UNDERSTANDING THE PSYCHOLOGY OF CONSUMERS
WHAT IS CONSUMER PSYCHOLOGY?
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Consumer psychology refers to the study of how consumers behave. It studies how people’s feelings and emotions influence their purchasing decisions. A successful digital marketing campaign requires the study and application of this psychology. This means studying how consumer psychology plays a role in the way consumers choose which products to buy, which brands to buy from, why consumers choose to purchase one product or brand over another, what marketing strategies can brands employ to attract their ideal customer, what factors influence purchasing decisions, etc. These insights can help increase sales and also enable brands to establish a better connection with their consumers. Marketers can make the products seem more desirable and thereby attract more consumers by predicting how they will act. Targeted marketing campaigns can result in better conversion rates.
Although consumer psychology has been used in marketing since time immemorial, brands currently have a greater advantage in using this psychology due to the availability of technology to support such initiatives.
To effectively use consumer psychology in marketing, a marketer will have to pay heed to consumer psychology in the various phases such as when they first visit, when they browse through the products, consider the options available to them, make a decision to purhcase, and finally when they purchase the product.
There are various ways to use consumer psychology in marketing to reap benefits. However, marketers will have to keep evolving their strategies while using consumer psychology in marketing as the expectations of consumers are constantly changing along with time and it is important to make changes accordingly.
For example, emotions of consumers play a vital role in influencing their purchasing decisions. By making marketing campaigns in such a way that it drives the emotions of the consumers, consumers tend to buy the product without reason. On the other hand, consumers are also driven by logic, such as survival or safety concerns while making a purchase.
HOW TO USE CONSUMER PSYCHOLOGY IN MARKETING
Consumer Psychology is employed in marketing in a plethora of ways. Some of the most commonly used tactics are enumerated below:
● Relate to your customer
Drawing similarities between your brand and the consumer and making them feel like your brand is relatable by stating that other consumers in the same situation have done so is a simple way to influence a consumer to do something.
● Using images
It is rightly said that ‘A picture is worth a thousand words.’ Our brains are much quicker at processing visuals than they are at processing written words. You can use this to your advantage. We live in a world that is dominated by images. Therefore, proper thought must be put into how you employ graphics. Customers will develop an immediate impression based on the images you use.
● Social Proof as a brand is helpful for captivating new consumers
When individuals witness other consumers using and liking a brand’s products, it is more likely that they will buy from that company. Positive user-generated content (UGC), massive rates of active users, and positive reviews all increase the likelihood that a potential consumer will buy from your company. When consumers do not have firsthand experience, past experiences from other consumers. Consumers tend to believe reviews from other consumers rather than what the brand themselves say.
● Decisions Are Emotional
Purchasing decisions of consumers are highly influenced by emotions. They generally make these decisions based on what they need and what is relatable to how we are. Marketers can make use of emotions to draw in more consumers.
The value of a product increases when it is considered rare, such as diamonds. When people perceive the existence of a shortage of a particular product, they place higher value on it. Therefore, this principle can be used in marketing as well as consumers will be more likely to buy a product if they think there is a shortage of supply and it will run out soon. Consumers will not want to lose an opportunity that might not be available to them later. It creates a sense of urgency in the consumers, thereby driving them to a purchasing decision. This can be done by limiting your supplies, running temporary offers, etc. This is often seen on websites in the form of banners that read ‘till supplies last’ or ‘till offer lasts’.
● Loss Aversion
There are several negative emotions associated with loss and these tend to have a high impact on consumers. Loss aversion banks on this preference of people to avoid a loss over gaining an equal amount. Unlike scarcity, loss aversion does not concern supply at all. It is merely a way of making consumers feel that they would lose something which they already possess. For example, reminding consumers of the features they enjoyed during their free trial and what they would be losing once the trial comes to an end. It can also be used by offering free shipping on a minimum cart value which will automatically influence consumers to compare what they will lose to shipping costs and how much more they would need to add to their cart for free shipping.
● Anchoring Bias
The decision making of consumers is influenced by the initial piece of information that they get in relation to that decision. For example, mentioning an original price and then a discounted price will make it seem to the consumer that they are getting a better deal as the original price is seen by them as a reference point.