If you want to grow your business and increase sales, using Marketing psychology is a great way to increase your conversion rate. Marketing psychology is the study of human consumer behavior, and how humans react to marketing and advertising. Most importantly, it shows us how and why people decide to spend their money. By learning marketing psychology you can tailor your ads and the copy on your website to activate those triggers and make people buy from you.
In this article, you´ll see 5 of these psychological triggers, and how to adapt them to your online store.
Reciprocity
Reciprocity is the principle that when someone gives us something, we feel compelled to give them something back. Have you ever been in a supermarket and ended up buying a product you did not even want that much because you felt obligated to after someone gave you a free sample? That’s the principle of reciprocity in action.
Of course, if you have an online store you meet with someone face to face to give them something, so how can you apply the principle of reciprocity in that situation?
While it’s not possible to offer something in advance, you can definitely offer something alongside the purchase. You can, for example, add free samples when someone buys something, to encourage repeat purchases.
You can also use content as a free gift, for example, if you sell gluten-free products, you can give customers a free guide on how to make recipes using the products you sell.
The reciprocity feeling will be even stronger if you surprise your clients by adding a free gift that they will only discover when they receive the product they purchased, instead of telling them in advance. If the gifts are samples, that’s even better because it would expose the customer to other products that they would otherwise not have discovered.
Offering free shipping is one of the easiest ways to induce reciprocity. If you give the customers a threshold, so let’s say “free shipping for purchases by $80, they’ll start adding more products to their cart.
Another great benefit of reciprocity is that it helps you create an emotional connection with the customer and increase loyalty.
Social Proof
Social proof is now more important than ever, and if a brand has less than 4 out of 5 stars they are in serious trouble because customers are much more likely to not trust them.
We as humans are social creatures, and we tend to have a cognitive bias towards things that other people like, even if we don’t know exactly what those things are.
You should definitely use testimonials on your website that show how other customers are enjoying your products.
Another thing that brands do is partner up with influencers for social proof. Showing an influential person using their products, gives the brand instant credibility.
Another tactic is showing a carousel of products on your website with the phrase: “Customers who bought this product also bought…”. This can also increase the likelihood of people making even more purchases.
You can also add a section of “popular products” or “best sellers” to your online store, and that will serve as social proof as well. It eliminates the feeling of doubt in the customer’s mind.
Customers rather trust the words of other customers than the business owner.
Scarcity
The scarcity principle works because people are always afraid of missing out on a good opportunity. If someone tells us that we may not be able to have something, it makes us want it even more. However, you should go beyond the common tactic of “we only have 3 left!”.
- A good way to use the scarcity principle is by running temporary sales, for example, “buy 1, get 1 free”. Make sure that the customers know when the sale is going to end, so they are aware that the deal won’t last forever. The scarcity principle will be likely to prompt them into buying it.
- If a product is a limited edition or is being discontinued, it might be a good idea to highlight this fact, so customers don’t miss out on the chance to get them.
- Having seasonal products also takes advantage of the scarcity principle. Customers feel motivated to buy it because once that season is over, so is the chance to buy that product. One famous example of that is the Starbucks pumpkin spice latte, which gets every Starbucks fan excited when autumn comes. They wouldn’t feel nearly as excited if the product was available all year round.
- Once a product eventually gets out of stock, enable the pre-order option. This way the customer can know if the product is back in stock. It will prevent them from missing out again.
Pricing
Pricing your products is a whole science in itself and there are many psychological triggers you can use. Remember that price represents the amount of risk people take when getting a product, so make sure to make people feel like they are getting a great deal always.
- Competitive Pricing: Research the prices of similar products in the market and set your prices competitively. If your prices are too high, customers may choose cheaper alternatives. If your prices are too low, you risk undervaluing your products. Find a balance that attracts customers while maintaining profitability.
- Psychological Pricing: Utilize pricing techniques that leverage human psychology. For example, setting prices just below a round number (e.g., $9.99 instead of $10) can create the perception of a lower price. People tend to focus on the leftmost digit and perceive the price as closer to the lower value.
- Bundle Pricing: Offer product bundles or packages at a slightly discounted price compared to purchasing individual items separately. This can encourage customers to buy more items to take advantage of the perceived value and cost savings.
- Tiered Pricing: Provide different pricing tiers or options to cater to various customer segments. Offer basic, standard, and premium packages with increasing levels of features or benefits at different price points. This allows customers to choose the option that best fits their needs and budget.
- Loss Leader Pricing: Offer a product at a significantly reduced price, sometimes even below cost, to attract customers. The goal is to get customers in the door and create the opportunity to sell additional products or services with higher profit margins once they are engaged.
- Dynamic Pricing: Adjust prices based on real-time factors such as demand, seasonality, or inventory levels. By using algorithms and data analysis, you can optimize pricing to maximize sales and revenue. This approach is commonly used in e-commerce and industries such as travel and hospitality.
- Price Anchoring: Present a higher-priced option alongside the main product to make it appear more affordable in comparison. By anchoring the customer’s perception to a higher-priced item, the main product can seem like a better deal, encouraging sales.
- Limited-Time Offers: Create a sense of urgency by offering discounts or promotions for a limited period. Deadlines can motivate customers to make a purchase sooner to avoid missing out on the deal.
Loss Aversion
The fear of loss principle, also known as loss aversion, is a cognitive bias that suggests people are more motivated to avoid losses than to acquire equivalent gains. In other words, individuals tend to have a stronger emotional response to potential losses than to potential gains of equal value.
Loss aversion was first proposed by psychologists Amos Tversky and Daniel Kahneman as part of their prospect theory, which explains how people make decisions under uncertainty. According to this theory, individuals weigh potential losses more heavily than potential gains, and they often exhibit a stronger emotional reaction when faced with the possibility of losing something.
The fear of loss principle is frequently used in marketing and sales to influence consumer behavior. By emphasizing the negative consequences of not taking advantage of a particular offer or opportunity, marketers tap into people’s aversion to loss. This can create a sense of urgency, motivating individuals to take action and make a purchase to avoid missing out or experiencing regret.
There are some techniques that you can use to put that principle into practice and give people an incentive to buy from you.
For example, limited-time offers or phrases such as “Last chance”, “While supplies last”, or “Don’t miss out on your last chance to buy this product” are commonly employed to invoke a fear of loss. By presenting the idea that a product or opportunity may no longer be available in the future, marketers aim to trigger the fear of missing out (FOMO) and drive consumers to make a purchase.
One of the most common reasons people abandon carts is the fear of wasting their money when they don’t feel confident enough to purchase. Offering a free trial or a money-back guarantee will alleviate that fear of something not meeting their expectations and make them more likely to try.
You can also phrase your copy to highlight potential negative consequences. Demonstrating the negative consequences or missed opportunities that may arise from not using a product or service can tap into the loss aversion mindset. By emphasizing the potential loss or negative impact, customers may be more motivated to take action to avoid those outcomes.
You can compare the potential losses customers may experience by choosing a competitor’s product or not choosing your product can be persuasive.
Lastly, you can implement loyalty programs. Creating loyalty programs that reward customers for their continued support can tap into loss aversion. Customers may fear losing out on exclusive benefits or rewards if they switch to a different brand, making them more likely to stay loyal. You can also check the tips about how to build customer trust and loyalty.
Conclusion
Marketing psychology is a fascinating topic and many business owners are still missing out on trying to understand and apply it. We humans sure have evolved over the centuries, but our brains do not evolve at the same speed that society does, and we still have many of the primal instincts we had to survive back them, like scarcity and social proof. Ethically tapping into those instincts and positioning your products or services the right way can give you a great advantage in comparison with the competition.
