Brands are constantly developing new strategies to sell their products and encourage us to spend more money. From catchy slogans to urgent offers, companies continuously seek ways to grab our attention and convince us to open our wallets. Subtle psychological tactics play a major role in influencing our purchasing decisions.
Marketing has evolved from simply showcasing a product’s features, to understanding consumer behavior and creating targeted campaigns to increase revenue. According to a report by market research firm Statista, the advertising market worldwide is forecasted to reach $1.158 trillion in 2025, a testimony to the fierce competition and efforts by brands to stay ahead of the game.
As marketing expert Mark Baldwin, CEO of Baldwin Digital, points out, “Well-crafted persuasion can overcome seemingly insurmountable barriers.” These psychological tricks do precisely this: They overcome barriers and make us spend more money than we might have initially planned to.
Here Mark lists the most common strategies, revealing how brands continue to find ways to persuade us to part with our hard-earned money.
- Psychological Pricing
The psychological pricing tactic prices products at $99 instead of $100, creating an illusion of a lower price and enticing consumers to make a purchase. “This is effective because consumers often perceive prices that end in .99 as being significantly lower than round numbers,” warns Mark.
- Limited-Time Offers
Limited-time offers create a sense of urgency to increase consumer spending by offering deals with a deadline. These can include limited-edition products or time-sensitive discounts. The method is effective because it taps into consumers’ fear of missing out, or ‘FOMO’.
- Rewards and Loyalty Programs
Offering rewards and loyalty programs can increase consumer spending by tapping into a person’s sense of exclusivity and incentivizing them to keep coming back. These programs offer discounts, freebies, and other perks, which can inspire consumers to spend more than they had planned to earn the points and/or rewards.
- Bundle Discounts
Packaging products together and offering a discounted price for the bundle, known as a ‘bundle discount’, can increase consumer spending by providing perceived value and savings. This encourages consumers to purchase more items to take advantage of the discounted price.
- Personalization
Brands use data and personalization to tailor products and offers to individual consumers. “Personalization can increase consumer spending, as customers are more likely to make a purchase when they feel a strong connection to the product or brand,” says Mark.
- Financing Options
Offering financing options, such as installment plans or delayed payments, can increase consumer spending by making expensive purchases more affordable. “This tactic is effective because it allows consumers to spread out the cost of a purchase over time, making it more manageable and increasing their willingness to buy,” adds Mark.
- Emotional Advertising
Brands use emotional advertising to tap into consumers’ emotions and create a strong connection to their products. By appealing to consumers’ desires, fears, or aspirations, brands can increase the perceived value of their products and encourage people to spend more to fulfill those desires or emotions.
Mark Baldwin, CEO of Baldwin Digital Comments:
“The best tip for spending wisely is for consumers to have a budget in mind before making a purchase. This will help avoid overspending and impulse buying. By having a budget and sticking to it, consumers can focus only on products or services that fit within their financial means and avoid falling prey to pressure sales techniques.”
“Consumers should also be on the lookout for upselling techniques. Salespeople are trained to convince customers to purchase additional products or services by creating a sense of need. While these may seem like practical purchases, consumers should carefully consider whether they truly need these extras.”
