Touch Me … Pay More
Sellers of both puppies and cars have known this for a while … customers interacting with, or just holding, your product for longer periods are more likely to buy. Of additional interest from a recent scientific study is that these customers will be more likely to pay more!
Length of ownership influences the owner’s perception of value and this study demonstrates that it applies to pre-ownership scenarios also. Additionally, it aligns with psychological principles of loss aversion, where people tend to be more averse to the potential of a loss than the potential of acquiring a gain.
Marketers should be considering ways that they can get their product and, indeed, their service-based experience, in the hands of their target customers. The question is simply how do we get our customers to interact with our offering and for how long? In particular, how do online retailers address this opportunity? Think about it. Give me some suggestions. I will share my own thoughts with you.
Written by Stuart
David Day | Associates
About the Author: Stuart isn't often heard divulging his shady history. This, unfortunately, is not one of those times.
February 3rd, 2009 at 8:00 pm
Stuart, some marketing consultants and life coaches offer a free half-hour consultation (example: Ilise Benun of Marketing Mentor). This gives people an opportunity to experience the service without any kind of financial commitment. Do you think this is an effective marketing strategy for a service provider, or would something else work better?
February 4th, 2009 at 3:07 pm
Great question! After all, cars, puppies, coffee mugs, etc. are all products to which a sense of ownership may tangibly apply. A service related business does not appear to have the same attributes, because of that lack of physicality in the service compared to a product. I think the solution is to provide the free service trial in such a manner or with such an outcome that the customer achieves a sense of ownership of the end result.
The offering of a free period of service is a tried and tested sales method, but it is typically aimed at breaking down the consumer’s reluctance, anxiety or reticence to commit to something that is intangible. That has developed markedly with what some call Tryvertising. What we should consider in the context of this blog’s subject is how a service outcome can be “owned” by the customer. If we place that perspective or “lens” to the free service trial, then the focus of the trial moves away from just showing the customer the service brand promise to one leveraging the perception of the customer that there is a tangible outcome to the service that they control or “own.”
This may require the service provider to change the methodology or subject matter of what they provide during that service trial, so that the customer is required to do something or publicize to others their engagement with the service. A life coach, for example, might focus the free half-hour session on an activity that requires the client to ask other people about them and to provide feedback to the life coach. This broadcasting of their actions may have the effect that the client personalizes the service experience in a more visceral manner than, say, being simply required to conduct a solitary exercise of reflection. Alternatively, the service trial may require the client to complete and record some documentary exercise.
I am sorry if these examples are not the best, but the principle is to ensure the service trial obliges the client to behave through some requirement of the service to be an active participant and thereby assume a greater degree of ownership of the outcomes.
Let me know what you think!