I just finished reading The Art of Choosing by Sheena Iyengar. She’s a social psychologist and a professor of business at Columbia University, and her practical studies into how people make decisions is immediately applicable for all of us when we market our services and products.
It’s an especially helpful book when trying to understand how customers make choices. The author conducted a series of studies about the psychological factors in decision-making. The best part about the results of the studies is that you can use the information in your marketing and sales efforts right away.
Here are top seven highlights from the book which small business marketers must learn:
- People like to feel they are unique and not “just like everyone else.” This, of course, isn’t true: as human beings, we’re more alike in our buying behavior than we realize. However, customers want to appear as if they each, individually, make unique buying decisions different from their peers. For instance, if two people would normally choose the same meal at a restaurant, studies show that when one person gives her order, the second person will change her order so that she doesn’t appear to be a copycat. If everyone at the Apple store is buying a white iPhone, all of a sudden people will begin to buy black iPhones. But when customers choose this way, they are less satisfied with their choice. This is more apparent at in-person events than in situations like online shopping (where you can’t see the other person and can’t be judged by the other person). Takeaway: In face-to-face contact with your customers and colleagues, how they perceive their individual identity matters. Don’t tell them they’re “just like every one of my customers.”
- People do take marketing puffery seriously, even though logically they shouldn’t. They’ll buy bottled water that they know, intellectually, comes from municipal tap water that’s been created via reverse osmosis. They buy into claims that the water is especially refreshing (all water is refreshing) or that it’s bottled at the source (in this case, the “source” is municipal water) or that it’s “expertly designed water” (does it need any further design than the original H2O formula we’ve been using for so long?? Apparently, yes.). That’s why Dasani’s website focuses not on the water, but on the bottle the water comes in: 30% plant material, 100% recyclable. Takeaway: Even though the customer intellectually knows not to fall for marketing copy, they still do. They want the experience that buying and using the product will bring. You, as the marketer, get to define that experience for them through your copywriting and your branding efforts.
- We take into our psyche the words we use and read in marketing. Researchers asked people to construct a sentence using five words they were given. When researchers gave them five words that related to the elderly (old, gray, wrinkle, Florida, bingo), the participants took 15% longer to walk to the elevator when they exited the survey room. Our automatic system is tuned in and connects pre-existing knowledge with what we’re seeing and hearing. Takeaway: Think about how you want your audience to feel and act after they interact with you, your blog, your marketing, and even your social media comments in Facebook and Twitter, and use words that will conjure up that feeling in their minds. If your brand is about “passion,” don’t use words like “slow” or “creepy” when connecting casually with your audience…or they’ll connect it with you and your biz.
- Even a small amount of choice brings a sense of well-being. Several studies showed that when participants were given a choice versus being told what to do, those who were given a choice (even the smallest, simplest of choices, like which night to watch a movie), made people feel better about the situation. Takeaway: In your marketing, where can you give them choices instead of only one option?
- In 1956, George Miller conducted his famous study that concluded that people can process only seven pieces of information (plus or minus two). We are limited in our capacity to process information, so when you give people too much to think about, they shut down. We simply can’t keep track of multiple objects or facts. Takeaway: When listing the benefits or features of your site, limit the bullet-point list to 5-7 items. If you have more than seven, create a second list with a new title, like, “Here’s even more reasons to buy the XYZ Widget!”
- When you give people too many options, they are (at first) attracted to the most options they can see. But when it comes to buying, people purchase less when they have too many options to choose from. When given a choice of 24 jams, only 3% of the people purchased a jam. But when given a choice of three jams, 30% purchase a jam. Takeaway: Be careful of how many choices you give customers. At first they may be attracted to your full array of offerings, but when it comes to buying, having too many options may hurt sales.
- If you have to give them options, help them to choose from among the options. Help them to figure out the best way of sorting, comparing and eliminating options. Takeaway: Create a chart about which program they should purchase (from among several), or an article about the pros and cons of different products will help them and increase customer loyalty. Organize their choices for them.
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Category: Internet Marketing, Marketing