How and why you should use consumer psychology in your marketing strategy
19th May 2020
Consumer Psychology; The study of why and how individuals and groups engage in consumer activities, as well as how they respond to the influence of marketing
Consumer psychology is about understanding consumer behaviour. Examining the cognitive processes and behaviour involved when individuals make decisions in their buying cycle for different products and services.
Learning and understanding the basic principles that shape human behaviour allows marketers to utilize different consumer psychology strategies to motivate customers to buy.
It’s easy to forget that customers are human beings. It’s straightforward to create promotions but many do so without taking psychology into consideration. So if you want your online sales efforts to be successful, you need to understand the psychological principles that encourage people to buy.
By using psychology as a part of your marketing strategy you can increase conversions and reduce buying cycles. Here are a few psychological drivers you can leverage to help gain traction.
The anchoring effect allows you to influence customer behaviour based on the order you provide the information. Did you know that we tend to rely too heavily on the first piece of information we offered? Therefore, since customers attach more weight to the first information in a sequence, we are set up to alter their perception of value.
For example, if you’re offering a specific product, by offering a higher-priced alternative first, when you offer the intended lower priced item customers will see this product as too good to pass up. You anchored them to the first price point that the second seems like a great price without having to discount the product.
“Marketing isn’t a battle of products, it’s a battle of perceptions.” – Jack Trout
This concept is that people follow the actions of the masses. FOMO is real, and you can use it to leverage your marketing strategy. People like to do things they see others doing. We like to buy on-trend clothes that we see influencers buying. And at the same time as customers, we want to know a brand has satisfied previous customers. It is easy to add ‘social proof’ to your website. Simply add a customer review section to product pages like Amazon does, or have a testimonial page on your site to help boost your brand. Don’t forget to share these across Social Media platforms. Most consumers check a brands social feed for disgruntled customer comments.
There are a few smaller tips we have that will be quicker and easier to implement in the meantime.
1. False Sense of Urgency – Offering limited-time offers or highlighting low stock creates a sense of urgency for customers. This can make even the most careful shoppers impulse buy. However, be careful not to overdo it. If you are constantly offering limited-time discounts regular visitors to your site will realise that if they miss one offer, another will soon follow.
2. Maximise the Perceived Discount – Weigh up what sounds better. The amount of money the customer can save, or the total discount off the full price item. For example, 20% off a £50 item is a £10 discount. But studies have shown that 20% is more appealing for most consumers as it seems like a bigger discount.