People often assert that successful brands in any business vertical, know how to leverage consumer psychology! In fact, most people think it is one of the best ways to attain business success.
This brings us to a pertinent question – What can business professionals learn from studying psychology? The answer to this can get as detailed as you want it to be.
However, the most straightforward answer is that psychology helps to understand the market, customers, arrive at smart decisions during a crisis, and also communicate clearly with employees, senior management, and other working staff.
Hence, whether you want to pursue a career in event management or engineering, it is essential to get basic training in psychology. Today, high-schools have curated interesting course materials for the same. To know more about this, you can check out psychology summer school.
Marketers and entrepreneurs need to know the way people think and the reason behind it. That helps them to design their product launches and revamps better. It also helps them to manage their social media accordingly and enhance their brand visibility.
There are several interesting psychology concepts that business owners, marketers, and entrepreneurs can put to use. The crucial ones are discussed below:
1. The concept of reciprocity
The idea or theory of reciprocity is easy to understand! It means if you help someone with something, usually, they will want to help you back.
Most humans function with this mentality. Hence, the moment you five freebies, discounts, and other rewards to your customers for a first purchase or making a credit card payment, they will reward your brand continued loyalty. Also, they will add to your brand visibility and promotion through word of mouth publicity.
2. The element of social proof
As an entrepreneur and marketer, you might have read about the way a specific group thinks, and how it impacts individual action. Hence, when it is about social proof, the consumers take on the actions or beliefs of a particular group of people they trust or like.
It is essential to allow your customers to know about other consumers’ viewpoints and thoughts.
If they know what to think and feel about your brand, products, customer care service, and the like, their trust and confidence in your brand will increase. Also, it will encourage them to share content about your brand on social media.
3. The theory and practice of authority
Every brand needs to count on the theory of authority! Does your business have an identity? Do you know how people respond to it? If no, then you need to delve deep here and make use of authority.
When your brand has its voice, the customers will gain increased faith and confidence. They would purchase more from your brand and stay connected to the latest happenings and future releases. However, it is essential to voice up your brand identity with authenticity. Else, the audience might find it disappointing.
You should know about the credentials that you are showcasing. People like to count on a credible brand. So, you can decide to get a brand ambassador or an apt company spokesperson to use the theory of authority.
4. The theory scarcity
Most people want what they don’t have! It is one of the common psychological traits that you need to know about. And based on this, entrepreneurs and marketers have designed their marketing campaigns.
The rare a service or product is, the more people will want it. Scarcity increases demand.
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Marketers can leverage this and also increase the price, which leads to increased profits. You can use it for some of your top-notch products and new launches as well.
5. The commitment psychology
No one likes it when someone breaks a promise!
No one wants to feel betrayed and not counted upon.
The same principle is applicable in business. From sending an email to submitting a form, everything needs to get done within the committed time. Else, your clients or customers might get disappointed. For instance, if you have committed your customer for a service call at a specific date and time, it is essential to keep it.
Customers like to feel important and counted on. When a brand uses commitment, they generate more loyal customers for themselves.
6. The concept of recency illusion
Did you ever come to know of a new term or purchased a new car? And did you find it at almost every turn? If yes, then you have experienced what recency illusion is.
This psychology can also get applied in business and marketing. For this, it is necessary for a brand to develop end-to-end and consistent marketing campaigns, instead of isolated or sudden shotgun adds.
When people notice your marketing message through the campaign, after the initial introduction, they will automatically become engaged.
You can resort to the psychology tactics mentioned above for your business and earn higher profits. Based on your business requirements, you can use either one or a combination of the psychology concepts.