Using cognitive biases in marketing to build a successful brand

It’s a lovely sunny day and you’re on your way to meet your friends for a pleasant afternoon outdoors. Suddenly you notice a young man about ten metres ahead of you inviting passers-by to try his product, and you see that nobody stops to listen. As you get closer, you hope he won’t try to sell it to you too. But as you walk past, he calls out to get your attention and you (like all of us) politely say “no, thanks” and carry on walking. How did you feel? Probably not great, because at that moment you were aware of being treated like just another number. The same thing, offered to you in the same way, had been offered to everyone else, with no difference at all. We’ve all been there, haven’t we? Well, there is no difference between the way people are treated in real life and in digital marketing online. And SMEs should be aware of it too. In this article we’ll explore the main cognitive biases, that is, the distortions people apply when they assess facts and events. Every digital marketing strategy should take them into account, to help a brand grow and gain credibility and to deliver the right message to the right person.

What is a cognitive bias?

A cognitive bias is a subconscious mental shortcut (heuristic) that influences our decision-making on the basis of beliefs (preconceptions) about how we perceive the outside world.

Suppose you were bitten by a dog as a child. Your cognitive bias might lead you to believe that all dogs are dangerous, making you afraid of even the friendliest puppy.

Our subconscious has more than 30 million neurons responsible for our “safety” and survival, making quick decisions such as fight or flight and shaping behaviours and habits. Over 90% of our decisions are made unconsciously.

Out of more than 100 cognitive biases, we’ll look at the most important ones and see how to use them in a digital marketing strategy to reach your main goals.

Do cognitive biases matter for SMEs?

When Instagram launched in 2012, it reached 15 million users. Ten years later, it has more than 1.1 billion. With over 95 million pieces of content posted every day, unless you’re an established influencer it’s very hard to stand out from the crowd. Yet by using cognitive biases you can find new ways to help your brand gain visibility, both locally and internationally.

Social proof

Have you ever been scrolling through Instagram, seen a post from a celebrity appear in your feed and, without a second thought, dived headfirst into the comments like an Olympic diver? Why do you think that is? Here’s a clue. People often do certain things or believe certain things simply because most other people believe or do them. This phenomenon is also known as the bandwagon effect.

How can SMEs use this cognitive bias?

Let’s invent a fictional character called Stella, who owns a bike shop. Stella wants more people to visit her shop. She can boost engagement and use social proof in her digital campaigns by showing short clips of groups of people riding her bikes. Unconsciously, this tells her audience of potential customers that the bikes Stella sells are reliable, and Stella herself is seen as a credible source, which increases interest and interaction.

Authority

If you’re like me, you’re an information junkie. TED Talks are a great opportunity for charismatic leaders to share their experiences with anyone willing to listen; the interesting thing about TED Talks is that most people who watch them have no idea who the speaker is. And yet they give up some of their time to listen. Why? When we watch a TED talk, we see a speaker standing on stage with lots of people (often we only see the backs of their heads) looking straight at them. Whenever we see a large group of people looking at a single person, we perceive that person as an authority.

How can SMEs use this cognitive bias?

Let’s introduce a new fictional character called Ivan, who has invented an innovative weighted vest called Weightly for people into weight training and fitness. Ivan decides to make a video campaign to increase sales: he gathers a number of fitness enthusiasts and shows them how his product works. Then he hands each of them a Weightly, and each one finds a different way to use it. By demonstrating how the product is used and persuading others to use it, Ivan will immediately be perceived as an authority figure, increasing viewer loyalty, brand perception and trust.

Anchoring

Anchoring is a cognitive bias that occurs when people rely blindly on one piece of information, which then tends to shape their thoughts and feelings about a given topic. For example, if you repeatedly see a product priced at 500 euros and then see the same item for 90 euros less, you’ll naturally think that buying it is a great deal, and you’ll probably buy it.

How can SMEs use this cognitive bias?

Let’s go back to our imaginary friend Stella, the bike shop owner. Stella has done an excellent job of communicating her brand through her digital strategy. Now she wants to increase her AOV (average order value) with a bundle of products aimed at people buying a bike for the first time to commute to work. The original price of the bundle was €4,000. However, Stella decided to reduce it to €3,600, clearly showing both prices: before and after. Stella is turning into a very skilled saleswoman!

Loss aversion

Loss aversion is a cognitive bias that describes how people psychologically perceive having to give up something they already have: on average, a loss is felt twice as strongly as the pleasure of an equivalent gain.

When people live with others (family, friends, loved ones), they feel loss less, because they have the support of the people close to them (social connections). Naturally, when there is nobody to share the negative feeling of giving something up with, the chances of making poor decisions increase.

How can SMEs use this cognitive bias?

The best method is of course an OTO (One-Time Offer), a time-limited offer that will soon no longer be available and that disappears for good if it isn’t taken up straight away.

The offer should also be backed by other persuasive elements, such as “Save 20%” rather than “Ask for a 20% discount”, although it’s always worth testing this with an A/B test. And remember that the offer must be real and genuine: don’t lie to increase sales, because doing so could damage your brand’s credibility.