5 Ways Cryptocurrency Companies Can Use Neuromarketing to Grow Their Market Share
Relationship Between Neuromarketing & Cryptocurrency
Cryptocurrency like Bitcoin, Dogecoin, and Cardano is crazy popular right now. More and more people have started investing in crypto because they are beginning to realize its value.
But what is the actual value of cryptocurrency? Well, there’s no denying the potential. However, digital currency only has perceived value, at the moment, at least.
So, what are cryptocurrency companies doing to make these cryptos viral?
One simple but powerful answer is NEUROMARKETING.
Everybody’s Doing it, so it Must be Right.
This herd mentality is nothing new. Humans tend to follow the crowd because, in a sense, it allows you to feel safe. Moreover, social pressure demands conformity- you need to be like everybody else. In fact, numerous studies have illustrated this effect by getting people to examine two lines for their comparative lengths.
The idea is for everyone to say they are equal, even though they are not. And when it is the experimental individual’s turn, they also end up giving the same answer, despite it being wrong. Why? Because they don’t want to be the odd one out.
Thus, if everyone is investing in Bitcoin, you can’t be the black sheep oblivious to the whole situation, right? Consequently, you will probably be inclined to invest in crypto because ‘everyone else is doing it,’ even more so if you have no idea what it is.
So, first, you’ll invest because everybody’s investing, and then, as soon as the price drops and people start to panic, news articles will convince you to sell immediately. Because, ultimately, come what may, at least we’re in it together, right?
Cryptocurrency & Cognitive Biases
How we internalize and process information makes all the difference, and thus, our response to situations largely depends on our internal state of mind.
The availability heuristic dictates decisions based on the information most readily available in your memory, like an important or recent event or something that evokes emotion.
Hence, if you’ve recently seen loads of posts about ‘Bitcoin Millionaires,’ you probably won’t think much of people who’ve had bad experiences with crypto. Therefore, most companies often use emotionally salient, visual campaigns to drive decisions in their favor.
In addition to this, the anchoring effect and confirmation bias are also at play. We are more likely to hold onto the information that we saw first. So, if a pair of sneakers initially priced at $200 is on sale at $100, it is somehow better than a $100 pair.
Why? Because we think we have something to gain there.
Additionally, we want to believe what we already believe. This means that our brain will readily accept information that conforms to our notion of the truth while brushing off any contradictory data. We just don’t want to think we’re wrong.
Winning Makes You Feel Good
Do you know the feeling when you end up getting a high score on a test you didn’t prepare for?
You see, our brain releases dopamine, the pleasure hormone, when something positive happens. But it’s really not that simple- expectations and motivation stimulate dopamine. And if an outcome was better than your expectations, your brain will release even more dopamine.
Because cryptocurrency is almost volatile, our brain can’t discern a particular pattern- we don’t know what to expect.
We are uncertain of the outcome, and thus, any price surge will make us feel like we’ve won because something is better than nothing, right?
Of course, not all cryptos are the same. Plus, many psychological factors also influence our brains to think a certain way, and marketers tend to use them to their advantage- they always have and always will.
Also, some biases might exist on an individual level as well.
Neuromarketing is pretty much the secret ingredient that has helped cryptos become what they are today. And that’s not really bad, but we need to work on making better, informed decisions instead of getting tricked into liking something just because it’s trendy.
After all, if you don’t know how cryptocurrency works, how far could you go without losing a lot of money?
What’s the Takeaway?
Cryptocurrency has dominated the world for several psychological, behavioral, and neuroscientific reasons. Neuromarketing is a breakthrough reason for our incessant love of digital currency.
We want to do what everyone else is doing. Also, we’re easily influenced by the notion that we could somehow become millionaires overnight by investing in crypto.
And you can’t convince us otherwise because we don’t want to think we’re wrong. Not to mention, crypto makes us happy. We just like it, okay?
Simply put, the relationship between neuromarketing and cryptocurrency is super strong.
The impact of neuromarketing in helping cryptocurrency companies become the most dominant and popular digital currency will play an even bigger role in enabling the companies who apply neuromarketing to their business growth strategy to gain market share more rapidly faster than other competing tokens.
Need some further help adding Neuromarketing to your own marketing campaigns?
There may be a lot to take in here, especially if the thought of supercharging your marketing with neuroscience has never entered your mind before.
If you do some additional help, I’d be more than happy to have a one-on-one conversation with business owners.
So, if you’d like to connect for 15 minutes and discuss how you can apply neuromarketing to grow your business, you can do so right here.