Larry Rondeau

Controlled studies and years of experience and have proven that good marketing can substantially increase sales. For instance, a social psychology-based campaign centered on an episode of The Apprentice led to the most successful new product launch in Procter & Gamble’s corporate history. Some 40,000 consumers participated, registering at Crest Toothpaste’s campaign website.  While rival Colgate’s sales were flat the following year, Crest’s rose by 4.5%.

But all the success stories generated by high quality advertising can be quickly overshadowed by ill-conceived marketing campaigns that leave a bad taste in consumers’ mouths. I came home recently to find a flyer from a car dealer on the table. “You May Have Won His and Hers 2013 GMC Acadias or $100,000 Cash” it proclaimed, “If your symbols match, you’ve won!” “Scratch off to see if your symbols match.” My wife had already scratched where indicated, and showed me that the two symbols matched – for the Grand Prize of $100,000.

A Glimmer of Hope

I should have known better, but this seeming promise gave me a ray of hope on a cloudy day. It’s been a challenging year. I completed a specialized BS in Marketing Psychology. My CEO of 25 years recommended me as “one of the most capable individuals I have ever had the pleasure of working with,” and said of me, “He is tremendously creative as a problem solver and as an innovator.” Despite that, an industry-wide downturn forced my layoff at the end of 2012.

I received mentoring through an in-depth program in marketing psychology by world renowned expert and presidential adviser Dr. Robert Cialdini. Yet, in this slow economy job offers have been scarce. I won a national award for direct marketing and achieved ROI of 16.5 to 1 in three campaigns. This brought me the appreciation of former clients and praise from New England marketing agency top executives with whom I met, but no job offers. As a 55 year old career changer, my résumé is often screened out by human resource software. This makes it challenging to get interviews for jobs for which I am clearly qualified.

Deceptive advertising leads to disappointed consumers

But now, despite my initial skepticism, it really looked like I had won $100,000. I could envision it funding my search for the right marketing job or providing seed money for a writing and marketing consulting business. I would have to drive more than 100 miles round trip to claim my prize. That seemed a small price to pay. My ride down the Mass Pike was pleasant despite heavy rain. After all, I was going to claim my business future’s foundation.

But, as Shakespeare wrote, “What fools these mortals be!” For when I arrived at the dealership, a nice salesperson explained that despite the flyer’s telling me, “You’ve Won!…Go online now to pick the Grand Prize you want,” the fine print I had read stated that I was only guaranteed to win one of the prizes shown on the page. In all my enthusiasm and gratitude for a seeming oasis in my financial desert, the import of that statement hadn’t registered. I walked away, not with the $100,000 I envisioned, but with a $5 Walmart gift card. It wouldn’t even cover the gas for my trip! I left disgusted, feeling that I’d been tricked.

Ignoring basic human psychology

As I re-examined the flyer, I recognized a fact to which my earlier enthusiasm had blinded me. The statements, “You’ve Won” and “Go online to pick the Grand Prize you want” were preprinted. Every recipient had been told that they had won the Grand Prize. This undoubtedly increased showroom traffic at the dealership. But at what cost?

Both science and history prove that raising then dashing their hopes is one of the surest ways to make people angry. Dr. Cialdini quotes James C. Davies statement that “we are most likely to find revolutions at a time when a period of improving economic and social conditions is followed by a short, sharp reversal in those conditions.” Cialdini cites the example of Russia under Gorbachev. This progressive Soviet leader had broken with his predecessors, allowing Russians a bit of freedom and a realistic hope of prosperity.

When a junta of government, military and KGB officials staged a coup and placed Gorbachev under house arrest in August, 1991, it appeared that Russians would acquiesce and return to the repressive life they had always known. But instead, they rioted in the streets for three days. They ignored the threats of tanks and troops, demanding Gorbachev’s return. Amazingly enough, they won! The plotters were soon begging for mercy.

The sad consequences of deceptive advertising

Soviet officials who tried to deprive Russians of the basic freedoms they received under Gorbachev failed. Similarly, retailers who lead consumers to sure disappointment with misleading advertising campaigns will suffer the consequences. Cialdini states what years of research has revealed:

“An innocent association with either bad things or good things will influence how people feel about us.”

Blameless TV weathermen have received death threats when storms ruined viewers’ vacations. Will advertisers who deliberately hoodwink consumers be rewarded for misleading them? Undoubtedly, the direct marketing initiative this GMC dealer allowed to be run in their name will bring lots of prospective customers to the showroom.

But since both the flyer and its associated website seemed to strongly promise that they had won the Grand Prize, most will leave disappointed in their meager winnings. Some will feel they have been ripped-off. Big corporations devote significant advertising dollars toward making consumers feel good about their companies and brands. This dealer made the vast majority of his prospective patrons feel badly. That will not bode well for future business.

Wise marketers carefully consider both the short and long-term effects of their efforts. Their goal is not myopically boosting traffic, but increasing sales and customer commitment. Hall of Fame car salesman Joe Girard sold an average of 5 cars and trucks every workday by encouraging customers to like him. How will dealers whose advertising makes people dislike them fare? Companies that sign on with agencies who mislead consumers in their name are shooting themselves in the foot. Years of experience have proved wise King Solomon right:

“A good reputation is more desirable than great wealth, and favorable acceptance more than silver and gold.”

That is particularly true in this information age. A good reputation is essential for prosperity. Misleading marketing campaigns rob merchants of this vital asset and hurt their business.

 Larry Rondeau is open to marketing and writing opportunities.  Email him now at larryrondeau@cox.net.

Mobile as a marketing channel is definitely on the move. A Pew Research study reported that 56% of U.S. adults now own smartphones.  Smartphone usage is highest among younger, better educated and more highly paid Americans.  They represent the very consumers often targeted by retailers, insurance carriers and financial services providers.

It’s important for mobile marketers to get it right the first time. Studies by social scientists confirm the old adage, “First impressions last.” This is particularly true in mobile marketing. The Skava Consumer Mobile Shopping Survey found that 30% of consumers who have a bad mobile purchasing experience never return to the offending site.

How can mobile marketers get it right the first time? 

A key factor is having people with the right knowledge base working on mobile e-commerce sites and advertising. There are undoubtedly many skilled IT professionals in this field. Certainly many talented marketers and website designers work in mobile as well. But what appears to be lacking in many smartphone-enabled sites is a good understanding of mobile marketing psychology­ – the psychological factors that come into play when consumers use their smartphones in making purchases.

Setting the right mood

Clearly, goal and reward seeking is a major motivator for anyone using a smartphone in shopping. When prospective buyers pick up their smartphones, they want to get information, essential product knowledge, price comparisons and money saving coupons. The more easily and quickly they can obtain them, the better they like it.

Mobile websites that facilitate this accomplish an important objective. When consumers quickly and easily obtain what they want, it makes them happy. Those good feelings get attached to the website that provides them. “An innocent association with either bad things or good things will influence how people feel about us,” states influence expert and presidential adviser Dr. Robert Cialdini.

Innocent associations – like Pavlov’s dogs salivating at the sound of a bell that was often rung when they were fed – attach good or bad feelings to something that was merely present when the feelings occurred. Thus, advertisers race to associate their products with star athletes and popular celebrities whom their audiences like and quickly distance themselves from those whose words and actions earned public disfavor (like Paula Deen and Aaron Hernandez).

If brands earn points by merely being seen in the presence of sports heroes and popular celebrities, imagine how quickly good or bad feelings can get attached to mobile sites that readily give us what we want (or fail to) when we’re in a hurry.

Calming fear of loss

Consumers naturally seek to avoid loss and reduce risks. Dan Ariely, MIT Professor of Behavioral Economics writes, “We focus on what we may lose rather than what we may gain.”  People go out of their way to minimize risk. Thus when Amazon.com founder Jeff Bezos wanted to help consumers become comfortable with purchasing online, he wisely chose to start with a low-risk product: books. Purchasers recognized it was highly unlikely that a book they bought there would turn out to be fake.

Many who regularly shop online may hesitate to do it on their smartphones. After all, mobile uses a different system and may not feel as secure. We see news stories or dramas on TV showing how easy it can be for knowledgeable persons to “clone” our phone or perhaps pick up personal data.

Mobile sites that make it clear they are secure (and live up to that claim) can gain an edge. Merchants that allow customers to voluntarily store a credit card number on that site and permit them to use that card automatically for purchases help patrons avoid the feeling of risk. They may feel unsafe entering their credit card information while in public and transmitting it over the air.

Make consumers feel comfortable and safe shopping on your mobile site and many will return regularly. The need for security is a major motivator.

Avoid irritating customers

Imagine how you’d feel if, while navigating an unfamiliar highway with your GPS and trying to find the right exit at high speed, your navigation page or map was suddenly replaced by an ad. Even if the advertisement is for a product you like, or if it offers you a useful money saving coupon, chances are you will find it pretty irritating, even infuriating.

Mobile advertisers often do something similar. Determined to give clients’ products the widest possible coverage, they will arrange for ads to pop up on key sites. Often the ad fully or partially blocks the content users seek, perhaps when they really need it. Trying to close the ad on the small screen may result in an unintended visit to the sponsor’s homepage. It can feel as if hijackers have taken over the phone!

Mobile marketers who do this are truly harming themselves and the products they thus advertise. As Cialdini stated, ‘an innocent association with bad things will influence how people feel about us.’ Products associated with aggravation in ways that appear less than innocent will certainly not escape.

By making mobile ads invasive and irksome, marketers inadvertently connect the bad feelings they generate directly to the advertised product. Marketers who are schooled in social psychology will find better ways to deploy mobile advertising. They will see their ROI and reputations steadily improve as competitors continue the unwise practice of making mobile ads pop up in ways that inconvenience users.

Conclusion

Marketing psychology is the practice of using scientifically proven tools of influence in crafting marketing strategies and tactics. Research has revealed a number of effective ways to increase response rates, conversion and sales. As mobile continues to grow as a source of revenue, those who market effectively on this burgeoning channel will only increase in value to their clients and organizations.

Learning consumer psychology and how it applies to mobile (or adding a marketer schooled in this discipline to your team) will improve your chances of success now and in the future. If you’re interested in discussing this further, please email me here.