Can you apply Costco’s persuasion strategies to your business? In this episode of Business Brain, we take a closer look at Costco’s seven persuasion principles. Joe Portsmouth. Here’s a summary of the strategies discussed by hosts Shannon Jean and Dave Hamilton:
- Reciprocity: Costco uses this principle to provide free samples to its customers. Giving something away for free creates a sense of obligation and reciprocity in the customer to buy.
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Commitment and Consistency: The consistent store layout and familiarity of the Costco shopping experience strengthens customer commitment to the brand. This principle encourages customers to continue shopping at Costco because the experience is predictable and familiar.
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Social Proof: Costco creates a perception of popularity and value with its crowded stores and long lines. When customers see other people shopping at Costco, they believe it’s a good deal and are more likely to shop there.
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Authority: Because of Costco’s large purchasing power, customers know this brand is an expert at getting the best deals. This position of authority contributes to customer confidence in Costco’s pricing and product selection.
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What we like: Costco emphasizes friendly and helpful customer service, making customers feel valued and creating a positive shopping experience. Costco increases customer loyalty and trust by fostering a positive, customer-centric environment.
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Scarcity: Costco uses the perception of scarcity to increase the value of its products. Customers are more likely to buy when they think that a product may not be available. Costco clearance codes indicate items that may be discontinued, such as items whose price ends in “7.”
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Unity: The warehouse-style store layout and shared shopping experience at Costco creates a sense of unity among customers. The feeling of being part of a group or community that values the Costco shopping experience strengthens customer loyalty and encourages repeat visits.
Hear how we steal Costco’s strategies to grow your own business.
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