To an industry insider, marketing tactics may seem manipulative as they are designed with the specific aim of making consumers feel the want for a product and nudging them to buy it. Behavioural economics and neurosciences aid in this very process by helping to understand consumers more and decode their purchase decisions.
While on the outside, it may seem like the public sector would make better use of behavioural science for research methods, the truth is quite the opposite. Private or corporate sectors are more diligent about understanding their consumers better and giving them better experiences in order to avoid alienating them.
The qualitative research method follows a naturalistic process of inquiry to understand social phenomena in natural settings. The focus is on the ‘why’ and not the ‘what’ and is concerned with the experiences of people in their daily lives. It deals with words, meanings and concepts in detail.
In the digital world today, companies that have adapted to the qual methods of research are thriving more and reaping better rewards. The key is to adhere to and incorporate these qualitative principles –
User experience (UX) is finally gaining recognition, and companies realize the importance of understanding their users and catering to their needs. However, there are still too many companies who do not want to accept the importance of understanding their consumers and improving their products and/or services to better cater to their requirements and needs.
Here are the five most common reasons why companies tend to ignore user research even though the world of business is gradually transforming from business-centric companies to consumer-centric organizations.
One of the biggest mistakes that marketers commit when trying to devise strategies to increase the reach of their brand to their target audience is focusing on numbers. Of course, lead generation is essential and there is no denying the fact that numbers will drive the business however, for long-term efficiency of any marketing and advertising strategy lies in how strongly connected the target customers feel to the product or service being offered.
No one likes to lose, whether it is a game, argument, running a business, or even wanting to buy a product. In fact, it has been observed that when people decide to buy something, they are keen to avoid taking a loss. Since this is a well-known fact, most marketers employ loss aversion marketing tactics.
Understanding Loss Aversion
Loss aversion primarily means that people do not want to lose anything in order to get gains. Researchers have found loss aversion is a potent psychological instigator among those who want to acquire something. Behavioral psychologists have found that loss and suffering a disadvantage has a bigger effect on people’s choices and decision-making compared to gains and advantages.
If a person assumes that they will suffer a loss, it will evoke a strong reaction in them and that, in turn, affects their buying behavior. Marketers understand this and use it to increase sales and profits.
Here are five of the most commonly used loss aversion marketing tactics that can help small business owners not only retain customers but also significantly increase sales.