A wide variety of marketing tools have been developed to fool customers into buying products that are more expensive than they need. A huge volume of psychology research has created departments of precision marketing staff whose main skill is tricking customers. Coupled with accounting trickery, pricing, packaging and phantom special offer tricks are often used to disguise price hikes or pretend something is a bargain when it simply isn’t.
This is not clever. It is dumb. It reaps an apparent short term gain at the expense of overall customer spending and customer loyalty. If you want proof, Tesco is proof. Even the dumbest Tesco customers eventually noticed that the company had changed from one that was looking after their interests and giving excellent service and excellent prices to one that seemed to be trying hard to trick and fleece them at every opportunity. Since marketers share ideas, the other big supermarkets used many of the same practices, with the same result. When new entrants arrived that didn’t try to trick people, customers walked and profits dived.
Using the very latest psychology and neuroscience is not the problem. Nor is honing marketing and sales tools to the Nth degree. It is using those top level skills while forgetting the basics that is bad, or worse still, using them quite deliberately to abuse customers.
Customers like to feel they are getting genuinely good products at genuinely good prices. If they are used to that in a shop, they come to feel safe there and more willing to spend. They don’t feel on their guard all the time, feeling they have to do hard sums to work out which one is the least rip-off, and buying only what they need, saving the rest for elsewhere. When they feel safe, they spend more, they buy things they might not otherwise have bought, and they’ll come back again and again, so your profits will be sustainable. They take far more notice of your marketing too. They won’t look at something and then go and shop around for it online. They come to trust you, and they’ll do more business with you. That is so simple and obvious it doesn’t need years of training to learn. Being simple doesn’t mean it is untrue. Basics are easy, but still important.
Good marketing lets customers know about your product and its relative merits. It can even be honest about its limitations. Good marketing is that which customers would seek out themselves if you didn’t deliver it to them already. Bad marketing is trying to fool someone into buying something they otherwise wouldn’t. You can fool someone once, maybe twice, but in the end it is you who loses a good customer. Social media exposes trickery quickly and effectively and tricksters lose. In the networked age, nice guys win.
If you use sophisticated marketing to fool customers, the fool is you. If you want a friend, be a friend.