We talk a lot about picking prices for your products and services, but that’s because so many different factors should be considered. Of course, you have to either keep up with the competition or provide something your competitors can’t. That’s always a great first step. Even after you choose your pricing strategy, you still have more to think about. For instance, did you know buyers are more likely to leave a negative review if they spent the last of their money on your product?
Well, that doesn’t seem fair, does it?
When to Make Your Offers
The Bottom-Dollar Effect can be overcome with some planning. Start first by fully understanding your buyer personas. Do these buyers live well within their budget, or do you deal with impulse buyers who often can’t make ends meet? You can segment your buyers when creating offer campaigns to directly address the effect, as long as you’re aware of their spending habits.
Those who live paycheck to paycheck will be more likely to react well to offers during times when their budgets aren’t already exhausted. This may be the beginning of the month or the middle of the month, after paychecks have been distributed. When bank accounts aren’t strained, go right ahead and make those offers.
If you do want to make offers toward the end of the month, this may be the best time for sales and discount coupons. Those with strained budgets might feel much better about making necessary, or even unnecessary, purchases if they think they’re getting a better deal.
Avoiding the Bad Ratings
No matter when you make those offers or encourage those purchases, your requests for reviews could still mess everything up. Asking a buyer to provide feedback during times when money is tight could subject you to those feelings of worry. Their responses are more likely to have negative undertones or even be outright vicious.
A better bet is to wait until paychecks have come out again, when those who’ve been worried about finances will see their bank accounts replenished. Without that worry—and perhaps even buyer’s remorse—clouding their judgment, you’re much more likely to receive better reviews.
Other Tips and Tricks
Keep in mind that buyers might just prefer to make several purchases at once, especially if they’re not yet feeling the pain in their wallets. With truly targeted offers, you could provide those buyers the chance to order several items. Using information you’ve gathered about those buyers, create customized emails with the products they’re most likely to need or want. Don’t waste their time or yours with the stuff you want them to buy.
Remember when sending these offers that too many choices could paralyze the buyer into choosing nothing at all. Be clear and concise, but give information that will help your customers find more products if they want them. Then, when the buying cycle is complete, remind them they made a great purchase by reinforcing the value of the items they bought. Finally, ask for their feedback when you’re sure they’ve got some cash on hand again.
That’s the formula for overcoming not just the Bottom-Dollar Effect, but several other buyer psychology phenomena at the same time.