Think about the last time you made a purchase that wasn’t strictly necessary.
Not the weekly food shop or the broadband bill. Something you chose. A new notebook before starting a project. A course that you told yourself would be useful. A bag, a piece of jewellery, a bougie gym membership you bought to feel special when you go.
Chances are; part of what you were buying wasn’t the thing itself. It was what owning it said about you. To yourself, and to the world.
This is the Identity Signalling Effect, and once you understand it, you’ll start seeing it everywhere. Including in the way your own clients decide to hire you.
What the research says
The Identity Signalling Effect is a well-documented phenomenon in consumer psychology. Research published in the Journal of Consumer Research (Berger & Heath, 2007) shows that people consistently make purchases that reflect – or project – the kind of person they see themselves as or want to become. We don’t just buy things for their function. We buy them because they communicate something about our identity, both to other people and to ourselves.
A separate study, cited in the International Journal of Research in Marketing, found that people will pay a premium for a brand or service that helps them signal a desired identity, even when a functionally identical alternative exists at a lower price.
The cup in your hand. The planner on your desk. The mentor you hired. The retreat you attended. All of these say something.
So, what does this mean for your business?
When someone books a branding photographer, they’re not just buying a set of headshots. They’re investing in the identity of someone who takes their business seriously enough to do this properly. When a therapist hires a business coach, they’re not just buying a strategy, they’re buying permission to call themselves someone who invests in their own growth.
When your ideal client scrolls past your content and thinks that’s exactly who I want to be — e.g. the one who has her diet and nutrition sorted, who isn’t winging it every week, who has a plan – that’s identity signalling at work.
The decision to hire you isn’t purely rational. It never was.
What this looks like in different sectors
- For coaches: Your client is investing in a version of herself she wants to step into. When she books a coaching programme, she’s not just buying the sessions, she’s signalling something to herself. I’m the kind of person who gets proper support. I don’t just muddle through. I take this seriously. That she doesn’t just read about change, she does something about it. The investment is part of the identity shift, not just a means to it.
- For therapists, hypnotherapists, nutritionists and other practitioners: The same principle applies, perhaps even more so. Seeking this kind of support carries real meaning for your client – it signals that she prioritises her wellbeing, that she’s ready to address something she’s been carrying, that she values herself enough to get proper help. That decision alone is significant, before she’s even had her first session.
- For photographers: Your client isn’t buying photos. She’s buying proof that her business, her family, or her brand is worth celebrating and investing in. The image on her website or social feed signals to the world – and to her – that she’s arrived somewhere worth documenting.
- For interior designers: When someone commissions an interior designer rather than going to IKEA and figuring it out themselves, they’re not just buying a better room. They’re buying the identity of someone who values their home environment enough to do this properly.
These are all powerful stories, and they’re part of why your ideal client is choosing you over a cheaper or more DIY option.
Identity conflict: making your transformation feel real
Understanding the Identity Signalling Effect also explains why the way you talk about your work matters as much as what you do.
If your messaging stays at the level of what you offer, e.g. the sessions, the strategy, the deliverables, you’re asking her to make a logical decision. But if your messaging consistently paints a picture of who she will become, you’re speaking to something deeper. You’re showing her the identity she’s reaching for and making it feel within reach.
The client who hesitates isn’t usually hesitating because of price. She’s asking herself: is that version of me really possible? Can I see myself there? Your marketing either answers that question or it doesn’t.
This is why case studies, testimonials, and the language you use in your content all matter; not just as proof of what you’ve done, but as a mirror showing your client what’s possible.
Three ways to use this in your marketing
- Get specific about the transformation, not just the outcome
There’s a difference between “you’ll have a content plan” and “you’ll be the kind of business owner who knows exactly what she’s posting and why.” One is a deliverable. The other is an identity. Lean into the identity. - Make your clients visible
Case studies and testimonials don’t just demonstrate results; they show your potential client who she’s joining. When she reads about Client A, the photographer who now loves her business again, or Client L, who went from 3/10 marketing confidence to fully booked and running proper campaigns, she’s asking herself: is that my kind of person? Could that be me? If it is, she’s one step closer. - Let your content signal your tribe
The Buying = Signalling Effect doesn’t just apply to your clients. It applies to you. Your content signals your values. The language you use, the examples you give, the things you refuse to do, all of it signals who your work is for. The right clients will see themselves in that.
Your clients are not purely rational decision-makers weighing up price against deliverable. They’re people trying to tell a story about who they are and who they’re becoming.
When your marketing speaks to that identity, when it says this is for people like you, people who invest in themselves, or people who are serious about their business — you stop being just another option and start being the obvious one.
Want to understand the psychology of your own clients better and use it to attract more of them?
Book a Marketing Mapping Call with me, they are a great place to start!
This is Part 3 of my Bitesize Marketing Psychology series
- Read Part 1 on Why Clients Ghost: Future Lock-In
- Read Part 2 on Why Your Marketing Always Takes Longer: Planning Fallacy
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