Have you ever gone to the movies? Ok, maybe that was a stupid question. Most of us have gone to a movie theater at least once. Think about when you eagerly stroll over to the concession stand to buy that tub of popcorn. The options (usually) sound something like this: You can buy a medium-size bag for $6.00, OR for $0.75 more, you can get a large tub of popcorn. The natural inclination for most of us would be to fork over the measly three extra quarters for the much larger tub, despite not really wanting that much popcorn, to begin with. Have you ever wondered why?
The Concept of Anchoring
Anchoring (or focalism) is a bias we all carry, causing us to focus on our first piece of information or action when comparing similar products or services. If we spend $600 on a 55” flat screen tv, that experience is our “anchor.” We then compare all other TV purchases (whether our own or a friend’s) to our $600 purchase.
Behavioral Economics, on a micro-level, studies how our psychology and emotions affect our financial decision making. Human beings are naturally emotional creatures, which affects our decision-making process for every choice we make, from deciding on where to eat lunch to what kind of car we buy.
Understanding the psychological factors that influence the decision-making process allows marketers to effectively communicate the real value of your products or services to customers. By implementing these common, but largely underutilized influencers, you can optimize your campaigns for maximum performance.
Anchoring Strategies You Can Use
Take a lesson from Amazon. Use full price anchors when discounting your products/services. In the example below, the full price acts as your anchor: it is the experience you first have with the pricing of this item. In comparison, the sale price, along with the deal price, looks like a bargain! Amazon has already set your expectation of how much you should be paying for this item, but because Amazon is a great place to shop, they are giving it to you today for a great deal.
Amazon takes anchoring to a new level, crossing out the previous prices until you get to the new, low price. They also do a great job of letting you know just how much you’re saving.
Packaging & Comparing
Bundle products/services together in a way that displays maximum value for your potential customer. SEMRush does a great job of this. In the below example, they display their three plans, along with pricing. Is there any doubt as to which plan they are trying to get you to purchase? Their “Guru” plan is the clear focal point.
Some of the anchoring tactics in this example can help improve landing page performance:
- Clearly highlight which is the “Best Choice” – the one providing the most value to the customer.
- Make your best-valued item/service the focal point by placing it in the middle. Human nature is to focus on what’s anchored between two items, in this case, the physical middle choice of the set.
- If you have different levels of services to offer, clearly communicate the value of one compared to another. In this example, the Guru plan is more expensive than the Pro plan (opening price), but much less expensive than the Business plan (high end). The Guru plan appears to have much more value, with many more features than the Pro plan, and much less expensive than the Business plan.
SEM Rush makes it clear which plan you should purchase by creating an anchor in your mind when comparing the Guru to the other two options.
Ready to Maximize Your Landing Page’s Performance?
By implementing psychological influences, you can convert visitors into clients, customers, or tenants. Your visitors will inevitably compare your products and services against their anchors, and more specifically, your competition. How will you position yourself above the rest?
If you’re looking for more information about anchoring, or how you can optimize your campaigns and landing pages for peak performance, contact Millennium Marketing Solutions today: firstname.lastname@example.org.