We’re all rational beings, right? Not quite…consumer purchases are affected by factors often beyond their awareness and rarely constitute rationally weighing the pros and cons of each item. If marketers successfully capitalize on the logic behind consumer psychology, they’ll be well-equipped to increase sales, drive higher engagement, and strengthen consumer loyalty. Here are 3 key concepts that marketers need to know about consumer psychology.
Capitalize on Environmental Cues
According to a study conducted by the Yale School of Management, environmental stimuli play a significant role in a consumer’s purchasing behavior. For example, Starbucks projects an upscale environment from the moment a customer walks into any location. From the classy jazz music to the highly personalized experience, Starbucks plays to a customer’s sense of luxury. With prices that are above average yet attainable for many people, the entire Starbucks experience makes customers feel special and luxurious – and that’s why they’re willing to pay more. Whatever aura your brand is marketing, make sure customers experience it as soon as they enter your website or walk into your store.
Address Customers’ Pain Points
Your product or service might be the absolute best thing in the world but while you’re highlighting all the benefits of it, also address the concerns that your customers might have while using your product. For example, if you’re Amazon and customers are making online purchases, they will naturally be concerned about shipping times and how long it takes before they receive their items. In this case, including a message such as “Your item will ship in 1-2 business days!” will ease customers’ concerns and make them more likely to purchase your item. The bottom line is to think about the concerns that might be holding your customers back from signing up or making purchases and to address them directly.
Labels and Loyalty
Creating different labels for your customers is a great way to make them feel special and loyal to your brand. Labels are masterfully executed by Credit Card companies such as American Express. For example, American Express’ Centurion Card is available by invitation only and is “the world’s rarest American Express Card and confers a level of service that can be extended only to selected individuals worldwide.” For people that value exclusivity, the Centurion Card exerts a sense of power and prestige.
Got any more examples of consumer psychology? Share it with us in the comments!