Use rewards, not penalties

Chris Austin

Are there behaviors by your clients or customers you want to discourage?  For example, do you prefer they register for your event early rather than at the last minute? Or maybe you prefer they pay you with cash instead of using a credit card?

Often, you can influence buyer behavior through your pricing structure. But, and this is key, reward the behavior you want instead of punishing the behavior you don’t want.

We all respond better to rewards than to punishments. Think about your own experiences as a buyer. Don’t you prefer getting a discount for paying early over a penalty for paying at the last minute? Don’t you prefer getting a discount for paying with cash over a surcharge for using your credit card?

For any behavior you can think of, there’s an opposite behavior you can reward.

Two tips to help you here.

Tip#1: You can still charge extra for a particular buyer behavior. Only don’t frame it as a surcharge or some sort of penalty! Label the higher charge as your standard price and offer a discount for the behavior you want.

Tip #2: The reward doesn’t have to take the form of a price discount. It can be a free extra. What premium or bonus could you throw in to encourage the behavior you want?

Remember, highlight the reward customers or clients will get by acting in a certain way. You’ll influence their behavior without alienating them. After all, you’re giving them the chance to save some money or get something extra!