14 factors of consumer psychology every business leader should underst

Every business leader has heard the mantra: “If you want to boost sales, you’ve got to get to know your target audience.” Many companies limit this strategy to learning basic demographic information like age, gender, geographic region, and household income. But a smart leader knows that building an understanding of their customer or client base should also involve understanding human psychology.

If you and your team understand basic psychological principles, you can form genuine connections with consumers, thereby building loyalty and trust (and sales). To help you achieve this, below the members of Fast Company Executive Board share 14 things every smart business leader needs to understand about consumer psychology.

1. THEY ACT BASED ON RELEVANCY AND PURPOSE.

Relevancy and purpose ultimately drive people to open up their wallets and make a purchase. It’s also known that consumers trust recommendations from peers on social media more than they do…

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