Neuromarketing is the next generation of market research, and the most accurate method of gaining customer intelligence. The aim of Neuromarketing is to understand customer behavior and to be able to predict, as much as possible, their future purchasing decisions.
We talk a lot about neuromarketing here and it is at the core of understanding how to effectively communicate with investors so I thought it would be a good idea to put up a little primer on the subject to make sure everyone is up to speed.
I borrowed a description of neuromarketing from our friends over at For Dummies. Get the original article or the Dummy series book explaining neuromarketing.
What is Neuromarketing?
The term neuromarketing refers to the use of modern brain science to measure the impact of marketing and advertising on consumers.
Neuromarketing techniques are based on scientific principles about how humans really think and decide, which involves brain processes that our conscious minds aren’t aware of. When combined with sound experimental designs and procedures, these new techniques provide insights into consumer decisions and actions that are invisible to traditional market research methodologies.
Neuromarketing is not a new kind of marketing — it’s a new way to study marketing, so it’s part of the field of market research.
Here are six major areas where neuromarketing is being used today:
Branding: Brands are ideas in the mind that draw strength from the connections they make. Neuromarketing provides powerful techniques for measuring brand associations.
Product design and innovation: Neuromarketing can measure consumer responses to product ideas and package designs that are largely automatic, emotional, and outside our conscious awareness. (Think investor websites, presentations, or mobile aps)
Advertising effectiveness: Much advertising impacts us through non conscious means, even though we don’t think it does. Neuromarketing explains how.
Investor decision making: Neuromarketing shows how the research and evaluation process directly influence how
shoppersinvestors decide and buy, and it’s not a logical process.
Online experiences: The online world provides new challenges to our old brains. Brain science shows the many ways investors can be subtly influenced as they go about their online activities. (Improving the investor experience at every step of the investors journey increases buyer intent)
Neuromarketing uses a variety of tools and techniques to measure consumer responses and behavior.
These include everything from relatively simple and inexpensive approaches, such as:
- Eye tracking (measuring eye gaze patterns),
- Analyzing facial expressions
- Behavioral experiments (for example, seeing how changes in copy affect a investor’s choices, or seeing how changes in press release headlines affect views and website traffic)
The reason for the rapid adoption of neuromarketing is that it provide a new lens for understanding unconscious investor response to stimuli — which we know from advances in neuroscience is critically important to decision making.
Neuromarketing enables fresher, deeper, and richer insights, and can add unexpected perspective to evaluations of advertising, brand perceptions, and the online experience.
Breaking through the clutter is an increasingly difficult task. Understanding the most basic roots of human emotion is vital in comprehending investors’ purchasing behavior.
Companies like Amazon, Netflix, Google and Apple use neuromarketing when designing their products, packaging, and advertising campaigns because they know it’s simply the easiest way to get the most out of their marketing budgets.
You should too.