Every transaction involves a leap of faith.
Buyers worry about a seller's reputation, customer service, warranty, product performance, resale value, etc.
Sellers worry about the buyer's ability to pay, how much post-sale support resources they'll use, how likely they are to buy again in the future, etc.
How big that leap is varies depending on the product being sold and the seller.
It is the marketer's sole purpose to make that leap of faith small enough that a deal happens.
So, what does this mean to your business?
1. Brand Awareness.
The fact that someone knows about your business before making a purchase is important. It immediately gives them an increased sense of trust.
2. Brand Experience Matters.
People are creatures of habit. If a customer is able to try a product and it lives up to expectations, their more likely to purchase that product in the future versus one they haven't tried.
What if you're entering a new market, or are a relatively new company?
Ways to Minimize the Leap of Faith without Discounting
It's easy to discount, and I'm completely opposed to it. However, for expensive purchases or lengthy contracts, I think discounts should be used only if you get something in return.
Below are some other ways you can add credibility in inexpensive ways.
- Encourage Positive Word of Mouth about the product from friends of relatives.
- Request testimonials, images, and/or video from your current customers.
- Buyers don't want to be the guinea pig. They want to know there are other people, like them, that chose this product before.
- Free trials, samples, or test drives.
- Advertising. Like I said, brand awareness still helps.
- Face-to-Face Meetings. Old school. It can instill confidence that you're not running a Boiler Room-type operation.