KSS October eKourier 2023

FEATURE

BOOSTING SALES AND CUSTOMER SERVICE WITH BEHAVIOURAL ECONOMICS

customer's preferences and budget, we can introduce alternatives with varying features to accentuate the advantages of the premium choice, boosting its perceived value. However, we should be cautious not to overwhelm customers with too many options, especially if they've already made a decision. Ariely's book, "Predictably Irrational," let's explore some behavioural economics concepts and their potential impact to customer service and sales. Emotions play a significant role in decision-making. Incorporate emotional appeals into your product pitch by highlighting the peace of mind, security, quality and convenience your facility offers. And of course, make sure they extend their insurance on the 20-Day Care Call. Understanding human behaviour, and cultivating specific skills in this field, can be a powerful asset for achieving outstanding results and fostering lasting relationships. Inspired by Dan

The endowment effect: The Delicate Dance Of Rent Increases

Personalisation And Building Loyalty: The VIP Treatment

Anchoring: The Power Of First Impressions

Customers tend to value more what they already have. This is known as the endowment effect. We can leverage this when having rent increases conversa- tions, explaining the reasons behind the increase, and emphasising the ongoing benefits of their current storage rental.

Building relationships is essential. Engage in friendly conversations, inquire about their storage needs, and show genuine interest in their lives. Address customers by their first names and remember their preferences. A warm, personalised greeting during each visit makes customers feel valued and appreciated, fostering loyalty. Conclusion Incorporating behavioural economics into your customer service and sales can yield exceptional results. Understanding the factors that drive customer decisions and applying these principles with finesse creates a win-win situation. The outcome is maximised revenue and enduring customer relation - ships. Many of these techniques are already part of our "Plan to Close" process, intrinsic to many of our best practices and training, and probably, you are already applying many of them – consciously or unconsciously. If you are not, try giving them a go and elevate your sales skills today. Javier Perez Head of Revenue & Commercial Revenue Management

First impressions matter, and anchoring is crucial. People heavily rely on the first piece of informa - tion they encounter when making subsequent decisions. Introducing a premium option at the beginning can set the tone, making other choices seem like incredible deals. A tidy and well-presented facility, along with exceptional service, can leave a lasting impression on our customers, strongly influencing their future actions. By asking, 'Have you stored with us before?' We can gauge their price, product and service expectations.

Loss Aversion: Building Connections

Most people dislike losing more than they enjoy gaining – that's loss aversion. Highlighting limited availability and dynamic pricing when dealing with leads or reservations can be a good way to create a sense of urgency and close a sale.

The Decoy Effect: Crafting Choices That Impress

Emotional Pricing: Enhancing Perceived Value

The decoy effect revolves around showcasing the benefits of a premium option, relative to others, to make it more appealing. Once we grasp the

7 Kennards Kourier Oct 2023