The Ultimate Guide to Sales Psychology

Ever wondered what makes us say “yes” to that perfectly timed sales pitch? It’s not just about the product or presentation – it’s about the psychology behind it. 

Psychology is the science of the human mind. Understanding the way people think and how they respond to stimuli helps us predict and influence people’s behavior. As a salesperson, this can be a game changer.

Even if you don’t have an academic background in this field, there are plenty of ways you can apply psychology to your sales practice. The psychological sales hacks in this article aren’t just theories, but proven tactics used by a wide range of successful businesses.

In this comprehensive guide, we’ll break down the most effective psychological sales and marketing tactics, explain why they work, and help you choose the ones most relevant to your business needs.

1. Learn How to Build Trust

Trust is the basis of all healthy relationships. We need it to feel secure, safe, and willing to engage with another person. It relies on creating a positive relationship through interpersonal skills, expertise, and consistency. 

The three acts of trust

Empathy, compassion, and curiosity, also known as the “triad of trustworthiness,”  are three simple practices that can earn you trust with most humans on the planet. 

1. Empathy demonstrates an understanding of a customer’s needs, concerns, and desires. It isn’t about just hearing what clients say; it’s about truly listening and showing that their needs and feelings are validated. It’s understanding and feeling the emotional side of a customer’s point of view.
2. Compassion takes it a step further. It means genuinely caring for the customer’s well-being, and not merely viewing them as a means to a sale. When you show compassion, you have no ego. You are focused on the customer’s health and happiness above all else. 
3. Curiosity is a genuine desire to learn. It involves asking open-ended questions, seeking clarity, and showing an honest-to-goodness interest in getting to know a customer’s worldview. It signals that you’re not just in it for a quick sale, but you want to understand their unique experience and find helpful ways to meet their needs.

Construct credibility

Trust comes from the belief that a salesperson is competent, knowledgeable, and truthful. Regularly training, staying updated with industry trends, and being prepared with answers (or knowing where to find them) can elevate your credibility in the eyes of the customer. 

If you want to build trust with your customers, know what you’re talking about and follow through with what you say. Be consistent and use transparent language so they believe and understand. 

First impressions count

First impressions matter – a lot. Studies show that first impressions, whether positive or negative, are formed within seconds and can heavily influence subsequent interactions. For salespeople, this means that every detail, from appearance to initial greeting, matters. In the digital world, this is especially true of websites and social media accounts. 

Provide a safety net

Even if you’re the most trustworthy salesperson on the planet, customers sometimes need a little extra reassurance that everything is going to work out. Money-back guarantees, warranties, sales contracts, and built-in customer service are common ways to address this. 

For example, Zappos offers a 365-day return policy and free shipping both ways. By demonstrating an understanding of customer apprehension in online shopping and providing a built-in safety net, Zappos has earned a positive reputation and solidified a loyal customer base.

2. Personalize Everything

In today’s saturated market, consumers are bombarded with generic advertisements and sales pitches. But, people want to feel like they’re more than just a number. 

Personalization cuts through this noise, allowing businesses to tailor their approach to specific needs, preferences, and behaviors. Showing customers that a brand values them as individuals fosters deeper connections and loyalty while also making it easier for them to go through with a purchase. 

One standout example of personalization done right is Spotify’s “Discover Weekly” feature. Every week, Spotify curates an analysis of individual listening habits. This not only enhances the user experience, but also solidifies Spotify’s reputation as a platform that genuinely understands and celebrates the diverse musical tastes of its users. 

Spotlight effect

Have you ever felt like everyone is noticing that tiny stain on your shirt or a minor misstep you made in a presentation? That’s the “spotlight effect” in action. 

It’s our tendency to believe that others are paying more attention to us than they really are. In marketing, understanding this phenomenon means recognizing that consumers often feel like they’re under scrutiny. 

Marketers and sales reps can use this effect to their advantage by reinforcing a consumer’s self-image and purchasing decisions with brands can assure them their lifestyle choices are valid and understandable. 

Implicit egotism

We naturally gravitate towards things that resonate with our personal identity. When a streaming service suggests films tailored to our previous watches or when an online store presents products based on past shopping behavior, they’re harnessing implicit egotism. Find ways to feed your customer’s ego and they’ll be begging to buy from you. 

Self-perception theory

The self-perception theory states that people develop their beliefs and attitudes based on the previous moves they make. Like a game of chess, the deeper we get into a situation or lifestyle, the more likely we are to base decisions on those experiences. Leaning into the self-perception of your customers can build consistency, predictability, and brand loyalty in a changing marketplace. 

Barnum effect

Also known as the Forer effect, the Barnum effect reveals that individuals often perceive generalized statements as highly accurate if they happen to connect with them personally. Take for instance horoscopes. They are written for a general audience, but they sometimes seem to speak to us in a deeply personal way. 

In sales, this effect can be leveraged by using ambiguous statements that resonate with a wide audience. 

This phenomenon was originally coined in 1956 after the famous entrepreneur, showman, and pseudo-psychologist, P.T. Barnum, who used this psychological shortcut to persuade curious onlookers to come into his circus. 

Some examples of Barnum’s statements are: “Security is one of your major life goals,” “You pride yourself as an independent thinker,” and “There are times when you doubt if you made the right decision.” These vague, yet personalized statements created an emotional connection with  audiences, enhancing the likelihood they would enter the show. 

So, next time you read content that seems to be reading your mind, think again. 

3. Be Authentic

Authenticity goes beyond just being “real.” It’s about showing vulnerability and accepting that brands, like people, aren’t perfect. When businesses and entrepreneurs open up about their challenges and share behind-the-scenes moments, it fosters trust and likability. 

In the 2011 Black Friday edition of The New York Times, Patagonia published an audacious full-page ad telling viewers not to buy their jackets. Below the jacket’s image was a message detailing why customers shouldn’t purchase the product. 

Among the listed factors were the 36 gallons of water required to produce the jacket, the 20 pounds of carbon dioxide emitted, and the amount of waste produced. Though the ad wasn’t successful in its “intended” purpose — sales climbed 30% following the campaign — it did raise awareness of the environmental costs of doing business. 

4. Communicate Value

Values are deeply held beliefs and principles that guide individuals’ thoughts and behaviors. They form a moral compass that drives our actions and influences how we see the world. According to Schwartz’s Theory of Basic Human Values, the most popular values include things like security, conformity, power, achievement, and benevolence.

How can you incorporate these values into your sale? It’s important to remember price and value are not always the same. It’s not really about the features, but rather the benefits, the solutions, and the emotional responses. If a product conveys a value that is important to a customer, price becomes a smaller objection.

For example, Apple products, especially iPhones, are priced higher than many competitors. However, they justify this by emphasizing superior design, user experience, and ecosystem, making customers see the value beyond just the device. For their devotees, the value of the product is worth the higher price of admission. 

5. Understand Cognitive Bias

Imagine your subconscious is sifting through the vast expanse of your mind, but instead of making entirely logical choices every time, it occasionally takes shortcuts. These shortcuts aren’t about being lazy. They’re just a way your brain tries to make quicker decisions based on patterns it’s seen before. 

In fact, these mental shortcuts are called “cognitive biases.” They can have a strong influence on our perceptions and decision-making. For salespeople, they provide a secret playbook for influencing the human mind. 

Anchoring

Anchoring is the idea that people heavily rely on the first piece of information they receive when making decisions. Upon introducing your product, strive to create a solid, reliable, attractive reference point that customers can build from. Make it something that you can keep coming back to that moves the sale forward. 

This technique can also be applied in reverse for another effect. In this case, the first price or value proposition offered can set the stage for all subsequent negotiations. If a customer sees a product priced at $100 and then sees a similar product for $80, they may perceive the second product as being a bargain or reasonably priced, even if it’s still overpriced. The initial price of $100 serves as the “anchor” that influences their perception of the $80 price tag.

Confirmation bias

Confirmation bias comes in many names: repetition, exposure effect, the Baader-Meinhof phenomenon, and frequency illusion to name a few. The basic idea is that after noticing something for the first time, there’s a tendency to notice it more often. This can work to a salesperson’s benefit or detriment depending on the customer’s first impression. 

Essentially, people naturally seek out and favor information that confirms their existing beliefs. Customers gravitate towards positive reviews of something they’re already interested in, and they’re drawn to post-purchase marketing that validates their choice. On the flip side, negative preconceptions can be tough to overturn due to this bias.

Consistency principle

People love to stay true to their words and commitments. The consistency principle taps into this quirk of human behavior. Once someone makes a small commitment, be it in words or actions, they’re more likely to follow through with bigger related actions. For salespeople, getting a customer to agree to a small request or action can pave the way for larger commitments later on.

Take free trials. Once a customer commits to trying a product, they’re more inclined to purchase it later. The initial action of accepting the trial acts as a small step towards the bigger commitment of a purchase.

Zeigarnik effect

Ever start something and feel that nagging need to finish it? We all have. That’s the Zeigarnik effect in action. It’s all about how people remember uncompleted tasks better than completed ones. 

Think about cliffhanger episodes in TV series. They keep viewers coming back for more. Similarly, offering customers a sneak peek or partial experience of a product can make them want to see the whole thing.

Halo effect

The halo effect is the tendency for our impression of someone in one area to influence our opinion of them in other areas. It’s a way to leverage our talents and expertise to expand our network and increase our reputation. 

For example, consider celebrities who launch their own brands. When a well-loved personality starts a fashion line or fragrance, fans are immediately inclined to view the product positively. The overall admiration for the celebrity creates a “halo” around this new endeavor, boosting sales and endorsements even if the product itself is similar to others in the market.

Self-concept clarity

Knowing oneself sounds like an introspective philosophy, but it’s actually a big deal in sales. Self-concept clarity refers to how clear and confident individuals are about the intersection of their beliefs and actions. Sales pitches that align with a seller’s self-concept can be incredibly effective. It’s all the more reason to sell something you actually believe in. 

6. Limit Choices

Analysis paralysis is real. When overwhelmed with choices, people often delay or avoid decision-making altogether. Offering a curated selection, rather than an exhaustive list, can actually make life easier on your customers. 

There are several psychological concepts that relate to how we present options as salespeople and  emphasize the importance of presenting streamlined, strategic choices for maximum effect. 

Hick’s Law 

Hick’s Law refers to the principle that the time it takes for a person to make a decision increases logarithmically with the number of choices they have. This means the more options someone has, the longer it will take them to decide. It’s easy to see how this can affect your bottom line if you choose not to limit your customer’s choices in a reasonable way. 

Paradox of choice

Similarly, the paradox of choice is a concept that addresses the idea that while having choices is generally a good thing, there’s a point at which having too many choices becomes a net negative. More choices don’t always lead to better decisions or increased happiness. In fact, when presented with too many options, people can become overwhelmed and may refrain from making a decision at all. 

Decoy effect

Also known as the contrast principle, the decoy effect postulates that when consumers are struggling between two options, introducing a third option can be very appealing. For instance, when presented with a small and large popcorn size, consumers might choose small, but when a medium size is introduced at a slightly higher price, the medium becomes more attractive.

The rule of three

The rule of three suggests offering products or services in groups of three where the middle option is often seen as the “just right” choice. 

Serial position effect

Contrary to the “rule of three” mentioned above, the serial position effect theorizes that people tend to remember the first and last items in a series best. 

7. Know The Art of Persuasion 

It’s one thing to make a good impression, but how do we actually get our customers to take the action we want them to take? While it’s not an exact science, here are some psychological concepts that can help you convince prospective buyers to move forward. 

Reciprocity

The more you give, the more you get. When someone does something for us, we naturally want to return the favor. In sales, this could be as simple as providing a small free sample or a valuable piece of advice. Once the customer feels they’ve received something, they’re more inclined to give back, often by making a purchase or showing loyalty. That’s reciprocity.

The Ben Franklin effect

Ben Franklin once said, “He that has once done you a kindness will be more ready to do you another, than he whom you yourself have obliged.”

His eponymous effect is a psychological phenomenon in which people like someone more after doing a favor for them. One explanation for this is cognitive dissonance. People reason that they help others because they like them, even if they do not, because their minds struggle to maintain logical consistency between their actions and perceptions. At the same time, doing things for others naturally helps us feel valuable.

Salespeople can use this to draw in customers. Ask a prospect to do you a small favor for you like complete a survey or take a short phone call. If they respond positively, they are likely to be more open to a potential sale. 

Social exchange theory

Social exchange theory is a concept based on the notion that a relationship between two people is created through a process of cost-benefit analysis. The measurements of the pluses and minuses determine what someone is getting out of a relationship. In sales, always try to tip the balance in your customer’s favor to keep them interested in working with you.

Foot in the door

In the original demonstration of “foot in the door” theory, social psychologists Jonathan Freedman and Scott Fraser went to homeowners in Palo Alto and asked them if they would be willing to put up a large sign in their front yards that said: “Drive carefully.” Only 17% were willing to do it. 

For the second group, they tried something more subtle. Homeowners were simply asked to place a three-inch sign in their windows advocating safe driving. Nearly everyone would agree to it. 

Two weeks later, a different person showed up and asked if they would be willing to put up the large, ugly sign. This time, 76% of homeowners said yes. 

Foot in the door involves gaining small commitments to pave the way for larger ones. Likewise, if a person complies with the modest request in the beginning, that person will likely agree to a more significant one later on. In sales, you can get your foot in the door through free trials, online surveys, small sales, memberships, or cold calls. 

Door in the face

The “door in the face” technique flips the foot-in-the-door technique on its head by asking for a larger request up front, followed by a smaller one. Like magic, once the first ask is predictably turned down, the next option suddenly seems much more appealing than if it were presented in isolation. 

In a classic experiment, researchers separated participants into three groups. In group one, experimenters asked participants to volunteer to counsel juvenile delinquents for two hours a week for two years. After their refusal, the group was asked to chaperone juvenile delinquents on a one-day trip to the zoo.

Group two was given only the small request. In group three, the experimenter described the large request, but asked the participants to perform the small request. 

Under the influence of the initial large request, 50% of the participants in group one agreed to the small request, compared to 17% in group two and 25% in group three.

In sales, the idea is to offer customers something you know that they will not accept. Once they slam the “door in your face,” you offer something else, perhaps a lower price or better deal. It sounds counterintuitive, but it works. 

Scarcity

Be it clear water or a consistent food source, humans throughout history have faced periodic shortages of the resources they need to survive. As a result, perceptions of scarcity can provoke us to make rash decisions and act impulsively. Just think of the Great Toilet Paper Run of 2020. 

In sales, when a product or service is limited in availability (or perceived as being limited), it increases its value and becomes more attractive. Curated experiences, limited-time offers, or pop-up sales are all great examples of this theory in practice. 

Trial Closing

Trial closing – it’s like dipping your toe in the water before taking a swim. You ask the prospect a question that gives you a sense of whether they’re on board or not. Their responses help you fine-tune your pitch, address concerns, and guide the conversation smoothly.

For instance, you might ask, “How does this solution sound to you?” or “Can you see this solving your challenge?” 

Trial closing helps you read the room and navigate the sales process more effectively. It helps to assess the buyer’s readiness to make a purchase decision as you go. If the salesperson gets favorable responses to these questions, he or she can more confidently attempt to close the sale.

Priming

Priming is the act of subtly influencing a person’s behavior or decisions by exposing them to stimuli or information prior to the main action. For instance, a store playing French music might prime customers to buy more French wine. This technique leverages the mind’s responsiveness to cues, impacting decisions without conscious awareness.

Framing 

Framing reveals the power of presentation in influencing decisions.  For instance, if a medical treatment is framed as having a “90% survival rate,” patients are more inclined to choose it over a treatment framed as having a “10% risk of mortality.” The framing influences patients’ decisions by emphasizing the positive outcome.

In sales, the way you present your product or service will impact how your customers perceive it, regardless of what it is. It’s the difference between, “The product beats out 90% of competitors,” and “This product is weaker than 10% of our rivals.” 

Marketers could write a dissertation on this theory. We all use it every day whether we realize it or not. 

8. Practice Active Listening

Active listening goes beyond simply hearing what the customer says. It involves giving full attention, responding empathetically, and showing genuine interest in their perspective. When you actively listen, you provide validation and acknowledgment of the customer’s current thoughts and feelings. 

By maintaining eye contact, nodding, echoing or paraphrasing, and asking open-ended questions, we foster a sense of being heard and valued, enhancing trust in you as a salesperson. Active listening also enables you to uncover deeper needs and preferences, helping you to customize your offerings and approach more effectively.

Mirroring

Mirroring involves subtly mimicking the nonverbal cues, body language, and speech patterns of the person you’re interacting with. By mirroring a customer’s gestures, tone of voice, or even pacing of speech, you create a subconscious sense of similarity. 

It sends an unspoken message of “I’m like you, and I understand you.” However, the key is subtlety. Overdoing it can seem insincere or even mocking. The goal is to foster connection without crossing into mimicry.

9. Leverage Social Proof

Human nature drives us to seek validation from others. It’s rooted in our reliance on the tribe for survival. Social proof taps into our instinct to follow the crowd and trust general opinion. 

As humans, we often look to others for guidance on what’s popular, reliable, and trustworthy. Common types of social proof are customer reviews, influencer endorsements, user numbers, satisfaction ratings, testimonials, and success stories. Even more powerful are word-of-mouth recommendations and first-hand accounts from family and friends.

10. Play To Emotion

Humans, by nature, are emotional creatures. Many of the biggest decisions of our lives are guided by emotion including marriage, parenthood, and even our career choice. Simply put, emotions are our identity. As such, appealing to emotion is a tried and true way of making sales.

Even if you think you have a logical reason for doing something, chances are, if you dig a little deeper, there is an emotional basis underneath it. An effective sales pitch makes an audience feel like they belong, that they’re unique, and they’re smarter than the rest. Positive emotions like joy, love, and awe promote connection, safety, and happiness that encourage us to make purchasing decisions. 

But not ads are all sunshine and rainbows. Sometimes we choose to shock the audience, demanding their attention with feelings of anger, fear, and shame. Just be careful when honing in on negative emotions, as they can easily backfire. After all, the lizard brain is a powerful thing. 

For more information on how to sell with emotions, read Making That Sale’s article “A Complete Guide to Emotional Selling.”

11. Engage With Storytelling 

Humans have listened to campfire stories for generations. As such, human brains are wired to respond to narratives. When told effectively, stories activate deep emotional responses in the brain, making information more memorable and relatable.

The hero’s journey

As one of the most influential storytelling frameworks, the hero’s journey is rooted in Joseph Campbell’s monomyth theory. It outlines a transformative quest undertaken by a protagonist that follows a common pattern throughout various human cultures. This journey encompasses stages like the Call to Adventure, Challenges, and Trials, and ultimately, the Transformation and Return as a changed individual.

In sales, customers become the heroes of their own narratives. They face challenges and seek solutions—the products or services offered by the salesperson. By aligning the sales pitch with the Hero’s Journey, a captivating and relatable narrative unfolds, resonating deeply with the customer’s own personal experience. 

Three-act structure

The three-act structure is a classic narrative structure used in many stories, including movies and plays. It consists of three main parts: setup, confrontation, and resolution. Each part has its own arc and contributes to the overall narrative progression. It’s an easy one to use in sales if you change the parts to “hook, problem, and solution.” People know this structure subconsciously and will follow it easily. 

For more information on storytelling sales tactics, read Making That Sales’ article “How to Sell with Storytelling.”

12. Arouse Curiosity Through Novelty

Novelty, defined as the introduction of something new and unfamiliar, holds a magnetic pull on our attention. Our brains are wired to respond to unfamiliar stimuli, as they stimulate dopamine release – a neurotransmitter associated with pleasure and reward. Whether it’s through innovative features, limited-time offers, or clever marketing, novelty can create “wow moments” that stand out in the shallow sea of mediocrity. 

Bizarreness effect

Human brains are wired to recognize patterns and predict outcomes based on familiar cues. In fact, research suggests that our brains allocate more cognitive resources to processing novel and strange information. This extra assignment of neural resources not only enhances memory retention, but also boosts the emotional impact of the experience. 

Introducing something unexpected disrupts these patterns, triggering heightened attention and engagement. That’s the bizarreness effect. Through unconventional visuals, creative analogies, quirky language, and surprising facts, salespeople can create memorable moments that resonate long after the interaction. 

Keep in mind that this tactic must be used with care and caution so as not to confuse or offend the prospect.

Information gap theory

We’ve all been sucked into clickbait. The information gap theory holds that people are motivated to act when they feel a gap between what they know and what they want to know. By strategically withholding a piece of information in a sales pitch, salespeople stimulate curiosity and engagement. The gap compels prospects to seek out the missing piece, leading them deeper into the sales narrative.

13. Lean Into Conflict

Conflict has a peculiar allure that draws us in like moths to a flame. Admit it. We’ve all rubbernecked on the highway to get a closer look at a horrible accident. Our innate attraction to conflict isn’t just a quirk; it’s deeply rooted in human psychology.

From ancient wars to contemporary culture wars, conflict has been a constant presence in our lives. Our brains are hardwired to respond to conflict because it represents a possible threat. This engagement stems from our primal instincts that were formed when daily conflict signaled a danger that required our immediate attention and action.

In the context of sales, conflict stands as a magnetic force that pulls at our attention. When businesses engage in healthy competition or directly address their competitors, prospects become captivated by the “battle” and are more likely to pay attention to your product or service, regardless of who wins or loses. 

14. Sell With Loss Aversion

Loss aversion is the idea that people feel the pain of loss more acutely than the pleasure of an equivalent gain.

This phenomenon’s origins run deep. Survival for our ancestors depended on dodging risks and losses. Our brains adapted to react more intensely to threats and potential losses than rewards. These possibilities trigger strong emotions, molding our decisions and compelling us to minimize perceived risks. 

In their early days, the cloud-based storage company Dropbox employed a clever strategy by offering free additional storage space to users who referred their friends. However, this extra space wasn’t permanent and would expire after a certain time. Users, not wanting to lose the space they had gotten used to (and perhaps filled up), were more likely to purchase additional storage when their bonus space ran out. 

By giving users something valuable and then setting it up so they might lose it, Dropbox increased the likelihood that users would transition from free to paid plans. That’s how you turn loss aversion into actual sales. 

Sunk cost fallacy

The sunk cost fallacy is the common misconception that one needs to continue an endeavor because of the time and/or money already invested, even if it’s not the best choice moving forward. It’s related to the consistency principle, and, while effective, it should be used by salespeople carefully due to ethical concerns. 

Endowment Effect

The endowment effect explains why people tend to place a higher value on things they own than on identical things they don’t. Likewise, people dislike losing things they own more than they like gaining new things. This is part of the reason why “try before you buy” and built-in warranty plans can be so persuasive. 

15. Make Buying Enjoyable 

Buying should be more than just a transaction – it’s a gratifying experience rooted in consumer psychology. 

Emotionally, buying triggers the brain’s reward system, inducing a sense of delight through dopamine release. It becomes a channel for self-expression, allowing individuals to convey their identity and values through their purchases. 

Anticipation, social validation, and the empowerment of ownership all contribute to the joys of buying. As a salesperson, keep this in mind and do your best to make every sale a positive experience. 

16. Get The Customer Involved

We all get satisfaction after a job well done. The “Ikea effect” showcases how people tend to place higher value on products they partially create themselves. Businesses can use the phenomenon to encourage customers to engage in the creation process. 

For instance, a company offering customizable furniture may let customers participate in the design of their pieces, fostering an emotional attachment and higher perceived value. By tapping into the Ikea effect, salespeople can connect with customers on a deeper level, creating a sense of ownership and loyalty.

17. Know Your Colors

Colors evoke emotions and influence perceptions, making them a powerful tool in sales. For instance, blue is often associated with trust and reliability, making it suitable for financial services. On the other hand, red can convey urgency or excitement, driving action in limited-time offers. 

Green enhances relaxation and comfort. Purple can lead to introspection. Yellow is associated with hope and growth. By strategically employing colors, salespeople can shape customers’ emotions and perceptions, enhancing the effectiveness of their messages and offerings.

Conclusion

We’ve journeyed through the psychology of persuasion, trust-building, personalization, cognitive biases, and more. Armed with these insights, you’re now equipped to navigate the minds of customers and influence them in the right direction.

Understanding the nuances of psychology is more than a sales strategy – it’s a competitive advantage. After all, the art of selling goes beyond products and services. It’s about forging connections, aligning values, and crafting experiences that resonate with the human psyche. 

Keep in mind that none of these strategies is a silver bullet. Rather, they form an arsenal of tools your sales and marketing teams can leverage to boost their confidence and generate long-lasting success. Either way, the bottom line remains the same – the more you understand your customers and what makes them tick, the more sales you’re going to make.