How to drive your marketing using the endowment effect.
Have you ever purchased a really expensive item of clothing, hardly-to-never worn it yet struggle to give it up? Welcome to the endowment effect in marketing.
WHAT IS IT: Basically it's the emotional attachment and perceived higher value we place on items because we posses them. It's behavioural psychology at it's finest but we can utilise this in our own marketing efforts to help support the client experience.
HOW TO BUILD THE ENDOWMENT EFFECT INTO YOUR MARKETING :
Create an opt in free resource to help clients experience your wisdom/offerings - builds trust and credibility.
Free Trial - again to experience. Think of how you can use an app or software before purchase with no credit card.
Guarantees - 30 day free trial or money back guarantee.
Coupons/giveaways/10% off - e.g Uber gives $15 towards first ride.
Loyalty Programs.
Freenium versions - free and paid versions and likely once people see value and benefits they will pay for added features .
Use emotive imagery that makes people feel connected.
Sensory experience - e.g Apple stores letting you play with product in stores gives people a sensory experience that makes them more invested to own one.
Limited time offers or timelines - FOMO will ignite action and fuel connection
This isn't about being 'saley's' or pushing your brand but about incentivising your ideal client to have an experience and therefore create a connection and see the value in what you provide/give.
Now more than ever loyalty, connection and value are the keys to building conscious and profitable businesses but you are fighting a lot of 'noise' so it's important to understand behaviour and how to find your voice in it.
