The Psychology of Marketing

When people talk about marketing, they usually talk about tactics. Boost this ad here. Use those colors there. Do an A/B test to see which ad copy converts the most customers. It’s about what you would call the “mechanics”, the things you do to get people to click that link or make that purchase or leave that comment. What isn’t talked about as much is the science behind the mechanics, how people figured out that the marketing tactics we now commonly use work. That’s where the psychology of marketing comes in.

Basically, the psychology of marketing is about understanding human behavior and how people make decisions about what to buy or do and then figuring out how to influence those decisions. At its core, marketing is about tapping into the emotions, desires, and thought patterns that humans have to create messages that help make connections and motivate potential customers to act. The goal is to understand what motivates your potential customer and figure out how to harness those triggers to get those people to take the action you want them to take.

If the term “marketing psychology” makes you think of white coated doctors running experiments in a lab, you’re not entirely wrong. There definitely is a branch of research devoted to figuring out how people make buying decisions and what motivates them to buy. Those questions are at the core of business, after all. What is fortunate for us, who perhaps don’t have the funds to run a lab of our own, is the fact that we can eavesdrop on what those experiments learned and use some of that information in our own marketing.

Marketing Psychology News You Can Use

Social Proof Works- Psychology has proven that people feel more comfortable doing things that other people have done. Social proof, testimonials, comments and engagement on social media, customer success stories, are ways of showing potential customers that others have trusted you and benefitted from the experience. Sharing this sort of information helps you build credibility and makes it more likely potential customers will feel like they can trust you.

Scare Them With Scarcity - Yes, it’s always good to have an abundance mentality, except when marketing psychology says it’s not. One psychological principle tells us that people are more likely to act or buy if they think whatever is on offer is limited. Maybe it’s a time limit, maybe it’s a limit on the amount, but the idea is to create a sense that people have to act quickly or they’ll miss out. This is why you see those half price for a limited time, or act now because space is limited offers.

Drop the Anchor - Have you ever wondered where the practice of listing the actual price, drawing a line through it, and then listing the sale price, usually in an eye catching color came from? Turns out there’s psychology behind it. It has to do with a term called “anchoring” which means that the first piece of information people receive is the thing on which they base their decisions. So, when you display the total price first and then the sale price after, the sale price looks like a better deal since they’re judging it against the original price. It’s a technique that’s used often because it’s proven to work.

Give and You Shall Receive - There was a study done on what happens when restaurants give people mints with their bills. Turns out, with no mint, people tipped based on their perception of how good or bad the service was. Add one mint, and tips jumped 3.3%. Add two or more mints, and tips jumped around 20%. What does this mean? There’s science behind all those free books and free designs and all the rest that companies give away. Turns out, it’s human nature that drives this principle, if someone does something for you, you’ll be more likely to want to do something for them.

Action Items

Show Your Social Proof - Optinmonster - Almost every company has social proof, but not all know how to successfully deploy it. This blog post gives you an explanation of what social proof is and some examples of social proof in action. This is a good primer to help you make the most of the social proof you have available.

A Freebie Marketing Strategy that Works - Sproutworth - Giving away freebies can be a useful marketing tool, but only if it’s done strategically. This post covers some of the science behind why giving away freebies works, and also talks about some strategies you might use when deploying your freebies.

Get Psychologial with Pricing - NetSuite - Anchor pricing is not the only pricing strategy based on psychology. There are pricing strategies we see every day which are based on studies of how and why people buy. This article details some of the most common and gives insight into how and why they work and how to deploy them.

In the Next Newsletter: The next newsletter will drill down on pricing strategies. Why they work, what works best, how to deploy them and why this all matters. Remind, the second newsletter goes to paid subscribers only. You won’t see this if you don’t subscribe!

About Me

My name is Kristine Shreve. A Marketing Director for over a decade, I’ve spent a lot of time thinking about Marketing and what works and what doesn’t and why. Good marketing grows businesses and growth for everyone is what I’m rooting for. Visit my website to learn more about me.