5 fresh ways to reduce consumer risk aversion
Thursday, April 11, 2019
As a marketer, one of your goals is to keep your demographic as reassured as possible about parting with their hard-earned cash when choosing your brand's product. Yet, consumers can be risk-adverse about spending in surprising ways.
Cutting-edge research has been looking into the phenomenon of unusual reason for risk aversion. The good news is you can use these findings to make what your brand offers more appealing to your target demographic. Use the following strategies to obtain great results!
Watch the weather.
Research from McGill University found that people are more likely to take chances on sunny days or on days when positive things are happening in their communities. If you're doing a local product launch on short notice, try to schedule it during nice weather.
You can also implement images of sunshine and blue skies into your marketing images, if appropriate, to foster good feelings and make consumers more likely to try your product.
Focus on closure.
The American Marketing Association reports that consumers often associate change with loss of control so they tend to "freeze" decisions in place, such as driving an old, unreliable car rather than taking the chance they'd spend too much money on a new one.
The solution to this: emphasize the benefit of closure in your marketing campaign. For example, an effective message might be, "if you buy this car, your worries are over."
Encourage independent info-gathering.
A study by Indiana University found that amateur investors who think they know what they're doing when they actually don't are three times more likely to make bad choices when participating in equity crowdfunding.
Overconfident investors often follow the herd too blindly, don't utilize information effectively, and make decisions too fast. You can win investor confidence by directing new potential investors to online training courses that will give them the basic info they need so they will accurately and clearly see the benefits of working with you.
Be careful not to exploit psychological beliefs to falsely gain trust. Research from the Association for Psychological Science found that people who think it's hard to find a romantic partner may go all-in on risky investments, because they're willing to do anything to make them stand out if they are rewarded for that risk.
The obvious downside; they regret their investment when it doesn't work out. Emphasize how your company is all about long-term, stable success, which is much more attractive and reassuring.
Ask your audience how to help.
Surveys targeting your existing demographic can help you identify why your product is trusted on a granular level. Ask in detail why consumers feel safe utilizing your products and services; ask how they could feel even safer, too.
Then, use the info you gather to build even more supportive, fact-based advertising. And make everything you offer the best it can be — that's a surefire way to keep consumer confidence at its strongest!
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