Growth Hacking, Retention, Acquisition, Conversion: Growthmint

Day 9: Psychology

Growth is about persuading people to take certain actions. The study of this process is called consumer psychology and it looks at the effect of our thoughts, beliefs, feelings and perceptions to our relationship with goods and services.

Consumer psychology combines aspects from marketing, psychology, sociology, social anthropology, and even economics.

It’s really powerful to understand what is going on in the head of your customers, especially if they have any concerns when it comes to purchasing your product.

Pro Tip

Get to know your customers for a more specific understanding of your market. With this knowledge, you'll be able to keep consumer psychology in mind with every customer interaction.

Action

Think of three ways you or someone you know has been influenced by marketing.

Persuasion

Persuasion is the act of attempting to influence behavior. Many people believe they are immune to persuasion and that marketing doesn’t work on them. In reality, persuasion can be subtle, and how we respond to such influences can depend on a variety of factors.

To get better at persuasion, you need to have an empathetic mindset. This means putting yourself in your potential customer’s shoes and understanding the reasons they’ll buy your product and the reasons they won’t.

Such a mindset becomes more important the less you have in common and can relate with your market.

Customer research can help a lot here - once you start to gather details, it becomes easier to understand your customer’s situation.

Example

When you think about persuasion, what comes to mind? Maybe a commercial urging you to buy a product or politician trying to convince voters that he will keep his promises?

Pro Tip

Persuasion has become much harder because consumers have more choices and easier access to information. Your message is also competing for attention with thousands of others.

Credibility and trust

The majority of your purchases over life will be from people that you trust to give you what you pay for. The more trust you can gain before the purchase, the more likely someone will become a customer.

Free trials and free plans lower the barrier to trust. Annual plans raise the barrier to trust because you’re paying for your usage so far in advance, but this raise can be balanced out by offering a discount.

Most people are conservative when it comes to risk. You need to convince potential customers there is a low amount of risk when working with you.

Pro Tip

Ways to increase trust:

  • Credit card companies logos to make a seller look legitimate
  • Large impressive numbers that show social proof
  • Professional design
  • Well-written website messaging

Action

Think of some brands that you trust. How'd they gain your trust?

Social proof

Social proof is a very powerful way to show credibility and build trust. You see it all around you.

Social proof taps into our natural herd mentality. There is safety in numbers and a product that’s used by a lot of people tends to be a safer choice.

If a lot of people have used your SaaS application and you display that number on your homepage, your potential customers are more likely to trust you and become customers.

Pro Tip

There are lots of ways to show social proof. The most common involves impressive numbers.

For some founders, this doesn’t work because they’re too early. Other ways to show social proof involve the endorsement of an expert or celebrity in your industry. Another is with customer testimonials.

Action

What are the different ways you can show social proof to potential customers?

Influencers

Have you ever bought something because someone else did or recommended it? We all have our influencers when it comes to our decisions.

When it comes to your industry, there are people whose opinion your customers trust. If one of those people says to buy your product, many of your customers will. Think of Oprah’s book club - books that make it in see huge increases in sales.

Within your industry’s influencers, there are often people with an outsized influence compared to everyone else. These are the celebrities of your industry.

Pro Tip

There are influencers in every field and they don’t have to reach hundreds of thousands or millions of people to benefit you.

Action

Make a list of 5-8 people in your industry who influence a large number of your audience. How can you reach them?