Psychological Marketing Insights

Analyzing the Psychology of Business, Marketing, and Sales ...

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Challenging your beliefs…

Monday, May 17th, 2010

I work with a lot of different businesses and always provide different ideas on ways for them to improve their businesses.  The interesting thing is how many times people say, “that won’t work for my business.”  When I probe further as to why the person believes this it normally comes down to a bad experience someone had one time in trying my strategy.

In other words if  I recommend implementing direct mail he or she will say that he or she tried that and it didn’t work.  When I get more information on the situation it generally comes down to this situation,  ”We sent out 50 postcards and got no response.”  If only it was that easy.

Think of that strategy in other things in life.

I did 50 pushups and didn’t get in shape.
I ran for 50 minutes and didn’t get in shape.
etc. etc. etc.

This is where context comes into play.  Every marketing strategy, technique, and tactic needs to be analyzed in its own situation.

There are some general rules that can be applied, but the techniques and tactics for the strategies often change and the success rests on a very little point that can influence the success greatly.

What biases or beliefs do you have in your business?  We all have them.  Make a list.  Sometimes these relate to the price you can charge, the service you can provide, the requirements for doing business with you, the access that a client has to you, the terms of business, and more and more and more.

Matt

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We tried “that”, and it didn’t work…

Tuesday, March 30th, 2010

The other day I played in a softball game.  I went 4 for 4 with 2 home runs, a triple, and a double.  Someone came up after the game and remarked that I was the best softball player they had ever seen in 30 years of watching softball.  I chuckled and thought to myself, “this is a classic case of SSS.”  What is SSS?  SSS is small sample size.  Small sample size is looking at a small amount of data or an experience and coming to a conclusion.

You see, the next softball game I went 1 for 4.  If that person would have seen me play THAT game, he probably would have never thought different of me.

Small sample size is a dangerous thing that we as humans fall trap to.  The “we tried ‘that’ and it didn’t work in my business is an example.  How many times did you try it?  In what context.  Did you do it correctly?  Did you do it enough times so that you got enough of a sample size.  There are hundreds of things that go wrong, and just because it didn’t work one time doesn’t mean that it never works correctly.

More on this later…

-Matt

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What is “confirmation bias” and why is it important to you?

Tuesday, March 30th, 2010

“Confirmation bias” is the tendency to ignore evidence that disagrees with our currently held belief, and to notice evidence that reinforces our belief.  That is the rough definition of it.  You can read a lot more about it by doing a simple Google search, or you can get more info at Wikipedia.

Why am I bringing this up?  Well, for several reasons.  First, it is incredibly easy to fall into this trap ourselves.  And this can be dangerous because we might miss reality and therefore hurt our businesses and/or our lives.

Second, you need to understand this because your customers, clients, friends, prospects, and well—just about the whole world will fall victim to it.  If you bring up an idea that is contradictory to their previous experience they will, at times, discount it without giving it a proper thought or acknowledgment.

Another thing you’ll hear people say is, “we tried that and it didn’t work.”  I’ll address that mistake later, which is closely related to “small sample size.”

Anyway, I highly recommend you study and learn about confirmation bias.  It really is fascinating and a good conversation starter.

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Is it a bad economy, or is it you…

Tuesday, March 23rd, 2010

The other day I was in a nice restaurant during the NCAA men’s basketball tournament.  The place had multiple flat screen televisions and a few people watching basketball.

Just down the road there was a sports restaurant that was packed.

The first restaurant will no doubt blame the economy for his business being bad.  But what it him?  I’ve been there 30+ times in my life.  Not once has he attempted to get my contact information or given me an offer for a dessert after I was done eating.  If he had gotten several thousand email addresses he might be able to actually put together a promotion to pack the restaurant during the tournament.

Something that gave away prizes for the best outfit, people who picked the best brackets, people who chose the score correctly, and on and on it could have gone.

But he has no client database that I am aware of.  He just hopes that people come into his restaurant, instead of proactively scooping up all the people who do come in, and ensuring that they come in again and again by developing or building a relationship with them.

There is a famous phrase out there uttered by some politician or prognosticator or political analysts.  It reads, “Its the economy, stupid.”

In THIS case, it wasn’t the economy.  It was just someone being ignorant.  And being ignorant leads to stupidity…or at least in this case it did.

-Matt

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True analysis of business

Tuesday, February 9th, 2010

Challenge your assumptions, beliefs, and ideas about things.  So many times we (I do this too) come to conclusions based upon so much little data and only a small viewpoint of the world in which we live.

In other words:  our eyes deceive us because we don’t know what to look for, don’t know HOW to look at things objectively, and we analyze things based on such small amounts of data.

We jump to conclusions, and then let these conclusions define ourselves, our lives, our beliefs, our goals, and more.

This is why first impressions are so important because people make a decision based upon a little amount of “data” and then generally decide if they like the person for a long period of time.

It is REALLY hard to overcome these first impressions.

-M

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Top of mind awareness: Why it is so important.

Friday, January 29th, 2010

What is top of mind awareness?  Probably one of THE most important things in business success.

Here’s what I mean.  Right now your brain is being bombarded with millions of bits of information.  From the music in the background (if applicable) to the clothes on your body (hopefully, applicable) to the fan from the computer the brain is taking in massive amounts of information.  It is also sorting that information out.

Top of mind keeps your brain focused on what is around it all the time.

And in business, if you are not keeping people focused on what is important, then they are not focused on you.

Just in the few seconds it took you to read those last two sentences, your brain took in massive amounts of information, and more than likely forgot about the sensations it was feeling.

This is why companies like McDonalds, Coke, Pepsi continue to advertise.  Yes, they would still have customers if they did not, but advertising keeps them top of mind so people think about them.

Now I am NOT saying you need to run television or radio commercials like McDonalds.  That is probably not appropriate for you.  What I AM saying, however, is that you do need to design ways to keep top of mind in your customers mind all the time.

Matt

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Testing

Wednesday, January 27th, 2010

Do you test new ideas, campaigns, marketing concepts, and scripts in your business?

All of these things can have a massive impact on your business.  Just the way your salespeople ask for an order can really influence the sales of your business.

There are literally hundreds of things you can test, but here is a short list of where to begin.

Any type of salesperson interaction to where someone is asking for an order.  (Is there an add on sale, or an upsell?)

Any type of close.

How people are sent to a sales person either via phone, or in person.

A request for referrals.

Any headlines/subject lines in your email.

Any headlines in marketing or print.

This is just a very short list and is not exhaustive at all.  I’ve personally seen headlines or subject lines double or triple the open rate or the response rate of emails and other advertisements.  It is also better to test than to guess.  I also recommend only changing one little thing at a time when you are testing.  That way you know what really caused the result.

-Matt

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A good definition of insanity

Wednesday, January 27th, 2010

One of the best definitions of insanity is doing the same thing over again and expecting different results.

Yet many people do this again, and again, and again.  I think this is because there is comfort in doing the same things again and again and again, instead of venturing out and trying to do new things.  I know that I myself struggle with this sometimes.  It is easy to fall into habits or patterns that don’t make the most sense, instead of making changes that will yield different results.

The brain is a funny creature.   I think one of the best ways to instantly get out of a rut is to not add anything, but to start removing things.  Remove things from your to do list, remove things from your mind, become better organized.  Get out the things that are not that important, not that profitable, and not that efficient.

Then you can truly experience the “less is more” factor.

Matt

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Your environment…

Tuesday, January 26th, 2010

How much does your environment influence your habits?  Is your working environment creating a place where you can be focused, and productive?  Is it designed to help you achieve your goals?

What are things you should look at?

Lighting

Temperate

Ergonomics of the chair and desk you use

What is on the walls?

What sounds are involved?  What do you hear?

There are a lot of things to consider.

All of them are important.

Matt

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How NOT to be a commodity…

Thursday, January 21st, 2010

Are you a commodity, or are you perceived as a commodity?

A lot of businesses struggle because they market themselves as a commodity, they ARE a commodity, or they are perceived as a commodity.

Let’s talk about each one.

If you are always appealing to the lowest prices, you will be perceived as a commodity due to your marketing being a commodity.  In other words, if you are always chanting lowest or cheapest prices, you will attract the people who always want the lowest and cheapest prices.  So, step #1 is changing your marketing message to something that will attract other people.

If you ARE a commodity (which few people really are) then you need to get out of that business.  Now when I say get out of the business I do not necessarily mean you need to leave the business, but you need to be selling something different or change how you are selling what you are selling.  A lot of times you need to go the value added route to what you are selling.  So, if you are in insurance (something that is perceived) as a commodity, perhaps you need to negotiate a special discount for your customers at a lot of places.  So they can get better deals on cars, electronics, appliances, yard care, etc. etc.

Finally, if you are perceived as a commodity, which a lot of businesses are, then you need to educate why your customers should do business with you versus someone else.  And unless you can make a compelling case with facts, reason, and logic, then you are going to struggle.  In other words, just throwing in platitudes like, “We give good service!” or “We treat our customer rights” are not sufficient reasons.  Why?  Because ANY business can claim that, and the other response is , “Well, I would HOPE so!”

For example, say you have a convention center.  And you target organizations that need to hold a conference.  How about instead of bragging about how you have clean rooms (I would hope so!) you go and explain why your place of business, out of the 73 other convention centers and conference rooms in the XYZ area, is better.

Make a check list or a comparison chart of WHY you really are better.   Does that make sense?  And then you can PROVE it.  Offer some references or case studies, and then include a guarantee, and you’ll destroy your competition.  The absolute goal is to build your business so that prospects and customers would be stupid to go to anyone else.  You need to explain it to them, however.

-Matt

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