The Psychology of Branding

Branding is not about logic, numbers, and sales… sorry, data lovers.

If you’re a metrics and numbers person, strap in. Because there will be none of that here.

I get it. Reliable data makes us feel safe. When you see a number attached to information, it feels more tangible and secure. We humans like to think of ourselves as logical decision makers. That’s part of what sets us apart from other species. Logic and reason are useful in business. Every successful business owner I know makes logical, well thought-out choices.

At the same time, to understand why people buy the things they buy, you have to realize that our brains don’t rely on logic alone to make choices. In fact, most of the decisions we make are mostly logic-free. To understand this better, let’s talk about cognitive systems.

How Our Brains Make Choices

System 1 vs. System 2 Thinking

Reality is complex and full of information. Our brains need to simplify decision making to adapt to our environments. Otherwise, we’d spend so much time deciding that we’d never get anything done. In fact, we might even be risking our lives.

We have two distinct types of thinking that we rely on for different kinds of decisions. These processes are described as System 1 and System 2 thinking. They work together, but have distinct characteristics that benefit us in different ways.

System 1 Thinking

This cognitive process is extremely fast and requires minimal effort. You don’t decide to use it because it’s automatic. This type of thinking allows you to make quick decisions based on information your brain has on file, emotions, and intuition. System 1 thinking doesn’t require a lot of cognitive resources (aka brain power), which humans have evolved to preserve as much as possible. Though it’s great for quick-thinking, this process is sometimes unreliable in terms of accuracy.

When you’re doing something you’ve done a million times, you’re using System 1 thinking. When you braid your hair, tie your shoes, or write your name, that’s System 1. It’s also in charge when you need to think fast. If you’re about to be run over by a bus, System 1 takes the wheel (bus joke) because there isn’t time to make a calculated decision. You jump out of the way to save yourself.

System 2 Thinking

This type of thinking is generally what comes to mind if you think of “thinking”. It’s slow, deliberate, requires effort, and we’re very much aware of it. This cognitive process helps us solve complex problems and make calculated decisions. This tends to be the system that we identify ourselves with (“I’m Hope, I’m a graphic designer with black hair and two cats”) because it’s happening on a conscious level and uses language and logic.

When you’re using your brain intentionally to deal with a difficult problem or complicated decision, you’re using System 2 thinking. When you troubleshoot a tech problem, hunt for where you left your keys, or analyzing data, that’s System 2. While reliable, this cognitive process uses up lots of your brain’s resources. That’s why you feel tired after work even if you’ve been sitting all day.

Branding is all about feelings

Purchase decisions are mostly subconscious.

It’s nice to believe we buy based on logic. It’s also a fairytale.

There are millions of moments that influence us to buy that have nothing to do with logic. Is it logical to buy a product because a cool celebrity endorsed it? Of course not. But people do it all the time.

Sure, logic can play a role, especially if we’re comparing features and assessing price. Like, logically, it doesn’t make sense to buy a Hummer if you live in an East Coast city, because where the fuck are you gonna part that hunk of metal? Surely, no one would do such a silly, illogical thing.

But then again, in the early 2000’s when Hummers were all the rage, I regularly saw people driving them through the narrow streets of Washington, D.C.

Driving a Hummer in D.C. is not a logical choice. The gas mileage is terrible (at least, it was back then), it’s nearly impossible to find parking in this city even in a normal car, and many of the streets here are old and designed for carriages, not SUVs. So why would someone forgo all logic and buy that particular car?

Because people buy based on feelings.

The person sporting a Hummer in a narrow street in Georgetown didn’t buy the Hummer based on slow, thoughtful reasoning. They bought it because of what it makes them feel: big, powerful, dominant, badass. They bought it because they want to be seen in it. They bought it because it expresses something about who they are or who they want to be. It’s a lifestyle and personality choice.

In other words, the brand spoke to them.

To better understand this, you need to know a little about the human brain.

How Our Brains Respond to Brands

Feelings and intuition come first, logic runs backup

The modern world is full of clutter. Images, messages, brands, ads, ideas, people. If we were to rely on System 2 thinking to make all of our purchasing decisions, we would spend 6 hours at the supermarket. Even though I was taught from a young age to price-compare on everything (listen, immigrant moms don’t fuck around, okay?), I’ve got my preferred brands that I fall back on automatically. Even if it’s the store brand! Sometimes, I just need to make a freaking decision and move on with my day, so I grab the thing with the cutest label.

We all buy with our feelings.

What choice you make when buying a product is largely dependent on the associations that come up subconsciously when you see it. You might see the color green and associate it with something positive and related to your purchasing goal. Without even realizing it, your brain has made an assessment about that product: green = sustainable. Green = clean. Green = healthy. Whatever. That’s System 1 doing it’s job.

You might, then, read the ingredients and look at the price to see if it’s really as “clean” as it seems and priced fairly. That’s when System 2 kicks in to do the math and refine your decision making.

Here’s the thing, though: you’ve already subconsciously assessed the product. You already have an idea about whether you want it or not. The visual branding has already done its job by creating associations and pulling on your heartstrings through text and image. The branding has, without you knowing it, steered you in a particular direction by leveraging your System 1 thinking.

How to Use Psychology in Small Business Branding

Your brand should speak to people, not sell to them

Back to my earlier point: branding is not about bottom-line. It’s about influence and the human mind. If you’re looking for a way to quantify this in numbers… well, best of luck to you. Branding isn’t about sales. That’s marketing. Branding is about people, emotions, the human mind.

The good news is, small businesses have a bunch of advantages when it comes to emotional appeal. Here’s how to leverage that.

Understand your target audience

Do you know who you’re trying to help? If not, you’re a few steps short of being able to apply psychology to your advantage. The better you understand the people you want to serve, the better you can speak to them. What do they care about? What do they like? What’s difficult for them? Answer these questions, and use that information to inform your brand: how it looks, how it sounds, and where in the world you show up. A business that understands the mind of its ideal customer is going to have an easier time crafting a brand that actually draws people in.

Be empathetic

One of the benefits of knowing your target audience is the ability to empathize with them. You know what people like more than a cool logo? Kind people. People who show they care. People who acknowledge their challenges and want to help them. Your customers/clients are not barriers to your success that you have to puzzle over. They’re human beings whose lives you can improve. Your branding should convey to people that you are on their side by appealing to them visually and using language to speak to their needs, challenges, and preferences. Small businesses are better equipped than big ones to practice empathy because we actually interact with our audience on a human level.

Own your size

People love small businesses. I’m not making this up. In a survey from a few years ago, 91% of respondents said they prefer to shop at small businesses when it’s convenient; 74% said they go out of their way to support small businesses, even if it’s inconvenient. Why? Because they represent humanity, individuality, empathy, and relatability! A lot of branding advice is based on what big companies are doing, but the reality is, being a small business can be a brand advantage. Instead of mimicking big businesses (or talking yourself out of branding because you can’t compete with them), let your size work to your advantage. Connect with people on a human level. Authentic brand messaging and visuals draw people in and keep them coming back.

Have clear brand values

People gravitate towards brands that have values similar to their own. Those values can be personal, political, social, aesthetic, philosophical. You don’t need a big, impressive value statement on your website to let folks know what they are. In fact, it can come off disingenuous to make theatrics out of stating your values. Instead, bake them into your business practices and your branding. Is being kind to the planet one of your brand values? Great! Use paper instead of plastic, openly support sustainability initiatives. Is creativity in your brand values? Fantastic. Hire a brand designer whose work expresses creativity and style that reflects your business’s commitment to human expression. The first step is to be CLEAR on these values and be able to show them (not just tell).

In branding, feelings matter more than logic and data

Don’t let your logical brain steer you away from the major benefits of branding.

Branding doesn’t hinge on numbers. It doesn’t drive sales. It connects with people. And that’s a small business superpower.