Harnessing the Power of Marketing Psychology: 12 Key Principles to Influence Consumer Behavior
Understanding consumer behavior and the reasons behind it is crucial in the sales process. This is known as Marketing Psychology or neuropsychology. By comprehending how and why people behave in certain ways, businesses can effectively persuade them to make a purchase.
In this article, we will discuss 12 key principles of marketing psychology, presented in no particular order of importance.
1. Social Proof
As people we want to know what others are buying or using so that we can base our decisions based on that information. That moment when you want to buy something and you ask your friends and colleagues if they've ever used it or you ask what they're using so that you can make a decision. That is the social proof principle at play.
As a business the way you can tap into this is to advertise using influencers. Get testimonials to post around and highlight endorsements from popular brands. This will give confidence in your potential customers.
2. Scarcity Marketing
Have you ever visited a site wanting to buy tickets for a concert and it says only 5 tickets left? That's scarcity marketing, it gives you an urgency to want to buy yours before they run out. Sometimes there are plenty remaining tickets but because you feel you cant miss out and the tickets are running low, you will then make a purchase right there.
As a practice of scarcity marketing companies will have limited editions for certain products, simply because there are people who don't want to miss out on being special. Locally in Zimbabwe a local fashion designer made a limited edition of his jackets just 20 going for $100 each and they sold like hot cakes. That shows the importance of riding on scarcity marketing as a business.
3. Reciprocity
People go where they're complimented or liked. This principle mainly influences the customer experience, once the customer experience is on point, people will return. How do you do that? Give out free tools and trials, give out important information for free.
Giving out small freebies after a purchase can make someone feel that they're appreciated, and that they're gaining more. As a business you can give out mints(sweets), pens after every purchase. You'll land yourself numerous repeat customers. Avoid giving freebies before they make a purchase.
4. Colour Psychology
The study of hues as a way to understand, predict and influence human behaviour is what is called colour psychology. Colour has a subconscious effect on the human mind.
Which is why you see creative and youthful businesses have a yellow/mustard/orange somewhere on their colour palette. Those that are in food will have a red colour as it is known to stimulate appetite. Other companies which ride on client trust will have a more stable and calm colour.
5. Action Paralysis Principle
People when they make decisions, they seem to be lazy to think so they tend to go round and round until they find someone who will trigger them into action. Telling them to buy is not enough. Tell them the reason why they should buy. Let them think that this product is the best option they have and they should buy it right away.
If 2 sales reps come to you and they say to you
Sales rep 1: Buy my slimming tea its very good
Sales rep 2: You want to lose 5kg in a month, buy this slimming tea.
Who will you buy from?
6. Law Of Least Effort
People are generally lazy, or lets say they want to do things efficiently and easily. Myself when i want to buy something I'll go to the Facebook market, if i find a listing without a phone number or location or price I'll skip and move to the next listing. The same applies if i visit a company's website and it's complicated, their phone number is not where it should be or there is a lot of redirecting or the site is lagging I'll leave and take my business to their competitor.
That is the law of least effort, people just put the least effort and if you don't meet them all the way you've lost them. As a company or business, your marketing should make information easily available for your potential clients and make the buying process easy and faster.
7. Mere Exposure Theory
The more people see something, the more they'll like it. When you see the same bill board of company X on your way to and from work every day. You will start to subconsciously like the brand. When presented with a choice between liking company X's product and that of Y, you'll likely pick X's product. The interesting thing is you won't acknowledge the billboard's effect on your decision, but the truth is, it'll have played a pivotal role in your choice.
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As a marketing manager the goal is to increase the mere exposure of your brand to potential clients, when they go on Facebook let them see you, when they go to work let them see you, expose them to your brand as much as possible.
8. Paradox of Choice
You have 2 companies selling peanuts.
Studies have it that Company A will sell more than B. Humans dont want so many options to choose from. As i mentioned earlier humans are lazy, they dont have the time to go through all the flavours. While they are on flavour number 5 they'll have forgotten what flavour number 1 was and they'll start all over again and at the end they'll leave and go for the simple choice presented by Company A.
This also applies to those in the service industry, there is no need for 6 or 10 packages for clients to choose from. Focus on reducing the paradox of choosing what they want.
9. Decoy Effect
People change their preferences between 2 options when there is a third option. When there is an important third option they'll likely pick the expensive one.
Lets say this is an Internet Service Provider and it has 3 bundles on offer
People will pick the 3rd option. The 2nd option is a decoy It's there to stop people from choosing the cheaper option. They feel they'll gain more with the 3rd option despite the fact that they'll be paying more. That is the power of the decoy effect and a marketing manager should use that.
10. Liking Principle
If you walk into a high end luxury store and you find their attendees looking like simple Joe's, you'll walk out. Its the same if you walk into a basic store that serves everyone and you find the attendees looking extra clean, wearing suits and looking expensive, you'll walk out.
People like people who are similar to them, people who dont make them feel out of place. They want people who make them feel comfortable of who they are, which means they want attendees who pass them compliments and cooperate with them. This is all to do with customer experience, and as a marketing manager that's your job to make sure the Liking principle is Liking.
11. The Anchoring Effect.
This is dangerous. It can work for you and also against you. People make decisions based on the first fact they heard or came across.
If they've heard that your brand or product is bad or doesnt bring desired results, no matter how you'll explain it to them, they'll not buy it. However if it's the other way round, they'll just buy without thinking twice.
As a brand manager and marketing manager it is critical that you control the narrative that people have on your company and /or products.
12. Storytelling
Humans are captivated by stories. Businesses can harness the power of storytelling to connect with consumers on an emotional level. By crafting compelling narratives that resonate with their target audience, businesses can create memorable brand experiences that foster long-lasting relationships and drive sales.
Tell your story and people will likely get attached to it, there is a story of Terrence Maphosa "Terry Wehuku" he was on twitter and he shared his journey every day how he finished school, left the city, went back to the village and started farming. Sharing his story online has grown his brand and opened so many opportunities for him.
Conclusion
These 12 principles of marketing psychology provide a powerful toolkit for businesses seeking to understand and influence consumer behavior. Yes there are other principles out there and incorporating these principles into marketing strategies, businesses can effectively engage their target audience, build brand loyalty, and achieve sustainable growth.