Brain Driven Brands: Get People to Pay 35% More By Using THIS Psych-Tactic
Release Date: April 24, 2025
In this enlightening episode of Brain Driven Brands, host Sarah Levinger and co-host Nate Legos delve into an advanced neuromarketing tactic that can significantly boost your e-commerce brand's revenue. Titled "Get People to Pay 35% More By Using THIS Psych-Tactic," the episode explores how the strategic use of abstract language in marketing can enhance customer willingness to pay higher prices. Below is a detailed summary capturing the key discussions, insights, and conclusions from their conversation.
1. Introduction to the Psych-Tactic
Nate Legos introduces the episode's main topic: a psychological tactic that enables brands to charge up to 35% more without altering product prices directly. He emphasizes that this tactic is not related to product features, costs of goods sold (COGS), or traditional marketing strategies, but rather focuses on the perceived emotional value of the brand.
Nate (02:15): "You can get people to pay 35% more when you use this specific type of marketing tactic."
2. The Study Behind the Tactic
Sarah discusses a 2020 study published in the Journal of Marketing, revealing that brands using abstract language in their marketing communications can command higher prices. The study compared the effectiveness of abstract versus concrete language in advertisements and its impact on consumer willingness to pay.
Key Findings:
- Abstract Language: Leads to higher perceived value, allowing brands to charge 35% more.
- Concrete Language: Focuses on specific product features, resulting in lower willingness to pay.
Sarah Levinger (04:32): "People will pay 35% more for a tea brand when it was described using abstract language over, like, definitive language."
3. Abstract vs. Concrete Language
The hosts break down the difference between abstract and concrete language in marketing:
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Abstract Language: Evokes emotions and broader brand values without delving into specific features. For example, a watch ad saying, "Confidence with every tick."
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Concrete Language: Details specific product attributes, such as the materials used or the manufacturing process. For example, "This watch is made from stainless steel with a Swiss movement."
Nate (07:03): "This is the difference between telling people, like, hey, I have this watch to sell you incoming original grain ad. We do one an episode, and I can tell you all about the movement and the material and what it's made from..."
4. Practical Applications for E-commerce Brands
Sarah and Nate discuss how e-commerce brands, especially those in direct-to-consumer (D2C) sectors, can apply this tactic to enhance their pricing strategies without alienating potential customers.
Strategies Highlighted:
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Emotional Engagement: Use abstract, emotionally charged language in ads to create a deeper connection with potential customers.
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Lifestyle Positioning: Focus on selling a broader, aspirational lifestyle rather than just product features.
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Segmentation Based on Customer Journey: Tailor messaging based on whether the customer is at the acquisition stage or already a loyal customer.
Sarah (08:53): "I think a lot of us in D2C could use this because we hammer features and we even had hammer benefits a ton. But, like, this is one of the reasons why you've never seen a us versus them ad from us."
5. Impact on Brand Building and Pricing Strategy
The conversation shifts to the broader implications of using abstract language for brand building. The hosts argue that emotional marketing not only allows for higher pricing but also fosters long-term brand loyalty.
Insights:
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Higher Average Order Value (AOV): Sarah observes that her brand’s AOV has nearly doubled over three years, attributing a significant portion to improved emotional value communication.
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Cost Efficiency: Running non-conversion campaigns focused on emotional engagement has led to lower cost per lead and more efficient customer acquisition.
Nate (16:17): "How is it performing? Oh my God. On them, like that kind of stuff. So, yeah, it's going well."
6. Overcoming Marketing Challenges
Sarah and Nate address common challenges faced by brands, such as rising costs due to tariffs and ineffective ad strategies. They emphasize the importance of building a strong emotional brand that can withstand external economic pressures.
Nate (20:51): "With tariffs will kill businesses. Tariffs will not kill great brands. Period."
They also critique the over-reliance on algorithm-driven marketing tactics that focus solely on conversions, advocating instead for a balanced approach that includes emotional branding.
7. Conclusion and Final Thoughts
In wrapping up, the hosts reiterate the significance of emotional, abstract language in marketing to not only justify higher prices but also to build sustainable, loyal customer bases. They encourage listeners to rethink their marketing strategies to prioritize emotional engagement over mere feature-driven advertising.
Nate (20:26): "100% conversions are half the equation, people. If you're only going after conversions, you're building a business, you're not building a brand."
8. Special Mention: Tether Insights
Towards the end, Sarah briefly discusses Tether Insights, her market research firm, highlighting how it helps brands understand their customers' emotional and psychographic profiles to better align marketing strategies.
Sarah (22:05): "We're going to run it up. We're almost ready for like launch probably early next week... Appreciate you listeners. You guys are the best. Survive the tariffs out there, guys."
Key Takeaways:
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Abstract Language Enhances Perceived Value: Utilizing emotionally charged, abstract language in marketing can significantly increase customers' willingness to pay higher prices.
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Emotional Branding Over Features: Focusing on the emotional connection and broader brand values is more effective for long-term success than emphasizing specific product features.
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Strategic Marketing Segmentation: Tailoring messaging based on the customer’s journey stage (acquisition vs. retention) can optimize both customer acquisition costs and brand loyalty.
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Building Resilient Brands: Strong emotional branding can help businesses withstand external challenges like tariffs and market fluctuations.
By integrating these neuromarketing insights, e-commerce brands can not only enhance their pricing strategies but also cultivate a loyal and engaged customer base, driving sustainable growth and long-term success.
