Most of us like to think we are rational decision-makers. However in reality, it’s often our subconscious brain and a whole raft of emotional triggers and cognitive biases that are responsible for the choices we make and the actions we take. In marketing, companies often use nudge theory to get people to take action. Here’s how it can work for you.
What is nudge theory?
Nudge theory is the idea that triggers can be used to influence customer behaviour and decision-making. We’re not talking about sleazy sales tactics that give customers the ‘ick’, it’s all about making it easier for them to choose a certain option without restricting their freedom of choice. For example:
- Labelling a product as a ‘bestseller’ on a website nudges customers to choose it over other options.
- In a coffee shop, there may be a small price difference between a medium and large coffee which nudges the customer towards the larger option. The customer feels they’ve got a good deal, and even with a small price difference, it still adds up to a tidy profit for the coffee shop.
- Displaying excellent customer reviews and ratings can nudge customers to buy a product or use a service.
Using nudge theory in your marketing content
Below are examples of how you can use nudge theory in your ad, social media, or website copy:
Triggering a fear of missing out (FOMO)/creating urgency
Wording like ‘last chance to buy’, ‘this week only’, or ‘only 2 left in stock’ encourages people to make buying decisions sooner rather than later. Most people don’t want to feel disappointed that they’ve missed out on a good deal, so this can be a powerful trigger to act.
Understanding the Goldilocks principle and using it in your pricing strategy
Remember the story ‘Goldilocks and the Three Bears’ where Goldilocks tries three bowls of porridge-one is too hot, one is too cold, and one is just right? It’s a good illustration of how when people are presented with two extremes, they’ll go for the middle option. In your marketing, this might look like positioning your preferred product or service between two alternatives that are either more or less expensive and which have more or less features. Customers will often choose the ‘middle ground’ because they see it as a balanced option; still a good choice but not too costly or with so many features that it’s overwhelming.
Playing on loss aversion
Loss aversion is a psychological phenomenon where people prefer to avoid losses rather than acquiring gains. Basically, we are wired to feel worse about losing something. That’s why in tough economic times when customers feel nervous about parting with their cash, businesses might focus less on selling people benefits and more on talking about how their product or service will help them cut costs.
Using nudge theory ethically
Using nudge theory in marketing is not about selling customers products or services they don’t want; it’s about making it easier for them to make the best choice. You can also do this by including things like testimonials, case studies, and before and after photos in your marketing messaging. In all your marketing copy, check that it’s convincing people to spend on what they need, not on something you just want them to buy. Marketing methods are becoming ever more sophisticated, but you can’t put a price on trust. A customer who trusts your brand will become a customer for life.