12 Jan 2022
Psychology of Branding.


Branding 101
Content
Did you know that 95% of our purchase decisions are subconscious?
Or that our brains process visuals 60,000 times faster than text?
Humans underlying psychology shapes the way they interact with everything, including your brand. Mastering it can supercharge your marketing efforts, boost sales, and win loyal customers.
Keep reading to uncover 3 science-backed strategies that you can start using in your branding and marketing today.
Reciprocity: Turning Customers into Advocates
Reciprocity is a fundamental principle rooted in the psychology of social exchange. It operates on the idea that when someone does something nice for us, we feel an innate obligation to return the favor. This feeling of indebtedness arises from our desire to maintain social harmony and fairness.
In the context of branding and marketing:
When a brand offers something valuable to its customers, such as exclusive discounts, free resources, or personalized recommendations, it triggers a sense of gratitude and reciprocity in customers.
Customers, feeling that they've received something beneficial, are more likely to reciprocate by making a purchase, engaging with the brand, or becoming loyal advocates.
For example, In the 1950s, Tupperware introduced the concept of home parties. Hosts would invite friends and family, provide refreshments, and of course demonstrate Tupperware products. As a gesture of appreciation, hosts received free or discounted Tupperware products. This created a sense of reciprocity, where hosts felt obligated to make a purchase, resulting in a highly successful direct sales model.
How can you use this to your advantage?
Offer exclusive discounts or rewards to loyal customers.
Provide valuable content or resources to your audience without asking for an immediate sale.
Host webinars or workshops to share knowledge and expertise with your community.
Cognitive Biases and Brand Perception: Nudging the Decision-Making Process
Cognitive biases are like shortcuts our brains take when making decisions. They're not always rational or logical, but they help us process information quickly. Here are some examples:
In the context of branding and marketing.
Confirmation Bias: People tend to seek out information that confirms their existing beliefs and preferences. In branding, this means customers are more likely to notice and remember messages and experiences that align with their positive perceptions of a brand.
Anchoring Bias: This bias occurs when people rely too heavily on the first piece of information they receive when making decisions. In branding, a strong initial impression can set the tone for how customers perceive a brand, so it's crucial to make a positive first impression.
Halo Effect: This bias happens when a person's overall impression of a brand is influenced by a single positive characteristic or aspect. For example, if a brand is known for exceptional customer service, customers may assume that all other aspects of the brand, such as product quality, are also outstanding.
Loss Aversion: People tend to strongly prefer avoiding losses over acquiring equivalent gains. In branding, this can be used to create a sense of urgency or exclusivity, encouraging customers to act quickly to avoid missing out on a deal or opportunity.
Social Proof: This bias involves people looking to others' actions and behaviors as a guide for their own decisions. In branding, displaying customer reviews, testimonials, or showcasing the popularity of a product can positively influence potential customers positively.
For example, Amazon utilizes the Anchoring Bias by often showing a higher "original price" next to the current price of a product. Creating an initial price anchor point makes the current price seem like a great deal.
How can you leverage this knowledge?
Surprise loyal customers with personalized gifts or offers based on their past interactions. This not only confirms the brand's commitment but also encourages customers to share their positive experiences.
Highlight social proof, such as customer reviews and ratings, to build trust and leverage the bandwagon effect.
Collaborate with other well-regarded brands or influencers in unrelated industries. By association, the positive halo from these partnerships can enhance the brand's reputation.
Create limited-time offers, flash sales, or exclusive deals to trigger loss aversion.
Emotional Branding: A Deep Dive into Consumer Behavior
Emotional adverts have been widely found to increase consumer engagement and recall. It’s believed that we make decisions based on emotion as an evolutionary survival response. Logic requires thinking and therefore takes more time, whereas emotion is an instant feeling. If we apply this to hunter-gathers it makes more sense.
The man who acts on emotion first is fearful of a bear and runs away - therefore surviving.
The man who stops to think about the decision gets eaten by the bear - therefore not surviving.
In the context of branding and marketing:
Storytelling: Brands use stories, relatable characters, and emotionally charged narratives to create an emotional connection with their audience.
Social Bonding: Emotional branding capitalizes on our need for social interaction and connection. Brands that successfully evoke positive emotions can become a part of consumers' emotional landscape, much like trusted friends or loved ones.
Emotion as a Memory Marker: Our brains are wired to remember emotional experiences vividly and for extended periods. When a brand creates emotionally charged moments, it becomes more memorable and can leave a lasting impression. Take John Lewis’ Christmas ads, for example, I bet most of you can recall at least one of them.
Trust and Empathy: Trust is essential in forming and maintaining relationships, and brands that convey sincerity and empathy through emotional connections are more likely to build trust with their audience. Trust, in turn, is a key factor in brand loyalty and advocacy.
Nike uses emotion throughout their campaigns and branding. They retell stories of great athletes showing their determination and hard work whilst also making the characters relatable to everyday people. They use their messaging to motivate people to push their limits and pursue their dreams, creating a powerful emotional connection with consumers.
How can you create emotional connections backed by science?
Craft a compelling brand story that resonates with your target audience's values and aspirations, as storytelling activates brain regions associated with empathy.
Showcase real customer stories and testimonials that illustrate the emotional impact of your products or services, as social proof with emotional resonance can influence purchasing
Conduct thorough audience research to understand the emotions that resonate with them.
The science of psychology is not just an interesting topic; it's a strategic guide for brands aiming to thrive in today's competitive landscape.
By implementing these science-backed strategies you can cultivate not just customers but genuine brand advocates who resonate with your story, trust your brand, and remain loyal for the long term.
Need more help?
Download our free brand template to start improving your brand today.
Did you know that 95% of our purchase decisions are subconscious?
Or that our brains process visuals 60,000 times faster than text?
Humans underlying psychology shapes the way they interact with everything, including your brand. Mastering it can supercharge your marketing efforts, boost sales, and win loyal customers.
Keep reading to uncover 3 science-backed strategies that you can start using in your branding and marketing today.
Reciprocity: Turning Customers into Advocates
Reciprocity is a fundamental principle rooted in the psychology of social exchange. It operates on the idea that when someone does something nice for us, we feel an innate obligation to return the favor. This feeling of indebtedness arises from our desire to maintain social harmony and fairness.
In the context of branding and marketing:
When a brand offers something valuable to its customers, such as exclusive discounts, free resources, or personalized recommendations, it triggers a sense of gratitude and reciprocity in customers.
Customers, feeling that they've received something beneficial, are more likely to reciprocate by making a purchase, engaging with the brand, or becoming loyal advocates.
For example, In the 1950s, Tupperware introduced the concept of home parties. Hosts would invite friends and family, provide refreshments, and of course demonstrate Tupperware products. As a gesture of appreciation, hosts received free or discounted Tupperware products. This created a sense of reciprocity, where hosts felt obligated to make a purchase, resulting in a highly successful direct sales model.
How can you use this to your advantage?
Offer exclusive discounts or rewards to loyal customers.
Provide valuable content or resources to your audience without asking for an immediate sale.
Host webinars or workshops to share knowledge and expertise with your community.
Cognitive Biases and Brand Perception: Nudging the Decision-Making Process
Cognitive biases are like shortcuts our brains take when making decisions. They're not always rational or logical, but they help us process information quickly. Here are some examples:
In the context of branding and marketing.
Confirmation Bias: People tend to seek out information that confirms their existing beliefs and preferences. In branding, this means customers are more likely to notice and remember messages and experiences that align with their positive perceptions of a brand.
Anchoring Bias: This bias occurs when people rely too heavily on the first piece of information they receive when making decisions. In branding, a strong initial impression can set the tone for how customers perceive a brand, so it's crucial to make a positive first impression.
Halo Effect: This bias happens when a person's overall impression of a brand is influenced by a single positive characteristic or aspect. For example, if a brand is known for exceptional customer service, customers may assume that all other aspects of the brand, such as product quality, are also outstanding.
Loss Aversion: People tend to strongly prefer avoiding losses over acquiring equivalent gains. In branding, this can be used to create a sense of urgency or exclusivity, encouraging customers to act quickly to avoid missing out on a deal or opportunity.
Social Proof: This bias involves people looking to others' actions and behaviors as a guide for their own decisions. In branding, displaying customer reviews, testimonials, or showcasing the popularity of a product can positively influence potential customers positively.
For example, Amazon utilizes the Anchoring Bias by often showing a higher "original price" next to the current price of a product. Creating an initial price anchor point makes the current price seem like a great deal.
How can you leverage this knowledge?
Surprise loyal customers with personalized gifts or offers based on their past interactions. This not only confirms the brand's commitment but also encourages customers to share their positive experiences.
Highlight social proof, such as customer reviews and ratings, to build trust and leverage the bandwagon effect.
Collaborate with other well-regarded brands or influencers in unrelated industries. By association, the positive halo from these partnerships can enhance the brand's reputation.
Create limited-time offers, flash sales, or exclusive deals to trigger loss aversion.
Emotional Branding: A Deep Dive into Consumer Behavior
Emotional adverts have been widely found to increase consumer engagement and recall. It’s believed that we make decisions based on emotion as an evolutionary survival response. Logic requires thinking and therefore takes more time, whereas emotion is an instant feeling. If we apply this to hunter-gathers it makes more sense.
The man who acts on emotion first is fearful of a bear and runs away - therefore surviving.
The man who stops to think about the decision gets eaten by the bear - therefore not surviving.
In the context of branding and marketing:
Storytelling: Brands use stories, relatable characters, and emotionally charged narratives to create an emotional connection with their audience.
Social Bonding: Emotional branding capitalizes on our need for social interaction and connection. Brands that successfully evoke positive emotions can become a part of consumers' emotional landscape, much like trusted friends or loved ones.
Emotion as a Memory Marker: Our brains are wired to remember emotional experiences vividly and for extended periods. When a brand creates emotionally charged moments, it becomes more memorable and can leave a lasting impression. Take John Lewis’ Christmas ads, for example, I bet most of you can recall at least one of them.
Trust and Empathy: Trust is essential in forming and maintaining relationships, and brands that convey sincerity and empathy through emotional connections are more likely to build trust with their audience. Trust, in turn, is a key factor in brand loyalty and advocacy.
Nike uses emotion throughout their campaigns and branding. They retell stories of great athletes showing their determination and hard work whilst also making the characters relatable to everyday people. They use their messaging to motivate people to push their limits and pursue their dreams, creating a powerful emotional connection with consumers.
How can you create emotional connections backed by science?
Craft a compelling brand story that resonates with your target audience's values and aspirations, as storytelling activates brain regions associated with empathy.
Showcase real customer stories and testimonials that illustrate the emotional impact of your products or services, as social proof with emotional resonance can influence purchasing
Conduct thorough audience research to understand the emotions that resonate with them.
The science of psychology is not just an interesting topic; it's a strategic guide for brands aiming to thrive in today's competitive landscape.
By implementing these science-backed strategies you can cultivate not just customers but genuine brand advocates who resonate with your story, trust your brand, and remain loyal for the long term.
Need more help?
Download our free brand template to start improving your brand today.