Go-to-Millions Ep. 13

THE ONE WITH MARKETING x PSYCHOLOGY 

Something important we ALL need to know: Marketing is about connecting with humans. 

FULL STOP. 

Marketing and psychology go together like me and online shopping: EXTREMELY WELL. 

Humans brains are unpredictable and complex, but there are cognitive biases that influence us everyday…whether we like it or not (why yes, I did take AP Pysch – THANK YOU FOR NOTICING!!)

Today, my fellow millionaires and future millionaires, I want to chat with you about 6 psychological biases, that we ALL have.

1. Reciprocity 

Have you ever received a gift or invite from someone and you felt obligated to return the favor?

Well, this is what we call the Reciprocity bias. As humans, when someone gives us something, we feel obligated to pay back the favor.

Here are some ways you can apply this today (as you Go-to-Market, go shopping, plan your next party, or study for AP Psych (no, I am not available for AP Psych tutoring at this time but please check back in the Spring!!) :

Give your customers a free sample or SURPRISE within their order

Costco doesn’t just do this for fun. Samples = help them (and all merchants) sell products. 

Shoppers will feel obligated to give your brand something (aka COLD HARD CASH) once they receive a product sample. 

It’s also a great way to show your customers your SKU mix and RANGE (what other products you have). 

Oh, and did I mention that this build brands loyalty?

Loyal customers = our type of customers. 

For example, if I had a skincare brand – and you ordered a Full Sized Cleanser and Toner, I’d 100% love nothing more than to send you a FREE SUPRISE with your order.

Perhaps a travel sized Moisturizer? 

On the house, but not without motive – you bet your bottom dollar I want you to come back and buy the Full Sized Moisturizer + Travel Sizes of the Cleanser and Toner. 

In that one free sample, I’ve shown you:

A) An entirely new SKU, that I can tell you haven’t tried before (based on your order history)

B) That we carry mini sizes! CONVENIENT! TSA FRIENDLY! CUTE! CHEAP TO SHIP ON MY END!

BTW: That sample selection, order history lookup and logic, and the extra line item (free of charge) can all 100% be AUTOMATED AND REPLICATED AT SCALE WITHOUT ANY EXTRA LIFT. 

Any other excuses we should address right now, or shall we carry on?   

Content 

Education is one of the best ways you can GIVE to your audience (your audience = your customers, and your future customers!)

Companies/ stores/ brands/ founders that provide content, guidance, advice, or tips + tricks to their audiences are seen as HELPFUL vs SELFISH by their prospective buyers (and current customers).

The more you give, the more your audience will trust you. 

The more your audience trusts you, the more they’ll like you.

I don’t know about you, but I like to buy things from people I like. 

Feels better, you know? 

3. The Framing Effect 

Humans are more influenced by HOW INFORMATION IS WORDED, than by the information itself. 

I hope I worded that correctly!! 

There are different ways we, as marketers, can apply this bias: 

How you buy meat at the market (grocery store? Bodega? Farmers Direct?) is the perfect example.

*If you’re a vegan or vegetarian, please skip the below example and head to the pasta emojis below (this is just an emoji of spaghetti with red sauce, not bolognese, I promise!)

Saying 80% LEAN meat is the same as saying 20% FAT meat.

One is Positive Framing of a product (lean) and one is Negative Framing of a product (fat). 

But, you are saying the same thing, just in two different ways (Marketing 101: spin the facts in  your favor). 

You should always A/B test Positive and Negative Framing (how do we know what will convert unless we test it?)

Some ways to apply this bias as you Go-to-Market:

POSITIVE FRAMING:

Obvi didn’t say “Buy Collagen Protein”

Instead they say:

Supports Reduction in Belly Fat, Visible Wrinkles and Cellulite

(wow, no OXFORD COMMA?? No judgement! Just shock, disbelief, and disgust!)

Another GREAT way to use Negative Framing and Positive Framing (together!):

Judy didn’t say “Buy a survival kit”

Instead they say:

Negative Framing: DON’T WAIT UNTIL IT’S TOO LATE. 

Positive Framing: Take 25% off

4. Availability Heuristic

^ A mental shortcut we use where we rely on recent memories or information to make decisions.

How to use Availability Heuristic to your advantage in your Go-to-Market execution: 

A) Remarketing Campaigns: Show ads multiple times to stay top of mind. Don’t beat your customers over the head with the same creative (that’s annoying and boring – watch your frequency, run with a full fleet of creative, and KEEP IT FUN).

B) Branding: “It’s better to be first in the mind than it is to be first in the marketplace.” – 22 Laws of Immutable Marketing

C) Using recent news, case studies, or testimonials: People will decide how relevant they deem an article, testimonial, or case study based on how recently it was produced. KEEP IT CURRENT!!! 

5. Bandwagon Effect 

Ever heard someone say they “hopped on the bandwagon?”

The bandwagon = fueled by social proof 

Social proof = INCREDIBLY POWERFUL. 

Ways to apply this bias as you make Millions $$$: 

A) Reviews 

B) User Generated Content

C) Experts approving your product or recommending it 

D) Testimonials 

E) Getting verified on social media / press / that beautiful blue check mark 

F) Media appearances 

6. Anchoring Effect 

Humans are overly reliant on the FIRST piece of information they hear. 

One way we can use this to our advantage: in our pricing strategy: 

You see how Amazon placed the discount BEFORE the price? 

Wow, 19% off! SCORE!

(BTW, I’m in my NUTELLA ERA!!! NUTELLA, where have you been all of my life? I’ll never leave you again, my beautiful Nutella, I PROMISE!)

7. Decoy Effect

Movie Theaters use this. Starbucks uses this. Apple uses this.

When buyers are choosing between 2 choices, adding in a third (less attractive option or DECOY can influence the way we view the other 2 options).

The decoy makes the other 2 options all that more compelling! 

Apple uses the iPhone Pro to make the iPhone Pro Max seem even more attractive. You don’t really need the iphone Pro Max, but it sure does seem like a better deal (and for only $100 more!)

As humans, we want to make the best choice, but the decoy makes us usually SPEND MORE THAN WE PLANNED TO. 

WORKS EVERY TIME.