The psychology behind building a personal brand for SMEs

According to a study by Edelman, 65% of consumers say they trust people more than brands, and 75% say they want to engage with people with similar interests and values. Another study by LinkedIn found that individuals with strong personal brands are more likely to be perceived as thought leaders, are more likely to attract new clients and customers, and are more likely to be offered job opportunities.

Building a personal brand isn't just about marketing tactics; it's about connecting with people on a deeper level. For SME owners, founders, and entrepreneurs, understanding the psychology behind personal branding can make all the difference. Let’s dive into some key psychological theories and see how they can help you craft a brand that truly resonates.

1. Social Identity Theory

Developed by Henri Tajfel and John Turner, Social Identity Theory explains how individuals derive part of their identity from the groups they belong to.

As a business leader:

• Highlight your affiliations: Show your connections with industry leaders or professional organizations. For instance, if you’re a tech entrepreneur, showcasing your membership in groups like IEEE or endorsements from notable tech figures can boost your credibility.

• Align with their values: Make sure your brand reflects the values of your target audience. Patagonia, for example, aligns its brand with environmental sustainability, resonating with eco-conscious consumers.

2. Self-Determination Theory

Edward Deci and Richard Ryan's Self-Determination Theory emphasizes the importance of autonomy, competence, and relatedness in motivating behavior.

Here’s how to incorporate this into your brand:

• Promote autonomy: Show how your brand encourages individual expression and freedom. Think about how Apple markets its products as tools for creativity and personal empowerment.

• Showcase competence: Demonstrate your expertise and mastery in your field. Neil Patel, a digital marketing expert, consistently shares detailed case studies and data-driven insights to showcase his competence.

• Build relationships: Foster a sense of connection and belonging with your audience. Consider how small businesses like local cafes create community events to build relationships with their customers.

3. Cognitive Dissonance Theory

Leon Festinger's Cognitive Dissonance Theory suggests that people experience discomfort when their beliefs or actions are inconsistent.

For personal branding:

• Be consistent: Ensure your brand messaging and actions align. Tesla’s commitment to innovation and sustainability is evident in both its marketing and product development.

• Stay authentic: Be genuine in your communications. Authenticity keeps your audience’s trust. Consider Gary Vaynerchuk, who is known for his raw and authentic communication style, which helps him connect with his target audience on a human level.

4. Attribution Theory

Attribution Theory, developed by Fritz Heider, explains how individuals interpret events and how this relates to their thinking and behavior. 

For your brand:

• Internal attribution: Highlight your skills and efforts behind your success. For example, Elon Musk often attributes his achievements to relentless hard work and learning.

• External attribution: When discussing setbacks, explain external factors to protect your brand’s image. Airbnb’s founders often discuss the economic downturn of 2008 as a challenge they overcame, highlighting their resilience.

5.Impression Management Theory

Erving Goffman’s Impression Management Theory focuses on how individuals attempt to control the impressions others form of them.

Here’s how you can incorporate it: 

• Front stage/back stage: Your public persona (front stage) needs careful management, while your private self (back stage) can be more relaxed. Oprah Winfrey maintains a polished public image, while her more relaxed, personal moments are shared selectively, either through her books or her speeches.

• Self-presentation: Highlight your strengths and manage perceptions strategically. Richard Branson’s adventurous persona is carefully curated to reflect his brand’s innovative and bold spirit, bringing out his uniqueness on the table.

6. Elaboration Likelihood Model

Richard Petty and John Cacioppo's ELM describes two routes to persuasion: central and peripheral.

• Central Route: Engage your audience with high-quality, thought-provoking content. TED Talks are a great example, providing in-depth, engaging content that prompts thoughtful consideration.

• Peripheral Route: Use attractive visuals and endorsements to capture attention. Consider how influencers on Instagram use visually appealing posts and endorsements to influence their followers.

7. Social Proof

Social Proof, a concept popularized by Robert Cialdini, suggests people follow the actions of others.

• Testimonials and reviews: Showcase positive feedback to build trust. Think about how LinkedIn profiles with numerous endorsements and recommendations are perceived as more credible.

8. Halo Effect

The Halo Effect, identified by Edward Thorndike suggests that positive impressions in one area influence perceptions in another.

• First impressions: Invest in a strong initial presentation—think professional profile pictures and compelling bios. Consider how professional headshots and well-crafted LinkedIn summaries create a strong first impression.

• Highlight strengths: Emphasise your key strengths and achievements. Microsoft’s Satya Nadella often highlights his strengths in leadership and innovation, creating a positive overall perception.

9. Narrative Transportation: Tell Your Story

People are moved by stories more than by arguments, says Narrative Transportation Theory.

• Storytelling: Share personal stories and anecdotes to create an emotional connection. Humans of New York is a prime example, sharing compelling personal stories that resonate deeply with their audience.

• Relatability: Make your stories relatable to your audience’s experiences and values. Ben & Jerry’s often shares stories about their commitment to social justice, resonating with like-minded consumers.

10. Reciprocity Norm 

Based on the work of Alvin Gouldner, the Reciprocity Norm suggests that people feel obligated to return favors.

• Offer Value: Provide valuable content and assistance to create a sense of obligation and loyalty. Think about how HubSpot offers free tools and resources, building goodwill and loyalty.

• Engage actively: Respond to comments and messages to build reciprocal relationships. Consider how brands like Wendy’s engage with their audience on social media, creating a sense of community and reciprocity.

Bringing It All Together

• Be authentic and consistent: Maintain a genuine and consistent message across all platforms to build trust. Consistency in your messaging reassures your audience and strengthens your brand.

• Visual identity: Use consistent visual elements like logos, colors, and fonts to create a recognisable brand. Nike’s consistent use of its logo and brand colors makes it instantly recognisable.

• Content strategy: Develop a strategy that includes valuable insights, personal stories, and interactive elements. A well-rounded content strategy ensures you connect with your audience on multiple levels.

• Engage and interact: Actively engage with your audience to build a community around your brand. Engagement fosters loyalty and turns your audience into brand advocates.

By weaving these psychological principles into your personal branding efforts, you can create a powerful, relatable, and influential brand that resonates deeply with your audience. Remember, it’s not just about marketing—it’s about making meaningful connections.