Consumer Psychology and the psychology of marketing and advertising is nothing new. Consumer psychology and the factors influencing consumer behavior are the same now as it's always been. The only difference for online business owners is learning and mastering the skills of Internet Marketing.
A common frustration with online business owners is the excitement of generating lots of leads, followed by the disappointment of not understanding why those leads didn't convert into a sale.
As online marketers, we are obsessed with metrics, lead acquisition and conversion rate data. So much so, that we often overlook the fact that our leads and data are real people who need to be understood.
When you begin to research the area of consumer psychology or marketing psychology, you'll realize that the subject is huge and there is a lot that can be learned. The fact is that to succeed with your online business, you simply need to understand the factors influencing consumer behavior.
In a quest to keep things really simple, as an online business owner, you understand the concept of developing systems to run and automate your business. Consumer psychology and the key to generating more conversions in your business is the formula.
This formula is forged in two parts. Firstly, understanding your audience, secondly the 6 Pillars of Influence.
These 6 pillars of influence will alleviate many of the frustrations online marketers face about generating loyal customers. You will also learn about understanding consumer psychology, consumer behavior theory, and how to get those important conversions for your business.
Marketing Psychology – Understanding Your Audience
For many online business owners, getting clear on your target market offers the first major stumbling block. It's the first area that any coach or mentor will tell you to get clear on, and often the first area that many online business owners sidetrack.
Read my article here about defining your target market.
By researching and understanding the importance of consumer behavior, you will understand their wants and needs and hone your marketing strategy to suit. A good example is people are always more receptive to food when they're hungry. Establish where your hungry market is and what they want to consume – then give it to them.
Without the proper research, even the best marketers would struggle to sell a fillet steak to a vegan…
Consumer Psychology – The 6 Pillars of Influence
In order to build a successful business the second part of the formula are the 6 Pillars of Influence. These factors influencing consumer behavior are:
- Consistency & Commitment
- Social Proof
Consistency and Commitment
Consistency, commitment, and repetition are important to attract and build your audience or tribe. It's a common fact that many online business owners jump and change between promoting different front end products, changing their message. One month they're promoting Forex, the next business education, lacking the consistency needed to attract their target audience.
Repetition is a conditioning tactic that trains the human brain to respond in a certain way. If you email your list every day at 7 pm, then your subscribers will learn consciously and subconsciously that your email will be there every day at 7 pm. Look at brands that command a large following. (McDonald's for example) They rely on consistency, commitment, and repetition in their psychology of marketing and advertising.
The law of reciprocity states that people like to return favors, and it works because it's part of human psychology. A basic example of reciprocity involved me collecting my neighbor's trash bin in from the street after it had been emptied. They returned the favor, without any other communication from them.
The application of the reciprocity principle with an online business is all about offering value to your target audience. This value can be training, blog posts, free samples of your product or whatever your target market is looking for. Their consumer psychology will trigger their need to return the favor, and so the higher the likelihood of them doing business with you.
Here's a question… Do you walk into the restaurant with two people dining and the waiter looking out of the window? Or the restaurant next door where you have to queue for 20 minutes?
Naturally, you stand in the queue (unless you're me..!) The same psychology applies when people are stood staring into the distance. Human curiosity attracts people who investigate what everyone is looking at. Before long there are scores of people looking off into the distance. A principle I'm sure you've experienced for yourself.
A principle I'm sure you've experienced for yourself.
Social proof for your online business involves Facebook groups, discussion forums and the like with lots of interaction. Social proof not only attracts more like-minded people, but it promotes conformity, personal identity, and brand awareness.
Understanding the importance of consumer behavior tells us that people like to be labeled. We seek consistency and social acceptance by being labeled as part of a group. People that are labeled as superior have a tendency to spend more money, which is why having a gold and platinum tiered plan, for example, is important for your products and services.
When I was 20 years old wearing a Police uniform, I realized that people acted much differently to an authority figure. What surprised me as a young 20 year old, is that people would do what I asked them to do, because I was in a position of authority.
Trying to CONVINCE people online, is about as effective as a Burglar Amnesty... Click To Tweet
Building your authority online is developed by providing value and teaching your audience from experience. This promotes trust and respect, essential in increasing conversions and winning customers. All too often I see people spamming their affiliate links, or trying to convince people to do business with them.
Trying to convince people online is about as effective as a burglar amnesty…
This is a simple one. People do business with people they like.
So how do you get people to like you?
That answer is simple, just be yourself and consistently provide value to your target audience.
If the perceived value increases the price of your product, then perceived scarcity increases the demand.
Adding to your sales copy that your product is available in limited quantities, or for a limited time promotes scarcity and increases the demand. A product I wanted to buy some years ago was Jeff Walkers Product Launch Formula. I missed the deadline to order the product and I couldn't buy it until the next release some months later. Seemingly I wasn't alone.
The scarcity created a huge demand for the product and continues to be as the product follows the formulae as outlined in this article.
If perceived value increases the price, perceived scarcity increases the demand. Click To Tweet
Consumer Psychology Conclusion
This article merely scratches the surface about consumer psychology, the psychology of marketing and advertising, and the factors influencing consumer behavior. But the scratch is deep enough for you to learn the concepts, and adopt the formulae of understanding your target audience and the six pillars of influence.
By doing so you lay the foundations to develop your leads into conversions and loyal customers while growing an increasingly profitable online business.
“Life Beyond Financial Boundaries”
P.S. I know that when you apply what you've learned inside this article your conversions will explode and you'll develop loyal customers for life. Remember that part of the 6 Pillars of Influence is Authority. My good friend Rob has a training that will give you Instant Authority regardless of the niche you're in. Click here to access the training.
Food For Thought? Drop me a Comment below…