The 5 Best Neuromarketing Insights of 2020Relevant topics Research, Archive, Strategy, Advertising, Conversion
With knowledge expanding increasingly fast these days it might be hard to keep track of what is new and happening in Neuromarketing. We try to review new articles weekly in order to keep you up to date on what is new.
To give you an overview of Neuromarketing insights in 2020, we’ve selected the articles that you guys found most interesting and were read the most. These are the 5 best Neuromarketing insights of 2020!
1- What Psychology Knows about Impulse Buying in 2020
Is impulse buying caused by internal psychological factors alone? Research shows that external, market-related stimuli can also inspire customers to engage in impulse buying!
Everyone can relate to the sudden powerful urge to buy something you didn’t plan for. From a stand-mixer you don’t really need, to food you suddenly crave; impulse buying happens on all levels. According to research, 62% of in-store purchases are made impulsively and online buyers are more likely to be impulsive.
Several factors are related to more impulse buying; personality traits such as sensation seeking, overall impulsiveness, a sense of self-identity, and more general factors like motives, social norms, and available resources.
The good news: Various marketing techniques can be used to engage consumers in impulse buying! Follow these four rules and you’ll certainly motivate your customer into more impulse buying:
- Communication. It is important that you speak to the core desires of your customers; don’t sell a beef burger between two buns, sell an explosion of taste that will satisfy your audience’s craving.
- Product price: Increase the perceived value of your products by running sales, promotions, and lowering prices.
- Store ambiance: Create a sensory sensation in on- and offline stores to attract customers and enhance the visual appeal of your designated impulse items.
- Merchandise: Create new or redesign old products to convey the value of your offers to your customers.
2- Want To Make A Great First Impression? Start At Your Customer's Front Door
People often say: You never get a second chance to make a first impression. Research shows us that first impressions of a brand can greatly influence returns, sales, and brand experiences!
While it is commonly known that first impressions are important to people, they can also be relevant for brands. So when to create a first impression? Right when the package is delivered to your doorstep. As soon as you pick up your package and open it up to see the long-awaited content inside.
A positive first brand impression can be created by positively stimulating the four different dimensions of brand experience while the customer unwraps your product; cognitive, affective, behavioral, and sensory. To stimulate the behavioral dimension, your packaging needs to stimulate a pleasant interaction. Use scents, textures, and sounds during the unboxing of the package to stimulate the sensory and affective dimensions and use interesting information on the box to stimulate the cognitive dimension.
If you are consistent in your product packaging and are able to match its quality to that of your product, you may succeed in creating a unique first brand impression that will greatly pay back its investment.
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3- Synchronicity. The one brain metric to rule them all?
Can you imagine the possibilities of being able to predict the effectiveness of your marketing communication? A new measure has been found to exactly do that! Neural synchrony is highly predictive of the success of marketing campaigns and packaging design!
So what is neural synchrony? In short: when the brain activity of person A behaves in a similar way to that of person B, neural synchrony represents the similarity between their brain activity at the exact same moment while watching a movie, listening to music, or viewing a commercial.
Several studies have linked similarity in brain activity to predict the buzz of a tv-show on Twitter, future recall of a movie, and its box-office revenue. Neural synchrony has even been correlated with the in-store sales of a product.
By using brain synchrony in neuromarketing research we are able to better predict and understand what drives consumers. And you too can use this to increase marketing effectiveness!
4- How To Use Price Framing To Your Advantage
What are you looking at most while shopping?
Consumers frequently look at prices while shopping and they indicate that price comparison is a key element of making the buying decision. It turns out that the way these prices are framed can make a significant impact on consumer behavior. Do you know how?
Research showed that when presenting consumers with two different products at different prices, highlighting price differences led to an increase in sales for the more expensive item. When consumers were presented with a message saying; “For only 60$ more!”, 58% chose the more expensive product. When presented with absolute prices, only 42% chose the more expensive model.
What happened here is that the highlighted number shifts consumers' attention to the price difference instead of focusing on the total price. Since the price difference is relatively small compared to the total price the expensive option suddenly seems like a better deal!
So rather than presenting products with absolute prices, present them with price differentials to make expensive options seem more attractive.
5- Are Chatbots Catching Up To Human Salesmen?
With an ever-increasing number of chatbots being created and used for multiple purposes, research shows us that there are multiple things to consider when using a machine instead of a human being.
The study evaluated customer experience with a chatbot of which 97% of its customers did not recognize it was a machine over the phone. It turned out that not the performance of the chatbot itself determined the purchase rate, but the moment when the bot disclosed its artificial identity.
The chatbot was as effective as proficient salesmen only when its identity was disclosed either at the end of the conversation or not at all. However, when disclosure came before the actual conversation, this led to a big drop in purchase rate and an increase in terminated calls.
In absolute numbers, experienced employees still outperformed the chatbots. But interestingly, customers with more experience in using AI-apps showed an increase in purchase rate when they knew they were chatting to a bot right from the beginning.
Practically, this means that when you start using AI-chatbots, you may not want to disclose their identity before the conversation starts, as this will impede customer experience. Also, think about how to use chatbots; while they are unable to beat expert salesmen, they might be very useful to assist employees by analyzing customer questions and displaying the best possible answers.