Using Psychology to Better Understand Your Customer
We can all think of a time when we had a choice between identical products (for example, the drugstore’s own aspirin and a well-known brand). Even though the items were of the same quality, we elected to purchase the more expensive item.
Why do people buy some products and not others? Consumer psychology seeks to explore that very question. It examines how our feelings, thoughts, and perceptions influence what we buy. As marketers, it’s important to understand how psychology influences your customer in order to offer an enhanced customer experience.
The Halo Effect
First impressions are formed within seven seconds, according to a Harvard study of communication. On first meeting people, we use a number of verbal and nonverbal cues to quickly assess and form judgements about that person.
For example, if we find the person attractive, we are more likely to attribute positive character traits to them. These first impressions can significantly influence our thinking.
Take, for example, the studies by Edward L. Thorndike, an American psychologist. Thorndike studied military officers and conducted an experiment where he asked them to rank subordinates, based on character traits such as intelligence and leadership.
What Thorndike found was that first impressions and unrelated physical attributes profoundly influenced the rankings. Thorndike termed this cognitive bias, the ‘halo effect.’ This can be positive or negative.
How does this relate to brands?
The halo effect can also skew our perception of companies and products. We sometimes form an opinion based on one piece of information. If this is positive, then that is highly beneficial for your company. However, if it’s negative, this can cause you significant problems.
An example of the halo effect in action is Apple’s release of the iPod. Apple concentrated its marketing efforts on the iPod, and its success also boosted sales for other Apple products. The digital music market was just emerging when the iPod was released, and Apple positioned itself as the market leader. This positive perception of Apple as an innovator extended to the rest of the Apple product line, boosting sales across the board.
What can we do to make first impressions count
Not every business has the marketing budget of Apple, so what can smaller companies do to ensure that they create a positive first association with customers?
Website
If you have seven seconds to create a first impression, you don’t want to waste some of those precious seconds while a customer waits for a page to load. Your website may be the first (and last) interaction a customer has with your product.
Does the design reflect the values and image of your brand? Is it tailored towards your target audience? Try conducting some market research with potential customers.
Social Proof
Imagine you’re looking for a place to eat. You walk past two empty restaurants and then one that’s so busy, there’s a queue forming outside. Which restaurant do you choose? The majority of people will opt for the busy one. Why? Because we take our cues from other people.
A queue outside implies that the food is good, so we lean towards the third restaurant. The same goes for online retail. When you shop on Amazon, how likely are you to purchase goods based on positive reviews? Have you ever not purchased an item because of negative reviews? Using social proof is a powerful way of marketing to your customers. It shows that other people like your product.
Emphasize positive reviews, feature customer testimonials, boost your social media following, and consider using micro-influencers to promote your product sales. Be sure to respond to negative reviews and feedback.
Customer Service
According to a survey by Accenture, poor customer service is one of the primary reasons consumers switch service providers. This costs businesses in excess of $75 billion a year, as outlined in NewVoiceMedia’s 2018 “Serial Switchers” report. Ensuring that you consider the customer experience is crucial to obtaining and retaining customers.
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