Marketing Psychology: 5 Key Principles That Influence Consumer’s Behavior
Principles used by Savvy Marketers for successful marketing campaigns
Every marketer and advertiser wants to know what it takes to find ideal prospects. Smart marketers incorporate one or more psychological principles in their marketing campaigns, marketing strategy, and sales strategy.
This helps them make their marketing strategy more effective. Thus, they end up getting potential clients for their product.
How to become a smart marketer?
The key behind becoming a smart marketer is to understand how people think and why they act that way.
Here is what you need to know about the psychological principles that affect your client’s behavior to help you skyrocket your marketing strategy.
1. The Anchoring Effect
The anchoring effect explains why our decision-making is highly affected by the first thing (any information) that we hear about that decision.
People always base their decisions on the first piece of information they receive, whether accurate or not. This phenomenon is called the anchoring effect.
For instance, if my favorite brand deals $100 for a pair of shoes, but I find my favorite shoes on sale for $75. I would be happy for sure. But if one of my friends buys the same sort of shoes for $50, he won’t get impressed.
Why is anchoring important for marketers?
For marketers, anchoring is important when you are trying to make some sales. Display the initial price of the product, and next to it, display the sale price. This is how you set an anchor.
2. Loss Aversion Effect
The loss aversion effect applies to the tendency of consumers who prefer avoiding losses instead of gaining something.
If you lose $10, you will be more upset even after you gain a double amount. Isn’t that true? Ever wondered why we act that way?
This is because negative emotions seem to have a strong effect on people as compared to positive ones.
To apply the loss aversion effect in your marketing principles, try changing your advertisements' main focus around losses. If you offer something free for a limited time, remind the customer about their loss when the free trial comes to an end.
The retail store Target uses this strategy. They have mentioned on their checkout page that free shipping only applies to products with $35. The minimum order requirement is $25; if the consumers don’t fulfill this requirement, they won’t be able to order the product.
3. Social Proof
Social proof is a social psychology phenomenon. This theory states that when people lack information about something, they consider making their decisions based on others' behavior.
Clients are more likely to purchase from a brand when they see other people using and enjoying the product from that brand.
To follow the social proof phenomenon, consider getting positive reviews and positive user-generated content to make it easy for a potential customer to buy from your brand. To get more user-generated content, consider offering a referral program/affiliate system for your product.
I also bought a tool based on the social proof phenomenon. I loved to read Brian Dean’s SEO guide, where I found out that this guy uses Ahrefs tool that makes it easy for him to cover most of his keyword research tasks. I started reading reviews about Ahrefs and eventually ended up buying it.
Using social proof techniques for your brand will definitely help you attract new customers.
4. Scarcity (The Psychology of Unavailability)
The scarcity principle is another marketing psychology technique that explains people who want things that are difficult to get or things that are rare.
For instance, these days, only elites can drive some performance models of Tesla; only a few people were able to buy a PS5 or an iPhone. This makes sense of scarcity among people. That is why they consider an item valuable only if it is short on supply or owned by a few elite people.
When applied to marketing, this psychological principle means that customers are more likely to pay for a thing if they think it is short in supply. You can add phrases like “Last day of our sale,” “Last Supplies on board,” etc., to let your clients know that if they don’t make a purchase sooner, they are going to miss out on something.
This marketing phenomenon was first introduced by Dr. Robert Cialidini’s book, Influence: The Psychology of Persuasion. In this book, the author explained the concept of reciprocity.
Let’s take an example when someone gives you a gift on your birthday, and you feel urged to give something back in return. Or you feel bad if you don’t give them anything on their birthday.
In marketing, reciprocity means that clients may feel that they are in debt because the company handed them over with a free product.
To use this principle, you can give away free content such as ebooks, etc. With those free products, you can get the contact information of your potential customer.
Now that most people understand:
If you are not paying for it, you’re not the customer; you’re the product being sold.
By using these psychological principles in your marketing strategy, you can make your products stand out from the competition. And in the meantime, you can achieve your customer’s trust too.
Make sure to apply these five psychological principles in your marketing campaigns. Also, let me know in the comments what do you think about this post.