Use the Power of 3 to Grow Your Business
Ever wondered why so many things come in 3's? Take a look into what significance the number 3 has in the world of business and marketing and how you can use it to grow your business.
To make a success with your business, you should probably understand why the number three is important. Intrigued? Read on as we explain why the simple number three could propel your business forward.
In the world, if you think about it, many things come in 3s; beginning, middle, end; morning, afternoon, night; short, medium, long, the list goes on. Having three options to choose from allows us to avoid the ones that are too hot or cold, too big or little, and choose the one that is just perfect.
This holds true in business as well. When you see pricing comparisons, they nearly always include three alternatives (for example, Low, Middle, and High / Bronze, Silver, and Gold). We utilise 3s a lot in design too, when it comes to spreading how we show and arrange items, or even creating and adapting colour schemes, we often stick to 3 solid choices.
The main point is, we as humans are comfortable when we are presented with three options, it is just the right amount, any more or any less and a sense of discomfort eludes in our minds. To tap into this human brain protection mechanism, business owners need to understand the power of three, which is inherent in virtually everything. So, are you ready to learn about the power of 3?
Ready, set, go!
IMPORTANCE OF 3 AND THE BRAIN
The way in which our brains have evolved protects us from harm by making it appealing to have choices. If we find ourselves in a dangerous situation without any choices, we might not find a way out of it. Likewise, our brains also know that if we are presented with too many choices we may get confused and overwhelmed and in turn make the wrong choice. Neither of these situations are ideal. Therefore, the brain needs to have a suitable number of choices.
When it comes to the way the brain maps the world, it is much easier to remember patterns as opposed to odd sequences of facts or events and as it stands, 3 is the smallest number required to combust a pattern. Once a pattern is established, the brain can readily assimilate and store the information in memory. When marketers build their campaigns in this manner, they can make anything convincing. In today's age with short attention spans and numerous competitors, the power lies in 3.
So, what’s so magical about the number 3? It is no coincidence that the power of 3 is so pervasive and embedded in our minds. Just have a think about the stories you grew up with; Three Blind Mice, The Three Musketeers, The Three Wise Men, Three Little Pigs; need we go on?
Another reason the number 3 is so ingrained in our thoughts is due to the English language's tendency to attach more significance to certain numbers. The distinct ends that various numbers have; 1st, 2nd, and 3rd are what we're attempting to emphasise here. The numbers after the first three are all given the same ending ‘th'; 4th, 5th, 6th, and so on and so don’t hold the same significance.
3 IN MARKETING
Good marketers understand that customers' minds become overwhelmed when they have too many options. If you understand the power of 3, you can utilise it to your advantage.
When marketing to people, it’s very easy to want to present a long list of your businesses “bests” and show off how amazing you are. Even though we tend to think that we will make the better choice if there are more options to choose from, that’s just not the case. The truth is, the bigger the list, the bigger the confusion. It is the top 3 that leave the lasting impact. Remember, the odds aren’t in more options, it’s in less.
It's natural to want to provide a big list of your company's "bests" and brag about how great you are while marketing to your customers. Even while we tend to believe that if we have more choices, we would make a better decision, this is simply not the case. The reality is that the longer the list, the more perplexing it becomes. If you provide your consumers too much information about the product or give them too many alternatives, they will be hesitant to buy. It is the top three that have the most enduring influence.
Large lists can sometimes create the mindset that they are of lesser quality than short lists. It makes it look as though you're making a last-ditch effort rather than a calculated one and will give the impression that you are unconvinced by your initial few proposals. So be sure to identify your top 3 products, values and services.
POWER OF 3 IN PRICING
You may have noticed that many businesses offer three pricing options for their services. This is because people will almost always pick the middle option; it feels like the ‘safe’ option for people. If you understand the power of three, you can use it effectively in your marketing and make your business soar.
Whether you’re selling a product or a service, you can still use the psychology of 3 in your pricing. When you provide several choices, you reframe the customer's thinking so they compare your businesses services based on value instead of price. Rather than comparing your one price with any competitors they have seen or heard of, they are comparing one of your prices against another of your prices, and so there is no longer a battle with competitors but instead the decision of which of your businesses services to choose.
This is a common ploy used by businesses. Sometimes, a product may take some time to sell, but we see that as soon as the business offers a marginally better, more costly version, the old product becomes much more popular and in demand. Why does this happen you might ask. In short, it is because consumers believe they are getting an even better deal on the first product now that they have something to compare it to - the newer, more costly one. The odds increase when you offer a cheaper service alongside the medium priced service and a more expensive service.
As previously outlined, humans are wired to think in threes, therefore a three-tiered pricing approach is the perfect medium. Offering options, no matter how ineffective, really aids individuals in making decisions, especially when they are unsure of what they truly want.
So, with a service-based business, how do you go about developing a three-tiered pricing strategy? The key is to create 3 different pricing stages:
The Basic Pricing Package
This is your service with the lowest price. You want to still offer a high standard of service here but don’t overdo it, this is the bare minimum required to still get a good result for your consumer.
The Mid-Tier Pricing Package
This package is the middle option, the one clients are most likely to choose. This should offer additional services or skills on top of the basic package but not as many as the premium package- this is the safe, comfortable option. If this option is priced slightly higher than the basic option but much lower than the premium, third tier, the price has been anchored just right in your customer’s minds. They will often stretch their budget for the middle option.
The Premium Pricing Package
Finally, check over your mid-tier product and give it everything you've got. Consider how you can go above and beyond to ensure that your client is getting a package or product that is the dream in their eyes. Increase the number of sessions, provide more reports, advice, analytics, skills and whatever else you can think of, lay it all out.
Just like that, you have a professional, clear, transparent 3 tier pricing strategy. You have provided your clients with a comfortable amount of options, each with clear, bold services. You have harvested the power of 3!
Now that you have this information, there are a few things you can do to help your business in the future.
Concentrate on the top three benefits that your customers will receive from each offer you make. Choose the top three obstacles that your clients encounter and provide them with the best solution for each one.
You can make anything convincing if you build your promotions in this manner. In today's age with short attention spans and numerous competitors, the power lies in 3.