How to Use Digital Consumer Psychology to Stand Out From the Competition

Entrepeneur 20 Jul 2021 05:00
5 min read
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Understanding what your customers are thinking and why they do what they do can make all the difference in your sales.

Beauty giant Neutrogena has invested time and money into consumer psychology  and it's paying off. When the company found that 75% of its customers were purchasing products from just one segment of its range, Neutrogena wanted to see if it could change that. Using historic shopping cart data, Neutrogena created product pairings. The company began adding banner advertisements and videos, which would display product pairings to targeted customers. For example, if customers purchased an eye cream in the past, it would make sense to advertise a facial cleanser to them as a pairing to that eye cream. By using this tactic, Neutrogena exceeded its benchmark by 289% and got an $8.05 return on advertising spend.

Why digital consumer psychology matters

Consumer psychology is the study of how social persuasion, decision making and motivation influence consumer behavior. Our thoughts, feelings, perceptions and beliefs all tie into these ideas and determine our buying choices. With that said, the correlation between understanding your customers' purchasing behavior and making sales is clear. Understand how your customers make decisions, and you can adjust your selling techniques, marketing and product to better serve their needs and speak to them directly.

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