As a retailer, when serving consumers, you need to understand what goes behind in their minds. A degree in psychology might be the last thing you would have thought essential for the retail industry. However, consumer behavior and psychology are what most successful brands utilize to appeal to their potential customers.
According to consumer psychology, strategizing your brand requires studying what gives your retail consumers pleasure and what they seek to avoid.
Understanding Consumer Psychology
Imagine how great it would be to convert your visitors into customers right from the first few visits. Even better, if you can impress your consumers to the extent that they not only come back for more but gush about your brand to all their friends.
At the basic level, the brain reacts similarly when it intends to buy. Hence, to tap into consumer psychology, you need to turn to the experts’ diversified research in this niche. It has become quite a popular field of study for the retail industry.
1. Retail Consumers Choice and Decisions
This subject area explores what influences the consumers’ choices in terms of businesses, products, and services they select. Albeit dependent on many reasons, it boils down that need, desire, and motivation are the key drivers.
2. Thought Process
This realm studies the thought-process of a typical purchaser. Research has revealed that the emotional response to an advertisement influences the buying decision more than the intent. If the advertising techniques move a consumer, he may end up buying it with no real intention. This type of advertisement may include the execution, message, and visual appeal of the ad.
3. Environmental Variables
Under this factor, the different variables, such as cultures, communities, and media, play as actors in shaping consumer psychology.
Psychologists have researched the factors that motivate consumers to buy not once but time and again from a specific brand. This includes brand loyalty and a positive customer experience that makes a consumer comfortable with your services.
5. Demographic Variables
The demographics of your audience affect the buying decisions. These demographics include age brackets, cultural backgrounds, biases, and individual differences. Thus, it is also an essential part of consumer psychology.
6. Price Point Psychology
Looking at a price tag of $4.99 or even $4.98 creates an illusion in the consumer’s mind that the price is “lower” than $5. Entrapped by this difference in the perceived value and real value, however minute, consumer psychology is affected into buying the product without much thought.
7. Marketing Tactics
Consumer psychology, of course, depends a lot on the marketing tactics used by a brand. Discounts, coupons, loyalty rewards, and sales offerings can effectively mold consumer behavior. And consumer marketing psychology is what we are going to look at next.
How Can You Use Consumer Psychology to Increase Sales?
The psychology of retail consumers can be employed to strategize your brand’s personality and marketing techniques. Once you are aware of your product’s consumers’ behavior, you can invest in the knowledge to capitalize on core dimensions that shape your brand’s identity.
1. Bring & Advertise Novelty
There’s an endless appeal to anything novel or freshly-introduced in the market. It does not mean that you, as the retailer, have to launch new products and services weekly. Successful brands, like Apple, attract their consumers by employing great marketing tactics. They toy with the neurological wiring of people who instantly release dopamine when they hear that a specific product is “newest.” Most of the time, the novel product has a minimal difference from earlier versions, but that’s just one way of exploiting consumer psychology.
Using digital screens and signage solutions, companies are successfully appealing to human emotions via appealing visual aesthetics. Tons of amenable features from NexSigns such as Dayparting, Playlist Inheritance System, Scheduled Publishing, and Video Playback can enhance and out-of-store user-experience.
2. Induce Reciprocity
Take on the consumers’ hat and realize the sense of reciprocity instilled when given a gift and a purchased product. Besides surprise, gratitude, and joy, you feel obliged to shop more from the store and return the token of affection.
According to a study in Influence, researchers found that consumers are likely to rate a service better than others when all they were given was a free can of soda. Therefore, working to instill a sense of reciprocity is a useful tool to influence consumer behavior.
3. Create Urgency
Digital screens are the premium channels in today’s super-modern and ultra-fast luxurious world to communicate to your audience over a vast geographical area and within a few minutes. Successful retail brands influence consumer behavior to invoke urgency using digital signage solutions to advertise a product, a deal, or an offer. Customers do not like to miss out on something good, and brands manipulate this psychology by releasing their best annual sales for a limited time or limited customers.
Thus, you can persuade your in-store and DOOH advertisements using urgent language like “limited edition” or “only 20 in stock for the first 20 customers”.
4. Social Proof & Community
Humanizing shoppers is a great way to conquer consumer psychology. It would help if you strived to build a community out of your retail consumers and reward them with your loyalty within your premise. Social media is a critical marketing tool. Establish your brand’s footprint on every digital channel. Additionally, use digital screens to showcase your social media presence now and then.
You can run user-generated content directly from your websites, Facebook and Twitter pages, or your Instagram handle. Consumer psychology looks at what other people are saying about a particular service or product before deciding to try it. Thanks to the technology, the updatable software of digital signage solutions help you feature content from other mediated channels within your retail store.
5. Retail Psychology in Storytelling
Tap into the consumer emotions, aspirations, and psychology by using digital screens to tell a story creatively. For each product or service, you can hoist digital signage solutions running content that tells who thought of the service, how they made it, who it is for. You can even showcase the before and after the experience. Telling a story immediately hooks in-store shoppers and is the perfect way to engage consumers and their psychology to the point of purchase.
As a retail professional, understanding your retail consumers’ psychology is mandatory to establish your branding strategies. Today, digital screens that can update, automate content on persona configurations, and various other features, are the easiest way to influence consumer behavior.