Certainly, consumer psychology is an integral part of understanding customers. However, retailers have not much to do with psychology. But in order to attract customers and give them excellent customer service, having a grip over the consumer psychology is a must. Further today business is all about consumers. Also, there is a lot of competition in the retail world. Therefore not being able to make customers happy is a great setback in these modern times. In other words, competitors are already out there and it takes a second for consumer to switch to other brands.
“People don’t buy for logical reasons. They buy for emotional reasons.” –
Zig Ziglar (1926), Motivational Speaker and Author
Tips on Understanding Consumer Psychology
The Teranoid team has compiled a few tips that shall help retailers understand consumer psychology better and increase sales.
Consumer Psychology demands Novelty & Originality
The Apple store is one major example of this. That is to say, people go crazy when a new Apple product is launched because they add in the element of novelty. Further, it will not be wrong if we say that Apple knows exceptionally well how to market their products and get customer attention.
Moreover, novelty has the element of appealing customers. Certainly, consumers are attracted towards things that are new to them. So retailers should use this as much as they can. That is to say, they should add new products to their stock. Secondly, they should keep their displays fresh and clean. Thirdly, they should market their products in an effective way.
“When you think of the blur of all the brands that are out there, the ones you believe in and the ones you remember, like Chanel and Armani, are the ones that stand for something. Fashion is about establishing an image that consumers can adapt to their own individuality. And it’s an image that can change, that can evolve. It doesn’t reinvent itself every two years.”
– Ralph Lauren (1939 – ), American Fashion Designer and Businessman
Element of Reciprocity in Consumer Psychology
Another important tip to understand consumer psychology is that customers have an inclination towards brands that give them products free of cost. In other words, there are high chances that customers will buy a product that is given to them free for trail purposes or on buy one get one free offer. In short, consumers respond to such acts. That is to say, by offering them something they like, they shall return back to this gesture in some way. Most importantly, in the form of buying the product. Certainly, it is an effective and powerful tool because most consumers reciprocate in a positive and effective manner. So retailers can practice this in their stores. For example, they can offer free gifts to customers on their purchase. Certainly, consumers love surprise gifts. As a result, they shall return to the store to shop again.
Show your customers that you are loyal to them and that you care for them. As a result, they shall respond equally and be loyal to the brand that takes care of them.
“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”
– Peter F. Drucker, (1909 – 2005), Author and Teacher
We are all humans and humans want pleasure and satisfaction in some form. So, retailers need to keep this in mind that consumer too is looking for happiness and being catered to in a good and effective manner. Therefore, retailers need to understand which factors or services make their customers happy. So, combining all those factors together and effectively creating strategies that trigger consumers will help bring success to the business.
“In order to sell a product or a service, a company must establish a relationship with the consumer. It must build trust and rapport. It must understand the customer’s needs, and it must provide a product that delivers the promised benefits.”
– Jay C. Levinson, American Author, First to use the term ‘Guerrilla Marketing’