychological terms, this is the ‘less is more’ technique. Simply stated, when you provide people with lots of alternatives, your customers become confused.

They would be more interested, but the confusion will reduce the purchase ratios since they’ll have to evaluate each option.

As a result, fewer options are more appropriate because the chance of getting sales is higher.

One study that ran an experiment using jam was put forward by researchers Iyengar and Lepper.

In their experiment, they showed one group of shoppers 24 different types of jams, while another group was shown only 6. The group that was shown 24 different jams showed interest in the beginning, but only 3% of the group participants ended up making an actual purchase.

On the other hand, the group that was shown 6 jams showed less interest initially, but 30% of them ended up buying jam.

This shows the power of fewer options. You can use this psychology hack to your own benefit in email marketing by customizing the choices that you give to your customers.

This is why email is a primary means of niche targeting: customers feel special.

Using the ‘less is more’ approach, this attraction can motivate sales. While your product may have 6 variants for instance, in emails you can narrow it down to 3, based on what you know about the customer’s preferences.

The data to determine this is quite easy to get. Customer analysis reports or previous sale patterns are most effective in this regard.

It may sound like a lot of work, but the rewards of the effort are equally amazing.

Wrapping up

Marketers around the world agree that today, the customer is the hero of the story.

Businesses that follow this principle will prosper, but these customers are hard to attract. However, once a business understands the secret to attract and engage customers, things become easier.

This is achievable through the use of psychology, and as you add layers of personal interaction, the relationships you build can last a long time.

In essence, psychology and email marketing are a lethal combination.

When you take advantage of that powerful mix, you will see amazing increases in not only your revenues but also your customer relationships.

Email Marketing: 6 Psychological Hacks to Help Boost Revenues

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