Can Costco’s Persuasion Strategy Work for Your Business? This episode of Business Brain details Costco’s 7 Persuasion Principles. Joe Portsmouth.Here’s a summary of the host’s strategy Shannon Jean and Dave Hamilton Discussed:
- Reciprocity: Costco uses this principle to offer its customers free samples. Giving something away for free creates a sense of obligation and reciprocity in the customer’s purchase.
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Commitment and Consistency: Consistent store layouts and the familiarity of the Costco shopping experience reinforce customer commitment to the brand. This principle keeps customers shopping at Costco because the experience is predictable and familiar.
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Social proof: Costco creates popularity and perceived value with its crowded stores and long lines. When customers see other people shopping at Costco, they believe it’s a bargain and good value, and they tend to shop there.
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Authority: Because of Costco’s great purchasing power, customers perceive the brand as an expert in getting the best deals. This prestigious position contributes to customer confidence in Costco’s pricing and product selection.
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What we like: Costco values friendly and helpful customer service, making customers feel valued and creating a positive shopping experience. Costco increases customer loyalty and trust by promoting a likeable, customer-centric environment.
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Scarcity: Costco uses scarcity awareness to increase the value of its products. Customers are more likely to buy when they know that an item may not be available. Costco’s clearance codes, such as those with prices ending in “7”, indicate products that may be discontinued.
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Togetherness: The warehouse-style store layout and shared Costco shopping experience create a sense of togetherness among customers. Feeling part of a group or community that values the Costco shopping experience reinforces customer loyalty and encourages repeat visits.
Hear us steal Costco’s strategy to grow your own business.
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