1. Psychology behind purchase
2. The role of Social Media & Branding
3. Branding and sales are different
4. Video Presentation
Yes, you heard me right. The thing is, we are talking about human psychology.
What makes people decide buy is accumulation of things.
First, Let's investigate why people buy stuff in general
Psychology behind purchase
1. Choosing what to buy
Replacement. e.g., clothes that don’t fit or are out-of-date, or Moving to online streaming service from cable TV. ( Necessity )
Compulsory purchase. Some external force, like school books, uniforms, or something your boss asked you to do, makes it mandatory. ( Necessity )
Fear. From pink Taser stun guns to oversized SUVs to backyard bomb shelters – and even stuff so basic as a tire pressure gauge. ( Necessity / Emotional )
Scarcity. When we run out of mask in the beginning of the pandemic, earlier this year globally, what happened? Yes, people bought masks Crazy! ( Necessity / Emotional )
Anything new. Everybody wants the latest and greatest (i.e., iPhone mania.) ( Emotional )
Addiction. This is outside the range of the normal human operating system, but it certainly exists and accounts for more sales than any of us can fathom. ( Emotional )
2. Where To buy from
Lower prices. Sometimes they buy stuff that are necessarily at a cheaper price or even just stuff just because they are cheaper than usual. ( Emotional )
Reciprocity or guilt. This happens when somebody buys you a gift or does something exceptionally nice and/or unnecessary. ( Emotional )
Great value. People buy stuff when the perceived value exceeds the price of the products. ( Emotional )
Name recognition/ Familiarity. When purchasing a category you’re unfamiliar with, branding plays a big role. Regardless of the actual product quality, people tend to be drone more to their brand familiarity.(Emotional)
Empathy / Great customer experience. Sometimes people buy from other people because they listened and cared about them. ( Emotional )
The “Girl Scout Cookie effect.” People feel better about themselves by feeling as though they’re giving to others; and especially when they’re promised something in return. ( Emotional )
Review / Word of mouth. Conversation rate on more authentic and warm introduction of your brand to potential customers from someone they trust is much higher.
What To buy / Where To Buy From
Ego stroking. Sometimes you make a purchase to impress/attract people and opportunities such as certifications school, education. ( Emotional )
Peer pressure. Something is purchased because your friends want you to. ( Emotional )
Indulgence. Who doesn’t deserve a bit of luxury now and then? ( Emotional )
And after taking considerations in things listed above, customers finally lead to the final stage which is buying. Even then customers might abandon shopping cart if their buying intent or the necessity of the products they are getting is low.
So what does this mean for branding and social media marketing?
The role of Social Media & Branding
Accept it. Necessity, the cause of motivation in buying is something out of your control. You could technically try to manipulate people ( informing customers what they need vs, manipulating is different) for buying something they don't need or they don't want is a) unethical, b) not efficient.
Your marketing and advertisement budget would be better spent if you try to find the "Product-Market Fit." Meaning, finding group of customers who actually need the solution you are offering. And how can you find that?
You need to REACH OUT and find the RIGHT CUSTOMERS! You can do this by social media ads and ads on other places where your customers are likely be.
Now, what kind of opportunity does this make for your business? Well first, this is just the beginning. Now you got to be in front of potential customers. In order for them to decide to buy from you, Now you have to start building relationships and trust with them!
Not only reaching the right customers by showing up on their social media feed, by doing so, you open another opportunity which is the possibility of being shared to the others. As we mentioned in our data center, customers are likely to share a brand to their friends when the brand focuses on building authentic relationships with them.
And this whole argument leads me to what I want to talk about next which is...
Social media not converting? Well that's how it should be
Choosing what to buy coming out of necessity is instant. Like I said, that is something you cannot control and the area you shouldn't pay too much attention to. Let' focus on what you CAN control which is the second phase.
How can you be selected brand by customers when they are making decision to buy among all the options that they have?
Let's break it down.
In order for your brand to be considered by a customer, your brand name has to be remembered by them at the time of purchase. Your brand should have established a great or good enough trustworthy relationship with the potential buyer. And finally, your brand should offer great value to their demand.
How can you do this?
Being remembered by customers: You can do this by social media marketing! If the potential buyer follows your brand on social media, you have an opportunity to pop up on their feed everyday to be kept fresh on their memory!
You can be also remembered by creating authentic and emotional relation ship with your customers whether that is to stand by on the same social cause, you showing your care for customers, you being the admiration for the customers at any capacity. How can you communicate this? This is branding! And again, with the right kind of messaging, engagement and visual, you can create this bond with your customers so you get to be thought of when they are making the purchasing decision.
Establishing great or good enough trusting relationships with potential buyers: People trust your brand more when they see your brand used by other people including people who they know, people who they admire.It is like a chain effect. In order for customers to wear or use your brand, they want to see other people using it. Only way that is possible therefore is branding. The better your branding gets, the more well known you become, the more people use your stuff, the more people see it, the more people buy from you.
How can you successfully build a brand?
It takes omni channel marketing and patient.
As you can see in this visual description, you have to appear in front of the customer in so many different forms before even they consider buying from you. Here is a study Mckinsey did that talks about what makes customers consider trying a new brand.
And this visual of course is not definitive. There are different contexts that add variables to consider when building customer journey. One thing you need to understand from this clearly is that:
BRANDING and SALSES are TWO DIFFERENT things.
A lot of people get confused. They want to see the ROI as fast as possible. The most common thing I hear from all marketing managers is that
We are running organic and paid social media, and watching ROI, but they don't convert! I think social media is not working! Help!
Firstly, you just don't know if that metrics you are following is accurately showing the full picture of what is actually going on.
As we've been talking building trust takes time and sure that final action ( pushing the buy button) might happened else where than social ( e.g, the shopper went directly to the site), it is impossible to track all the psychology happen internally in the customer that lead them to push that buy button. Because it might appear that the customer bought a product from the direct site URL but who knows, when that buying decision happened!? That customer might have decided to buy the product because he/she heard a good word from their neighbor about your product where your neighbor first found you by social media contents. And even after you are known by someone, like I said, you need to appear multiple times in front of the same customer over time. If you count the points in the graph above, it takes 11 interaction with a customer before they make purchase. Then finally your customer feels safe to buy from you!
Secondly, you need to remember, creating a brand takes time. And there couldn't be better, cheaper and more effective tool than social media in this digital age.
You can turn away from social as much as you want, but just know that there is no alternative and you can not have benefits of running social media if you give up on it!
You can reach me at Natsune@foreignconnect.org
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