Consumer psychology might sound like a tricky medical term but in layman terms, there is hardly anyone who doesn’t know about it. It is nothing but the fact how consumers act when they face different situations. What they think about? How they think? Why they select a particular product? How they make their decision? What factors lead them to their final decision? All these questions come under the wide umbrella of consumer psychology.

In any market, a business that has the best insights on consumer psychology and knows how to coach that much-so-valuable information into its play-making strategies is a business that will dominate its market.

Why is it important?

Unless your business is a non-profit organization (an NPO), you need to understand the consumer psychology of your existing and potential business customers. You should always know what your customers want and what they look for when they use your product. This is very important because if you are unaware of these facts, you won’t be able to analyze your market in a way you should. Moreover, it is on the basis of this information that you come up with the alterations that your business customers might be looking for in your product/service. This is also quite essential if you want to survive among the big guns of the industry.

How to use consumer psychology in your business?

The first and the foremost thing that you should do is find the psychological route of your customers while they are buying your product. Following are some of the basic questions you should keep in mind in order to understand their psychology:

  • How many prospects turn into customers?
  • Why do prospects drop the idea of buying your product or service?
  • Where in the buying decision process do your prospects tend to lose interest in your product or service?
  • Why do people like your product or service?

This information can prove very valuable for your business provided you use it properly. It is the gateway to understanding the current and possible future preferences of your customers. These preferences are important to understand because they will lead you to a spot among the big guns of your industry.

Is it that simple?

Michael Fishman – an expert in consumer psychology – labels understanding a customer’s psychology ‘a struggle for businesses’, and we have the same opinion; it is not easy to understand! Reason being that even the consumers of a certain product might not know why they do or do not buy a specific product or opt for a specific service. An acquaintance of ours once told us that when she asked the users of her service whether they choose her over others, the answers were mostly along the lines of, “We don’t know to be sure …”

This happens a lot! So to be precise, it is not as simple to get insights over a consumer psychology. But it needs to be done – it is vital for your business’s growth!