What is Marketing Psychology?
Marketing psychology involves using research to understand why people think and act the way they do. It equips marketers with insights into human behaviour, enabling them to influence consumer actions effectively. But is it real? Absolutely! Numerous studies demonstrate the effectiveness of psychological principles in marketing—many of which I’ll highlight in this blog. Our brains create shortcuts to aid decision-making, and tapping into these can significantly expand your audience. Here are seven psychological theories we apply with our clients in digital marketing.
Social Proof Theory
Social Proof, first introduced by Robert Cialdini, suggests that people look to others to guide their actions, especially in uncertain situations. For instance, imagine you’re in a new city trying to find a restaurant. You notice one place packed with diners while another has only a few customers. The busy restaurant serves as social proof, implying it must be good.
A study by Goldstein et al. (2008) demonstrated this further: when hotel guests were informed that the majority reused towels, towel reuse increased by 26%.
Application in Digital Marketing:
- User-Generated Content: Sharing customer testimonials, reviews, and user-submitted photos enhances trust. For example, Amazon prominently features product reviews.
- Influencer Marketing: Partnering with influencers provides social validation for your products, leading customers to view your brand as valuable.
- Email Campaigns: Incorporating reviews and testimonials can boost trust and credibility, influencing consumer decisions.
Scarcity Principle
The Scarcity Principle states that people are more likely to act when they believe a resource is limited. If you’ve ever rushed to buy something during a “sale ends in 3 hours” promotion, you’ve experienced this principle in action. Research shows that presenting products as scarce creates urgency, driving immediate consumer action.
Application in Digital Marketing:
- Limited-Time Offers: Countdown timers in emails or pop-ups create urgency (e.g., “Only 3 hours left for 50% off!”), triggering FOMO and increasing conversion rates.
- Exclusive Products: Offering limited editions enhances demand.
- Social Media Posts: Announcing flash sales on key platforms encourages rapid action and impulse buying.
Reciprocity
The Reciprocity Principle involves the tendency to return a favour after receiving something. When a brand offers something valuable for free, consumers often feel compelled to reciprocate. In a study by Dennis Regan, participants approached by an actor who offered a free Coke were more likely to buy raffle tickets—70% versus just 24% from those who received nothing.
Application in Digital Marketing:
- Free Trials and Ebooks: Providing free content like guides or webinars in exchange for email sign-ups builds goodwill and fosters loyalty.
- Discounts for First-Time Customers: Sending personalised discounts after subscription encourages a sense of obligation to reciprocate through purchase.
Cognitive Dissonance
Cognitive dissonance occurs when people feel discomfort from actions conflicting with their beliefs or values. For example, if you splurge on an online shopping spree but intended to save money, you may experience dissonance. Marketers can minimise this discomfort and enhance positive feelings.
Application in Digital Marketing:
- Post-Purchase Emails: Reassuring messages after a purchase, such as order confirmations, can reduce buyer’s remorse and affirm a wise decision.
- Addressing Objections: Acknowledging and resolving common concerns in posts or ads builds trust and mitigates dissonance.
- Customer Testimonials: Highlighting satisfied customers is essential to minimise dissonance—if you don’t have testimonials on your site, now’s the time!
Anchoring Bias
Anchoring bias refers to the tendency to rely heavily on the first piece of information encountered (the anchor) when making decisions, often related to price. For instance, if you view an apartment listed at £500,000 and the agent mentions comparable listings around £550,000, that higher figure makes the initial price seem more appealing.
Application in Digital Marketing:
- Pricing Strategy: Show a higher price first, then reveal the discounted price in emails or on websites to prime customers for perceived greater value.
- Comparison Charts: Present a premium option first, followed by a cheaper alternative, making the lower-priced product seem more attractive.
- Ad Copy: Start ads with large, attention-grabbing numbers (e.g., “Save 50%”) to create a perception of substantial savings.
Mere Exposure Effect
The Mere Exposure Effect suggests that people develop a preference for things they encounter frequently—essentially, familiarity breeds liking. A classic study by Zajonc showed that repeated exposure increases familiarity and preference, making strategies like retargeting ads and consistent social media presence effective.
Application in Digital Marketing:
- Retargeting Ads: Frequent exposure to your brand through retargeting increases the likelihood of conversion, especially among interested audiences.
- Email Sequences: Sending helpful, engaging content keeps your brand top of mind.
Authority Principle
The Authority Principle states that people are more likely to follow advice from perceived experts. Google favours credible content, making this principle vital. Studies by Cialdini emphasise using experts in marketing campaigns to build trust and influence consumer decisions.
Application in Digital Marketing:
- Thought Leadership Content: Sharing authoritative blog posts and articles builds trust but must be optimised for both search engines and human readers.
- Collaborations with Experts: Partnering with industry experts for webinars or live streams establishes authority and attracts engaged audiences.
- Email Signatures: Including credentials or certifications in email footers enhances perceived authority.
The Verdict
Psychological theories provide a powerful toolkit for digital marketing, helping create more effective campaigns that influence customer behaviour. By understanding and applying these principles across various platforms—email, websites, and ads—brands can craft highly targeted and persuasive strategies that lead to greater customer engagement.
The key to success lies in tailoring your content, emails, and posts to tap into these innate human behaviours, ensuring your digital marketing efforts resonate with your audience. Want to see proof of our results? Head over to our results page!
