The Psychology Of Demand
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Why do people buy emotionally instead of logically?
the biggest lies in business. People buy logically. No, they don't. People justify logically, but they buy emotionally. You kind of know that about yourself and about the others around you. See, every major purchase decision contains emotion. Every single one. Not half of them, not some of them. And yeah, I know that you and your friends probably use logic to tell the story, but people buy things like status. They buy certainty. They buy belonging. They buy identity. Maybe it's security that they're buying. It's the sizzle, not the steak. Maybe it's, let's think of some others, significance, progress, freedom. clarity you know they're buying their time back the product is often secondary the emotion is primary and we wanted today look at how to get that emotion into your marketing system into your demand engine because with the emotion you move sales even faster so today i want to dive deep into that psychology of demand not just the process of demand creation but the psychology of
Because once you understand the why behind people buying, marketing becomes a lot easier, sales becomes easier, and the growth of your business becomes easier. And of course, what do we want? If we're scaling a business, we don't want to scale complexity or chaos. We don't want to scale genius. We want to scale it easier. It's got to get easier and cheaper as it gets bigger. That's the definition of scalability. And that's why you're on the $100 million podcast. So people don't buy products. They don't buy services. Let's start with the biggest lesson behind all of this. When I say they don't buy products and services, they buy outcome. And beyond outcomes, they buy the feeling that the outcome brings them.
So nobody buys a Rolex to tell the time. A $50 watch still tells time. Nobody buys a Ferrari just to get somewhere. And Toyota will get you there too, if that makes sense. And even like for me, nobody buys coaching to receive advice.
How does identity drive a customer’s purchasing decision?
They buy the confidence, the certainty, the growth, the identity, the results of that type thing. So you think about it, the product or service is really the reason. The transformation is the biggest reason people are buying things. This comes back to the identity principle. And when you think about a person who's making a major decision or even a small decision, it's all moving from further into that identity. And it's possibly one of the most powerful concepts in marketing today. People buy products that reinforce who they believe they are, the Harley buyer, the Apple computer buyer. The person who buys better running shoes, they're reinforcing. In fact, it probably goes one step further. It could also be who they want to become type thing.
Think about it. People don't buy
on
shoes. They buy the identity of being an athlete. I would have said Nike there, but Nike's dropping down and on, crushing them type thing. But back to the Harley, people don't buy Harleys. They buy that illusion or that idea of freedom that they're in. They buy the rebellion. They buy the community of that thing, the guy that waves to you on the other side. People don't just buy Apple products. They buy the innovation, the creativity, the status. Identity drives demand. And so I think that when we really want to understand how we create better marketing for ourselves, we have to ask the question for our customer is who am I becoming? Who does your customer want to be? Like for me, it's they want to be a more successful entrepreneur.
They want to be a more creative, better entrepreneur, a better business owner. I think every purchase asks a hidden question. Who does this help me become? The more clearly your marketing answers that, the stronger the demand becomes. Like for me, again, people don't buy coaching. They buy becoming a better entrepreneur, a better business owner. People don't buy gym memberships. They buy becoming healthier and fitter. People don't buy education. They buy becoming more successful, more knowledgeable.
What role does status and belonging play in creating demand?
The identity matters. And so you've got to look at your products and services as an identity question.
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Chapters
8 chapters
1
Why do people buy emotionally instead of logically?
0:00–1:54
2
How does identity drive a customer’s purchasing decision?
1:54–3:55
3
What role does status and belonging play in creating demand?
3:55–5:42
4
How can scarcity and FOMO be used to accelerate sales?
5:42–8:33
5
Why is certainty (guarantees, social proof) essential for closing deals?
8:33–10:31
6
How does the pain principle motivate customers to act quickly?
10:31–12:49
7
What is the commitment principle and how does it move strangers to buyers?
12:49–14:48
8
Which emotional drivers should I ask myself to improve my marketing?
14:48–18:04
Speakers
1 identifiedMore from The $100M Entrepreneur Podcast
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