Have you ever wondered how some brands are able to sell millions, billions, while others fail?
I want you to think about the last 5 purchases you have made.
Why did you choose that brand?
Whether you realize it or not, nearly every purchase you have ever made in your life is influenced by psychological and other environmental factors that you may not be aware of.
It takes time and a lot of effort to ensure your business is preferred by consumers.
Sit back and relax.
You are about to discover 10 key principles of psychology that multibillion brands use. That is the main reason of why we choose their product. The main reason that lies behind their billion-dollar success.
The best part?
After you read this blog post, you can steal them and apply in your business straight away.
And because I know you are dying to discover these secrets…let’s dive in.
Humans have been trading goods and services since commerce began 150,000 years ago. Trading of goods and services was done via barter initially, that means goods and services were exchanged with other goods and services.
As Civilization grew, so did the evolution of commerce and trading.
In 2700 BCE, Ancient Egyptians traded livestock at an unmatched level. With increased livestock trading came more theft.
That’s why Ancient Egyptians decided to differentiate livestock with unique symbols to identify theft.
That’s how Branding was born.
Why is Nike worth $185 billion today? Do they make the highest quality runners? Or are they the cheapest?
How Apple broke the record to become the first company to record a $1 trillion market capitalization? Is apple worth a Trillion Dollars?
How all these giants make on to The World’s 20 Most Valuable Companies list? Where is the secret?
The secrets is…
When you buy a pair of Nike’s, it’s mainly because of the Swoosh, that tells us it’s Nike.
We all have seen tons of Nike advertisements with world-class athletes wearing the Nike Brand. This makes the Nike brand linked with well-known world-class athletes, in our minds.
Nike’s $185Billion brand is linked to world-class athletes like Michael Jordan(basketball)Tiger Woods (golf), Roger Federer (tennis), and Ronaldo(soccer).
So we buy Nike because we admire world-class athletes, and we want to be like them. We want to connect with world-class athletes, feel part of something bigger.
Branding creates lasting impressions in customers’ minds. That’s why branding is key.
There is another, extremely powerful psychological factor, that determines whether a person will be brands’ lifelong customer or not.
This psychological factor ties us to unknown brands… We buy these products without even realizing why. And that is…
Association is a mental connection between concepts, events, or mental states that usually stems from specific experiences.
It’s the state of being connected together, as in memory or imagination.
Let’s take three unknown restaurants.
You felt in love with one woman and invited her to one of the three restaurants. The first date was full of fun and you both connected. You kept dating and then after a year got married.
This one simple fact will likely make you a customer for life. You both will want to come back to this restaurant. It reminds you of that very first date. You may even propose in the same restaurant, or will come back on the first anniversary.
This is a power of association.
That’s why Brads use messages to remind you of events of the past, the first date, childhood, times of achievement, school memories etc
But on the other hand,
If things go wrong, and you break up… most likely you will never want to come back to this restaurant. Am I right?
Let’s discuss another, extremely powerful way to make them buy…
Value-First Approach. It’s the law of reciprocity.
You can influence your customers to behave favourably. It doesn’t necessarily have to be to make a purchase. It can be a sign-up for a newsletter, recommend your service and buy from you.
You give lots of value for free, and then at some point they may feel obligated to buy from you.
I always encourage my customers to create FREE, valuable content. To educate, inspire and motivate.
When they feel they got so much for free from you, they will want to buy from you.
If they get that feeling” wow, this is such a valuable info all for free, imagine what’s like their paid products (courses etc)”.
It’s also a way to demonstrate your expertise. Your customers may not be ready to buy now. But when the opportunity arises, they will come back.
Why it works?
By providing free value, you build rapport. Lots of the times, you don’t even need to sell-they come back to you knocking on your doors.
Here is the thing…
If they associate their WINS with your FREE value (free content, freebie, free trial), they will queue and beg to buy from you.
Want an example?
OK. Let me ask you a question.
If my FREE content helps you make 10K in the next 2 months, will you associate your WIN with me? Yes, you surely will. Cool. Would you consider to check out what courses I sell? Let me guess, yes you will. And chances are, you will go and investigate yourself-when the door to my course is open. See, I don’t even need to push any sales.
Beautiful. It’s time to discover another secret.
Perceived value is a customer’s opinion of a product/service’s worth, compared to a competitor. Perceived value is measured by the price the public is willing to pay for a product.
Your job as a marketer is to crease your product’s perceived value.
The perceived value of a product may be its low price in comparison with competitors of equal quality.
Let’s say I have two online courses with the same name
How to turn your website into ATM.
The price of the first course is €47 and the other is €997.
Which course would be perceived as much more valuable?
Yes, of course the one that costs €997.
Most likely, you agree with me.
On the other hand…
Let’s say there are two phones with example the same features.
One costs €499 while the other is priced at €1299.
Which one would you buy?
Chances are, you’ll choose the cheaper one.
A customer perceives higher value in a product with more benefits and features than a competitor’s identical product.
So, your job as a marketer is to increase perceived value.
To increase the perceived value, highlight all the benefits and values that the customer gets after he buys your product.
How Scarcity and Urgency work?
Scarcity means a limited supply of goods.
Urgency means there is a deadline
Both Scarcity and urgency increase desire for your products. It gives your products a higher value.
We humans always want to get the ‘best’ deal
when something is rare or limited, there is a deadline, we want it even more. It has a higher perceived value.
But that’s not all…
If your offer has:
- a limited product/service availability (only two seats left at this price)
- a time limit attached to it (ends at midnight tonight) (countdown timers)
- a rare opportunity (the doors to this course is open only once a year)
It triggers your brain into panic mode.
Your right brain takes the driver’s seat and your emotions take control.
When someone tells you that resources are limited…
When someone tells you that you can’t have something…
When someone tells you that you’ll lose your chance to get the thing you really like if you don’t click the buy button in the next 2 hours…
Your brain shifts to a different level of thinking.
What happens next?
Your desire to own it becomes the goal.
World’s Biggest Brands use both scarcity and urgency every day to sell more.
Scarcity and Urgency gives a reason to buy NOW.
Countdown timer boosts sales:
- On sales pages
- In the cart
- As a floating bar
- As a pop-up, especially during flash sales
- In Emails
- In social media posts
That’s how the biggest online shop in the world Amazon, Ryanair, Booking.com and other brands sell more.
And you can do it too…
Use a countdown timer and words that speak urgency and scarcity.
Use words that show scarcity of time (there’s an end date to the offer):
· Door closes at today at 10pm
· Only 5 hours left
· Prices go up tomorrow
· Today only
· Offer expires today at 4pm
Use Words for stock scarcity for limited availability:
· Only 10 places left
· Offer is valid only for the first 10 coaches
· First 5 people get a free session
· Only available with this offer
· Nearly sold out
· Limited edition
· Members only access
· Get them while they last
Do you want to spice up scarcity and urgency?
Are you ready?
Here is what you can say
If you really want this X, you better buy it right now because there’s only 1 left and 5 people have it in their carts.
Xoxoxo Do you see how powerful it is? Now it’s a race to see which of you five can whip out your credit card faster!
Inspiring scarcity, urgency and perceived value examples
Apple strategically builds buzz with hints and escalating promotion. It creates a great stir of anticipation for their products. As demand for Apple’s products rapidly increases, Apple strategically warns of limited supply, amplifying the feeling of urgency and prompting customers to take immediate action. This combination of perceived value and scarcity leads to a high demand for their products. This drives an enormous volume of pre-orders.
Apple effectively combines scarcity marketing tactics, perceived value and an emotional appeal. The powerful combination of the three drives customers to purchase new products quickly.
That’s how Apple has the demand for their products with each new release.
This strategy is exemplified by their popular limited-edition products and early access to new releases.
Amazon alerts customers when its items are “in stock” or will soon be running out. This scarcity enhances the perceived value of the product and triggers fear of missing out.
While most e-commerce companies use scarcity as a digital marketing tool, Amazon goes even further
Amazon alerts when it expects its stock to be replenished. This enhances customer service and shopping experience, while discreetly evoking the fear of missing out
Amazon doesn’t stop here…
Amazon uses messaging like
Want it by Monday?
Want it tomorrow?
Order within 7 hours and select one-day-shipping at checkout.
Act quickly to get your product tomorrow! Place your order within 5 hours and 2 minutes and select one-day-shipping at checkout.
And more inspiring examples Amazon uses
Amazon invented Prime Day
It’s just one day for prime members, when they get special deals, free shipping etc.
If you have ever bough on Amazon (I bet you have), then you have noticed their scarcity, haven’t you?
Hermes bags of certain styles, colors, and sizes are only available in a very low quantity, creating the perception of scarcity and furthering demand for the luxurious, iconic bags.
An example of Hermes’ use of perceived value and scarcity is their limited-edition capsule collections. By releasing a limited number of products with small and exclusive runs, customers are made aware that their purchase is highly valued and rare. This leads to a great demand for the items and encourages customers to make their purchase quickly.
Hermes has taken scarcity to an extreme when it comes to their Birkin bags
It’s almost as if they are mythical creatures. You go to the shop, and you are told, that none are available.
Then they put you on a waiting list, without a concrete idea of when your item may actually arrive.
This doesn’t turn people off. Quite opposite! In fact, it only seems to further spike the demand for them. It’s expensive 10 000 k bags. But it’s limited edition, rare.
Dropox uses invite-only method. The company requires users to join and access their platform through an invitation code. This creates a feeling of exclusivity, as well as building demand and anticipation of when users can access the platform. This increases the perceived value of Dropbox and furthers their customer base.
When scarcity and exclusivity are combined, they take the world by storm.
Booking.com utilizes scarcity to create a feeling of urgency among customers. The platform clearly displays which rooms are available and the limited number of rooms left in each category, prompting users to make their decision quickly and book the room before it gets taken.
By displaying the limited availability of rooms, Booking.com increases the perceived value of their product and furthers customer interest in booking.
Ryanair uses scarcity and urgency in their marketing by offering time-limited deals and discounts. They encourage customers to book as soon as possible to get the best deals available, creating a sense of urgency and enticing customers to act on impulse.
They also promote limited quantities of offers, creating a sense of scarcity and further motivating purchasers to make quick decisions.
P.S Scarcity and Urgency work like crazy
That’s why all Successful Brands use these tools in their marketing strategy.
Never use fake scarcity
Here is what I mean
If your offer is for premium members-only, don’t offer it anywhere else.
If you say the deals ends at 5pm, do not leave it for longer. You get it, right?
Customers do not want to be fooled…don’t play with a customer’s trust. You do not need to harm your brand reputation!
If we made somebody happy, or are a part of something or somebody who makes this world a better place-it makes us feel good.
When customer buy coffee, they feel good if they know they are helping to save the world.
Marketers use this concept in their Businesses to sell more in 2 ways:
1.They tell their product is a better for the world than alternatives:
· are more efficient (more efficient light-bulb)
· made from Environment-friendly materials
2.That they support charity/event/cause
Here are examples
5 % of the net Profit we donate to Kids Charity
We are a proud sponsor of Cancer Charity
Basically, they inform- if you buy from us, you are also donating to the charity.
Price anchoring is a marketing tactic that involves choosing a “anchor” price to compare other products and services against.
By establishing the anchor price, it allows shoppers to perceive the other products as if they are cheaper or offer better value due to the comparison.
This strategy is often used in combination with other pricing strategies in order to present a compelling value proposition and maximize profits.
Apple’s iPhone introduction is a good example of using anchor pricing to keep demand strong. When they first released the iPhone, it ranged in price from $499 to $599, establishing the initial anchor for what the unique product should cost.
After a few months, Apple dropped the price by $200, creating an apparent bargain and stimulating more sales.
When they introduced the iPhone 3G, pricing was as low as $199, and they sold one million phones in three days.
One of the main reasons why marketers start with a high price is to increase the perceived value and demand. The portion of the market is willing to pay that much. And when the price drops, it is perceived as a bargain. It drives a larger number of customers.
A key benefit of this strategy for new products, though, is that a high anchor price is established in the minds of customers, making each subsequent reduction a bigger bargain.
Price anchor method is used widely in presentations.
We live in a competitive world.
Businesses are spending billions of dollars worldwide fighting for seconds of attention. Attention is the biggest currency in your business, because according to researchers we get about 5000 messages per day.
Yes. Marketers have found a way to use streets, buildings, buses, parking stripes, postage stamps, floors and yes, internet.
Nowadays, businesses look to cover every blank space with some kind of brand logo, promotion or an advertisement.
Companies are appearing increasingly desperate to make their mark anywhere-even toilets and bathrooms.
While you sit there…an ad on the door right in from of your eyes.
Our brain can’t process so much, so it filters the information out.
But… here is the secret…
There are different ways to get through into prospect’s mind. Stories are one of the most effective ones.
It’s not enough to have a quality product or service, you need to know how to talk about it in a way that connects you with the prospect.
Brand storytelling connects brand with listener/reader on a deep emotional level.
Brand storytelling connects the facts and emotions that your brand evokes.
But why stories are so effective?
Our brain is hungry for stories. This is nature. This is how we humans are wired. We are hungry for stories from early days…remember,
Once upon a time, there was….
I bet you know TED, the most popular conference in the world?
You have watched at least a few videos on YouTube, haven’t you?
But do you know why TED talks are so addictive?
The answer is stories.
Stories make up over 72 % of the most successful TED presentations.
The most popular TED speakers connect with audiences on a deeply emotional level, primarily because they’re storytellers.
Have you noticed, that lots of world-known motivational speakers start their presentation with a story?
Have you noticed, that majority of multi-million brands are good storytellers?
Have you noticed, that ads telling an emotional story can make a lasting impression? These are the ads we love to watch, because they don’t feel like ads.
Have you ever noticed, that a short story could warm up or even make cry judges of panel on TV on different programs and shows…
I have seen not once or twice
When just one-liner stories make people cry…
I dedicate this song to my friend who died 10 years ago…
I’ve seen stories can move mountains…can melt somebody and make invest in your business, although for them, it doesn’t make sense. It’s stories that wipe off the logic from our brain…that why it works like on steroids…
Dragons Den, Shark etc
Let me ask you
When was the last time you heard astory?
When was the last time you told astory?
Was it today or yesterday?
A memorable brand story will connect your brand with your audience, make a lasting impression and help your business grow.
The Law of Contrast explains how we are affected when we are introduced to two vastly different alternatives.
The key to this law is that the two contrasting items must be presented one right after the other, or beside each other (presentations, ads, sales pages).
We often perceive them to be much more different than they are.
This can be used to influence what people’s interests persuasively.
This is all about human perception.
We mentally place things in our mind from best to worst, first to last, or highest to lowest. Do you want your prospects to compare your product or service to a second-hand used car or to a Rolls-Royce? You get to decide where you want them to start their benchmark.
Contrast works in many arenas. You can contrast just about anything and immediately see its effects.
We have all see slim/fat person in the ads that sell weight loss courses, programs or products.
A woman in the left with acne, on the right showing off beautiful skin
A similar example uses the same concept with a different product. First a company introduces the expensive product, and then they show them a cheaper one.
If a cheaper product was introduced first, in the consumer’s mind, it wouldn’t look so cheap.
Here is how this concept is used by real estate agents-they show very expensive houses first.
Lots of consultants introduce more expensive packages, course first. Then, when the cheaper option is presented, it looks like a bargain in a consumer’s mind.
The Law of Contrast is constantly at work.
It even influences judgments in job interviews. If you first interview an outstanding candidate, and then immediately following you interview someone who is less favourable, you will be inclined to underrate the second person even more than if you had not interviewed the outstanding candidate first.
Certainly the reverse is also true :If an average candidate follows someone who has interviewed very poorly, you may view that individual as better than average
The ‘‘Before’’ and ‘‘After’’ pictures
are intentionally made to look like stark opposites. The ‘‘Before’’ picture is in black and white, with the person slouching, frowning, and pale.
The ‘‘After’’ picture is of the same person in full color with a smile, erect posture, and tan skin. We look at the two pictures, seethe comparison, and decide we want to be more like the ‘‘After’’ picture.
Try this experiment:
Fill three buckets with water, one with hot water, another with cold water, and the third with tepid water.
Soak one foot in a bucket of hot water and the other in a bucket of cold water for 30 seconds. Then submerge both feet into a bucket of lukewarm water. You will be shocked with the result.
The water in the third bucket is considered warm, but to the hot foot it feels cold and to the cold foot it feels hot. It is the same water but two completely different reactions. This is the Law of Contrast, which states that two things can appear very different when contrasted against each other.
Any product or service can be contrasted to appear very different from what it actually is.
Most customers prefer buying products from a brand they are familiar with.
Why? Because familiarity gives a piece of mind. It breads likeability and trust.
Getting a lot of people familiar with your brand and comfortable with it has a much higher probability of building your brand than any other theory of marketing
And customers seek a certain amount of trust while making their purchases. They believe that trustworthy sellers are capable of offering more value with every purchase.
How to get familiarity?
Familiarity and comfort with a brand come in a variety of ways:
•…the brand my grandma used
•…the brand my neighbour uses and likes
•…the brand that works satisfactorily for me
•…the brand my best friends recommend
•…the brand I see everywhere
That’s the main reason why each of the million-dollar brands has spent tens of millions of dollars on advertising over the years.
To gain the power of familiarity.
The main reason they’re successful is that they’re familiar. I believe the most profitable driver of brand success is familiarity.
Most people buy most brands in every category because they are the most familiar. Not because they are the most deeply understood or the most personally meaningful. The leading brands in virtually every category tend to be the most familiar, regardless of what’s the mission statement or meaning behind the brand. But that’s not all….
The interesting thing is that the comfort bred by familiarity
is what causes people to choose brands they’ve never used before.
it is what makes them defend brands or talk about products they’ve never used in a category, because they’ve heard about them often enough that they simply recommend them so that they can be helpful to others.
As you already learned, people are more likely to say yes to things that seem familiar to them.
Want a shortcut to your business success?
Focus on making the greatest number of people familiar and comfortable with your brand.
Do giveaways, design a referral program, use other people audiences, create exceptional word of mouth marketing strategies, run ads.
WOW. You have just discovered the top 10 Psychological tricks, that brands use to trick you in buying their products.
Create that feeling of trust in your brand and desire for your products.
Just learning won’t bring you far.
Go and apply these secrets, because I want you to succeed.
because positive feedback and customer
success is what motivates to create more for you.
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