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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