The Drum Awards for Marketing - Entry Deadline

-d -h -min -sec

Marketing Brand Strategy Ecommerce

When consumer loyalty is fragile, nudge, don’t push

By Samuel Hughes | Senior strategist

Inizio Evoke

|

The Drum Network article

This content is produced by The Drum Network, a paid-for membership club for CEOs and their agencies who want to share their expertise and grow their business.

Find out more

October 21, 2022 | 7 min read

Behavioral science and psychology contain a treasure trove of information for advertisers. Here, Samuel Hughes, senior strategist at Evoke Mind+Matter, runs through 3 cognitive biases every marketer should know.

Woman at laptop deep in thought

Brands are required to work harder for customer loyalty during the recession. But what factors into their decision-making? / Image courtesy of Evoke Mind+Matter

During a recession, consumers do not simply ‘trade down’ for cheaper equivalent products across the board, but consumer loyalty does become more fragile as we reevaluate purchasing decisions. Understanding consumer decision-making and behavior in this context is essential. Behavioral economics helps us better understand behavior. It can also make communications more effective at the critical moment before a decision.

Put simply, behavioral economics helps us to understand and leverage the irrational and powerful mental shortcuts (‘heuristics’) that we all unthinkingly use daily. In this article, we’ll look at three examples of cognitive bias which can feature in consumer behavior: framing, liking, and scarcity.

Framing

The ‘framing effect’ describes how decision-making can be influenced by the way that information is presented. This is particularly important to understand in marketing, for example in product claims and calls to action.

‘Positive’ frames are effective when they highlight desirable outcomes@ ‘75% fat-free’; ‘9 in 10 people saw an improvement’.

‘Negative’ frames are useful to suppress action, highlighting undesirable outcomes: consider how a product labeled ‘25% fat’ would perform compared to ‘75% fat-free’, despite it being the same information.

Negative frames can be more effective at driving behavior when they introduce risk, such as ‘you’re twice as likely to develop skin cancer if you don’t use sunscreen’ (versus positive framing: ‘using sunscreen halves your risk of skin cancer’). Both positive and negative frames have their uses depending on the audience’s motivation and what kind of action or inaction we are encouraging.

Framing can go beyond copy claims, into broader brand framing. Consider how at-home coffee machine brands choose to frame their solution in comparison to barista-made take-out options, rather than in comparison to instant coffee or cafetieres. The former frame highlights cost-effectiveness and convenience.

Choosing the right frame can have a big impact on a consumer’s decision-making, and therefore the effectiveness of marketing activity. Understanding the consumer’s motivations and picking the right frame is critical.

Liking

Another cognitive bias extremely relevant to our modern social influencer-heavy marketing landscape (but described by Robert Cialdini back in the 80s) is the ‘liking effect’. A key component of this is ‘similarity’: the easier it is for us to recognize something, the less brainpower we need to process it, and our brain interprets this ‘ease’ with ‘goodness’. Being relevant to an audience means increasing their likelihood to convert.

At Evoke Mind+Matter, we devised a campaign for a specialist skincare brand on this principle. The target audience was people with problematic psoriasis and eczema-prone skin. They were caught between the mass media image of either ‘perfect skin’, or the red, medical, and harsh presentation of dry skin conditions. To better reflect the audience’s experiences and leverage the liking effect, every partner, ambassador, and influencer featured in the campaign was living with a skin condition. They all made a commitment to show both their skin and share their experiences in an unfiltered way, including the impact it had on their self-esteem and mental health – in some cases, for the very first time.

This campaign reflected the reality of customers’ experience and deepened trust in the brand by normalizing the condition, fueling year-on-year growth. Most importantly, among people with dry skin conditions who saw the campaign, the portion who feel comfortable in their own skin doubled.

Suggested newsletters for you

Daily Briefing

Daily

Catch up on the most important stories of the day, curated by our editorial team.

Ads of the Week

Wednesday

See the best ads of the last week - all in one place.

The Drum Insider

Once a month

Learn how to pitch to our editors and get published on The Drum.

Scarcity

Another principle with relevance to the growing worlds of ‘hype’ and Black Friday-style sales is ‘scarcity’. This is where a perceived lack of supply or time triggers a ‘loss aversion’ response. We don’t want to miss out (just think of the power of ‘FOMO’), and so are more likely to, for instance, buy something if a deal looks like it will end soon.

Scarcity is something that e-commerce and travel sites routinely employ to increase urgency, with techniques such as ‘high demand’ notifiers, by telling us how many others are looking at a product or room, and by showing short-term cut-price figures. These are no doubt often effective, but there is a risk with overusing them, due to the concept of ‘psychological reactance’.

Reactance happens when someone notices these techniques and feels coerced. When this happens, they put up barriers to decision-making. More visibly obvious techniques such as scarcity run a higher risk; using behavioral economic principles is a fine balance.

Behavioral economics offers a wealth of opportunities, including and beyond these three, to help understand behavior and improve the effectiveness of communications. But remember: they’re not tools to make people behave in the way you want. Instead, it’s important to fully understand the audience and use those techniques that can help give them a shortcut to justifying decisions and purchases that they’re already inclined to make. You’re simply helping them over that line.

After all, we call it nudging, not pushing.

Marketing Brand Strategy Ecommerce

Content by The Drum Network member:

Inizio Evoke

Inizio Evoke is a global health marketing, communications, and transformation platform unlocking growth through data-driven insight and human centricity. Purpose-built to solve life’s greatest health challenges and united by a shared purpose: Health more human. Inizio Evoke is built to design intuitive, people-centric experiences, brands, and businesses that drive transformative growth.

Find out more

More from Marketing

View all

Trending

Industry insights

View all
Add your own content +