Chapter 2
IN THIS CHAPTER
Marketing in a climate of fear and anxiety
Addressing the unconscious mind
Understanding psychological triggers that drive sales
Making use of social influencers
Acknowledging people’s need for happiness and purpose
Creating ESP profiles
Research shows that most behavior is governed by our unconscious minds, which suggests that consumers don’t really know why we do what we do or choose what we choose. Understanding some of the basic tenets of human behavior is essential to building product packaging, promotions, and experiences that engage consumers beyond the conscious appeals of price, quality, convenience, and so on.
When studying the conscious and unconscious influencers of choice, we can’t ignore the influence of fear and its potentially long hold on the consumer mindset. Marketers need to understand the many elements contributing to fear, or fear shopping behaviors, among consumers in both B2B (business-to-business) and B2C (business-to-consumer) categories. Fear shopping was not only a reaction to the supply chain issues associated with survival goods during the COVID-19 pandemic — hand sanitizer, face masks, and even toilet paper — it’s also driven by many other factors beyond a given event like a pandemic. Fear shopping is associated with our survival DNA which causes us to do things to preserve our current status, position, resources, and so on. Survival applies to our social and emotional wellbeing as well as physical.
This chapter discusses many of the psychological elements that influence our thoughts, attitudes, and behavior. You might find it surprising that we are more motivated by our desire to avoid loss and minimize our fears than we are by our desire to gain rewards.
As expected, major market or world disruption such as a pandemic, war, inflations and so on can change shopping behavior and loyalty. For one, the COVID-19 pandemic led people to shop less for non-necessities and more for necessities. People are now more willing to switch from a preferred brand if product availability and price are better elsewhere, making the loyalty quagmire even more tenuous. Having survived the vast waves of uncertainty in 2020, consumers seem to have an eye toward saving more money just in case it all happens again.
A report by Alter Agents summarized in a July 2020 Forbes.com article showed that
Another study, reported in the journal PLOS ONE in August 2021, focusing on psychological factors and consumer behavior during the COVID-19 pandemic, showed a 90 percent increase in necessities spending and only a 36 percent increase in non-necessities spending during the pandemic. It also showed consumers have a strong tendency toward self-justification purchases during times of fear, something marketers cannot ignore when creating messaging strategies to appeal to the conscious and unconscious triggers of choice (which include hormonal reactions to situations, that is, the real and imagined factors that lead to decisions, such as price or peace of mind, and emotional responses), which are discussed in detail in this chapter.
Studies show humans engage in behaviors to maintain control and certainty. For consumers, this often means saving more, spending less, and cutting back on discretionary spending when times are uncertain. Knowing how to address fear and anxiety associated with purchases in your category is key to succeeding in any market atmosphere.
The following sections explain how you can reach your customers in an anxious market atmosphere.
Few things are more frustrating than having your feelings dismissed by others, including friends, family, or people trying to sell you something. Yet brands tend to do this all the time with messaging that addresses only what they offer and ignores concerns or fears associated with their category. For example, if a consumer is fearful of investing in cryptocurrency, they aren’t likely to invest simply because someone tells them it’s the future of all economies and a sure path to wealth.
As a marketer, you need to understand and validate consumers’ fears about your product if you want them to listen and engage with you. Going back to the cryptocurrency example, digital money not backed by a gold standard, bank, or central authority can feel scary to consumers who grew up in the nondigital age. If you’re trying to sell cryptocurrency, first address the reasons consumers might not want to purchase it. Then explain the upside, use real data to show gains and opportunities, and slowly move your conversations from Why Not to Why. By engaging consumers with the Why Not aspect of a business category or product purchase, you’ll gain their attention and trust, which leads to gaining their interest and eventually a sale.
With purchasing anxiety high in times of uncertainty, brands must take fear out of the decision process by protecting consumers against greater losses. You can do this by
We all like rewards, and we tend to respond quickly to offers when we believe we have a strong chance of being rewarded. Look for ways to reward customers for engaging and trying your product over others. Rewards can be added-value benefits, monetary discounts, extended contract terms, and so on.
If you offer a free trial, reward those customers with a discount during their first year for giving you a chance to fill their needs and earn their trust over others in your space.
Communicating about your products with customers is a given, but how you communicate isn’t always as clear. Transparency about the mistakes you make, the flaws in your products you’re working to improve, or the issues you haven’t yet addressed is critical. And so is truth about your products, materials sourcing, and environmental and social stances. If you are misleading about your environmental, social, and governance practices, you’ll be rebuilding your customer base because of attrition while your honest competitors outpace you for growth.
There’s no forgiveness for misleading product claims. If you say your product is toxin-free, make sure it is. At one point, a multilevel marketing home and personal care products company promoted its natural ingredients to the level that customers believed they were ordering totally natural products without the toxins and dangerous substances found in cheaper products. Yet, if savvy customers noticed multiple labels on product packages for its so-called natural cleaners, and peeled off the first label, they likely saw the poison warning and fine print, which revealed that only a very small percentage of the ingredients were natural. This kind of deception can cost you customers.
Traditional thinking has it that consumer choice is based upon price, quality, reputation, brand awareness, convenience, and the like. Although these things are influencers at some level in most decision processes, the most powerful influencer is the unconscious mind. This is because our unconscious drives 90 percent of our thoughts and behavior, according to Gerald Zaltman, a former Harvard Business School professor, widely known as the pioneer of neuromarketing.
Think about that for a minute: If 90 percent of all thoughts are unconscious, why do we market to the other 10 percent? If you’re marketing to the conscious mind with messages like “limited time offer,” “best customer service,” and “our quality is better than their quality,” you’re targeting only 10 percent of the decision process. That’s a lot of waste!
Traditionally, advertising has been all about promoting price, convenience, brand reputation, competitive advantage, and other appeals that the conscious mind processes. Yet people don’t always get far enough into advertisements to process the value of a given offer if the ad, content, post, experience — whatever the medium is — doesn’t first appeal to their unconscious mind. If the research is true, you’re wasting 90 percent of your budget by appealing just to the 10 percent of the brain that drives people’s decisions. That doesn’t make for good marketing returns.
The unconscious mind makes rapid judgments about marketing materials and messages and dictates immediately how we should behave. These thoughts and actions are guided by our schema, or set of preconceived thoughts and beliefs, that drive what we consider to be true, real, and valuable.
We all have schemas associated with our political, religious, social, and brand beliefs and choices, and we typically pass off any outliers that don’t fit our notions as anomalies, even when evidence proves our schemas wrong, or at least makes us question what we believe.
Pew Research reports that scientists and the public are far apart when it comes to believing evidence or expert opinions about key social issues, such as vaccines, GMOs, and climate change. And no matter what people hear about their favored politicians, religion, and other sources of ideology, they tend to believe what they’ve chosen to believe and ignore contradictory facts despite the presence of verifiable data. For example, at one time 88 percent of scientists said research showed GMOs to be safe. Only 37 percent of the public believed them.
Think about the things you’ve believed most of your life. How much would it take for you to change your attitudes and beliefs? Convincing customers to change brands, acknowledge your brand’s distinctions and value, and try your product over another isn’t that much different. You need to build a powerful case to get consideration and trial. You’re best able to do this by applying psychological principles related to choice rather than just marketing messages and personalized promotions triggered by automated CRM systems, data management platforms, and the like which we discuss later in Chapter 11.
Schemas don’t just reflect attitudes and perceptions people have developed from their culture, community, and environment; they also reflect how the brain works in general. For example, schemas are unconscious expectations of patterns, rhythms, and such. When you listen to music, your brain has a set perception for how the melody will harmonize, the notes will scale, and the rhythm will flow. We prefer music that fits our schema.
Similarly, we tend to have brand schemas, or preset expectations for experiences with brands we trust. Think about how you feel when you go to your favorite store or restaurant. Every time you go back, you have a preset expectation for the product quality and/or how the visit will unfold.
Young & Rubicam (now VMLY&R) did a study in 2013 involving adults throughout the U.S., South America, and Asia to see how closely people’s conscious values line up with their unconscious ones. What they found, and later published in a report titled Secrets and Lies, shows just how far apart the conscious and unconscious thought processes are. Take a look at Table 2-1. Just like psychologists have said for years, people are driven unconsciously to prioritize survival, connect with others in meaningful relationships, and live by the traditions in which they were raised.
TABLE 2-1 Conscious Versus Unconscious Values
Top Conscious Values |
Top Unconscious Values |
---|---|
Helpfulness | Maintaining security |
Choosing own path | Sexual fulfillment |
Meaning in life | Honoring tradition |
Now for the secrets:
Consciously and unconsciously, all human behavior is based on two emotional premises:
Everything we do, socially, professionally, and personally, is driven by these basic needs. When you understand the pain your customers are consciously and unconsciously avoiding when purchasing your products or services, you can craft highly relevant motivational messaging and experiences.
For example:
Pleasure covers much more than indulgences. It covers peace of mind, confidence, comfort, and security, which are very strong conscious and unconscious triggers of choice.
Pain and pleasure in marketing terms are simply the fear and joy people experience as life events unfold or as they anticipate something bad or good happening in their lives. For example, purchasing auto insurance minimizes the fear of loss you would have if you weren’t insured. When comparing brands, most of us choose the one that makes us feel the most secure or confident during the shopping process.
The most powerful forces that affect human actions related to finding joy or avoiding fear and pain are neurotransmitters, or the hormones that create strong emotional reactions to the stimuli people encounter daily in all areas of the world. Understanding the impact neurotransmitters have on purchasing behavior will enable you to create compelling messaging and experiences.
Neurotransmitters include
Serotonin: This is the hormone that helps stave off depression. It makes you feel calm and upbeat and gives you the ability to face your daily challenges with hope, optimism, and confidence. Listening to music that has the right schematic patterns and tones often creates feelings of love, nostalgia, comfort, or confidence, all of which influence serotonin rushes and your mood.
Music has a powerful influence on our moods and our behavior. Many retailers spend a lot of time researching the kind of music that will create serotonin rushes that make customers feel calm, inspire them to linger longer and buy more goods. Radio jingles, music in ads, and in-store soundtracks are often part of an overall brand strategy.
One of the most important things marketers must do today is move away from unique selling propositions (USPs) to emotional selling propositions (ESPs). ESPs are the messages that get through because they appeal to emotions, such as those listed in the previous section.
A brand’s ESP is a statement about how it fulfills a given emotion associated with its category. Understanding the emotional value you provide is key to your success in all forms of marketing — direct, social, personalized, mass, and experiences and events.
The first step is to know the emotions associated with the decision process for your category. For example: Most insurance customers don’t trust their carriers to deliver on the promises contained in their policies. But they buy insurance anyway because they fear the consequences if they were liable in a car accident, if their house burned down, or if they got really sick and couldn’t afford health care. Two emotions that insurance company marketers must address in their marketing, then, are distrust and fear.
If there’s one emotion you must address in your brand’s ESP, it’s the survival ability your product offers to your consumers and your superior ability to deliver survival over your competitors. No, this isn’t a bunch of psychobabble. It’s critical insight as to how you can craft emotionally relevant messaging, offers, promotions, and more to your customers and prospects and achieve what we call “unthinkable” return on investment.
Daniel Kahneman, psychologist and author, has conducted a great deal of research about human psychology and how people process information and make choices. His research consistently shows that when people are faced with a choice to risk losing something in order to gain something, they most often choose to avoid the risk rather than take the chance of winning the reward. In other words, he has found that people will pay a high price to get a sure gain and to avoid a sure loss.
Ask yourself the following questions:
Being able to answer these questions and deliver on them is key to differentiating your product from others emotionally, and that’s the most critical differentiation of all.
When viewing illusion art that shows either a woman looking in a mirror or a skull, most people see the skull first. This is because the brain is wired to see threats to prevent harm before seeing a reward or joy. We are more motivated to avoid loss more than we are to see rewards.
And we purchase items that give us a sense of survival, consciously and unconsciously. When times are tough, survival gear and food storage sales soar. For example, at the peak of the 2020 COVID-19 lockdowns, household goods, such as toilet paper, were hard to come by.
We also purchase high-end items to feel superior, which is a form of “survival shopping.” Gucci at one point had a $200,000 crocodile handbag. There’s no functional value in such a bag that you can’t get out of a $20 bag from Target. Yet people paid this price. By doing so, they weren’t really buying a bag to carry a wallet and small personal items, but were paying a price to feel superior, and in the end that makes us feel more likely to survive challenges others might not. (See the nearby sidebar “What are you really selling?”)
Identify the fear that drives your customers and address it directly so you can put them at ease. After you diminish the fear or present a visible solution, you can then communicate better to the unconscious mind and more clearly to the conscious mind.
There are elements of “survival” in just about every business category. For example:
Your ESP should encompass the fears and joys sought through your product category, consciously and unconsciously, and should be present in your marketing messages, content marketing, social dialogue, customer experiences, and sales propositions. Crafting your brand’s ESP is as critical as writing a mission statement that guides your operations and values.
To be an effective marketer in any industry, you need to understand some basics about human psychology. You also need to focus on behavior that results from psychological triggers, such as the neurotransmitters mentioned earlier in this chapter and other psychological processes. From psychologists and their proven theories, old and new, you can discover a great deal about how people think and act.
Following are some insights from two of the most well-known contributors to psychology theories, Sigmund Freud and Carl Jung.
Freud is known for several theories. One of his most popular is his personality theory, which goes beyond determining who has one and who doesn’t.
Freudian personality theory suggests that we each have three personalities, or voices, in our head that compete with each other when we’re making basic or complex decisions. These personalities are the id, ego, and superego.
Whichever voice wins out most often dictates people’s individual personalities and, for marketers, predicts their behavior when it comes to shopping and assigning brand loyalty.
Think about which personality is most involved in making the decision to purchase your category and your brand within it. Imagine you’re selling cookies or doughnuts and you want to spark an impulsive drive to buy some. You need to appeal to the id in a way that overpowers the consumer’s ego and superego, which might argue cookies or doughnuts aren’t on the diet.
If, however, you’re marketing fitness and nutrition products, apps, or the like, you may want to first appeal to the ego with information about responsible diet and exercise habits and then mention low-calorie cookies that satisfy the id without throwing out any plans to stay on track for reaching healthy goals.
Carl Jung, known for his theory of archetypes, believed that the human psyche is nothing more than mass confusion because so much of what people do and think is unconscious. He is widely known for his personality theory, which presents two different attitude types: introverts, or people who tend to be withdrawn, and extroverts, who are more outgoing and outspoken. He suggests that both attitude types engage in the same mental functions but process them differently. These functions include thinking, feeling, sensation, and intuition.
What marketers should grasp from Jung’s theory is that introverts and extroverts can experience the same situations, process them, and respond very differently. If you’re selling a product, service, or experience that largely appeals to introverts, you need to understand how introverts think and what type of sensory appeal makes them most comfortable. Using the wrong appeal may put them in fight-or-flight mode.
Another perspective Jung discusses in his book Modern Man in Search of a Soul provides great direction for a brand’s positioning and messaging strategies:
Faith, hope, love, and insight are the highest achievements of human effort. They are given by experience.
If this is truly what people seek in life, how does your product support the journey to attaining these emotional outcomes?
Ask yourself key questions about the psychological fulfillment your brand helps support. Doing so will help you see your product’s value in a much different light.
Along with psychological triggers, social influencers are powerful drivers of people’s thoughts, choices, and actions. Following are some examples of social influencers.
The late Yale psychologist Stanley Milgram did a study in the 1960s to see how the role of authority influences people to do things that go against their values and conscience. He set up an experiment with volunteers playing the role of students and teachers. The student volunteer was fitted with electrodes that would deliver shocks each time the teacher pushed a button, which they were instructed to do each time the student got a question wrong.
As the experiment went on, the student missed more questions, and the shock got stronger. The teacher volunteers started to become upset, even physically ill, hearing the pain and agony of the students, who were sitting on the other side of a screen. But when the leader, someone in a white coat, told the teachers to increase the voltage and push the button to deliver the shock, remarkably, 65 percent of the volunteers kept following the instructions from the person in authority. According to the study’s report, subjects were anxious and stressed about inflicting pain, and some were so upset that they were “sweating, trembling, stuttering, biting their lips, groaning, digging their fingernails into their skin, and some were even having nervous laughing fits or seizures.”
This shows how powerful authorities are in influencing behavior. It also demonstrates that marketers have to use the influence of authority responsibly.
You can tap into the power of authority by:
No matter how sophisticated, intelligent, accomplished, or otherwise knowledgeable your customers are, they’re still driven by social proof, whether they admit it or not. It aligns with the human need for survival because, unconsciously, people feel weak or disadvantaged when others have something they don’t or are achieving something they haven’t yet.
Robert Cialdini, a psychologist, professor, and author, has done many experiments to see how this plays out in various settings. He found that when he told people that their neighbors, friends, peers, and so forth were doing something worthwhile, like participating in an environmental program, they were more likely to also do it than if he just told them it was a good thing to do.
This illustrates the role of testimonials and sharing customer satisfaction ratings and Net Promoter Scores (which measure a customer’s willingness to recommend a product or service) in helping to influence behavior.
No matter how much we accept the notion that life isn’t fair, we still hope it will be. At least when it comes to how people treat us. We thrive when one good deed creates another and embrace those who treat us reciprocally. This applies to our personal and professional relationships alike. Brands that understand that giving back isn’t just about their corporate social responsibility (CSR) efforts but is also about giving back to the customers who are loyal to their business are the ones with the most sustainability in good times and bad.
When people feel recognized and appreciated by businesses they patronize, their satisfaction is higher and so is their repeat business and referrals.
A favorite example of reciprocity for marketers is a campaign conducted by a regional bank called First Bank. It ran a billboard campaign with nothing more than the words math tutor, dog walker, wedding singer, and a name with a phone number below each title. No information about the bank’s offerings, advantages, and so on. It was truly running a campaign to help its customers. It really did have customers with those names and jobs, and when the phone rang, they really did refer people to that bank.
This was a brilliant campaign because it showed customers that the bank truly cared about giving back to them, no matter how big or small their accounts were, and instead of just using words to make that point, it used actions and a lot of its advertising budget. According to the VP of marketing at the time, the bank was highly successful in stopping attrition at a time when most banks were losing customers and also in gaining new customers.
Reciprocity is a simple and very affordable marketing tool. It doesn’t take a lot to give back to customers through better service, rewards points, free gifts, mentions in your newsletters, content marketing, social posts, and so on. But the payback can be huge.
Once upon a time, Hostess Brands got in trouble and had to shut down, discontinuing some of America’s favorite snack foods, including the Twinkie, almost overnight. Suddenly, people had to have what they hadn’t even wanted in years. Adults who remembered the Twinkie from their youth stormed stores and bought boxes of Twinkies before they could no longer buy even one. Sales went up 31,000 percent (not a typo) in just days.
This is a strong example of the huge power that scarcity has on consumers’ thoughts and behavior. It’s true. People often don’t want or value something until they can’t have it anymore. Then they can’t get it fast enough or get enough of it.
You see this all the time in marketing: “one seat left at this price,” “one left in stock,” and so on. Whether it’s true or not and whether people believe it or not, they’ll often buy it, just in case.
When you craft messaging around emotional and psychological values, you are essentially building ESPs. As you build customer profiles and segments, these ESPs will change according to the driving values of each segment, and sometimes according to age, geography, and personality type.
For example: If you’re a retailer of organic, toxin-free household items, your ESP may read like this:
We deliver confidence knowing that your home is free from toxins that affect your health and the joy of knowing your children are protected from issues that could affect their quality of life. Families that use our products can relax and focus on other life issues, knowing that they are protected at home.
Your ESP now involves creating messaging and positioning around confidence, joy, and relaxing as a result of using a product that delivers all three.
Not only is happiness the greatest achievement we seek in life, but it’s also a magnet for brands that truly understand its power.
Jonathan Haidt, in his book The Happiness Hypothesis, points out that the five fundamentals of human happiness are
Whether we realize it or not, these are the things we all seek in our lives, personally and professionally, regardless of our culture, ethnicity, or nationality. And according to research on how people choose the brands they choose, when we find a brand we believe will help us achieve these goals, we tend to choose that brand over others in the same category.
No matter our culture, ethnicity, age, or generation, we were all born with the innate desire for happiness and are driven by our need to find a purpose and live a life that makes a positive impact on the world and others around us.
Doing good matters if you want your business to do well now and in the future.
As indicated by Haidt’s list of five happiness factors, we find happiness most when we find a purpose and are engaged in fulfilling it. Consciously and unconsciously, people seek meaning in their lives and the need to actively make a difference and leave a personal legacy of good. Jung addresses this in his individuation process, and many studies on human behavior drivers validate that this instinctive need hasn’t changed and isn’t likely to change.
So just what is “purpose,” and how can you integrate it into your marketing programs, experiences, and messages? Purpose is defined as a feeling of “determination to do or achieve something of importance.” Identifying a purpose that drives your core customers, and each of your customer segments, should be a top goal of your market research programs. A simple question such as “What moves you most?” can provide some key insights as to how you can gain trust, support, engagement, sales, and more from your customers.
Toby Usnik, a philanthropic advisor and CSR professional with experience at Christie’s and American Express, rigorously studies how purpose affects brands and suggests that CSR has moved far beyond writing a check to a cause and then moving on. It’s about engaging with that cause in various ways to promote the good it does for the world and devoting your resources and intellectual talent rather than just a small percent of your revenue.
Defining your brand’s purpose and corresponding CSR efforts is the first step toward developing emotional and psychological bonds with internal and external customers. When you make your CSR actionable by engaging others in your cause, you can build passion and loyalty that defines not only your brand but also your profitability.
People are drawn to opportunities that create happiness from doing good in the world. TOMS, a shoe company that refers to itself as a movement more than a brand, is a pioneer in philanthropic marketing. Its sales revenue grew from $9 million to $21 million in just three years by being a purpose-driven brand that enabled people to help others simply by purchasing a pair of shoes. For every pair purchased, TOMS donated a pair to a child in need in a developing country. This purpose appealed to many people who were willing to pay high prices for low-cost shoes, knowing they were helping others by doing so.
Sincerity is shown not just by the money you donate but by the way you use your marketing channels, budget, and resources to further causes beyond your own and how you encourage others to join your cause or movement.
As you build your business and marketing plans, ask yourself the following questions:
Answering these questions will help you build out your ESP and action items for your marketing program. After you gather information about psychological, social, and emotional influencers, your next step is to create ESP profiles, or grids, that enable you to map out and visualize the influencers that are most likely to result in the behavior and relationships you seek to achieve.
Because most brands market to more than one segment, you’ll want to personalize elements to create and deliver content that’s specific and highly relevant to each of your customer segments. Whether you segment according to generation, emotional needs, life cycle, history, attitudes toward category, or other factors, you can and should adapt your ESP messaging to be more precise with what moves these personas.
Creating an ESP grid can help you see the differences in segment attitudes and the messages you need to deliver.
A grid for a company selling organic, toxin-free household cleaners per the ESP example earlier in this chapter might look like Table 2-2.
TABLE 2-2 ESP Grid for Organic, Toxin-Free Household Cleaners
|
Millennials |
Generation Xers |
Baby Boomers |
---|---|---|---|
Trust in business | Low | Low to moderate | Moderate to high |
Authorities | Low respect for authorities, don’t believe many people, form own opinions, right or wrong Driven by peer support and reviews | Respect authorities but don’t always follow them Listen to respected groups and peers | Respect authorities, and tend to believe their data and direction when it fits schema and logic Listen to news, groups, and peers |
Values | Want health and clean environment for self; hate waste, chemicals; embrace natural products | Interested in environment and health, will try new products but not completely willing to give up old | Okay with products always used, believe health claims but not as driven to change habits |
Messaging | Light on EPA evidence and strong on social proof Promises for clean air and health | EPA studies, other research to back it up; third-party testimonials Promises to protect family and environment | EPA studies, testimonials, promises Promises to protect self, family, and preserve environment |
Creative | Bold messages, credible claims, social and mobile channels Bold colors around trust, interactive digital, video | News-type messages, educational format, email and direct response Bold colors, mobile access, academic fonts | Educational format, email and direct response and banners Trust colors, traditional fonts, tones |
This grid is simplistic for example purposes only. Your grids should include more defining subsets within each generational or demographic group you target.
By conducting market research, as described in Chapter 5, you can identify the emotions and values that influence your core consumers to purchase in your category. After you’ve outlined the psychological, emotional, and social values for your core customers and segments, following your ESP grids will enable you to create marketing materials and experiences based upon conscious and unconscious relevance.
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