Growth Hacking is a term that is doing rounds in the digital world for quite some time now. According to experts, growth hacking is termed as an innovative marketing technique particularly developed by the start-up companies that utilizes creativity, social tools and analytical thinking in order to drive growth and gain market exposure.
With a successful track of helping start-ups make it big time, the number of growth hackers is increasing day by day. If you’re a growth hacker in the nascent stage and have a lot to learn, then here are 10 Psychological Studies that have some useful tips and tricks for you:
1. Framing Experiment:
According to this experiment, it is seen that people react according to the way they perceive a situation. This study says that the reaction of the people to a circumstance depends on whether the outcome is seen as favorable or unfavorable by them. A growth hacker can use this strategy and frame his services and products in a way that gives a favorable perception to the people and they act accordingly.
2. Conformity Experiment:
We, as human beings, has the desire to blend into the crowd and be liked by others. This need makes us choose the wrong decision even when the right decision is quite obvious and in front of us. If people see other people using something, they are more likely to use the product or service themselves. In this way, if you can get to make your initial customers refer your products in their social groups in exchange of some discounts, then you’re more likely to see an upsurge in sales of your services and products.
3. Loss Aversion:
People feel more sadness when they part with their money in contrast to the happiness felt if they win the same amount. This strategy can be used by a hacker so as to create a product pricing strategy to encourage people to part with their money. Risk free trials and rebates can be good options to remove the fear from their mind and make them purchase your goods.
This is quite simple. People feel obligated to reciprocate if someone does something for them. A growth hacker can use this strategy and give some add on value to the customer so that he feels good about it and is likely to return the favor in the form of an increased purchase.
5. Consistency Principle:
People like to remain consistent with what they say and do. This is a great tool for marketing and a growth hacker can use this method to target new customers. Offer them a free trial of your product and once they’re consistent with it, ask them to pay for the full version. People who have become accustomed to your product are likely to fall in line with this request.
6. Compliance Experiment:
If people are asked for a small commitment first, they’re far more likely to fall in line for a larger request later. This method can be used while engaging with your users. The more frequently they agree to your small requests, the more likely they are to agree to a larger request in future.
7. Exposure Theory:
The more you’re exposed to something, the more likely you’re to like that thing. It is quite simple and self-explanatory. Never feel shy to repeat your messages and over time, your customers and probable customers will start liking your products and services.
8. Decoy Effect:
Presenting people with a less attractive third option changes the way they select one out of the original two. This effect can be used in the pricing strategy. You can create a decoy pricing for some of your services to push people to select the option that you want to sell them originally.
9. Availability Heuristic:
We tend to select the option that brings immediate examples in our minds. Therefore, always make sure that your products are easily grasped by the users by giving the vivid examples of the uses of your product in order to gain speedy acceptance.
10. Propinquity Effect:
The more we interact with someone, the more likely we are to befriend them. While using this strategy, make sure you’re present on all social media platforms and maintain contact with your customers by mailing/messaging them. This will make sure that they’re more influenced by you and your products.