Growth Newsletter #119

People seek groundedness—in their daily lives, and when they shop.

• Place: We like buying locally. Near our homes and communities.
• People: We like knowing who we’re buying from. And relating to those people.
• Past: We like things that connect us to the past, like traditional production methods.

A Journal of Marketing study that brought groundedness into the realm of marketing (rather than its typical domains, philosophy and psych) uncovered some notable findings in the process.

• People who are more affected by digitization, urbanization, and disruptive events seek groundedness more. Including:
• People who are on their computers a lot for work
• People who live in big cities
• People who felt more affected by the pandemic
• Groundedness increases willingness-to-pay. In one experiment, consumers were willing to pay a ~60% premium for a product that provided more groundedness.
• Our need for groundedness might increase during birthdays and holidays, and it might even be higher during colder seasons. More research is needed to validate those points, but if they’re true, they could mean it's worth adjusting seasonal campaigns to focus more on the who and the where, not the what.

Takeaway:

In your messaging, consider ways to build connections to place, people, and the past. Particularly if your customers work from home or in big cities.  

That might mean emphasizing your product’s local origin, going with a more traditional design, finding local distribution channels, talking about who your founders are and what they value, or even having your team focus on building their personal brands.

One of my favorite UX and marketing philosophies: "Don't make me think." 

When you vividly describe your product and the value it brings, you're helping people to imagine it and realize how it benefits them. You're doing the thinking for them.

Visuals make that value even more obvious. Especially if you use those visuals to compare and contrast.

For hims, the contrast of a balding head and a full head of hair paints a clearer picture than just a man with a full head of hair. You need to know the alternative. The before/after, or the "with vs. without."

For Ridge, that visual is a lot more powerful than saying, "Our wallets are 70% thinner." Because you see what "us vs. them" looks like, the comparison leaves an impact.

Make your product's value obvious by showing what life is like without it.

No matter how well you understand psychology, you're affected by it. Here are five psych principles to leverage in your marketing campaigns:

1. Halo Effect

What it is: The tendency to attribute positive qualities to someone (or a brand) based on a favorable first impression or single positive trait.

Example: Patagonia is known for its commitment to sustainability, ethical manufacturing, and corporate social responsibility. So consumers feel good about shopping there, since they believe they're supporting a brand that contributes to the greater good.

2. Primacy Effect

What it is: People are more likely to remember and give greater importance to information at the beginning of a sequence.

Example: When a salesperson starts their pitch with a product's most impressive benefits, that info is what's top of mind for customers.

3. Negativity Bias

What it is: The tendency to give more weight to negative experiences than positive ones, leading to pessimism and risk aversion.

Example: A cybersecurity firm talks about the horrors of being hacked in one ad, and the cozy feeling of security in another. According to the negativity bias, the first ad would leave a stronger impression.

4. Framing Effect

What it is: People's decisions and perceptions are influenced by the way information is presented to them.

Example: A subscription-based service highlights the cost per day instead of the monthly price, making it seem more affordable.

5. Priming Effect

What: Exposure to a stimulus influences a person's thoughts, feelings, or behaviors in response to a subsequent, related stimulus.

Example: A nonprofit uses emotionally charged language and images in their fundraising campaign, eliciting empathy and increasing the likelihood of donations.

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