Use These 15 Cognitive Biases to Smoothen Your Marketing and Increase Revenue

According to a survey, the average American spends as much as $276 on impulsive purchases, which is hardly different in other countries. In fact, purchases like this and many other irrational actions are caused by the same reason.

Cognitive biases are repetitive errors in our thinking resulting from how our brains function.

According to the HBR, our brain has 2 decision-making systems:

• System 1 is used to make automatic decisions that are essential for living. We make them using preformed disposition and cognitive biases.
• System 2 is responsible for proper analysis wherein each decision takes time and effort.

Our brain is lazy, so we try to make the majority of decisions, including the most important ones, using System 1.

If you're a marketer and you are creating a landing page or marketing creative or developing an entire product, appealing to your customers’ biases will help you get your product sold quicker and easier. In this article, I'll describe the 15 most helpful ones and show how we use them to increase landing page conversions.

1. The IKEA Effect

If a person has given a piece of themselves to a product, they are more likely to enjoy it better afterward. One of the reasons why we appreciate IKEA’s furniture is because we often build it ourselves and get attached to it. If there is any way users can customize your product or service, encourage them to do so.

For example, suggest that they take part in a beta testing. Clients will become more loyal when they are involved in making the product better for themselves. Of course, this will only work if they see the almost final version without massive bugs. Otherwise, the results would be just the opposite.

2. Mere Exposure Effect

People tend to like things they are already familiar with. The obvious example of getting familiarized with a product is a test period. However, this is not the only practical implementation. The website interface and other pieces of design should also be created using style and language that are well-known to your target audience. A unique style is good, but people are more likely to be converted to purchase when the format they see is understandable and when they do not have to think twice about how to use it. For example, if the “search icon” is designed as glasses, it might be confusing even though we all know that those items can be used to find something–we just do not associate them with searching the web.

3. The Loss Aversion Effect

People hate losing money even more than they love getting them. This can be widely used in copywriting: slogans like “stop wasting” plus special offers are very attractive to potential clients. Moreover, they tend to be more effective than similar ones that do not apply this bias directly, for example, “Start saving.”

4. Zero Risk Bias

People tend to analyze all possible risks very carefully. Thus, they are more likely to buy something completely new for them than continue using what they already have. That’s another reason why the free test period is effective in terms of conversion: yes, some people use it just to get your product for free, but many are likely to follow their biases and get attached to it. Moreover, the marketer can use this bias if the clients are about to stop the trial and remind them of the benefits they will lose.

In our case, we introduce money pay back-back guarantee if people can’t find a job after the course. First of all, it does align with our mission, but also it helps the clients feel less nervous: they are sure that they don’t risk anything if they study properly.

5. Neglect of Probability

When people are unsure about something, they tend to overestimate possible risks. So the role of a marketer here is not to let customers think that something might be risky. The website should contain answers to all the questions the user might have. This is especially important in the case of numbers, personal data, and probable extra terms or fees. ANY uncertainty can be crucial for a client. However, this bias makes payback guarantee a very effective tool. Almost nobody would actually use it, but it makes the customers feel less risky and, consequently, more willing to pay. This is how we appeal to this bias on our website: by showing the full picture of the course experience. Without it, potential clients would feel uncertain and never buy the program as a result.

6. The Negativity Bias

People pay more attention to negative feelings than to positive ones. So the creatives and slogans should address the problems and pains that a client will be facing without the product or service. A person might not even know that he or she needs the benefits provided by the product but will surely notice the problem they can solve.

7. Selective Perception

We tend to ignore facts that contradict our pre-determined beliefs. Because of this, a marketer must confirm what users already know or feel. This can be effectively done by demonstrating reviews, especially from people who are similar to your target audience. In this case, selective perception will help users see what they want to see: people who are just like them and who like your product.

8. The Argument From Authority

This is another reason why reviews are such a powerful marketing tool: we tend to believe people who have some influence in the eyes of others. Due to this bias, users are likely to trust bloggers or celebrities – and marketers do use this quite often and successfully. But as stated before, this kind of advertising would work only if the target audience sees the authorities as like-minded people. For example, when launching the marketing course, we asked the CMOs of well-known companies to give us a review. That was effective as they were the authorities in this field and helped us create the brand. Another way to use this bias might be to prove that your experts are true “experts” by showing their experience. In this case, authority is the company where they work, which is well-known to the clients.

9. Consumer Skepticism

Even though the marketer should create a positive image of the product or service, it is not supposed to be too idealistic because this may cause people to simply not believe reviews or descriptions. This isn’t to say that they should be put in a negative light – they just have to be realistic.  Remember how many times you refused to purchase a product because it just seemed too good to be true?

10. The Illusion of Truth Effect / The Reiteration Effect

The more we hear something, the more we believe it. Is KFC’s chicken really “finger-licking good” or do we just see this slogan too often that we associate it with the restaurant’s food? Both are equally possible, but this phrase does make us think about it. So people tend to believe in what is most talked about, and your slogan should become one of them! In our case, we are aiming to learn the skills needed for the occupation, and this is associated with our slogan.

“Learn to earn”

11. Herd Behavior

It is probably the most well-known cognitive bias, which shows that people take action when they see many others doing the same. So a marketer’s role is defined by the creation of this feeling! One way is showing reviews from real people, and another can be a direct emphasis on the fact that many are choosing this way of behavior– the number of users, the most chosen tariff plan, and any other numeric values that represent the majority.

12. The Asymmetric Dominance Effect / Decoy Effect

People face difficulties when choosing between several similar options. The hardest is choosing between only two opportunities that seem to be almost equally good. In this case, conversion might not happen at all. But marketers can use this bias and create 3 options, including the best variant for most people to choose and the not-so-expensive option that already has the most useful features.

13. Information Overload

You may be thinking: “But why you are suggesting creating only 3 options?” The reason is that we struggle when there is a need to choose between too many options, even if they are all very diverse. It can be challenging, for instance, to choose a meal from a restaurant's menu when there are numerous options and many of them appear to be superior. And when customers encounter this difficulty, they are unlikely to purchase anything at all, especially if they are not sure if they even need the product. So three variants make just the best variety: the clients do not feel like they have no power over the situation but still do not have to overthink and can make an actual choice.

14. Present Bias

People like to get presents and would prefer to have a smaller one right away than a bigger one later. So they find it nice when they receive a gift for purchasing goods or services. But it is even nicer when the freebie constantly changes because people love surprises. Consequently, bonuses and special offers can become a key to increasing the retention rate. These techniques can motivate your clients to buy more in order to get more rewards. One of the ways to lead your customer to purchase is not sparing giving useful information for free.

15. The Primacy Effect

People tend to remember the information at the beginning of a list better than those in the latter parts. So the products’ benefits and other important information must be stated first. Moreover, formulate it in a way that if users only decide to read a couple of lines, they still know enough to be converted. Nevertheless, people also pay attention to a list’s conclusion, so the items there should also be pretty compelling.

Conclusion

Some of the techniques that I described might seem too obvious. However, it is always better to implement a strategy not because everyone else is doing it but because you know the psychological reason behind it.

Furthermore, we see many examples of industry leaders utilizing cognitive biases in their marketing strategies. The most prominent example is Booking.com: just have look at their website and calculate how many of them you see.

It is difficult to determine whether this website's success is a result of its convenient system, but correct appealing to cognitive biases definitely plays its role.

So, the awareness of cognitive biases can become a very successful marketing tool, which could help increase conversion and revenue if correctly used.