Do you really know why you buy a product? 👀 The reality is A LOT more complicated than you think. I'll you give you a clue, it's something to do with "Behavioural Economics", who would've guessed it. 🤷‍♂️ 😉

Did you know that 95% of our decisions are driven by subconscious urges?

This is because we are people of habit and instinct. Making decisions more on gut feeling and psychological biases than rational consideration.

So what is ‘Behavioural Economics’? - This is a study which determines the effect that psychological factors have on our decision-making. The purpose of this is to predict human behaviour and how marketers can use this to their advantage.

As a marketer, we can learn how a customer’s purchasing choices are influenced by factors such as emotional, cultural or social variables.

Ultimately we understand that making these small adjustments to your brand, product, website or Ads can influence consumer behaviour and put you ahead of your competitor.

Example One - Loss Aversion

Amazon’s daily Lightning Deals - these are the discounted offers that only last 24 hours or less and can only be redeemed by a certain number of consumers.

This limitation is the reason why consumers make a purchasing decision quickly to avoid missing out. Time continuous graphics and wording is effectively persuading the customer that they have a deadline to make a choice, which leads to impulse purchasing.

Example 2: The Power of FREE!

One of the most powerful words you can use in marketing is"FREE". This is why you’ll see advertising such as “Buy one, get one free” everywhere.

While both of these deals are fundamentally the same. Consumers will feel like they are getting a better offer simply because of one 4 letter word.

Example Three - Social Proof!

Social proof is the OG behavioural economics, particularly in online marketing! People are more likely to make a purchase something that is popular, this is the bandwagon effect!

Another part of social proof is customer reviews, customers read these in order to gauge how trustworthy a company is. So don’t piss off any of your customers! But if you do, we have a great blog that can help you!