There’s no “silver bullet” for increasing conversion rates… but social proof comes pretty damn close. In terms of influencing your audience on a psychological level, social proof is one of the most powerful tools you can use. 

What is social proof?

Social proof is a concept in psychology where people assume that if others have taken an action, it must be the right behavior for a given situation. It’s a product of evolution. We make thousands of decisions every day. (And at least a few buying decisions.)

In today’s fast-moving world, we must be able to make decisions quickly. We simply don’t have time to thoroughly deliberate every decision to run that yellow light or order that side of mozzarella sticks. Instead, we look to the decisions and behaviors of those around us to make choices more efficiently.

Why is social proof important for financial industries?

Social proof is critical for any industry, but it plays a special role in financial industries like insurance, banking, and investing.

Why? Companies in this space involve money and, by association, risk. B2B buyers in these industries also rely heavily on third-party expertise. Think of it this way: When it comes to managing money and risk, customers want to rely on an expert – not invest in becoming the expert themselves. It’s more efficient that way, and they’ve got a business to run.

But, whew… relying on another company to handle your hard-earned money? That takes a TON of trust.

Social proof is crucial because it builds trust and credibility. When prospects see that others like them already trust you, they’re more likely to do the same. Seeing that current customers are happy with your service can be a powerful motivator for people to convert.

The wisdom of the crowd

Interestingly, social influence might be one area where quantity is more important than quality. This is because of a psychological concept called “the wisdom of the crowd.”

This idea builds on the decision-making shortcut we discussed above. It asserts that large groups of people are often able to make better decisions than small groups due to the diversity of perspectives and knowledge within the group. It’s often used in crowdsourcing and market predictions, but people also use it on a microscale for buying decisions.

All this to say, try collecting a ton of social proof and displaying it all. Will users read it all? Of course not. But the content isn’t the point here. It’s the sheer quantity. Hundreds of happy customers can’t be wrong – right?

Social proof is a necessity for the financial sector

You only have so much of your audience’s attention. You absolutely must use it wisely. And since social proof is so naturally engrained in our decision-making, your audience will be using it anyway. You might as well steer their thought process as best you can.

In financial industries where trust is the top priority for B2B buyers, social proof is the best way to jump-start that trust building process.