Given the highly-competitive nature of business markets, it is definitely challenging to attract and retain customers over the course of your business venture.
Customers are the fuel that fire-up your engine and brings the business to life. But to capture their attention, one must put themselves in the customer’s shoes and think like them to truly understand their interests and behaviors.
Many enterprises often base their marketing strategies on attracting new customers, but never how to retain them for the long-term. While bringing new traffic is necessary to keep your business thriving, if you don’t have a couple of loyal customers, then you’re certainly lagging.
People consume and engage with vast volumes of digital content on a daily basis. Understanding consumer behavior and what they expect from your business can help you cater to your products or services specific to their individual needs.
Digging deeper than the surface level of today’s consumer psychology enables brand marketers to find innovative ways to market their assets to prospects and convert them to loyal customers.
Examples for Consumer Psychology Used In Branding
- Apple: The general branding and color scheme utilized by Apple are white, grey, and silver. Which basically showcases a minimalistic yet sophisticated design and is pleasant to look at. The white hues make the products stand out from other competitor gadgets in the market, and that’s why many consumers claim they can’t imagine using a different phone.
- Ford: Ford’s “Built Tough” slogan is one thing that remains at the forefront of every customer’s mind as it instantly delivers a message. The message surrounding that branding represents the sleek and efficient body of their vehicles, which induces a sense of safety with the brand.
Different strategies come into play when trying to build a connection with prospects. Let’s take a look at some consumer psychology tips that can help entrepreneurs acquire loyal customers for their startup.
1. Understand That the Real Competitor Is the Digital Consumer
When it comes to building a startup from the ground up, most ‘how-to-business’ books recommend researching your competitors and learning about their marketing practices. While the approach is solid, it doesn’t necessarily tell you how to satisfy and retain your customer base.
In this digital age, if you depend solely on traditional research, then you may end up alienating your most potential customers. Today’s digitally-driven consumers can look for better options for themselves; if you don’t offer what they want, they will go to your competitor. The plan should be to investigate your target audience, not the competition.
When you develop a product for the consumer and not get ahead of other brands, that’s when you actually have a chance in the race. When Google didn’t exist, people used to go to the library for research or to study. Similarly, before someone came up with TripAdvisor, people asked touring companies about the best locations to visit.
When we change our marketing plan to focus more on researching our target audience, we can gather crucial information about prospects that can help us satisfy them. Your startup can deliver a solution so they are no longer doing something themselves and can take the help of your brand at any time.
2. Work towards Growing an Audience
Before launching your products into the market, there are ways to put your brand out there to create a buzz, so people start anticipating your products. After all, digital consumers are a lot smarter and pay attention to everything they see online, and businesses can use this to build brand awareness and to get people excited.
The rise of digital marketing has made it easier for brands to reach audiences before their startup has properly kicked off. Businesses can tap into a pool of prospects that are keen to find out more about their products and services.
One of the most effective ways to curate the following is through social media channels. Social media has become a significant part of our daily lives, and brands are leveraging this tool to build rapport with their following and establish brand loyalty. Facebook is a great platform to run highly-targeted ad campaigns for segmented audiences.
Similarly, Instagram and Twitter are ideal for content marketing and using innovative ways to establish a connection with your followers. LinkedIn is a resourceful networking platform for growing professional circles, and when hunting for potential investors for your business.
Another way to grow an audience for your startup is via email marketing. Email is one of the oldest and most commonly used forms of communication, but it’s equally useful for getting the word out about your products.
An internet marketing services startup can create an email list and offer subscribers free and relevant information that can add value to their experience. This, in turn, establishes trust and encourages the prospect to return to your business once your products are launched.
3. Understand the Three Types of Buyers
According to consumer behavior research, buyers are classified into three groups, which are categorized by the “pain” or drive they feel when they buy something. Understanding these groups can help you identify the spending trends of your target audience and make the most out of your leads.
- Conflicted: Average payers (61 percent)
- Spendthrifts: Consumers that have a higher spending budget and take longer to hit their buying pain limit. (15 percent)
- Tightwads: Consumers that normally spend less before they hit their buying pain limit. (24 percent)
Out of the three, the ones that take the longest to convert to paying customers are the tightwads. And since they encompass approximately a quarter of your target customers, you should focus on some creative ways to reduce the buying pain for that section of customers.
4. Reframing Value
Ever considered how you are wording may influence the behavior of the digital consumer? Well, it makes all the difference as it can either convince the prospect to buy or turn them away.
The reframing technique is the most effective on conservative spenders since they think before they invest in anything.
If your business offers something on installments or with a recurring price tag, then it is recommended to use the reframing method in your pricing model to make it more appealing to conservative spenders.
5. Bundling Reduces Pain Points
Everyone looks for a purchase that can satisfy all their needs collectively, rather than spending separately on different accessories. Individual purchase is linked to an individual pain point; meanwhile, a bundled procurement creates a single pain point regardless of its great price.
This is why consumers look for bundled products rather than chasing individual products. It is more convenient as it requires less running around to find accessories and creates lesser purchase pain points.
Using the above-mentioned techniques will help you create a price model that caters to the right customers. The right words can add immense value to your marketing strategy and help retain customers for the long-term.
6. Make Their Minds Light Up Instantly
Our brains are highly-receptive to the words “instantly,” “immediately,” or “quickly.” So when a customer reads these terms while making a purchase, their brain lights up, knowing they’ll be instantly rewarded. Integrating such terms in your content convinces prospects that they receive instant gratification for doing business with your brand.
The concept behind this technique is that the prospect believes they are given a quick solution to their problem, which boosts their trust and loyalty towards the brand. When consumers know they don’t have to wait too long, they are more inclined to buy your products.
7. Satisfy Customers with Exceptional Service and Product Quality
Once you’ve understood who your targeted customers are, the next step is to provide them a spending experience with your brand. That is one way to get in their good books and guarantee their return.
When you know what your customers expect from your brand and cater to your products and services to address those specific needs, only then can you successfully retain customers.
If customers are satisfied with your products, then you are more likely to stay at the forefront of their minds and bring them back to your storefront.
This means, from the moment a lead enters your digital storefront to the last minute they spend on your website, whether that is after subscribing to your newsletter or making a purchase, you are dedicated to servicing them in the best way.
By leveraging the help of lead-scoring models and other tools, you can rank your leads and understand better where they stand in the purchase cycle. This helps sales teams offer better service to prospects and be prepared for when the customer is ready to make a purchase.
Conclusion: Using Consumer Psychology to Build a Loyal Customer Base for Your Startup
Today’s consumers are always on the hunt for brands that offer more value for their buck. This means brand marketers must pay attention to the changing demands of consumers and strive to address those needs.
Every business has to tailor its marketing efforts according to the requirements of its audience and provide extra perks to loyal and returning customers. Rewarding customers for their loyalty helps to elevate their devotion and connection with your brand and makes them feel valued.
Understand your audience and be equipped to satisfy their needs, and you’ll be compensated with their undivided support that can’t be topped.
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Arslan Hassan is an electrical engineer with a passion for writing, designing, and anything tech-related. His educational background in the technical field has given him the edge to write on many topics. He occasionally writes blog articles for Dynamologic Solutions.