Hey there 👋 - It's Sidd.

And guess what? It's Monday! I hope your week is off to an awesome start.

This weekend, I delved into the fascinating world of psychological effects that influence our decision-making, and now I'm back at the keyboard, ready to share some gems with you.

Today, let's talk about the Valence effect, an intriguing concept that can significantly impact your marketing strategy.

New to Monday Marketer? Join us on this exciting journey for $0 🤝

Let's dive in and make this Monday count!

Reading Time = 5 minutes and 45 seconds

Understanding the Valence Effect

In a 1966 study by Rosenhan and Messick, participants were asked to pick between two cards. One card depicted a smiley face, and the other card a frowning face. They found that, all other things being equal, participants were more likely to pick the card depicting positive emotions.

This happens because we naturally gravitate towards positive outcomes, even if they don’t always feel entirely positive. This is what we call the Valence effect.

In psychology, valence refers to the positive or negative emotional value associated with a particular stimulus, event, or object. The Valence effect is our tendency to overestimate the likelihood of positive things happening and, in turn, underestimate the probability of negative consequences. This skews our decision-making, especially when the odds are balanced.

For example, if someone told you there’s a 50% chance you could win a grand prize, you’d probably like those odds, even though there’s a 50% chance you’d lose.

This kind of wishful thinking helped humankind survive, thrive, and develop in the face of adversity. And it can help your campaigns get a positive ROI as well!

Let’s see how.

Three ways you can leverage the Valence effect

1. Highlight positive peer reviews

This is nothing new to marketing. People like and need to see reviews from other people. But if you want to make the most out of the Valence effect, you should highlight positive reviews before anything else.

Numerous recent studies—including a study of e-commerce websites—suggest that positive reviews greatly influence purchase decisions. Running ads that specifically highlight positive reviews, or placing a happy customer opinion at a visible position on your landing page, can boost your conversion rate.

We’re doing it too. And guess what—it’s working:

2. Evoke mental images of success

Want your customers to buy your product? Try to showcase the positive consequence of using your product or service. It can trigger wishful thinking, inspire action, and tap into the Valence effect.

Teeth whitening brands do this a lot by showing the before and after effect of their service:

It just makes you think, “that could be me.” This can make your customers likely to envision themselves experiencing similar success and drive them towards purchase. It appeals not only to the desire for improvement but also touches on the innate human inclination towards positive outcomes.

3. Frame concerns in a positive way

Concerns are like fallen trees, blocking the customer’s route to purchase. Luckily, it doesn’t take much to “de-concern” your audience. If you’re selling an expensive product, focus on the overall value it brings to the user or the savings they’ll see in the long run.

The same goes for complex software. Don’t talk about the learning curve, but about what users will be able to do once they master it. Focus on the outcomes.

Notion, for example, is feature-packed and takes time to master. However, their landing page makes it sound easy and fun:

Why not take a notion out of their book?

Ways to implement it in your business or Industry

For Digital Businesses/Tech Startups:

• Positive User Experiences: Showcase user testimonials and success stories prominently on your website and in your marketing materials.

• Feature Benefits: Highlight the end benefits of using your software, like time saved or productivity gained, rather than the features themselves.

For DTC Brands:

• Positive Associations: Use imagery and language that evokes positive emotions. Words like “joy,” “comfort,” and “success” can make a big difference.

• Customer Testimonials: Place customer testimonials and reviews in highly visible areas on your site and in your ads.

For Service-based Industries (e.g., Consultancies, Agencies):

• Value Focus: Emphasize the positive outcomes of your services, like increased revenue, improved efficiency, or enhanced satisfaction.

• Client Success Stories: Share detailed case studies that showcase the positive results clients have achieved by working with you.

So, what do you think of today’s newsletter?

I appreciate all your feedback and will help me make this newsletter even better. You can give feedback on this google form.

As always, I'm eager to hear your thoughts and experiences on this topic, so please share your feedback and join the conversation by reaching out to me on LinkedIn.

You can also check out the previous newsletter on the Halo Effect by clicking here.

See you next Monday.

Until next time,

Siddharth