Perceptions influence virtually everything. From a first impression of a new acquaintance to the way friends talk about a local restaurant, what we perceive greatly impacts our behaviors. In the intricate world of marketing, understanding and influencing customer perception is pivotal. The way consumers perceive a brand, product, or service can significantly influence their buying decisions and brand loyalty. Ultimately, as marketers we are in the perception business.
Perception is subjective amongst consumers, and the first step towards an effective marketing plan is knowing who the customer is. Customers come from different backgrounds, experiences, opinions, and worldviews. In our modern marketing world, consumers expect brands to tailor their offerings and messages to specific market segments. Failing to do so misses the chance to create a strong relationship between the brand and its buyers and leaves sales on the table.
This desire for more than just a product ties directly into the concept of the ideal self, which plays a pivotal role in consumer behavior. The ideal self is the buyer. Products and services that move consumers one step closer to becoming the person they want to be are powerful. Customers want to buy more than an item; they want an experience, status, and something out of the ordinary. Consider luxury brands. Buyers will spend large sums of money because of the perception these brands can bring on oneself. When people see an advertisement for an opulent piece of jewelry or a high-end sports car, it is not just the product that they see; they are buying the lifestyle associated with these items. Luxury brands clearly sell an image, a status, and a positive sense of self to their consumers.
Executing on your consumer’s perceptions is important: details matter. For instance, packaging or price could turn a customer towards or against a brand. Brand and product names, along with carefully selected messaging, are also important cues that drive perception. For example, ‘god terms’ like “enlighten”, “brighten”, and “illuminate” are words used to associate a positive connotation to a brand. As humans, it is difficult to deem something as unworthy when ‘god terms’ are used to describe a brand. Many companies implement specific words because humans make innate biases. Words that are associated with positive feelings can enhance consumer trust…if used appropriately.
Authentically providing consumers with an elevated perception of themselves is a win-win. The business grows as does the esteem of the buyer. If this relationship remains consistent over time, brands can generate one of the most important equities it has: loyalty. For example, the retail industry is known to have one of the worst consumer retention rates but in a recent article, Bain & Company stated, “A 5% increase in customer retention can boost profits by up to 75%.” As all good marketers know, retaining consumers is cheaper than acquiring new ones and is key to increasing profits. Even a small increase of 5% can make all the difference for companies in competitive markets.
So, perception is reality. Stive fervently to understand the world view of your target audience and help them on their journey to an ideal self, even if it is just a small step. In doing so, everybody wins.
Redefine Reality: Understanding Why Perception is Power

