Are you ever frustrated by your multi-million dollar ARR friends who successfully sell their products online? It seems like every second, another product is sold.
Meanwhile, for those of us service-based business owners, it feels like we’re pulling teeth. We also wait months for deals to close, only to get ghosted after customizing our services to fit each person’s needs.
Ugh, there has to be a better way!
Well, there is—and it all comes down to understanding buying behaviors.
But here’s the catch: product buying behaviors and service-based buying behaviors are world’s apart. Products are often sold on emotion or impulse, while services take time, trust, and careful consideration.
With these differences in mind, let’s explore the psychology of buying behaviors and how you can start using them to sell your services more successfully with your website.
Product Buying Behaviors vs. Service-Based Buying Behaviors
Impulse buying behaviors have been studied since the 1940s, showing that impulse purchases represent between 40% to 80% of all consumer purchases.
This non-rational buying behavior is characterized by the sudden appearance of a need and immediate satisfaction, even if the results don’t always match expectations.
For example, it’s common for consumers to make additional purchases that they never planned and did not relate to the intended product on their shopping list when entered a store.
If only this were true for services—where people see it, want it, and bam—it’s bought on the spot without any second thoughts or hesitation.
But this makes sense for products. Impulse buying often happens with lower-cost and easy-to-access items, like snacks, clothes, or small gadgets. People grab them without much thought, driven by emotion or convenience.
Now let’s take a look at service-based buying behaviors, which function quite different.
Services require a deeper trust-building process. Gartner reveals that 75% of buyers prefer a rep-free experience when purchasing, but those who make entirely digital purchases often experience higher buyer regret, reinforcing the need for a mix of human and digital interaction.
For many services, we also face extended decision times due to people’s need for customization, perceived risk, and higher price tags.
It’s no wonder navigating a service buyer’s journey is do damn complex.
But a key takeaway from Gartner’s research is that service-based businesses must strike a balance between self-service options and personalized human touchpoints to ensure buyer confidence and reduce regret.
Key Differences in Buying Behaviors
SERVICE-BASED BUYING BEHAVIORS
- Contracts are Often Required: Most services require formal agreements that outline terms, responsibilities, and expectations.
- Prices Tend to Be Negotiated: Unlike fixed-price products, service pricing can vary depending on scope, customization, or client needs.
- Customization is Key: Services are typically personalized to fit a client’s specific needs, making each offering unique.
- Trust and Relationships Matter: People don’t just buy a service; they buy trust in the provider. Building credibility is essential.
- Intangible Offering: You can’t physically touch or try out a service before buying, which increases perceived risk.
- Delivery Time Varies: Services aren’t always instant. The time required can depend on scope, revisions, and client communication.
- Ongoing Support or Maintenance: Many services—like roofing, consulting and web design—require ongoing maintenance and support.
- Perceived Risk is Higher: Buyers often feel nervous about investing in a service without seeing tangible proof of success—and we all know success is near impossible to guarantee.
- Outcome-Based Value: The true value of a service lies in its outcome—something that each person will perceive differently.
- Longer Decision-Making Process: Buyers need time to evaluate whether the service fits their needs, budget, and expectations.
PRODUCT-BASED BUYING BEHAVIORS
- Fixed Prices: Products are typically sold at a set price, with little room for negotiation.
- Standardized Offering: What you see is what you get—there’s minimal customization involved.
- Immediate Availability: Products can be bought and used almost instantly, with predictable delivery or pick-up times.
- Tangible Goods: You can physically see, touch, or test a product before deciding to buy.
- One-Time Transaction: Once you buy a product, the transaction is usually over—no ongoing relationship needed.
- Lower Perceived Risk: Because products can often be returned or exchanged, the risk feels much lower.
- Impulse Buying is Common: Products are frequently purchased on a whim, especially lower-priced items.
- Inventory and Stock: Availability can be a limiting factor, but people generally understand the product is either in stock or it’s not.
- Immediate Gratification: With products, buyers get that instant satisfaction of having something new in hand.
- Shorter Decision-Making Process: People often make quick decisions, especially for products that don’t require much financial commitment.
The Psychological Principles Behind Service-Based Purchases
When it comes to selling services online, understanding key psychological principles can make all the difference in how you approach potential clients.
Various psychological theories explain why people behave the way they do when making purchasing decisions, especially for intangible, service-based businesses.
Below are some fundamental principles, each rooted in research, that influence how buyers think and act when deciding to purchase services.
1. Trust (Erik Erikson – Psychosocial Development)
Trust is critical when buyers are unsure about the quality or outcome of a service.
Psychologist Erik Erikson emphasized the importance of trust in human development, which carries over into decision-making as adults—especially in unfamiliar or high-stakes situations like purchasing services.
Erikson, a pioneer in developmental psychology, introduced the concept of trust in his Eight Stages of Psychosocial Development.
The first stage, Trust vs. Mistrust, occurs in infancy (0-18 months) and is foundational for building trust in the world. According to Erikson, infants develop trust when their caregivers are consistent, reliable, and nurturing.
These early experiences shape how individuals approach relationships and decisions throughout life.
As adults, we subconsciously draw from these experiences, evaluating new situations based on trust. When trust was established early, individuals tend to make confident decisions.
However, without that trust, they often approach decisions with hesitation and insecurity.
Key points from Erikson’s research:
- Consistency Builds Trust: Trust forms through reliable, consistent behavior, which builds secure relationships.
- Trust is Critical for Future Relationships: Early trust lays the foundation for healthy, trusting relationships in life. Without it, mistrust dominates.
- Trust vs. Mistrust is Binary: Erikson’s framework suggests that individuals either trust or mistrust based on experiences—there’s little middle ground.
- Trust Leads to Confidence: Early trust fosters confidence in exploring new environments, which influences decision-making in adulthood.
- Long-Term Impact: Failing to establish trust early can lead to long-lasting feelings of insecurity and fear in later decisions and relationships.
How to Use Erikson’s Theories on Your Website
Erikson’s research highlights the role of consistency and reliability in developing trust. For service-based businesses, building trust means being transparent about your process and delivery.
Example:
- Create a “How It Works” or “Our Process” page that clearly outlines the steps clients can expect when working with you.
- Include transparent pricing and case studies to reassure potential clients that your services are reliable and trustworthy, reducing the uncertainty they may feel.
- And don’t forget about your legal pages!
2. Authority (Stanley Milgram – Authority and Obedience Studies)
When potential clients seek out a service provider, they’re often unsure who to trust. This is where the principle of authority becomes powerful.
People are naturally inclined to trust those they perceive as authoritative figures, especially in unfamiliar situations, a concept proven by psychologist Stanley Milgram.
Milgram, known for his Obedience Studies, found that people are more likely to follow instructions or take action when directed by someone they view as an authority.
His famous experiments demonstrated how even ordinary individuals would follow orders from an authority figure, even if it conflicted with their own morals, simply because they trusted the source.
This tendency to defer to authority doesn’t just apply to extreme situations—it influences everyday decisions, including purchasing services.
When clients see a service provider as an expert in their field, they are more likely to trust their judgment and move forward with a purchase. Authority, therefore, plays a vital role in reducing hesitation and perceived risk.
Key Points from Milgram’s Research:
- People Defer to Authority: In uncertain situations, individuals are more likely to trust and follow the lead of those perceived as experts or authorities.
- Trust in Expertise: People are more likely to accept guidance or services from those who are established or credible, reducing their need to second-guess.
- Authority as a Shortcut for Decision-Making: Recognizing someone as an authority simplifies decision-making, especially in complex or high-stakes choices.
- Symbols of Authority Matter: Titles, awards, and visual cues like uniforms or certifications reinforce perceived authority and credibility.
How to Use Milgram’s Theories on Your Website
To leverage Milgram’s findings on authority, it’s crucial to position yourself as an expert in your field. This can be achieved by showcasing credentials, certifications, or industry accolades that signal your authority to potential clients.
Example:
- Create a prominent “About Us” or “Our Expertise” section that highlights your qualifications, industry awards, and experience.
- If you’ve been featured in reputable media outlets or have certifications in your industry, make sure these are visible on your homepage or in your service descriptions.
3. Social Proof (Robert Cialdini – Influence: The Psychology of Persuasion)
When it comes to making decisions, especially in uncertain situations, people tend to look at how others have acted in similar situations. This tendency is known as social proof, and it was introduced by psychologist Robert Cialdini in his book, Influence: The Psychology of Persuasion.
Cialdini found that individuals often use the behavior and choices of others as a guide, particularly when they are unsure of the best course of action. This principle is especially powerful in service-based businesses, where the intangible nature of services makes it difficult for potential clients to evaluate the quality on their own. Seeing that others have had a positive experience can be the nudge that convinces them to move forward.
In the context of selling services online, social proof can take the form of testimonials, reviews, or case studies. Each of these help to influence buying behaviors by alleviating doubts and building trust.
Key Points from Cialdini’s Research:
- People Look to Others for Guidance: When unsure, people tend to follow the actions or choices of others, assuming that others know something they don’t.
- More Positive Experiences = More Trust: The more positive feedback or reviews potential clients see, the more likely they are to feel confident in purchasing a service.
- Peer Influence is Powerful: People trust the opinions and experiences of others who are like them, making peer reviews particularly influential.
- Social Proof Reduces Uncertainty: Seeing others have success with a service reduces hesitation and the fear of making the wrong choice.
How to Use Cialdini’s Theories on Your Website
The best way to leverage social proof is to display authentic reviews, testimonials, and case studies from past clients prominently on your website. This gives potential clients confidence that others have used and benefited from your services, reducing their uncertainty.
Example:
- Feature a Testimonials section on your homepage or service page, including specific quotes from satisfied clients.
- Where possible, include case studies that showcase your success with clients in similar industries or with similar needs. Seeing others’ positive experiences helps build trust and encourages potential clients to take action.
4. Cognitive Dissonance (Leon Festinger – Cognitive Dissonance Theory)
We all want our actions and beliefs to align, but when they don’t, we experience discomfort—this is the essence of Cognitive Dissonance, a principle introduced by social psychologist Leon Festinger.
In his Cognitive Dissonance Theory, Festinger explained that when people hold two conflicting beliefs or experience inconsistency between their beliefs and actions, it leads to psychological discomfort. This discomfort pushes individuals to resolve the inconsistency, often by justifying their decisions or changing their beliefs.
For service-based businesses, this principle becomes critical post-purchase. After buying a service, clients may experience buyer’s remorse, questioning whether they made the right decision. This feeling of dissonance can affect long-term client relationships and retention.
Key Points from Festinger’s Research:
- People Seek Consistency: When actions don’t align with beliefs, individuals feel discomfort and are motivated to resolve this inconsistency.
- Buyer’s Remorse is Common: After making a purchase, clients may second-guess their decision, leading to doubt and regret.
- Reducing Dissonance Can Improve Loyalty: Providing reassurances post-purchase helps reduce cognitive dissonance, reinforcing the client’s choice.
- Follow-Up is Key: Addressing concerns quickly and reinforcing the value of the service helps align the client’s feelings with their decision.
How to Use Festinger’s Theories on Your Website
To prevent cognitive dissonance post-purchase, it’s important to reassure clients that they’ve made the right decision. Reinforcing their choice with additional value after they commit can go a long way toward preventing buyer’s remorse.
Example:
- After a client has purchased your service, send a follow-up email outlining the next steps, along with a reminder of the benefits they will receive.
- Try sending a thank you note, with case studies of similar successful projects, or even a personal message emphasizing the value of the service they just signed up for.
5. Loss Aversion (Amos Tversky & Daniel Kahneman – Prospect Theory)
When it comes to buying behaviors, people are often more motivated by the fear of losing something than by the prospect of gaining something of equal value.
This powerful principle is known as loss aversion, and it was introduced by psychologists Amos Tversky and Daniel Kahneman in their groundbreaking work on Prospect Theory.
Tversky and Kahneman discovered that people tend to feel the pain of losing something far more acutely than the joy of gaining something of equal value.
This means that when clients are evaluating whether or not to purchase a service, their hesitation often stems from the fear that the service won’t deliver the results they expect—leading to a perceived “loss” of money, time, or opportunity.
Tversky and Kahneman’s principles have big implications for service-based businesses.
To get potential clients to commit, you need to address their fear of loss head-on by reducing the perceived risks associated with your service.
Key Points from Tversky & Kahneman’s Research:
- People Fear Loss More Than They Value Gain: Clients are more likely to avoid a service if they fear it won’t meet their expectations, even if the potential benefits are great.
- Loss Aversion Drives Hesitation: Fear of a bad outcome leads to hesitation in decision-making, especially for high-value or long-term services.
- Overcoming Fear of Loss is Key: Providing reassurances, guarantees, or trials can mitigate this fear and make clients more willing to move forward.
- Risk Aversion Varies: Clients are often risk-averse, preferring certainty over potential rewards unless the risk is minimized.
How to Use Tversky & Kahneman’s Theories on Your Website
To combat loss aversion, it’s essential to alleviate the fear of potential losses by offering guarantees, risk-free trials, or strong reassurances of value. This approach reduces the client’s perceived risk and helps them feel more confident about making a decision.
Example:
- Offer a Money-Back Guarantee or a Free Trial to reduce the perceived risk. This way, clients know that if the service doesn’t meet their expectations, they won’t lose their investment.
- Include these reassurances prominently on your website, such as in the header or on the service page, so potential clients feel secure about taking the next step.
Ready to Turn Buying Behaviors Into a Service-Selling Machine?
By now, you’ve got a good grip on the psychology of buying behaviors and how it plays a massive role in selling your services.
The key isn’t just to push your services; it’s about positioning them in a way that taps into trust, authority, and the subtle psychological cues that make people say, “Yes, I want that.”
Your website is more than just a digital business card—it’s a powerful tool that can turn potential clients into loyal ones, if it’s designed the right way.
Ready to take your website from “meh” to “wow”? I’m here to help you build a website that doesn’t just look good but actually works hard to sell your services.
Contact me to chat about how we can design a site that’s optimized to turn clicks into clients.