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The human mind is incredibly interesting but a deeply complex topic to explore. There’s a multitude of rational reasons and emotional desires that drive the consumer decision-making process.

Being able to comprehend and pick apart why people make the decisions that they do will ultimately put you at a significant advantage over other businesses that might not have considered this yet. Understanding what makes people tick is going to drive revenue and help you hit your Black Friday goals. It’s that simple.

There’s a lot to unpack here and we’ll barely scratch the surface of this topic, but it is an important topic to touch on nonetheless. Here’s a look at how to build brand loyalty and trust in the run-up to Black Friday, understanding how people shop on Black Friday, and understanding how is consumer psychology used by marketers. 

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Price anchoring

First of all, what is price anchoring? Anchoring is a cognitive bias that affects the way we perceive the price of a product based on the first piece of information that’s presented to you - the anchor. Let’s look at the different instances price anchoring is typically used.

‍Strikethrough discounting

This one is no secret. It always has worked and it always will work. People love a bargain. If you show someone the original price and put a huge strike through it (the anchor), and then tease the shiny new lower price, people are more inclined to buy that product due to the money that they’re saving - even if they didn’t plan on buying that item in the first place, because again… people love a bargain.

Price position anchoring

You can use the positioning of similar products and their pricing to affect the ideal outcome  using higher prices and lower pricing. But how does this work?

High price anchoring

The idea here is you place a product which is to some degree more premium than the actual product you want to drive people to buy but price it higher to influence people to purchase the cheaper item. Let’s break this down using TVs as an example. One TV is 60 inches and costs £1200. The TV next to it is 47 inches and cost £900. Naturally, you are drawn to the smaller TV as you are only losing 3 inches in what is already a huge TV and you’re getting it at a much lower price, with a saving of £300. 

This should in theory generate more revenue than the bigger TV does because more people will feel more inclined to buy the smaller TV due to the saving that they’re making.

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Low price anchoring

If you couldn’t tell by the name, this is the opposite of high- price anchoring. Using a lower price to influence the purchase of a higher ticket item. Let’s say you have two jars of coffee. A 200-gram jar costs £3.50 but the 500- gram jar next to it cost £5. You’re going to buy the larger jar because it feels like a better value deal, even though it’s priced higher.

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‍Exclusivity and urgency

Exclusive, limited-run products have a special appeal. If you indicate that something is rare or limited, the perceived value of the product goes up. Showing the products as exclusive indicates that they will not be running forever, and you need to act quickly before it’s gone. This sense of urgency encourages conversions.

It’s a twisted part of human nature, we put more value behind things that people want but can’t have, purely because they can’t have them. And what do people do to make sure that others can’t have them? They buy them first.

Scarcity urgency

Urgency scarcity is like exclusivity scarcity and is a huge tactic utilised by all brands on Black Friday. You stimulate the thought that someone could get the product before you, you’ll see this on a lot of big e-commerce sites ‘almost out of stock’ or ‘50+ people viewed this item in the last hour’ or ‘ only 3 tickets left at this price’.

A way of explaining this psychologically, is that the lack of choice, or fewer chances to buy, is a threat to our freedom. In order to mitigate this threat, you make the desired action. You get the item before someone else does, meaning that you feel like you have retained control. Again, it’s always important to keep it real with your customers.

However, a word of caution… Overusing these tactics will come across an manipulative and your message will lose its impact. If someone can see that something is the last chance to buy for a week running, they’ll know you’re fibbing.

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FOMO

In a world built on constant connectivity and an overwhelming abundance of choices, there exists a primal force that grips the hearts and minds of everyday people. It's a feeling we've all experienced, the gnawing fear of missing out - AKA, FOMO. For anyone lucky enough to not be affected by this allure, let’s take a look at what it is and how you take advantage of it in your marketing and the effect that it has on consumers.

What is FOMO?

At its core, FOMO is a psychological phenomenon that taps into our innate human desire for connection, belonging, and the pursuit of unique experiences. It’s the anxious feeling we experience when we think others are enjoying something that we aren’t.

How it works:

FOMO is a product of scarcity as well as the fear of regret. Regret doesn’t feel good and we do what we can to avoid negative emotions. And as explained earlier, the scarcity of an item increases its perceived value and in order to avoid missing out on this scarce item you have the urge to buy.

Applications;

Limited time deals

Social proof and influencer marketing

Event-based marketing

Showcasing best-selling items

Gamified interactive experiences

Showing stock levels

Of course, FOMO is a powerful weapon, but as with any weapon it needs to be used with responsibility. Honesty, transparency, and respect for your customers are essential to establishing credibility, trust, and maintaining long-term relationships.

Colour and conversion

Colours are a wonderful thing. Different colours have different meanings and connotations, which means they can elicit different psychological effects and emotions and in doing so, shape human behaviour. People make judgements about products in seconds - and colour can play a big role in this. Different demographics interpret colours in different ways. Understanding how different customer bases perceive colour means that marketers can use this in their creative to target specific groups.

Colours affect conversions. Red and orange are two of the best colours for increasing CVR if they stand out from other elements on your website. Hubspot found through A/B testing that red CTA buttons outperformed green CTA buttons by 21%. Consider testing colour on your site to see how it effects conversion rates.

Power words

Power words are persuasive and emotionally charged words that can elicit strong reactions and ultimately influence decisions. Using power words in product descriptions, headlines, CTA’s, and marketing copy and your ads can enhance the overall effectiveness of the message you’re trying to get across, grab the attention of potential customers, and increase conversions. Power words’ potency lies in their ability to evoke emotions, trigger desires, and create a sense of urgency or excitement.

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‍Emotional Appeal 

Power words tap into the emotions of the audience, making them feel excited, curious, motivated, or inspired Emotions play a Lignificant role in decision-making, and powerful words can create a stronger connection with your customers

Sense of urgency

certain power words can create a sense of urgency, encouraging customers to take immediate action and make a purchase which can be crucial in driving sales and reducing cart abandonment rates.

Empowerment

Power words that convey a sense of empowerment or exclusivity can make customers feel special and valued, leading to increased brand loyalty and connections.

Clarity and Specificity

Power words can add clarity and focus to your message, ensuring that customers understand the benefits and value of your products or services.

Differentiation

Using unique and compelling power words can help your brand stand out from competitors and leave a lasting impression on customers.

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Social proof

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What draws us to a product? Of course, the packaging, branding and the way it’s advertised will have an effect. But how do you stand out in saturated markets with an abundance of products with not-so-unique USPs?

Well, the answer is simple. It lies in the subtle yet profound force that is social proof. By seeing other people that you can relate to, that share similar experiences authentic to your own, who frequent the same places as you, who fit into the same subcultures as you - you are going to trust their opinion when it comes to buying a new product.

Picture this, you stumble upon a new café tucked away in a quiet corner of the city. Curiosity piques your interest, but hesitation looms. This is new, I’ve not been to this place before. Will it actually be any good? You peek in and see a room full of people sipping away at their coffee, laughing and enjoying themselves. If so many others have chosen this place, it must be worth experiencing.

Social proof comes in a lot of forms. Here are a number of ways you can utilise social proof over Black Friday.

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Reviews and testimonials 

The OG display of social proof. It’s super easy to use in ad creative, copy, or alongside product listings on your store.

Influencers 

Use content shared by your customers. Show real people using and enjoying your product. Find someone who aligns with your target audience, ideally someone who already uses your product. People are more likely to trust recommendations from someone they admire with authentic experiences.

UGC

Use content shared by your customers. Show real people using and enjoying your product.

Check out our ultimate guide for UGC for more insights and top tips

Case studies 

Highlight real-life examples of how your product has benefitted your customers. For instance, if you’re a skincare brand you could use before and after shots to highlight and prove that your product works.

Expert opinions and industry recognition

Build credibility with recognition such as awards, opinions, or certifications from professionals who hold authority within your industry.

Celebrity endorsements

This one can sometimes be difficult, but if you have a high-profile celebrity using your product the perceived value can increase as well as the desirability of your product.

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There you have it, multiple ways that you can use behavioural science and consumer psychology to your advantage.

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If you run an e-commerce brand and are looking to scale past 100k a month and more, get in touch and let’s talk about how we can help you. Book a call with the team to learn more.

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Written by Andrew Boardman - Marketing Content Manager

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