Scott Saunders | Brand is all about perception. It isn’t based on a set blueprint, checklist or a business plan. It is about building a connection with the audience and what that audiences’ perception of the brand is defines the level of engagement they will have with the brand — and the business. Knowing how the audience’s mind works not only helps empower the brand, but helps how your brand’s offerings are perceived.
As we have discussed in other articles, understanding some basic principles of behavioral science helps one build a better brand. It also allows you to tap into the neuroscience of consumers in general and help how you frame the services or products that your business is offering to your audience.
Steering the conversation to a photograph, framing involves choosing what you’ll include in the frame of the camera and what you’ll leave out. The goal is to create a visual composition that directs the viewer’s attention to the subject matter. If you were to film or photograph an elephant, you could show the whole elephant or just the trunk or just the feet. They are all an image of the same thing, but to someone that has never seen an elephant, the way each was framed can guide the viewer’s comprehension and impression.
The same goes for our brains. “Framing” in psychology refers to whether an option is presented as a positive (gain) or a negative (loss). People are more likely to pick an option they view as a gain over one they view as a loss, even if both options lead to the same result.
It’s how you say it.
Remember, isn’t so much what you say, but how you say it. How you phrase your offering’s benefits can drastically change how those benefits are perceived. Consumers are far more likely to reach for the bag of “99% Fat-Free” potato chips than they would the “1% Fat” potato chips, even though both bags have the same benefit. The consumer’s mind determines that the almost fat-free chips are more of a gain than the loss incurred by eating chips with fat — even though they both have the same percentage of fat.
The same framing can be used to help guide the consumer to concluding that your offerings are affordable. If you are selling a membership-based service, you could frame it that the cost is $350 per year, or frame it that the cost is less than one dollar per day or perhaps $75 every three months. The service still costs the same but the consumer will gauge the affordability based on what they deem is a gain or a loss. This is referred to as the “Affordability Illusion”. Breaking down large numbers into smaller numbers makes it SEEM more reasonable and therefore lessens the loss to the consumer.
It’s about choices.
In the context of gains or losses, when given two options of a product with different sizes or upgrades, our brains will usually value the lower cost (loss). For example, if you offer two drinks such that one is $4 and the other is $6, it is more favorable to the consumer to opt for the $4 drink as the gains for the $6 are probably not sufficient enough to warrant the flip of gain versus loss to the consumer. However, if you offered a third option — such as a $8 drink, $6 drink, and $4 drink — the consumer is more likely to choose the $6 drink over the cheapest ($4) option. Why? Because of the “Rule of 3”. Three is the least number of items in a series that make a pattern and our brains are wired to seek out patterns. It is how the brain organizes things and finds the structure of three to be a complete set. It feels whole to us and allows us to process the options available less in terms of the gain or loss between just 2 options. It allows us to be more likely to select the middle option as being more reasonable. Not the cheapest and not the most expensive. Most consumers will never go for the cheapest option when there are three choices to choose from.
Another way to capitalize on the wiring of our brains is to allow your customers choices or options for customization. People perceive more value on something that they have contributed to or put effort into. It is for this reason a restaurant could charge one price for a pizza with set toppings (combination, vegetarian, meat lovers, etc) and charge more for a custom-built pizza. For the consumer, being able to customize the pizza to their liking adds an increase in perceived value of that pizza — one which they are willing to pay for. Both scenarios may be comprised of a 4 topping pizza, but one has higher value to the customer. I recently ordered a new leather wallet with a brand that allowed me to select the color of leather die, the functionality-style of wallet, and what stamp emblem I wanted on it. I paid $30 for it and, while there are tons of $30 wallets I could have purchased out there on the market, the wallet now in my back pocket has more intrinsic value to me because I helped contribute in some way to its creation.
But beware when it comes to how many choices you present to your audience. Another concept of consumer behavior is what is called the “Paradox of Choice” for which studies have shown that too many choices can overwhelm a buyer and lead to indecision. The more options we have, the less we will feel resolved with our decision and our brain wants to second guess that decision. So while there is power in choices for your audience, be mindful of just how many you want to offer.
It’s about proximity.
Many times a brand’s offering can be framed to be more attractive when it is positioned against another offering. For example, if someone wanted to buy an expensive watch, they would assess the costs based on the gain (owning that watch) and loss (the cost of that watch). A watch priced at $1000 may have a different perceived value (gain vs. loss) when compared to a $500 watch. But that same $1000 watch can have a different perceived value when compared to an $5000 watch. This “Contrast Effect” is a cognitive bias that occurs when the presence of a contrasting factor influences a person’s perception of something. In other words, when we compare two things, the contrast effect distorts our perception of that thing by enhancing the differences between them. So the perception of that $1000 watch will shift depending on what (figurative) proximity it has to something else. By itself, the product has a perceived value — good or bad. But that perception changes when it is compared to something else.
The subject of proximity can also be referenced when it comes to the consumer’s proximity to the offering itself. In short, people value things more once they “own” them. And by ownership, I don’t mean after the transaction, but before. An example of this “Endowment Effect” can be easily seen when you decide to sell your car or sell your home. We always tend to place a higher market value to something because we have an emotional (and often times irrational) bias towards it. We have a higher perceived value of it. That is why many subscription-based business models are more successful if they are properly framed through this “ownership” proximity. For instance, offering a free trial subscription can be perceived as a higher gain than simply giving them the starting offer of $19.99 a month as the CTA. Once they have “ownership” of the offering, they will apply grater value to that offering simply because they are already engaged with it — and your brand — and are more likely to remain engaged.
Remember, as it is with building a great brand, there is no set checklist. The instances and examples given here may — or may not — be best for your business or your brand. The key point is to take the time to understand not only WHO your select audience is and how to reach them, but also to have a better understanding of HOW their brains (and all of ours) are wired. How you position your brand and how you position and frame your business’s offering can do wonders for your business. It’s a scientific fact.
