What makes your customer tick?
What catches their attention and convinces them to move on?
What converts them and why?
Every marketer and advertiser is out there looking for the trick to land more conversions.
They are constantly searching to understand why customers choose one product over another.
The answer- Marketing Psychology!
Smart and successful marketers know the importance of studying psychology to understand consumer behavior.
By learning why people purchase a product, they learn to drive sales to their court.
And you will be too!
To help you have the edge over your marketing strategy, here are the top 6 psychology principles for marketing your business.
Do you want to roll out with your brand and fill your customer pipeline? Make sure to stay on top of these five principles and help attract them in a whiff.
Social Proof
You have heard us discuss marketing psychology enough! Social Proof is a phenomenon where people adapt their behavior that matches other people’s behavior.
Why?
It is because when we see someone doing something out there; we believe they are socially acceptable and normal.
Let’s face it, we humans love to fit in. Also, as others are already involved in it, we believe it is harmless, safe, and less risky.
Ever wondered why people run fashion shows or why are there influencers? Perhaps social proof has something to do with it.
When marketing, social proof helps convince the new prospects that the brand cuts. Even when you have not heard of the product before, you are inclined to indulge!
How to use Social Proof in Marketing?
Social proof runs all over the marketing funnel. It starts from increasing brand awareness to expansions to customer conversions.
It comes in all shapes and sizes- users must generate the necessary content to empower the audience.
Examples of social proof are- reviews, testimonials, social media content, etc. Including them in your emails or landing pages helps businesses to create a significant impact of the brand on the audience.
It is complex and frightening to rely on your customers to hype up your brand. I mean, why not?- it is cheaper and works more effectively than creating the content yourself.
Additionally, your audience is more well off by learning about your product or brand and viewing you as authentic. A Win-Win situation!
Scarcity
As much as we are social animals and want to fit in, we also want to possess the rarest of things- items or quality.
For instance, humans always hunt for the rarest diamond or the rarest painting by famous artists.
This is the principle of scarcity!
As per marketing psychology, Scarcity resembles the simple formula of supply and demand- the rarer the opportunity, product, or item, the more valuable it is.
That being said, this principle also leans toward the “perceived shortages.”
The items do not have to be in shortage- the scarcity principle is applicable as long as people are willing to believe there is a shortage.
It fuels their desire to possess the product dramatically.
How to use Scarcity in Marketing?
Brands run offers, discounts, or sales for a limited time period, leveraging the Scarcity principle of marketing psychology.
For instance, you can create a campaign that says- “Limited Time Offer”, “Only One More Day,” or “While Stock Lasts,” etc.
It makes customers feel they are losing out on the best opportunity the brand can present.
The most prominent examples are the Amazon Festive Deals or Flipkart Big Billion Days.
You can include a CTA that hooks up the consumer and encourages them to make impulsive and quick purchases.
This principle also taps into the principle of FOMO, Fear of Missing Out. People really do not pay attention to that funky orange suit for parties until they see only 2 are left in stock.
Reciprocity
Have you noticed that when someone gives you a gift, you feel obliged to give them something in return? Or maybe you feel guilty for not giving them anything?
This is reciprocity!
For example, when we have birthdays coming up and receive an invitation, we will be obligated to invite that very person to our birthday or any upcoming event.
The same stands for brands when they connect with their consumers.
In marketing psychology, Reciprocity means that consumers feel to be in debt to the brand that gives them a product for free.
How to use Reciprocity in Marketing?
Landing pages and thank you pages are the perfect places to work out the reciprocity in marketing.
In order to get the customer to share their information or fill out a form for you, you can add a click-through form offering them either a free ebook or any other branded product.
As the prospect clicks on the CTA, you can compel them to fill out a form. Now, because you have already provided them with something, they will be inclined to provide their details to you.
For example, you can have a Thank you page that does more than just thank the individual.
Provide them with information that actually provides them value. This will encourage the prospects to engage with your brand.
Create a cycle of reciprocity to land on customer loyalty and lifetime value ultimately.
Anchoring Bias
Ever argued over a product with the first impression it left on you and your friend? It is possible to have different opinions over choosing a product, service, or brand.
This is called Anchoring Bias!
Market Psychology defines Anchoring bias as making decisions based on the first piece of information related to the decision.
In the case of marketing, the prices seem to play a significant role in driving purchasing action.
How to use Anchoring Bias in Marketing?
As already positioned, the brand’s pricing structure reflects the Anchoring Bias. The best way to tackle this is by placing comparative pricing for a few extra features.
For example, when a person visits a jewelry store and finds a bracelet for $200. And, when he goes to another store and finds the bracelet at $150, the latter seems to be the best option.
when he would normally not spend more than $50 on jewelry.
Marketers need to understand that people see the price first to compare the products.
So, while you are advertising for a sale, ensure that you put the original price and cost-saving price side by side.
Allow them to have a quick comparison of what they are benefiting. Here the original price becomes the anchor to which the cost-saving price seems very reasonable or a better deal.
Loss Aversion
We spoke about FOMO, the fear of losing things. Sometimes, people also prefer to avoid a loss than gain a significant amount of gain.
This is called Loss Aversion!
For example, people are more upset about losing $50 than happy about finding $50. Why?
Because stronger emotions are related to loss, like fear, anxiety, stress, etc. And, these tend to hold a long-lasting effect on people compared to the positive ones.
Loss Aversion is not about what people do not get due to the alleged supply- it is more about losing what people already have.
How to use Loss Aversion in Marketing?
In the case of marketing, marketers have to remind their consumers that they’re at risk of losing something if they do not get that deal.
And in order to keep it around, they have to take a certain action.
Try reframing your product and service to depict a loss in case no action is taken.
For example, Life Insurance companies do not advertise it by saying, “Make your future better with XYZ Life Insurance at XYZ cost.”
They get more conversions if they play the emotional or loss aversion cards.
Marketing Messages, “Secure your Family now with only Rs. 1000 every month.”
In the latter, people are more likely to notice the fear of losing family over only Rs. 1000, which makes no sense.
Highlight how they may lose their family if they do not enroll in this insurance.
In case you are a service-based company, you need to showcase how they may lose on certain features if they do not take quick action.
Or, you may offer them a trial version and give them a taste of the good stuff. It will make them fear losing the great stuff and paying for the subscription.
Influence your Customer with Marketing Psychology
Psychology lesson that applies to everyday life- even in marketing! Mind blowing, right? Now that you are well equipped with these principles, it is time to weave them into your marketing strategies.
Tap into a deeper understanding of marketing psychology to attract more customers and sales.
Yes, psychology marketing may not interest everyone, and you’d like to have some guidance to get started.
No problem. Reach out to Shulagna- She’s here to help.