There’s an art and science behind convincing customers that they can’t live without your product. While your product’s features and market fit are the most important aspects, your ability to leverage psychological effects for better product marketing can provide that extra edge to drive increased adoption and sales.
Leveraging certain cognitive biases and principles of influence can make your product more appealing, memorable, and habit-forming in the minds of customers.
In previous posts we’ve examined Behavioral Economics in Product Management to Optimize Positioning and Customer Decision-Making and the Psychology Behind Customer Decision Making. In this post, we’ll explore 17 additional psychological effects and how you can apply them to your product marketing strategies.
By understanding these hidden drivers of customer behavior and motivation, you’ll gain actionable tactics to boost engagement, increase perceived value, drive viral growth, and get people excited about your product. Whether you make physical goods, offer services, or have an app or online product, you can incorporate these psychology principles to better connect with users and persuade them to become loyal, happy customers.
Let’s dive in and learn how small tweaks informed by behavioral science can lead to big changes in how customers perceive and interact with your product…
The Value Ladder
Offering different pricing tiers or subscription levels allows customers to start with a basic product and upgrade over time as they see more value.
- Example: A SaaS company offers different subscription levels with increasing features and benefits. Customers can start with a basic plan and upgrade as their needs grow.
The IKEA Effect
When customers invest time into assembling, personalizing, or setting up a product, they develop a sense of ownership and value it higher than a ready-made solution. Tap into this by offering customization and configuration options.
- Example: A software company allows users to customize their user interface, such as choosing their preferred color scheme or arranging dashboard widgets. This personalization makes users feel more invested in the product.
The Loss Leader Strategy
Offer certain gateway features at low or no cost to attract users. Once a positive customer relationship has been established, your customers will be more open to premium add-ons and upgrades as their reliance on, and satisfaction with your product increases.
- Example: A streaming service offers a free tier with limited content to attract users. They then upsell premium subscriptions with a wider range of content and features.
The Reciprocity Principle
Providing free demos, trials, or freemium versions reciprocates value to prospects. This encourages goodwill and future purchases to repay your generosity.
- Example: A CRM software company offers a free 30-day trial, allowing users to experience the product’s benefits firsthand. This encourages them to subscribe for a paid plan once the trial period ends.
The Endowment Effect
Letting customers test or trial a product creates a feeling of ownership, making them irrationally value it higher despite not actually owning it yet. Leverage this to drive conversions.
- Example: An e-commerce site offers a “try before you buy” feature, allowing customers to test products for a limited time. This makes customers feel a sense of ownership and more likely to make a purchase.
Zeigarnik Effect
Keep customers engaged by teasing upcoming new features before release. The anticipation of what’s to come keeps users hooked.
- Example: A social media platform shares their product roadmap and follows up with their commitments by periodically releasing new features or updates, keeping users engaged and eager to see what’s next.
The Foot-in-the-Door Technique
Ask for small initial commitments that make people more likely to agree to larger requests down the line.
- Example: A subscription box service offers a free trial box, and after a customer enjoys it, they are more likely to commit to a paid subscription.
The Halo Effect
Leverage positive associations with your brand in one area to drive affinity in other areas. A halo from quality or customer service boosts overall appeal.
- Example: A company known for its exceptional customer support can leverage this positive image to boost sales for its other products, even if they are in different categories.
The Paradox of Choice
Too many options can be demotivating. Curate your offerings by bundling products or recommending popular combinations.
- Example: An online clothing retailer offers curated outfit bundles for specific occasions, reducing the overwhelming number of choices for customers.
The Baader-Meinhof Phenomenon
Increase brand awareness and visibility through advertising and partnerships. This taps into the cognitive bias where people notice things more after they learn about them.
- Example: A software company runs targeted online ads and sponsorships to increase brand visibility, making users more likely to consider their products when they encounter them elsewhere.
The Diderot Effect
Suggest complementary or accessory products during the purchase process to increase order value.
- Example: An online bookstore suggests related books when a customer adds an item to their cart, encouraging additional purchases.
The Mere Exposure Effect
Repeat exposure to your product through advertising breeds familiarity and preference. Remind customers of your brand frequently.
- Example: A snack food company runs frequent TV and online ads to ensure their product is top of mind when customers think of snacks.
The Contrast Principle
Compare your product against competitors to make your advantages stand out more. The contrast effect amplifies perceived differences.
- Example: A smartphone manufacturer highlights the unique features of their phone in comparison to competitors’ devices, emphasizing what sets it apart.
The Commitment & Consistency Principle
Secure initial buy-in that drives ongoing use. Discounted prepaid options encourage longer commitments.
- Example: A fitness app offers a discount on an annual subscription, encouraging users to commit to a year of using the app for their fitness goals.
The Honeymoon Effect
Capitalize on the initial customer euphoria and excitement right after purchase. Request reviews and referrals promptly.
- Example: An online marketplace sends follow-up emails to customers shortly after their first purchase, asking for reviews and referrals while their enthusiasm is still high.
The Veblen Effect
Consider premium pricing or exclusive tiers for luxury status appeal. People equate high prices with quality and prestige.
- Example: A luxury fashion brand prices its limited-edition clothing items higher to create an aura of exclusivity and luxury.
The Bizarreness Effect
Inject unique, unexpected features that people won’t find elsewhere. Quirkiness makes your product more viral and memorable.
- Example: A mobile game includes quirky and unexpected Easter eggs or hidden features that make the game more memorable and shareable.
Conclusion
Applying insights from psychology and behavioral science can lead to innovative product strategies that resonate with your customers on a deeper level. While features are still important, don’t underestimate the role that cognitive biases, mental shortcuts, and social influence play in product adoption and growth.
Use the principles outlined here as inspiration when designing your product, marketing plan, and customer experience. Test out different techniques to determine what best fits your business. Tweak and refine them over time based on data and real feedback from your customers.
Importantly, the approaches outlined in this post should only be used to ethically tap into consumer psychology to create more effective products and satisfied users. Successful products need to build and maintain trust and always avoid manipulative or underhanded tactics – the aim is to delight customers, not deceive them!
With a bit of creativity and experimentation, you can effectively employ these psychological effects for better product marketing, providing that secret sauce to make your product stand out and achieve traction.