Persuasive Marketing Communications, Amazon and service business.

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Persuasive marketing
Persuasive marketing tactics used by amazon and the service industry

Presuasive marketing is essential to boosting sales we are Identifying a service and product companies; that exhibit the use of persuasive tactics, in their marketing communications. And offer suggestions that contribute than detrac from the reputation within their respective industries.

Persuasive marketing tactics will be identified for each company, I’m explaining what forms of persuasion they are using and the expected outcome(s). Then explaining how I believe these practices may be contributing to or detracting from their reputation within their respective industries.

For a service business, I am analyzing the use of the stamp card as a persuasion tactic. In which the use of “Endowed Progress Effect” is in implementation in order to Build Customer Loyalty.

The use of the stamp card persuasion tactic. When you first visit service business that uses this marketing strategy; the business will give you a card after they perform the service, and punch a hole in it. After punching 10 holes after each returning visit you get the service for free.

Also see: Instagram marketing strategies

Where is the problem in that?

But the problem is with one hole in the card, the free service seems a bit far from reach. Most likely you might even forget that you got the card and lose it or misplace it; Due to its low value and the duration, it’s going to take to get the free service.

Considering that the value of this card, is exactly equal to replacing it the next time the service is purchased; since you will receive one hole on the new card. The value of the one hole was equal to the coffee I purchased.  

Doing this persuasive marketing method not be the most effective way to build a relationship with new customers; considering most small businesses use this tactic.

So how do you differentiate your self in order to maintain new customers?

Instead of stamping the card once, try something different and stamp four out of the ten holes. Now when there are four holes its a different story here’s why!

Let’s say you own a barber shop, and it costs $30 dollars to perform the service. Punching the card four times gave the card value of $120 without actually paying that amount out of pocket; and made reaching the next haircut, not far from reach. By the next visit, the customer is halfway there. The point is to build a returning customer relationship, not to give out cards!

Amazon for a product company and the use of Scarcity To Boost Sales

Amazon along many other E-commerce sites use of scarcity as a persuasive marketing method. Scarcity is the biggest motivator for action. In order to motivate and persuade people to make the purchase. Amazon offers Last minute deals, or also known as the “deals of the day”. Since they won’t be available tomorrow, in this strategy; there is a countdown that the consumer can actually see. Where their ability to purchase the product is decreasing by the second.

They use this method in many different ways:

A) The product will only be available for sale during the countdown period. After the timer ends, the product won’t be available in stores at all. People will never be able to

buy it again.

This will create a scarcity effect. Usually, this type of persuasion is on limited edition products where this method creates higher value for the product. And whoever makes the purchase, is going to feel like they are getting their money’s worth; and which will give a greater feeling of satisfaction. Due to the product rarity, but they have to make the decision instantly.

B) The product will be on sale only during the count down period, and after the timer runs out; the product price will increase back to normal.

So depending on what you are recently searching for on Amazon; the company tends to record the history of your searches. Once you log in into your account; the next step for Amazon is to create scarcity on a product you have searched for. By putting sale timer, the consumer is going to take action; and make the purchase. Since he might have to pay the full price if he procrastinates the purchase. Using this persuasive marketing method, the consumer might make the purchase even if they can’t afford it. Considering that in the long run, they are saving money; and if they don’t make the purchase now, they are going to pay more for it in the future. 

C)The product doesn’t have a count down timer, but the scarcity effect is in quantity available in stock.

No discount accompanied by the listing but you can lose the ability to buy it. Especially if there is “one item in stock”; because in a matter of seconds you can lose the ability to buy the product. Considering that someone else might be viewing the product; at the same time and beat you to making the purchase. This will lead to instant action especially if it is a product they really need.

Are these practices contributing to, or detracting from their reputation within their respective industries?

This persuasive marketing doesn’t leave the customer with much of a choice; which can lead them to make a higher rate of impulse purchases. As well as it influences the decision-making process, making the product itself more noticeable and distinguished from other products. In a sense, it eliminates the attention on different products; considering that other products might seem more available and this one is not going to be for too long. 

Also see: how impulse purchases benefit businesses

These persuasive marketing practices are neutral to the reputation since the methods are not applied to all products. Only a selective few. Simply it could just be stating facts about the availability of the product.

The count down persuasive marketing is still relatively new, and it is giving the consumer the option to save money! So it cant be really perceived as a negative influence on the reputation of the business. But it can be if Amazon is targeting and applying these methods; only to the items the customer search. As of now, we don’t have proof that Amazon does that.