- \n
- Buying decisions are based on:\n
- \n
- 20% logic<\/li>\n
- 80% emotion<\/li>\n<\/ul>\n<\/li>\n
- Research conducted by the Advertising Research Foundation concluded\n
- \n
- The emotion of likeability is the most predictive of whether or not an advertisement will increase a brand\u2019s sales<\/li>\n<\/ul>\n<\/li>\n
- fMRI neuro-imagery shows that when evaluating brands, consumers primarily use emotions rather than information\n
- \n
- Emotions: personal feelings and experiences<\/li>\n
- Information: brand attributes, features, and facts<\/li>\n<\/ul>\n<\/li>\n
- Studies show positive emotions toward a brand have a bigger influence on consumer loyalty than trust and other judgements, which are based on a brand\u2019s attributes<\/li>\n
- Advertising research suggests emotional response to an advertisement has more influence on a consumer\u2019s intent to buy a product than does the ad\u2019s content\n
- \n
- By a factor of 3 to 1 for television commercials<\/li>\n
- By a factor of 2 to 1 for print ads<\/li>\n<\/ul>\n<\/li>\n
- Emotions are the primary reason why consumers prefer brand name products<\/li>\n
- Consumers perceive the same type of personality characteristics in brands as they do in people\n
- \n
- We are attracted more to some personality types than others<\/li>\n
- These attractions are emotion based, not rational<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Common Biases that Influence Purchasing Decisions<\/h3>\n
- \n
- The human brain likes to take shortcuts, called cognitive biases<\/li>\n
- These biases affect our judgment <\/li>\n
- When it comes to digital marketing, these shortcuts can work for or against a brand <\/li>\n<\/ul>\n
The Framing Effect Bias<\/h4>\n
- \n
- People will react to a choice in different ways depending on how the choice is framed<\/li>\n
- People are less likely to take risks when a choice is presented in a positive light, but they will see more risk when a choice is presented in a negative light<\/li>\n<\/ul>\n
Marketing Takeaway<\/b><\/p>\n
- \n
- When you make your customers an offer, frame it in a way that makes them want it<\/li>\n
- Lead with the benefits of a product or service, then mention the price and other less-exciting logistics<\/li>\n<\/ul>\n
The Ingroup Bias<\/h4>\n
- \n
- People want companionship and want to be part of a group<\/li>\n
- Buying a premium\/luxury brand makes people feel like they\u2019re a part of a premium lifestyle<\/li>\n
- People often place too much value on thoughts and opinions of people they\u2019re close to but ignore, or place less value on thoughts of strangers<\/li>\n<\/ul>\n
Marketing Takeaway<\/b><\/p>\n
- \n
- Write content that matches your target group<\/li>\n
- Use the Us vs. Them trick\n
- \n
- List out advantages of one product or offer over another, but make sure those comparisons are properly cited<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
The Status Quo Bias<\/h4>\n
- \n
- People would rather avoid change and stick with what they like or what feels safe<\/li>\n
- Even if one insurance company offers better rates and better service, people may stick with another insurance company to avoid the hassle of changing<\/li>\n
- Consider offering a try before you buy or \u201csign up for 1 month free\u201d<\/li>\n<\/ul>\n
Marketing takeaway:<\/b><\/p>\n
- \n
- Avoid forcing changes on your customers unless it\u2019s completely necessary<\/li>\n
- Create a seamless purchasing journey with as few decisions as possible. If there are too many decisions to make, customers may abandon a potential purchase<\/li>\n<\/ul>\n
The Anchoring Bias<\/h4>\n
- \n
- If people are presented with one product, they will typically compare it to something else to figure out its worth<\/li>\n
- If the shampoo you always buy is $10 and you see it on sale for $8, you\u2019ll consider $8 a bargain. If your convenience store increase the price to $12 and you see the same shampoo on sale for $10, you\u2019ll consider that the bargain<\/li>\n<\/ul>\n
Marketing takeaway<\/b><\/p>\n
- \n
- The first product a visitor sees typically becomes the anchor<\/li>\n
- List your most expensive item first then remaining products will look like bargains<\/li>\n<\/ul>\n
The Loss Aversion Bias<\/h4>\n
- \n
- No one likes to lose <\/li>\n
- Even if a person has no interest in a product or service, they will go to great lengths to hold on to it if the threat of losing it arises<\/li>\n<\/ul>\n
Marketing takeaway<\/b><\/p>\n
- \n
- Phrase offers so customers feel they may be missing out on something<\/li>\n
- For instance, put a time stamp on a deal: \u201cLast day! Buy one get one free offer ends tomorrow!\u201d<\/li>\n<\/ul>\n
How to Convert More Customers Using Psychology <\/h3>\n
Admit to honest errors:<\/b><\/p>\n
- \n
- Experimenters read one of two fictitious company reports listing reasons why a company performed poorly in the past year\n
- \n
- The first company placed emphasis on strategic faults<\/b><\/li>\n
- The second company placed emphasis on external events<\/b> including the economy and competition<\/li>\n<\/ul>\n<\/li>\n
- People viewed the first company far more favourably<\/li>\n
- Marketing takeaway: <\/b>Admit to honest errors in judgement so customers see you\u2019re still in control and not prone to excuses<\/li>\n<\/ul>\n
Set minimal parameters:<\/b><\/p>\n
- \n
- In a door-to-door donation request, people were asked either:\n
- \n
- Would you be willing to help by giving a donation?<\/li>\n
- OR<\/li>\n
- Would you be willing to help by giving a donation? Every penny will help. <\/li>\n<\/ul>\n<\/li>\n
- People who were asked the second question were almost 2 times<\/b> as likely to donate<\/li>\n
- Marketing takeaway: <\/b>When making a request for customers to take action, clearly identify a minimum<\/li>\n<\/ul>\n
Offer immediate gratification:<\/b><\/p>\n
- \n
- Several MRI studies show the mid-brain lights up when we think about receiving something right away\n
- \n
- Words like, \u201cinstant,\u201d \u201cimmediately,\u201d and \u201cfast\u201d can increase mid-brain activity that makes people more prone to buy<\/li>\n<\/ul>\n<\/li>\n
- Marketing takeaway: <\/b>Customers feel instant gratification when they are quickly rewarded after doing business with a company<\/li>\n<\/ul>\n
Stand for something:<\/b><\/p>\n
- \n
- More than 64% <\/b>of people who\u2019ve stated they have a strong relationship with a brand said it was because they had shared values<\/li>\n
- Marketing takeaway:<\/b> People care about being included with a brand\u2019s message, but only when they share similar values. Regularly communicate with customers about your company\u2019s values<\/li>\n<\/ul>\n
Add that extra wow factor:<\/b><\/p>\n
- \n
- Researchers find small favours, as little as a gift of 10 cents or a complimentary soda, positively changes people\u2019s outlook <\/li>\n
- A major clothing and shoes retailer regularly upgrades customers to overnight shipping without telling them<\/li>\n
- Marketing takeaway:<\/b> Take your customers by surprise with thoughtful gifts and rewards like birthday coupons or special treatment at restaurants<\/li>\n<\/ul>\n
Conclusion:<\/h3>\n
Consumers are influenced by emotions and biases when making purchasing decisions\u2014its just human nature. Keep both in mind when marketing your products and services. <\/p>\n
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<\/img> <\/p>\n![\"CRM](\"https:\/\/www.salesforce.com\/ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/10\/6a00e54ee3905b883301bb07ae15b0970-2.png?strip=all&quality=95\" "\\"CRM")
<\/img><\/a><\/p>\nShare The Psychology of Sales Marketing Infographic On Your Site<\/h3>\n
- Marketing takeaway:<\/b> People care about being included with a brand\u2019s message, but only when they share similar values. Regularly communicate with customers about your company\u2019s values<\/li>\n<\/ul>\n
- More than 64% <\/b>of people who\u2019ve stated they have a strong relationship with a brand said it was because they had shared values<\/li>\n
- Marketing takeaway: <\/b>When making a request for customers to take action, clearly identify a minimum<\/li>\n<\/ul>\n
- The second company placed emphasis on external events<\/b> including the economy and competition<\/li>\n<\/ul>\n<\/li>\n
- The first company placed emphasis on strategic faults<\/b><\/li>\n
- Experimenters read one of two fictitious company reports listing reasons why a company performed poorly in the past year\n
- List out advantages of one product or offer over another, but make sure those comparisons are properly cited<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n