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October 31, 2022

Cognitive bias in marketing and sales

Marketing
Cognitive bias is a form of thinking that deviates from logical and rational thinking. These thoughts facilitate decision-making, but tend to cloud our judgment. Find out how they are commonly used.
Cognitive bias in marketing and sales
4 minutes of reading

Ever had the feeling that your brain is playing tricks on you when making a purchase? It's probably due to cognitive bias! Based on old disciplines such as consumer behavior, neuromarketing is a recent trend (early 2000s). This practice focuses on cognitive biases as sales triggers! How can you use them to optimize your marketing process? We'll let you in on a few secrets 😉

An easy definition of cognitive bias

Cognitive bias is a form of thinking that deviates from logical, rational thinking. These thoughts facilitate decision-making, but tend to alter our judgment, influencing our choices: we then speak of "distorted judgment". Cognitive biases are initiated by the brain: to take action or make sense of complex reasoning, the brain uses unconscious subjective beliefs, or "mental shortcuts".

Cognitive biases are innate and unconscious, which is why they are particularly useful as persuasion techniques.

How are cognitive biases used in marketing?

Let's take a look at the 5 most important neuromarketing principles or biases, particularly used as persuasion techniques to sell more and sell better!

Scarcity bias

A powerful persuasion technique, scarcity bias is based on the following principle: anything that's rare, not easily accessible... has more value in our eyes! This is the case, for example, with temporary content, products or services. Better still, the fact that the product's quantity is decreasing leads us to attribute greater value to it.

The scarcity bias is linked to FOMO, the fear of missing out. Used sparingly, it's a formidable marketing tool. Beware: it can create stress and lose credibility if scarcity is "artificial".

Example of scarcity bias:
The countdown timer on websites, indicating the end of an ongoing promotion. Booking.com is a perfect example! Or the launch of limited editions by fashion brands 😊

Principle of commitment & consistency

When consumers express themselves (speech or actions), they then seek to act in a way that is consistent with their commitments. The aim is to encourage the person to become ever more committed to you: first you make a small request (subscription on social networks), then you increase the "value" of the commitment little by little (newsletter subscription, discounted offer, then purchase of a premium pack).

Example of the commitment principle:
Freemium offers. The aim is to let consumers try out part of the product for free, or at a reduced price. The first commitment is created with the consumer, and then it's a matter of delivering enough value to convince them to stay (or buy the whole product).

Reciprocity bias

"You give to me, therefore I (re)give to you": this is the principle of the reciprocity bias. It's based on a norm that governs our society. When someone does you a favor, you owe them a favor in return. This gives us the impression of being bound by an "imaginary contract" 😉

Example of reciprocity bias:
Fundraising organizations. These give away free goodies or samples while asking for donations. This principle is widely used in the charity sector, but not only: companies and brands that give away (a lot of) free content on the web, expect a return (newsletter sign-up, word-of-mouth, purchase)!

Authority bias

Social status, even if it's only represented by a symbol, is an extremely powerful factor of influence. For example, someone who has a particular title or diploma, wears specific clothes, has spoken in particular places, etc., is given more importance. Don't hesitate to highlight your expertise through elements of credibility.

Example of authority bias:
In an advert for an anti-dandruff shampoo, an expert in a white coat intervenes. Some brands also use public figures to sell their products (e.g. a racing driver in a car ad).

Social proof

When it comes to making decisions, we tend to copy the behavior of the majority. The principle of social proof is to highlight all the elements that can reassure the consumer: insisting that "others have done it before". Social proof is an excellent technique for building confidence and demonstrating the effectiveness of a product or service. 

Example of social proof:
Testimonials and case studies on company websites, micro-influencers and their recommendations via social networks, discussions on self-help forums, video unboxing...

Often demonized, these persuasion techniques are nonetheless highly effective in marketing. Be careful not to fall into the trap of "manipulation": some companies use cognitive biases in an unethical way, in their communication and sales.

It's up to marketing teams to set the limits: it's not a question of manipulating consumers or lying to them, but rather of activating existing human behaviours, while maintaining perfect professional ethics!

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