Melanie Draheim is Chief Marketing Officer at Fox Communities Credit Union.
I’ve spent my career marketing products most people try to avoid thinking about: health insurance and banking. No one wakes up in the morning thinking, “You know what I need? I need a HELOC.” And most people would rather clean their toilet than read their health insurance policy.
Yet, both are essential. Both are personal. And both trigger more emotion than most of us realize.
So, how do you position something complex and necessary as something clear and meaningful?
Psychology should be the fifth “P” in marketing. No matter how thoughtful your product design, how competitive your price or how strategic your promotion, it’s psychology that ultimately drives action. While it’s silent (and often forgotten), it’s the most powerful.
Think Of The Four P’s As Proxies
Marketers learn the classic four P’s early: product, price, place and promotion.
And yes, they’re foundational, but they don’t go far enough into why people buy (or more importantly, why they don’t). Simply having them doesn’t mean people will want what you’re selling.
The 4 P’s are proxies because they stand in for what we think drives behavior, but they leave a gap. Psychology fills that gap and uncovers the real reason people act.
Let me be honest with an analogy. I’m a terrible cook. I know that just having the essential ingredients to cook something doesn’t mean anyone will want to eat it. My husband understands the hidden parts of cooking that make people love what he makes—the right temperature, timing and attention. Those hidden elements are as powerful as psychology in product marketing.
So, if there’s one thing I’ve learned from marketing complex products (and being a terrible cook), it’s this: You can get it technically right and still end up with something no one wants.
People Take It Personally
People see ads through the lens of their own personal experience, perception and bias. And in complex industries like healthcare and finance, it’s easy to say the reason people don’t act is that they don’t understand it.
That typically leads marketers to providing education, but that’s only half the equation. People don’t make decisions based solely on logic. Behavioral science shows that most decisions are driven by emotion first and then justified with facts.
That means emotions can be both obstacles and advantages when you’re trying to get someone to make a purchase decision.
When someone avoids refinancing their auto loan or making an appointment with a doctor, it’s not because they didn’t read the brochure. It’s because of:
• Uncertainty: They don’t feel confident understanding the system.
• Fear: They had a bad experience and don’t want to repeat it.
• Doubt: They’re afraid of making the wrong decision.
• Overwhelm: They’re simply overwhelmed.
Understanding those emotional drivers can be your advantage as a marketer. When I build campaigns or design product positioning, I ask the following:
• What is our audience feeling right now?
• What stories are they telling themselves?
• What biases might exist (for them and us)?
• What do they really want (beyond our product)?
Applying certain psychology principles can get people to “go with their gut.” Here are some examples.
• Cognitive Load: If you make me think too hard, I won’t act. Make it simple—don’t make me do math or decode acronyms.
• Loss Aversion: I’d rather avoid a loss than chase a gain, so tell me what I’m missing out on.
• Present Bias: Immediate rewards motivate me more than future benefits. Give me something good now.
• Social Proof: Show me someone like me who’s already done this successfully.
Disrupt The Default And Remove Friction
Whether it’s sticking with the same health insurance plan or settling for a subpar checking account, people tend to stay put, even when they know they shouldn’t.
It’s just human instinct. Even when it’s not rational, we resist change and complacency is the default. We know deep down we should do something, but our go-to response is to tolerate the way it is.
Imagine that burned-out light bulb you don’t replace. You notice it every day. You think, “I should really fix that.” Maybe you even have light bulbs in the closet. But for some reason, weeks go by, and you leave it. Eventually, you get used to it and walk right past it.
Why?
Because it’s not urgent, and it requires just enough effort to make it inconvenient. So, you tolerate the lesser experience because it’s easier. Life goes on.
Most marketing shouts at people where to buy the light bulb, points at the socket and says, “Fix it!” That’s not enough.
But let’s say one Friday, you’re hosting guests. Suddenly, that burned-out bulb feels embarrassing. It’s disrupting your default. You want to impress your guests, so you replace it.
What could make you replace it even faster? Removing friction and making it easier to act. For example, someone offers you a step stool and hands you the light bulb. Now it’s convenient.
To get people to act, you must disrupt their default and help them cross the invisible barrier between knowing and acting.
Let’s Officially Add The Fifth P
If you want people to act instead of avoid your product, add psychology to the marketing mix.
When I see brands marketing their products, they often start with features. It’s more effective to start with feelings. After all, products are the means to an end, and it’s the end that matters. In financial services and healthcare, nobody cares about APYs or deductibles. Psychology leads to empathy and understanding what people want beyond the product.
Maybe they want the means to live the life they’ve always wanted. Or maybe they want to be around to see their grandkids giggle.
Or maybe they just want to be a good cook.
No matter what they want, it’s less about the product and more about them being human.
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