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Have you ever felt like you just had to have that new iPhone or those designer bags you saw online, even though you didn't really need or care for them?

Or maybe you’ve had those gnawing doubts that you’re not traveling enough, happening enough, or living enough while looking at your friends’ dream-like vacation on the shores of the Maldives, or their perfect Sunday brunch at the hippest joint in the town?

Or maybe you’ve seen sneaker-heads salivating over the new Air Jordan drop announcements like helpless addicts, and wondered why are they going nuts about a pair of sneakers?

So what’s the big deal about these products or experiences that you can definitely live without but keep feeling that you can’t?

Welcome to the trippy world of consumer psychology. These examples show how consumer psychology plays a critical role in modern marketing. Chances are, you've found yourself drawn to a particular brand, not because of its product features, but because of how it made you feel.

In the last two editions, we looked at common marketing fallacies to avoid, and how to deal with the downward spiral of imposter syndrome as a modern marketer.

In this edition of our newsletter, we continue to explore the fascinating world of the psychology of marketing and how it can be used to create a deeper connection with your audience and increase conversion.

In today’s email:

• the basics of consumer psychology

• a recent case study, and

• a handy guide to using consumer psychology in your marketing

Understanding the basics of Consumer Psychology

First, let's start with the basics.

Understanding consumer psychology is crucial for effective marketing because it allows you to create messages that resonate with your audience and drive sales. It's a critical component of modern marketing, as it helps us understand the underlying motivations and desires of our target audience.

One of the most powerful drivers of consumer behavior is emotions. Research shows that people often make buying decisions based on how a product makes them feel, rather than its features or benefits.

Companies have time and again successfully used psychology-based marketing strategies to tap into these emotions and drive conversions.

For example, Apple's iconic Think Different campaign wasn't focused on the technical specifications of its products, but on the feeling of creativity and individuality that they conveyed.

Nike's Just Do It campaign is another great example. The campaign was focused on inspiring athletes to push themselves to their limits and achieve greatness, rather than on the technical features of Nike's products.

Case study - Spotify

Timeline

2016-Present

Problem statement

Spotify wanted to increase its user engagement and retention rates, as well as grow its user base by attracting more free users to its platform.

Marketing insight based on consumer research

Spotify also discovered that:

• people enjoy feeling a sense of nostalgia and

• that music is an effective way to evoke these feelings

Solution - Product Marketing

Develop and launch a marketing insight-based product feature

Campaign concept - Nostalgia & Personalization

Spotify created a personalized experience for its users that appealed to their emotions and nostalgia. They launched a campaign called "Your Time Capsule," which generated a personalized playlist for each user based on their listening history.

The playlist consisted of songs from the user's teenage years and early 20s, evoking a sense of nostalgia and personal connection to the music.

Go live

• Launched in September 2017 and was available to all users globally

• Users could access their personalized playlists by visiting a specific webpage or through the Spotify app

• Heavily promoted on social media and email marketing

Success metrics and performance benchmarking

• The campaign generated significant buzz on social media, with users sharing their playlists and experiences with the campaign

• In the first week itself, Spotify saw a 37% increase in users listening to their personalized playlists

• It also saw an increase in user engagement and retention rates, with users spending more time on the platform and listening to more music

• The campaign helped to attract more free users to the platform, with Spotify reporting a 40% increase in free user sign-ups during the campaign

Campaign Outcomes

After Effects

The success of the Your Time Capsule campaign led Spotify to continue to leverage consumer psychology in its marketing efforts. They have since launched similar campaigns, such as Your Summer Rewind, which generates a personalized playlist based on the user's summer listening habits.

Spotify collects a ridiculous amount of consumer behavior data, and the analysts on their team do a fab job of finding meaningful patterns and marketing insights.

More recently, Spotify has been enjoying (repeated) viral success with its Spotify Wrapped campaigns every year-end. This is another great example of how a new-age company like Spotify gets its consumer’s pulse right, applies behavioral science to its marketing campaigns, and continues to win them over again and again.

A handy guide to using consumer psychology in your marketing

Well, you might not have the user behavior data and the resources of someone like Spotify, but that doesn’t mean you can’t leverage a keen understanding of consumer psychology for your marketing.

Here’s a guide that you can easily use to improve conversions. After all, marketing is about getting the basics right, like knowing and talking to your users. And it’s mindblowing to see how often it is ignored.

1. Understand your audience

Conduct research and gather data about your audience's interests, behaviors, and preferences, at regular intervals. This will allow you to tailor your marketing messaging to resonate with them on a deeper level and to keep it relevant.

One brand that does an excellent job of understanding its audience is Nike. Nike has a deep understanding of its target audience - athletes and fitness enthusiasts. Its marketing messaging is always geared towards inspiring and empowering its audience to push themselves to the limit.

Whats and hows

• Conduct surveys, focus groups, and user testing to gather data about your audience

• Use both qualitative and quantitative research methods to understand your audience's needs and preferences

• Use social listening tools to monitor online conversations and gain insights into your audience's preferences and behaviors

• Create buyer personas to represent your target audience segments

• Look at demographics, psychographics, and behavioral data to create detailed customer profiles

• Continuously update your customer profiles to reflect changes in your audience over time

• Use customer feedback to refine your understanding of your audience and create more effective marketing campaigns

Tools

Google Analytics, Facebook Audience Insights, SurveyMonkey, Typeform, etc.

How to Create a Customer Persona: A Beginner’s Guide

2. Use social proof to build trust

When people see that others like them are using and enjoying a product or service, they are more likely to do the same.

People are more likely to trust and purchase from a brand that has positive social proof. Social proof can come in many forms, including but not limited to:

• reviews and ratings

• customer testimonials

• social media mentions and shares

• influencer endorsements, etc.

Glossier is a beauty brand that has built a massive loyal following on social media. They use their Instagram account to showcase user-generated content, including reviews and photos from satisfied customers. This social proof helps to build trust and credibility with potential customers, who are more likely to purchase from a brand that is endorsed by others like them.

#buildinpublic is another great example of using social proof as a marketing strategy. I’m using it to grow this newsletter.

Whats and hows

• Make it easy for customers to leave reviews and feedback

• Use only genuine customer reviews and testimonials

• Highlight reviews and testimonials on your website and social media accounts

• Respond to negative reviews and feedback in a timely, professional, and helpful manner

• Use influencer endorsements to reach new audiences

• Share user-generated content, such as photos and testimonials, that showcase the positive experiences people have had with your brand

18 Best Social Proof Software Tools to Boost Sales 

3. Use scarcity to drive urgency

When people feel that a product or service is in limited supply or only available for a limited time, they are more likely to act quickly to avoid missing out.

Why?

Because we hate to lose out on a good deal. We’re loss averse. We’re driven towards fast decision-making by anything that gives us a sense of loss.

You can use this to your advantage by incorporating scarcity tactics into your marketing. Creating a sense of scarcity and urgency can be an effective way to drive those conversions.

Help your users make a decision, fast. They’ll thank you.

We come across scarcity tactics by brands in many ways:

• Limited-time offers - Black Friday Sale, Cyber Monday

• Limited quantity - till stock lasts, out of stock, only 1 more left

• Special/ Limited edition items - signature series, price on request, own a piece of history, celebrity collaborations

Apple is known for creating a sense of exclusivity and FOMO. One way they do this is by offering limited-edition versions of their products, such as the RED iPhone. Offering such limited-edition products creates a sense of urgency and exclusivity, which makes people stand in a beeline to buy.

Amazon uses scarcity and urgency tactics to great effect during its annual Prime Day sales. It creates a sense of urgency by making deals available for a limited time only, and by highlighting the limited quantity of each deal.

Luxury brands use scarcity as a core marketing strategy to create an illusion of rarity, and exclusivity, and elicit aspiration and desire.

Whats and hows

• Make sure the scarcity is genuine and not artificial. Don't make false claims or use manipulative tactics

• Use scarcity and urgency messaging sparingly and authentically

• Use clear and concise language to communicate the scarcity

• Use a nudge such as a countdown timer to create a sense of urgency

• Offer an incentive to act quickly, such as an early bird discount or bonus

4. Use design psychology & visual cues

Visual cues and design language can have a powerful impact on consumer behavior. By using colors, fonts, and other design elements strategically, you can influence how people perceive your brand’s offering at a subconscious level.

Ever noticed how rockstars sport a unique look and carefully craft a specific image with their dressing, hairstyling, accessories, or even their body language? That is as important as their art to create a hysterical following and legacy.

Or how any brand that wants to come across as natural, herbal, or organic uses shades of green and earthy browns to subtly give that message to the audience?

Again, Apple would be a great example of a brand that uses visual cues and design to great effect in its marketing.

Its minimalist design aesthetic has become a hallmark of its brand identity, helping to communicate the company's focus on simplicity and elegance. It is reflected not just in their products but also in their physical stores.

Whats and hows

• Use colors and design elements that align with your brand's personality and values

• Use color, font types, and other visual cues strategically to create a consistent brand identity

• Consider how different cultures and audiences may interpret colors differently

• Test different color schemes and analyze their impact on customer behavior.

• Use visuals to highlight key features and benefits of your product or service

The Psychology of Color in Marketing and Branding

5. Use emotional appeals to create a connection

Coca-Cola's Share a Coke campaign is a great example of using emotional appeals in marketing. The campaign featured personalized Coke bottles with people's names on them, encouraging people to share a Coke with someone they care about. This resulted in an increase in sales by 2.5% in the US alone.

Dove uses strong emotional appeals to create a strong bond with its users in its campaigns like Real Beauty and #LikeAGirl etc.

Whats and hows

• Use storytelling and relatable messaging to create an emotional connection with your audience

• Appeal to your audience's values and beliefs to build trust and loyalty

• Ensure that your brand messaging and storytelling align with your brand values and mission

• Be authentic and transparent in your messaging

• Use relatable images and videos to elicit an emotional response from your audience

• Highlight the emotional benefits of your product or service, such as the sense of belonging or accomplishment it can provide

The Ultimate Guide to Emotional Marketing

6. Use the power of storytelling

Nike's Dream Crazy campaign features a powerful video that tells the story of athletes who have overcome obstacles to achieve their dreams. The campaign, which features Colin Kaepernick as a narrator, received widespread attention and praise for its powerful message and storytelling.

Whats and hows

• Identify your brand's unique story and values, and create a brand identity aligned with that

• Make sure your storytelling is authentic and genuine

• Associate with influential and relevant figures whose story resonates with your brand’s

• Let others join you with their stories and make authentic user-generated content part of your marketing messaging. Take a leaf out of Hershey’s marketing playbook in their international campaign SHE Bar

How to tell your brand's story

By incorporating these consumer psychology principles into your marketing efforts, you can create more effective and impactful campaigns that resonate with your audience.

Stay tuned!

AQ Finds

• Book - Neuromarketing is an evolving field in modern marketing. Read all about it in Neuromarketing: Understanding the Buy Buttons in Your Customer's Brain

• Newsletter - The Spark brings you the stories and science of the creative process as it plays out in the world around us. From marketing to art, business to invention, it's all on the table to make you a cutting-edge creative professional.

• Tool - Smart Copy by Unbounce uses AI to generate original, persuasive content for your marketing campaigns in seconds.