Identity Signaling Effect
Why people buy products that broadcast their values and tribe membership, and how to use identity signaling to boost your marketing.
In this issue
Hey 👋 The Crew here.
We just learned that hitting snooze burns approximately zero calories.
This changes everything. Or nothing?
On a related note, let’s talk about why we buy things that make zero logical sense but total emotional sense.
Reading time: 5 minutes, 2 seconds
10+ advanced marketing trainings that will turn you into a top 1% marketer
Who needs another overpriced “guru” course recycling hours of repurposed theories? Not you!
We built the Stacked Marketer Pro course library by partnering with elite practitioners. Not the marketers with a large social media following, but the ones silently generating millions of dollars.
Meta Ads. Conversion rate optimization. UGC Ads. Subscription businesses. Email marketing.
We have experts covering every topic.
And you can get access and 10 seats for just $349/year.
Keep one; gift the other 9 to your team, clients, or network (that’s $2.91/person/month).
Ever wonder why someone buys a $7 latte when the office brew is free?
It’s rarely about caffeine. But it’s all about the cup in your hand and what that cup signals to the world.
We call it Identity Signaling. The psychological drive to purchase products that broadcast your values, status, and even tribe membership to the world.
Science agrees. One big study shows that people consistently pay premiums for brands that help them express their desired identity, even when functionally identical alternatives exist.
For example, you don’t buy a $400 cooler just to keep ice frozen. You buy it to tell both the people and yourself that you’re the kind of person who goes on rugged adventures.
Or the startup founder that’s using Notion over Excel is broadcasting they’re part of the “new way” of working.
Bottom line: If you can help your customers tell their story, they will buy. Let’s see how.
Three ways to leverage Identity Signaling Effect
Make consumption visible
Identity signaling only works if others can see it.
Otherwise, the product won’t signal anything to anyone.
Superhuman leveraged this perfectly with a simple default feature. For years, every email sent from the platform ended with: “Sent via Superhuman.”
It was both a viral loop and a status flex.
Also, Allbirds shoes have that distinctive look that signals “I’m eco-conscious and design-forward.”
The unique aesthetic makes wearers instantly recognizable to other Allbirds customers, creating an unspoken community.
What you can do: Build a default, outward-facing product behavior or aesthetic that users can’t help but display. And that subtly signals the kind of person they are to others. That’s a win.
Align with a specific tribe
We buy to belong.
Most people want to signal that they are part of a specific “in-group” or community so a brand who leans into this idea usually wins.
You know how Notion users proudly share their setups on YouTube or X not as tutorials, but as demonstrations of their identity?
That’s because the app nailed Identity Signaling by becoming the tool of choice for “productive creatives” and knowledge workers who see themselves as organized yet flexible thinkers.
Tip: Don’t try to be for everyone.
Build and market toward a specific tribe with shared values, aesthetics, and worldviews. Make your product feel like their natural choice, the tool that “people like us” use.
Create hurdles for exclusivity
Sometimes, the biggest signal is how difficult it is to become a part of something bigger.
If everyone can sign up instantly, it signals very little about the user. You make it a bit of an effort, you’re instantly more attractive.
How to do this? Through waitlists, limited drops or invite-only betas.
Supreme built a fashion empire on scarcity and difficulty.
Limited drops, long lines, lottery systems, the harder it is to get, the more powerfully it signals status. Owning Supreme proves you’re connected, dedicated, and in-the-know.
You’re buying proof that you won a competition others lost. It becomes a part of brand value.
Scarcity creates a powerful signal of high status for the owner.
COMPLIANCE: SOC 2 have you shivering? Sleigh it with Delve’s AI Copilot. It reads policies, completes tasks, fills evidence, and automatically handles compliance so teams close faster. Lovable in 20h, Wisprflow in one month, 11x unlocked 1.2 million in ARR. Learn more here.*
AI EDUCATION: ChatGPT, Claude, Gemini, Midjourney… So many names, but what’s actually useful for you in your work? There’s a newsletter called The Deep View that exists to sift through all the noise and get you up to speed on what’s actionable with AI products, and it’s free. Join 512,000+ subscribers with one click and let AI empower you.*
SOCIAL MEDIA:Instagram is experiencing a like recession. Posts that once pulled hundreds of likes now struggle to hit double digits, even with thousands of views. The reason? Users are now passive consumers, while “shares per reach” is a top ranking signal. Interesting.
GOOGLE AI:Chat ‘til you drop. Google is now letting users discover products and complete purchases without ever leaving Gemini, thanks to new partnerships with Walmart, Shopify, and Wayfair. The purchase touchpoints are shifting towards AI, so make sure your strategy is too.
YOUTUBE:New broadcast is in town. YouTube officially overtook all of BBCs channels combined in monthly audience reach for the first time ever. This means that your audience is increasingly watching on internet-connected TVs, not just scrolling on phones. Take note.
ADVERTISING: Consumers are so tired of AI slop that they’re actively hunting for human-made content, pushing brands to ditch AI-generated creator deals and embrace real people instead. Some advertisers are even celebrating imperfections like messy backgrounds to prove authenticity…
ICYMI, last time we looked at the Warm Glow Effect.
The “Name Dropping” Crew
*This is a sponsored post.
Get the next psychology effect in your inbox.
Receive cutting-edge, science-driven marketing insights and tips every Thursday, for free.
