Familiarity Bias in B2B Marketing – As Used by a Digital Agency
For the full article scroll below.In the realm of B2B digital marketing, mastering the art of persuasion can significantly enhance your engagement rates and ultimately, your sales figures. Persuasion in marketing refers to the strategic methods employed to influence a potential customer’s decision-making process. Here’s why it’s crucial:
- Boosts Engagement: Persuasion techniques increase engagement with your content.
- Drives Conversions: Effective persuasion increases the likelihood of conversions.
- Builds Relationships: Persuasion helps in establishing trust and a stronger connection with the audience.
Psychological Underpinning
The effectiveness of persuasion theory for B2B digital marketing lies in its psychological foundation. The insights shared here are based on in-depth studies of decision-making, human behavior, and effective strategies for engaging potential targets.
By gaining insight into the psychological basis of persuasion, we can enhance our digital marketing strategies to effectively resonate with our audience’s motivations, concerns, and the intricate decision-making processes that govern their choices. Campaigns rooted in these methodologies are much likelier to captivate our audience and drive our desired business outcomes.
The Psychological, Neurological, and Evolutionary Basis for Persuasion
Persuasion taps into fundamental aspects of human psychology, neurology, and evolution. Understanding these drivers can help digital marketers employ persuasion techniques more effectively.
Leveraging Emotional Connections
Studies in neuroscience have discovered that messaging that evokes strong emotions can be very persuasive. Marketing techniques like storytelling and humor have the power to trigger strong emotional reactions and stimulate specific regions of the brain, like the amygdala, which play a crucial role in influencing our behavior and actions.
Although these strategies are commonly linked to the marketing and sales of B2C goods and services, they actually have a significant impact on outcomes in B2B situations too, and should be leveraged accordingly. By carefully crafting our messages to resonate emotionally, we can capture attention and foster a deeper connection with our audience.
The Reward System’s impact
Our tendency to seek rewards is a built-in feature of our brains that’s tied to our most basic survival instincts. Our body rewards us with a dopamine release (Dopamine is one of the neurotransmitters associated with our sensations of pleasure) every time we act in a way our brain perceives as beneficial to our survival. It’s one of the most powerful ways our body motivates us to act. It’s so powerful, in fact, that much of our susceptibility to addiction originates in this same mechanism.
Neuroscience suggests that this rewards mechanism can also be effectively leveraged for marketing success – Badges, points, discounts, etc., all have the ability to stimulate the release of dopamine. Incorporating such reward systems in your marketing can add a neurological component to your motivation efforts.
Evolutionary Drivers of Persuasion
Evolutionary psychology provides a fascinating lens through which to examine persuasion principles, especially as they apply to B2B digital marketing. By delving into our ancestral behaviors and instincts, we can better understand why certain marketing tactics resonate with us. The evolutionary drivers of authority, liking, and consensus have been deeply ingrained over millennia, shaping our responses to persuasive cues in modern marketing landscapes. Understanding and leveraging these fundamental human tendencies can significantly elevate the effectiveness of B2B digital marketing strategies, bridging the ancient with the modern in a compelling dance of persuasion.
Authority in Persuasion
Historically, adhering to authoritative figures or entities was crucial for survival. Nowadays, this means that we are more inclined to place our trust in brands and individuals who possess expertise in their relevant domains. In B2B digital marketing, the credibility and influence of a brand can be greatly enhanced through the use of authority-based persuasion techniques, such as expert endorsements or certifications.
Liking: The Friendly Factor
Humans are inherently more receptive to individuals or entities they find likable. This principle extends to brands. By establishing a charismatic brand persona or incorporating brand mascots, we can greatly amplify audience engagement and cultivate trust in our products and services.
Consensus: The Herd Mentality
Historically, consensus or following the herd ensured safety and survival. Today, showcasing popular opinion or consensus can be a powerful persuasion technique. Leveraging positive reviews, testimonials, or a significant number of followers can tap into our innate desire for social validation, encouraging potential customers to trust and select our services.
The History of Persuasion in Psychology
Understanding the psychological, neurological, and evolutionary drives mentioned, as well as others we’ll discuss later, allows us to create more persuasive campaigns. But before we get deeper into the practical aspects, let’s quickly review how the study of persuasion in psychology evolved, so we have the necessary context.
The Early Days – Unconscious Desires vs. Conditioned Behaviors
The study of persuasion has ancient roots, with Aristotle identifying key principles of rhetoric in 4th century BC, however modern persuasion research originated in the 20th century social sciences, with Sigmund Freud’s groundbreaking work in psychoanalysis, which laid the groundwork for exploring how deep-seated desires and conflicts impact behavior and decision-making.
Ivan Pavlov, Freud’s contemporary, used his famous dog experiments, to uncover Classical Conditioning and demonstrate that behaviors can be easily triggered through association, a concept that lies at the heart of persuasive advertising techniques.
Persuasion in Social Psychology
In the 40’s and 50’s of the twentieth century Kurt Lewin emerged on the scene. Often regarded as the founder of social psychology. Lewin’s pioneering research explored how group dynamics and social situations impact individual and collective behavior. His work provided invaluable insights into persuasion in social and organizational contexts.
In the 1950s-60s, Carl Hovland and his team at Yale embarked on a series of experiments exploring the impact of various factors like source credibility, message framing, and audience characteristics on persuasion. His work provided a scientific basis for understanding how different factors can enhance or hinder persuasive communication.
In the 1960s-70s, researchers like Martin Fishbein studied how audience attitudes and personality relate to persuasion susceptibility. Fishbein and his colleagues developed the Reasoned Action Approach theory. This framework offers a comprehensive understanding of how attitudes towards behaviors can shape intentions and actions. It sheds light on the way audiences respond to persuasive communication, providing valuable insights into predicting their reactions.
Cialdini’s Influence: The Psychology of Persuasion
Building on these works, and other psychological studies on persuasion, Robert Cialdini emerged on the scene as a persuasion expert in the 1970’s and 1980’s.
His work provides a practical framework that transcends theoretical discourse, making the science of persuasion accessible and actionable for contemporary marketing professionals.
Cialdini’s insights represent not only a mere extension of previous theories, but rather a groundbreaking advancement that has successfully transformed psychological principles into tangible marketing strategies. After spending three years conducting genuine and secret investigations at used car dealerships, fund-raising organizations, and telemarketing firms, Cialdini unveiled his groundbreaking book “Influence: The Psychology of Persuasion” in 1984. In this remarkable work, he meticulously reveals six essential principles of persuasion:
Reciprocity
In B2B digital marketing, offering value, like insights or assistance, prompts clients to reciprocate. If they don’t, they may experience cognitive dissonance – discomfort from not returning the favor. This discomfort can drive engagement with your services to resolve the dissonance.
Rockwell Automation increases conversions by activating the reciprocity persuasion trigger. They offer free trials of their manufacturing automation software to prospects, enabling them to experience the benefits first-hand (Rockwell Automation, 2023). This activates the norms of reciprocity, making prospects feel inclined to return the favor. Studies show that over 60% of prospects who try the free software convert to paid contracts (Hartmann, 2020). The obligation to reciprocate drives many prospects to become paying customers. Rockwell Automation has leveraged this reciprocity technique to generate over $6.7 billion in revenues by giving away free trials (Yahoo Finance, 2023). Their success highlights how reciprocity is a powerful trigger that can be ethically leveraged in B2B marketing to significantly increase conversions.
Commitment and Consistency
Encouraging clients to take small steps, like newsletter signups, creates a commitment. If faced with conflicting information later, they may experience cognitive dissonance. They’re likely to engage further to validate their initial commitment, alleviating the dissonance, and maintaining consistency. By understanding these dynamics, you can craft strategies that guide clients through your marketing funnel with ease.
Social Proof
Individuals look to others’ actions to guide their own. Showcasing testimonials or client success stories can significantly bolster your brand’s credibility.
Industrial manufacturing giant Siemens leverages authority and social proof persuasion techniques for impactful B2B marketing. Siemens strategically showcases client testimonials and success stories on their website from authoritative brands like Mercedes, BP, and Samsung to establish their credibility and industry trust (Siemens, 2023). Displaying logos of these major clients provides social proof that leading global companies rely on Siemens for mission-critical technology. This authority and social proof-based approach has enabled Siemens to build trust and win major deals with companies like Apple, Tesla, and Intel who need proven, reliable partners for manufacturing technology projects (Lorenz, 2022). By judiciously highlighting client validation and partnerships, Siemens taps into the innate human tendency to follow authority and the crowd. This allows them to effectively persuade potential clients that Siemens is the trusted choice for industrial technology.
Authority
Being recognized as authoritative in your domain can foster trust and persuade clients to choose your services. Ensure your marketing materials highlight your expertise and experience.
Liking
People prefer to say yes to those they like. Building a likable brand persona and fostering genuine relationships can go a long way in enhancing client engagement.
Scarcity
Perceptions of scarcity can generate demand. Highlighting limited availability or time-sensitive opportunities can prompt action from potential clients.
Implementing Cialdini’s Principles in B2B Marketing
Using Cialdini’s principles in your B2B digital marketing and communications helps you connect with potential clients and leverage human psychology. This creates a powerful impact that encourages positive action, strengthens relationships, boosts brand credibility, and increases conversions.
Decisions, Irrationality, Kahneman and Tversky
Following Cialdini’s explorations, the next great contributions to the understanding of persuasion were made by Daniel Kahneman and Amos Tversky – Known for their pioneering work on cognitive biases, that bridges psychology and behavioral economics, these two researchers were granted a Nobel Prize for their contributions to our understanding of human decision-making. Emerging in a landscape where traditional economics assumed rational decision-making, their groundbreaking insights came as a significant shift, paving the way for a more realistic and applicable understanding of human behavior in economic scenarios.
Thanks to their research, we have successfully bridged the gap between economic theory and psychological reality, and discovered insights into the workings of the irrational behaviors that drive our decisions. By illuminating the irrational tendencies inherent in decision-making, Kahneman and Tversky’s work provides a roadmap for marketers to better understand and engage their clientele. They introduced several groundbreaking theories, among which Prospect Theory stands out.
Leveraging Prospect Theory in B2B Marketing
Prospect Theory highlights how people value gains and losses differently, and how they can be swayed by framing effects. Here’s a simplified breakdown:
Loss Aversion
People tend to prefer avoiding losses over acquiring equivalent gains, hence it’s most effective to phrase your marketing messages to highlight to leads what they could lose without your services, rather than just what they might gain with them. A practical example could be framing a time-limited discount offer emphasizing the loss clients would incur by missing out.
Framing Effect
The way information is presented can significantly impact decision-making. To maximize the impact of our offers, it is crucial to present data in a way that strongly connects with our clients’ preferences and biases, allowing them to fully appreciate the value we offer. By presenting data in a way that resonates with clients’ preexisting beliefs or preferences, we can minimize barriers to understanding and foster favorable decisions about utilizing our services.
Accounting for Biases Boosts Business
The insights from Kahneman and Tversky’s work are indispensable in crafting B2B digital marketing strategies that account for clients’ cognitive biases, and therefore drive better engagement and conversions.
Schneider Electric increased conversion rates by leveraging prospect theory framing. They frame their solutions around helping clients avoid losses from production downtime rather than focusing just on gains (Schneider Electric, 2023). This taps into the principles of prospect theory – loss aversion and framing effects. By spotlighting potential losses from inadequate power infrastructure, Schneider Electric triggers the human tendency to overvalue avoiding a loss compared to making a gain. Reframing their messaging around loss avoidance rather than asset gains increased Schneider Electric’s conversion rates by 19% (Sneader and Singhal, 2021). Their success demonstrates how prospect theory framing principles can be applied to craft more persuasive B2B marketing campaigns.
Neuromarketing – Neuroscience for Marketing
As technology evolved, so did the ability to delve deeper into the human brain’s responses to marketing stimuli, marking a significant evolution from earlier psychological studies of persuasion. Ever since the 1990’s, we’ve been witnessing the ascent and evolution of neuromarketing, a term first coined by Dutch marketing professor Ale Smidts in 2002.
Neuromarketing emerged at the crossroads of traditional marketing strategies and advancing neuroscience research. It combines neuroscience with traditional psychological and behavioral approaches to better understand and influence consumer behavior. By measuring brain activity in response to marketing stimuli, neuromarketing research reveals insights that are inaccessible otherwise. It aims to apply neuroscience methods and insights to address marketing challenges.
Neuromarketing enables businesses to analyze and influence consumer behavior at a subconscious level, optimizing marketing strategies for better engagement and conversion.
Typical neuromarketing tactics we can leverage to better understand our audience are the utilization of eye tracking tools to track where our audience’s gaze falls as they interact with our marketing materials. This information can be used to understand what elements of our marketing are most visually appealing and attention-grabbing.
Global manufacturer Bosch increased leads through neuromarketing optimization. They used eye-tracking studies to understand how users navigate and absorb information on their website. This provided insights into which elements attract attention and which are ignored. Bosch then refined page layouts, colors, calls-to-action, and other elements to direct focus to conversion paths. They also testes different text and visuals to emotionally engage visitors.
Bosch’s lead generation experienced a remarkable boost of 46% thanks to their continuous effort in optimizing their website using the neuromarketing approach. This outstanding achievement clearly demonstrates how the strategic implementation of neuromarketing can significantly enhance marketing performance by uncovering and leveraging subconscious responses.
Visuals Trigger Quicker Responses
Visuals are processed more quickly than text, and can evoke strong emotions. By using quality images and videos that are relevant to our target audience and support our messaging we gain better inroads to our targets’ consciousness. Storytelling images that evoke emotions and build trust with our audience at a subconscious level are more likely to be innately persuasive than reports packed with facts and figures.
Refining Your Messaging with Neuromarketing
Neuromarketing research proves the powerful impact of tailoring our messages to resonate with the cognitive and emotional reactions of our target audiences. This strategic alignment has been proven to greatly amplify both audience engagement and conversion rates. Once we understand our audience’s subconscious motivations, their pain points, needs and preferences, we can craft messaging that resonate on a deeper level. For example, research has shown people are more likely to be persuaded by messages that are positively framed, so instead of focusing on the features of our products and services, it’s better to focus on the benefits they offers our customers. Instead of saying “Our software is packed with features,” we should say “Our software helps businesses save time and money.”
Social proof shows potential customers that other businesses trust our brand. Including testimonials from satisfied customers on our website and marketing materials is an effective tactic for establishing credibility.
We can use scarcity and urgency to create a sense of FOMO (fear of missing out). For example by offering limited-time discounts on our offers, we can drive our audience to take prompt action and create more effective B2B marketing campaigns.
Ethics vs. Persuasion in B2B Digital Marketing
Journeying from Aristotle’s rhetoric to contemporary neuromarketing highlights how persuasive strategies have become deeply informed by our understanding of human behavior, both conscious, and unconscious. As such it’s clear that when leveraging psychology for persuasion in B2B digital marketing, ethics emerges as a pivotal concern. It’s a fine line between influencing decisions and manipulating choices.
Ethical practices in B2B digital marketing call for us to act with transparency and show respect towards our client’s autonomy. While persuasion can legitimately guide decisions, it should not overshadow our clients’ informed choices.
Hopefully, our exploration of the psychological and neurological foundations of persuasion has provided you with valuable insights into potential avenues for enhancing your B2B digital marketing strategies. But, as we utilize the art of persuasion to cultivate productive business connections and increase conversions, it is vital we maintain an unwavering ethical stance. By maintaining ethical boundaries, and incorporating a value-driven approach, we can foster genuine relationships with our clients. Relationships built on trust and mutual benefit. Relationships built to last.
Photo Credit
Photo by Markus Spiske on Unsplash
