In a marketing context, social proof is a concept where a business attracts more customers because of the simple reason of already having many customers. Psychologists confirm this concept through their research studies that indicate that people are more likely to purchase a product or opt for a service that others are already purchasing. Also known as the bandwagon effect, you will notice this happening in crowded places like amusement parks or even restaurants.
In fact, social proof is prominently seen when people have to make choices between a less popular alternative and a hugely popular one. You may have noticed that a restaurant that has fewer patrons will be deemed to be not very good when it comes to quality and people prefer to wait in long lines outside popular restaurants. The same is the case with the sales of popular gadgets or smartphones. The more popular it gets, the more people want it. Crowds attract crowds – that’s the phenomenon behind social proofing.
The decoy effect is, of late, becoming a viral marketing strategy that is adopted by marketers the world over to influence the purchasing decisions of consumers. Dan Ariely’s Predictably Irrational has had quite an impact on the widespread use of the decoy effect in marketing, but the point to consider here is the ease with which the human mind can be influenced using this strategy.
The decoy effect creates a cognitive bias in the minds of consumers by altering their preferences between two alternatives by introducing a third, which is an entirely irrelevant choice.
The COVID-19 pandemic has changed the way businesses all over the world function. This pandemic still continues to alter lives and has made people from all walks of life sit back and reflect on the true purpose of their existence. Mental wellness and overall well-being have taken precedence over making money and meeting deadlines. While this has become the new normal, it is also true that businesses now have to reformulate their strategies to identify their key stakes in the current, post-COVID market space to establish their foothold.
In these uncertain times, it can be challenging to predict trends as the market may not behave as you anticipate. Nonetheless, the industry trend prediction should not be neglected as it will prepare your business to cover all bases and handle even the unexpected. Businesses need to take a second look at their marketing and business strategies. These strategies will determine how your business will perform in a post-COVID world. Hence, you should know what you are doing right and where you should focus.
Algorithms for artificial intelligence (AI) use real-time data to provide insights for decision-making. This makes AI very different from passive machines, which provide predetermined or mechanical responses.
AI considers a variety of data sources and carefully analyzes them in seconds. It then acts based on the results of the analysis. It is prudent to remember that AI is designed by humans for the purpose of reaching a conclusion based on analysis. Thanks to the advances in artificial intelligence, this technology is not only used to automate repetitive tasks but also in many other industries and sectors, such as the automotive industry, education, cybersecurity, human resources, customer service, logistics, marketing, healthcare, and supply chain management.
A majority of brands focus solely on mentions online. As a result, they miss out on messages that mention their brand name differently or talk about their products without mentioning the brand name. Hence, it is important that businesses create a social media monitoring plan that enables them to find out what their target audience is saying. Of course, you need the right tools to monitor social media. Otherwise, you will have to perform time-consuming manual searches.
You may wonder why your business requires a social media monitor plan. Such a plan will not only allow you to streamline search parameters and mentions on various social media platforms but will also enable you to provide responsive, prompt, and fuss-free customer care. Invariably, customers will write or mention their concerns on social media and tag your brand. It is imperative that you catch these mentions, respond to queries, address issues, and identify potential brand advocates. This will foster brand loyalty and help your business thrive in a competitive marketplace.