D2C Shots: 5 psychology hacks to double your revenue
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Today we talk all about Consumer Psychology
It should take you roughly 2 minutes and 26 seconds to go through today's edition
In today's edition,
?? Consumer Psychology
?? Shein IPO
?? Snippets: Fundings this week
?? Brand of the week & the tools they use
D2C Class: Consumer Psychology
5 Psychology Hacks to double your revenue
They say you can either be Left Brain (Analytical) or Right Brain (Creative), i say if you’re a founder or marketer, you gotta be both.
I know i talk a lot about understanding data, but understanding what leads your customers to whip out their cards is more than just data
You gotta understand how consumers think and behave.
Most folks make a buying choice based on emotion but rationalise it with logic. Don’t believe me, think about when you “Needed” a new phone or bought a higher model of a car.
Let me take you through some principles and how to use them
1) Anchoring Bias:
Our decision-making is influenced by the first information we get. We then make decisions based on that.
How to use: A good way is to have a higher MRP stated and then a reduced amount next to it.
2) Scarcity:
Ever visited a website that said: Selling fast, only a few pieces left. That is scarcity in action and that is how you use it
3) Verbatim effect
People are more likely to remember the gist of the content they come across rather than the entire thing.
So instead of telling them your t-shirt is made of Organic Cotton, fabric GSM 160,dye sourced from Cambodia (yawn)
Tell them you sell the Softest T-Shirts on the Planet
4) Social Proof:
This is how we are, we want what everyone is having.
and thus it is the most important and most commonly used psychology hack
Use reviews, Star ratings, and magazine features to signal that your brand is popular. Everyone is going gaga over it
5) Reciprocity:
This is the principle owhichcj the entire gifting concept thrives
You give someone something for free and they’re inclined to reciprocate by buying something from you.
As a brand, you can do that with Valuable content or even free samples
领英推荐
TL;DR
Understanding consumer psychology gives you superpowers. Some of the smartest founders of our time understood and implied these principles well
Resource:
This book is a Bible on Psychology. A must read?
AnyMind group launches "D2C For Enterprise" and "AnyManager" in India.
Mokobora bags $6.5mn funding in Series A funding round.
Dabur buys an entire stake in Bangladesh-based Asian Consumer Care.
DaMENSCH collaborates with Vikrant Massey for "The 500-Day Warranty Collection".
What caught our attention this week?
Shein seeks US IPO as soon as 2024!
The China-based fast-fashion giant is aiming to have an initial public offering in U.S markets as soon as 2024.
The only obstacle they might come across in this process is the backlash from people around its environmental, social, and governance (ESG) concerns that also were a hindrance back in 2022 when they first filed for an IPO.
Shein, which has a $100 billion valuation, has drawn scrutiny for its cheap product line that has been built on a fast and prolific production chain.
While these concerns have not dissuaded large investors such as Sequoia Capital China, IDG Capital, and Tiger Global Management, recent executive moves within Shein appear to focus on improving their ESG appearance in preparation for a public offering.
Shein has been a topic of criticism for its garments with short-term wearability and for being an icon of fast fashion.
We are here to see how it turns out for the fashion giant after 2 years of waiting.
Brands We Love
Brand: Mizzen & Main
Headquarters: USA
Category: Performance Work Wear
Founder: Kevin Lavelle
What we love about em: Another category inventor, i came across this brand from one of the Shark Tank (US) episodes.
Last Funding: M & M have raised a total of $4.6 million
Tools they use:
Shopify
YotPo
Attentive
So, fellow nerd, how'd you like today' edition?
Feel free to reply to this mail if you'd like to meet up over a virtual coffee. I love meeting new folks in the D2C space every week.
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Till we meet again
Tam aka D2Cnerd ??