Knowing the reasons that affect consumer purchases can give a business a big lead in their industry. Can a business fully understand the psychology of a consumer’s purchases so that they may anticipate a purchase decision in the future?
Amazon, the retail giant, has mastered this philosophy. Targeted ads, strategic pop-ups, and a curated product display give them a tremendous advantage over their competitors because they’ve found ways to influence consumer purchasing decisions.
In this article, we’re going to take a look at six ways that a business can influence consumer purchasing decisions because why should Amazon be the only one to have fun?
Case Study: Black Friday
Just after eating that last piece of turkey, consumers are heading out to the stores. Thanksgiving, which once was a day solely dedicated to family, has emerged as a very successful shopping day for businesses. They found that consumers will visit even if in the middle of a major family holiday.
This wasn’t always the case because the mother of all consumer purchasing days is and will always be Black Friday. People go shopping on Black Friday for a number of reasons but of the two main reasons cited by consumers, the first was the tradition. Shopping on Black Friday is just something you do. They participate in this tradition mainly for the second reason on that list--deals on their holiday shopping. Anytime consumers perceive that they are getting a deal, it creates a winning combination for your business.
Let’s see how these two compare to our list of 6 Ways You Can Influence Consumer Purchasing Decisions.
Consumers today want the assurance that you won’t disappear on them. Many companies are going out of business in today’s wavering economic climate. Consumers want companies to be available 24/7 both online and offline to answer their questions or concerns or to be able to purchase. Many companies offer an active social media platform, chat on the website, or 24-hour phone service. Providing this service will build brand identity and confidence.
Paying attention to buying trends with your current customer base is key to building future business. Offering freebies, upgrading purchases, or offering guarantees that your customers are looking for are ways to turn your everyday products into personalized. The emotions of consumers when they receive a personalized value leaves them feeling that they are spending less and getting more at the highest quality service level. This costs the business very little to create this level of engagement.
Going back to Amazon as a reference--one area that they are consistently known as being the best in the business at is in customer service. Consumer’s know that their purchase is protected and if it doesn’t live up to the product detail, they may return it. This provides customers with a secure buying choice that leaves them comfortable with their decision both before and after the completion of the transaction.
Rewards programs, point systems, and cashback are all quick ways to gamify a purchasing decision. Consumers like to receive a bonus for their purchase. This can even lead them to purchase more products, more often when they know that they’re buying could lead to prizes and money back down the road. This is a principle known as the reciprocity principle. If one does something for another, that person will, in turn, feel more cooperative and willing to do something positive.
Consumers today are faced with choice overload. They suffer from a sense of paralysis that leaves the consumer unsure of what decision to make in fear that the other choice may be better. A large number of color choices or design options can lead to a customer feeling overwhelmed and scared of making a decision. Taking away some choice may seem like a negative but all you’re doing is matching customer behavior. They’re noting that they have too many decisions in purchases which usually leads to negative feelings no matter what choice they make. Limiting a customer’s option choices is a good way to get them to make a buying decision that leaves them walking away happy.
Marketing has evolved a lot as the internet explodes in popularity and availability. Targeting your audience base with advertising is no longer the sole focus of marketing. Creating a brand that is relatable, current, and on message is vital to a business's growth in the 21st century. Social media needs to be engaging, informative, and personalized. Offline marketing needs to be directly targeted using the top acquired data.