In the world of marketing, we often chase the latest trend, constantly striving to be present on all platforms and be involved everywhere. But is this the key to success? Jason Modemann thinks differently. At the OMR Festival, he presented five psychological hacks in social media marketing that are applicable in all areas of advertising.
The basic principles of marketing haven’t changed significantly over the years and are likely to remain the same. However, the platforms and formats are subject to constant change.
Here’s an exciting insight into marketing psychology:
Social Proof
To make decisions, we like to orient ourselves towards like-minded people. This gives us security and minimizes the risk of making a wrong decision. For example, we automatically associate a full restaurant with good food.
Application in marketing:
Show your (potential) customers what other customers like – with an influencer or User Generated Content campaign. The more similar the creator is to the target group, the stronger the social proof effect.
IKEA Effect
We value something more when we design or assemble it ourselves. The higher the personal contribution, the higher our appreciation.
Application in marketing:
Place opportunities along the customer journey where customers can make their own contribution – a configurator, for example.
Endowment Effect
We hate losing something once it belongs to us. That’s why owners often overestimate the value of their property. Researchers have found that near-ownership triggers the same feelings.
Application in marketing:
To motivate customers to buy, you need to trigger the feeling of ownership. You can use the point-of-view perspective, as it looks to customers as if the product is already their own. Or work with virtual try-ons or 3D views – this creates the feeling of already having the product at home.
Mental Accounting
We mentally keep track of all our resources – whether it’s time, energy, or money. We divide these into different accounts and assign a budget to each account. We won’t buy a drink at the gas station for CHF 5.00, but we’re willing to spend more on a drink at a restaurant on the same day. The drink at the gas station goes to the food account – where there was no budget left. The drink at the restaurant, however, belongs to the entertainment account, for which we still had enough resources available.
Application in marketing:
In advertising, you should always address different mental accounts. This way, you bypass the pain of payment, as customers decide for themselves which budget they want to use.
Frequently Used Techniques are:
Framing: Formulate the message for the product differently to address various accounts.
Upselling Cross-Selling: Customers are ready to spend money when making a purchase. The goal is to find out if there’s enough budget for a more expensive product (same account) or accessories (different account).
Loss Aversion
We weigh the pain of loss greater than the joy of gain. If we lose CHF 100, our frustration is greater than the joy of finding CHF 100.
Application in marketing:
Customers are given the feeling that they’re missing out if they don’t buy the product. Messages can skillfully highlight urgency and scarcity. Early access promotions or limited editions are perfect for this.
