A few months ago, I wrote a blog about pricing psychology that offered alternatives to cutting prices (and your bottom line) on products and services. You can revisit that blog HERE. Some of these pricing psychology tips I found were in a similar marketing orbit to Nancy Harhut’s expertise from her book “Using Behavioral Science in Marketing”. So, this month, I wanted to tap into five takeaways from her excellent collection of marketing ideas utilizing behavioral science that can help the bottom line of any business.
Choice Architecture
I’ve run into this in the laundry detergent aisle. While I’ve always been a bargain shopper, taking pricing out of the equation, the bevy of brands of laundry soap is pretty impressive. You go down the aisle, and there are what, 20 or so different laundry detergent brands, all within pennies of each other in price, clamoring for you to choose them. This can bring about what is called ‘decision paralysis’…having so many options with no clear differentiator among the choices increases the time it takes for consumers to act…which brings into possibility that the consumer will move on and not choose anything. Highly undesirable outcome.
Now, let’s adjust the ‘choice architecture’ here…there are now just five brands available, with one that not only has a slightly better brand color choice and container size, but also has an in-store coupon right in front of it. Limiting the options of the consumer and placing emphasis on a specific choice can nudge a customer into your direction. The store sells more product overall, because there are fewer options to languish collecting dust on the shelves, taking up valuable space. Now, apply this to your website’s product line or choices in your store…are there too many options paralyzing the consumer?
Scarcity
When I was younger, I used to collect 1/18 scale die-cast model cars. Many times, these were made in a limited quantity, like maybe 1,500. I termed this back then as ‘manufactured collectability’. You may have also seen this principle applied to ‘limited edition’ Beenie Babies. Did they ever turn out to be a worthy windfall retirement alternative to investing in your 401k? Well, there’s still time. However, this is what is known as the ‘scarcity principle’. By highlighting limited availability, companies trigger consumer’s FOMO and encourage immediate action, and this also leads to a perception of increased value (so they can also charge more for it), leading to an even greater likelihood they’ll ‘add to cart’. Supercharge this idea and add in a website page order countdown to availability clock. Then, watch consumer tension and desire build even faster, yielding an even faster product sell-out.
Product Framing
Many marketers play it safe by listing out their laundry list of products and their various features and benefits. However, if you really want to ratchet up the effectiveness of your marketing, adjust the messaging to place emphasis on the customer’s desired outcome from purchasing your product or service. This is called ‘product framing’. Instead of touting the all-steel construction and lifetime warranty on your treadmill’s belt drive, focus on the lifetime of health, fitness and muscle tone it brings to its purchaser, which is sure to attract the attention of the opposite sex. Another example: Milk. 2%, Whole. Why isn’t milk marketed as 98% fat free? This slight adjustment in product framing helps make 2% seem pretty healthy. The 2% product framing makes the messaging work better, showing a 2% negative, which somehow seems less damaging than a 98% positive.
Emotional Narrative
While many prefer to ‘hit and quit’ in their product marketing copy based on consumer attention spans, there is an alternative that can be even more effective. That is captivating your customer with a story. By weaving emotional narratives around your brand, product or service, you manufacture a personal connection that will have them not only more likely to engage, but also more likely to invest in your brand and become a repeat customer. It’s all about forging these kind of connections that drive action with very carefully written copy. After all, we’re all driven by our emotions at one time or another.
Temporal Discounting
Our society has elevated itself to a point where immediate gratification or speed is as or even more important than price. It’s led consumers to value immediate rewards more than rewards received later, even when the ‘later’ rewards can be objectively better. The timing of a reward’s reception can elevate or diminish its perceived value. Knowing this, utilizing ‘temporal discounting’, you can highlight instant benefits, advantages and immediate gratification to customers with discounts or free trials. By highlighting present benefits versus potential future benefits, you have a customer more likely to buy now to benefit themselves today.
There you have it. Five behavioral science lessons you can apply today to elevate your sales, all based around existing basic human behavior, not manipulation. Apply these tips to your business marketing to create positive interactions that boost your brand and customer base. And if you need help in make these adjustments, always feel free to contact us here at CMOco, we’re happy to help!
~Bruce Thiem, CMOco Director of Integrated Media
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