Social Engineering Blogs

8 Simple Phrases to Become a More Persuasive Salesperson

The Influence People Blog — Mon, 08 Feb 2016 22:30:00 +0000

I think it’s safe to say the easier something is to remember the more likely you are to act on it. State Auto’s Chief Sales Officer Clyde Fitch drove home this truth during his tenure with the company. Clyde had many memorable sayings we affectionately called “Clyde-isms.” He used these simple messages to drive home various points. Here are just a few of Clyde’s well-known sayings:

“Self-interest isn’t the only horse in the race but it’s the one to bet on.” A great picture of the reality that most people will do what’s in their best interest most of the time.

“If you only have bananas, sell bananas.” Don’t complain about what you don’t have or bemoan what your competitor has. Instead, make the best of what you’ve got because complaining gets you nowhere.

“Creativity is fine. Plagiarism is fast.” Learn from others by taking what they do well and making it your own. Sometimes it’s not about originality, it’s about having the tool to get the job done quickly.

I’ve learned a lot from Clyde and as I reflect on his “Clyde-isms,” I recall influence phrases that can serve the same purpose for you. Below are eight that will help you be a more persuasive salesperson if you commit them to memory.

“People live up to what they write down.” It’s scientifically proven people are more likely to do what you want if you can get them to put pen to paper. The act of writing and the visual reminder of what was written compel people to follow through more than those who don’t engage in this simple act. This is the principle of consistency.

“Less is more.”Hitting people over the head with too many facts, features, benefits, etc., works against you. One study showed this when people were asked to list reasons they would buy a particular car. Contrary to what most people would guess, those who listed fewer reasons felt more compelled to buy the car! It’s easy to come up with three reasons (probably the best ones come most easily) but if you struggle to list 10 reasons you might convince yourself the car isn’t the right one for you after all. This is the principle of scarcity.

“In wins!” This phrase is short for, “If you retreat in the moment you win. If you retreat from the moment you lose.” No matter how good a salesperson you are people will say no to you. However, if you come in with a second proposal immediately you’re very likely to hear yes because you’re seen as a reasonable, somewhat giving person. This is an application of the principle of reciprocity.

“Compared to what?” In sales you hear “Your price is too high” all the time. Something can only be high or low, big or small, inexpensive or expensive compared to something else. You need to know what that something else is because all too often it’s not a valid comparison. Yes, this Cadillac is expensive…compared to the Volkswagen you currently own…and there are lots of reasons for the difference in price. This is the contrast phenomenon.

“Keeping up with the Joneses.” Despite the fact that we’re all individuals and want to be recognized as such, people are social creatures. We want to know what others are doing; especially those who are most like us, because that’s an indicator we should be moving with the crowd. If you’re a salesperson touting what other customers (just like the one you’re talking to) have done makes getting the sale much easier. You may have heard this called peer pressure, social proof or the principle of consensus.

“People like to do business with people they like.” I’ve heard people say, “My job isn’t to be liked, it’s to get things done.” You may not be paid to be liked but you’ll get a lot more accomplished if people like you. So why not make friends of coworkers, vendors, clients and others so you can accomplish more (that’s what you’re paid to do!)? Oh yea, and one other benefit – you’ll enjoy what you do even more than you currently do. This is the liking principle.

“No pain, no gain!” This too is short for a longer phrase, “People are more motivated by what they stand to lose versus what they might gain.” Studies from Nobel Prize winner Daniel Kahneman and his late research partner Amos Tversky proved that people generally feel the pain of loss anywhere from 2.0-2.5 times more than the joy of gaining the same thing. Point out the downside of not going with your proposal and people will me more motivated to take it. This is the principle of scarcity.

“Stop telling and start asking.” Nobody wants to be told what to do but beyond being polite there’s another reason to ask instead of tell. Once someone tells you (verbally or written) they’ll do something, research shows they’re much more likely to do so as opposed to those who are told. Ask people questions to get them to verbalize what they want and your job as a salesperson gets a whole lot easier. That’s because asking triggers the principle of consistency.

So there you have it, eight short phrases I encourage you to commit to memory. Do so and you’ll become a more persuasive person as you recall them and act on them.

Brian Ahearn, CMCT®
Chief Influence Officer

influencePEOPLE
Helping You Learn to Hear “Yes”.

The post 8 Simple Phrases to Become a More Persuasive Salesperson appeared first on Social Engineering Blogs.

What Reciprocity Is and What It Is Not

The Influence People Blog — Mon, 21 Dec 2015 22:30:00 +0000

We’re knee deep in the holiday season, the traditional time of gift giving in many parts of the world. There is also quite a bit of reciprocation that happens during this season. I write that because quite often we give gifts to other people because we know they will be giving us a gift. God forbid we aren’t ready to exchange gifts because most people feel awkward when they receive a gift but don’t have something to give in return. To avoid that feeling have you ever run out to buy a gift or holiday card from someone and quickly stuck it in the mail because they gave you a card or gift first? That’s reciprocity working its magic on you.

The principle of influence known as reciprocity defines human behavior that’s been around as long as mankind: we feel obligated to give back to those who first give to us. We’ve been conditioned to give in return because over the course of evolution we learned we are all better off when we help those who’ve helped us first.

I’m sure every person reading this understands the principle of reciprocity and my definition only serves to make them think, “I already know that.” What most people don’t really understand is how to engage the principle because all too often I read articles and blog posts from marketers, sales trainers, and others who like to cite Robert Cialdini’s work…but do so incorrectly!

I recently read a blog post on getting consumers to say yes using reciprocity and two examples were used:

"But 4 get 1 free"

"Free gift/shipping when purchase for $60 or more"

Neither example is an application of the principle of reciprocity. Do you know why?

As noted earlier, reciprocity is engaged when you’ve given to someone or done something for another person first. That feeling of indebtedness makes the other person want to “return the favor” so to speak. Neither example used in the article I cited above did anything for the consumer or gave them anything in advance. In each case what they were actually offering was a reward. Rewards are predicated on an, “If you…, I will…” basis. Both of the above examples were actually rewards that could read:

“If you buy four you’ll get one more for free.”

“If you buy $60 or more in goods your shipping will be free.”

Think about it for a moment. You can’t get “one more for free” or “free shipping” unless you do something first.

Make no mistake about it; rewards motivate behavior. There are decades of studies to back that up and it’s a fact that rewards are more effective than the threat of punishment.

The word “free” is a big motivator too. Dan Ariely brilliantly points that out in a chapter from Predictably Irrational called “The Cost of Zero Cost: We Often Pay Too Much When We Pay Nothing.” All too often we’ll go out of our way to get something free. For example, have you ever purchased extra items on Amazon so you’d spend enough to get free shipping? People spend a lot more money to get “free” stuff!

Rewards change behavior but some studies show you can engage people with reciprocity by giving a much smaller gift in lieu of a large reward and get a better result. In workshops I often share a study in which owners of a construction company were either offered a $50 reward for completing a survey or given a $5 check up front in consideration of their time. Only 23% who were offered the $50 reward completed the survey but 52% who received the $5 check up front did so. And the savings was anywhere from 57% to 77% depending on how many ultimately cashed the $5 check. As a business owner, if you knew you could more than double your response rate and save 50%, 60%, 70% or more by going the reciprocity option instead of the traditional reward route, wouldn’t you choose the reciprocity option? Of course you would…and now you will going forward.

I don’t point this out to be nit picky or combative. Rather, I point this out because when I teach people about persuasion I tell them, “If you use the principles ethically and correctly you will get more people saying yes to you.” If people think they’re using principles correctly but they’re not, then they won’t see the results they hoped for. That leads to people thinking, “It sounds good when Brian says it, or when Dr. Cialdini writes about it, but it doesn’t’ work in the real world.” It does work but only if you do it the right way.

Here’s my final thought – if you want to engage people in a low cost, easy to implement, sure fire way to motivate the behavior you want, save yourself time and money by going the reciprocity route in lieu of using traditional rewards

Brian Ahearn, CMCT®
Chief Influence Officer

influencePEOPLE
Helping You Learn to Hear “Yes”.

The post What Reciprocity Is and What It Is Not appeared first on Social Engineering Blogs.

Why Thankfulness Matters

The Influence People Blog — Mon, 23 Nov 2015 22:30:00 +0000

This week people across America will be celebrating Thanksgiving. While this holiday has its origins going back to the 1600s with the Pilgrims it wasn’t until Abraham Lincoln that we formally acknowledged the last Thursday in November as the day of celebration. Franklin D. Roosevelt altered that in 1939 when there were five Thursdays in November. FDR declared the fourth Thursday to be the official day and the Senate ratified his decision in 1942, officially making the fourth Thursday Thanksgiving in the United States.

The truth is we should be thankful every day and multiple times each day because there’s so much to be grateful for. If Viktor Frankl could find reason to give thanks while held prisoner in Nazi concentration camps then we can all find reasons to be thankful each day. Unfortunately it’s human nature to take things for granted so it’s not until something is missing that we appreciate it more. That’s the principle of scarcity in action.

Speaking of being thankful, here’s an example of the wrong way to go about it. Many years ago a colleague needed help with something. What was asked not only required my time but the time of several others as well. It forced us to put things on hold for other people but nonetheless we “stopped the presses” and accommodated the request. This person got what they needed and went about their business the next day. What stood out to me was this – never did they thank us in person, by phone, or in writing. I remember thinking, “I don’t work for thanks. I get paid well to do my job,” but I also knew in my heart I wouldn’t extend myself for that person again and I certainly wouldn’t ask others to do so.

I don’t think I’m different than the average person in this regard. When I go out of my way to help someone – even when paid – if I don’t get some acknowledgment of appreciation I know I won’t try as hard the next time. Contrast that with people who offer genuine thanks and appreciation. I bet most of you would go above and beyond for such people.

Giving thanks is a form of reciprocity. This principle of influence tells us people feel obligated to give back to those who first give to them. According to the French social psychologist Marcel Mauss, every human society teaches its people the way of reciprocity. We see this as we raise our children because one of the first things we teach them to say is, “Thank you,” when someone has done something for them.

Because we’re all brought up in the way of reciprocity most people are somewhat offended when the person they helped cannot take a moment to say thanks. Beyond offense, people are less willing to help thankless people as time goes by. It’s a natural human response.

Here’s why thankfulness matters. When you do express sincere appreciation people are more likely to help you – and others – in the future. Think about it; you help someone, they express gratitude, and you feel good about the action you took. You’re naturally more likely to repeat behaviors in the future that made you feel good about yourself. And the person you helped is more likely to help others too. That’s called “paying it forward.”

As we approach the day that commemorates giving thanks pause to reflect and see if you’re someone who regularly gives thanks when someone does something for you. If you don’t, or don’t as regularly as you should, make a commitment to start. I think you’ll be amazed at how people respond to you and you’ll be thankful you changed your ways.

Brian Ahearn, CMCT®
Chief Influence Officer

influencePEOPLE
Helping You Learn to Hear “Yes”.

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What’s Your Goal?

The Influence People Blog — Mon, 09 Nov 2015 22:30:00 +0000

I work with lots of people in different roles when it comes to teaching ethical influence. Over the years I’ve worked with senior leaders, middle managers, supervisors, claim reps, underwriters, field sales reps, insurance agents, business owners, financial reps and many others. I’m always amazed at how often people try to persuade without a clear goal in mind.

You may think a salesperson always has a clear goal; i.e.,to make the sale. True enough, but that’s still a little vague in my book. Let me share an example to help you see what I mean.

During the Principles of Persuasion Workshop^© we have an activity where participants work in teams to come up with a persuasive argument to get a high school student, Jimmy, back in school after he’s been expelled for foul language and insubordination. Participants generally do a good job at applying the principles of influence to persuade the school board to let Jimmy back in but very few clearly state when they want Jimmy back in school. That leaves the final decision up to the school board, which could opt for another week or two out of school.

Participants would do much better to say something like this at the conclusion, “It’s our sincere hope that you’ll let Jimmy back in school tomorrow.” Why is this so important? Because if the board says no there is a moment of power the teams can leverage.

Studies show when someone says “No” to you, if you make a concession and ask for a smaller request immediately your odds of hearing “Yes” are much better. This is an application of the principle of reciprocity because when we give a little, people often feel compelled to give a little in return.

Robert Cialdini had his research assistants run an experiment that shows how powerful this concept can be in real life. These students randomly asked people around the Arizona State University campus if they would be willing to be a chaperone on a day trip to the zoo for a group of juvenile delinquents. As you might expect, very few people wanted to spend a day at the zoo with those kids so only 17% said they would be willing to help.

At a later date the research assistants roamed the campus and started with a bigger initial request. They randomly asked people if they would be willing to be a big brother or sister to some juvenile delinquents. They made sure people knew this was a weekly commitment of two hours and they were looking for people to sign up for two years. No one was willing to give up that much time. As soon as people said no the research assistants would ask, “If you can’t do that, would be willing to be a chaperone on a day trip to the zoo for a group of juvenile delinquents?” So basically they were asking for the exact some thing they’d asked for earlier but this time 50% said yes – triple the initial response rate!

Two things were at play during the second scenario. First, the contrast phenomenon came into play. By comparison, a day at the zoo is nothing compared to a two-year commitment so it’s much easier to say yes to the zoo after thinking about being a big brother/sister. The second thing was the principle of reciprocity was engaged by way of concessions. When the research assistants counter-offered immediately, many people felt compelled to do the same.

Let’s go back to the scenario with Jimmy. By clearly stating what the team wants – to have Jimmy back in school tomorrow – they will be more effective persuaders. They might hear a “Yes” to the initial request but if they don’t they can make a counter offer that’s very likely to be accepted. This is a far better approach than leaving the timing up to the board.

How does this work for you? Two ways.

Clearly state what you want. Think about the times when you’ve not clearly stated what you wanted and left if to someone else to decide the outcome. Perhaps you interviewed for a job but didn’t clearly state the salary or benefits you wanted. Or maybe you were trying to make a sale but didn’t make the first offer.
Don’t censure yourself. For example, you want a job and would like to earn $95,000 but inside you’re thinking they might say no so you ask for $85,000. If you hear no then you might end up at $80,000 or less. Ask for $95,000 because you might just get it but if not you can retreat to $90,000 and are more likely to get that than if you’d started at $90,000 or $85,000.

Next time you go into a situation where you’re trying to persuade someone don’t just focus on building your persuasive communication. Give lots of thought to what your ultimate goal is. What would you like to have happen if everything worked out as you wanted? But don’t stop there; clearly communicate your desired outcome. Be ready in case you hear “no,” which means having multiple fallback positions ready. This allows you to leverage the moment of power after “no.” Do these few things and you’re on your way to becoming a much more effective persuader.

Brian Ahearn, CMCT®
Chief Influence Officer

influencePEOPLE
Helping You Learn to Hear “Yes”.

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Influencers from Around the World – Italians and the Principle of Liking

The Influence People Blog — Mon, 03 Aug 2015 21:30:00 +0000

Marco Germani is our guest blogger for this month’s “Influencers from Around the World” post. Marco lives in Italy, just outside of Rome. He’s not only been a guest blogger in the past, he wrote a book on influence in Italian. Marco is married and has two young boys. He gets real world influence application in his various business pursuits. Readers have always enjoyed Marco’s perspective on influence and I’m sure that will be the case this month.

Brian Ahearn, CMCT®
Chief Influence Officer

influencePEOPLE
Helping You Learn to Hear “Yes”.

Italians and the Principle of Liking

I recently read about a survey conducted by Citibank, a corporation with employees across the globe. The object was to identify how the different persuasion principles would apply to different cultures around the world. The question asked of employees was: If someone within your organization came to ask you for help on a project, and this project would take you away from your own duties, under what circumstances you would be mostly obligated to help?

The results displayed that in the U.S., the principle mostly taken into account to answer this question was reciprocity. What has this person done for me? Do I feel obliged to render him a favor? That would determine whether the help is granted or not.

In Hong Kong, the most important principle was authority: is this person connected to my small group and in particular, is he a senior member of this group?

In Germany, authority was considered but under a different light: according to the rules and regulations, am I supposed to say yes? In this case, I am obliged.

Finally, in Italy, yet another persuasion principle was mainly taken into account: the one of liking. Is this person connected to my friends? I am loyal to my friends so, therefore, I must help him or her.

Being an Italian I can confirm this is true most of the time. I then started to think about the reason this principle is so important for Italians and I came up with my own theory. It goes back to my country’s history. Contrary to what happened in other European countries, like France and Germany, Italy started to exist as a single centralized unit only quite recently (250 years ago, which for Europe is a really short time). For thousands of years, the regions eventually forming Italy existed as isolated kingdoms (Kingdom of Naples, Kingdom of the two Sicilies, etc.) and often fought bitterly against each other.

When Italy became a nation it was hard, for a central government, back then based in Piedmont in northern Italy, to maintain control while being politically and physically present in the whole country. This was especially true in southern regions like Calabria or Sicilia. The formation of small clans of people, which eventually led to the creation of the most (unfortunately) famous criminal organization in the world, the Mafia, became a necessity of survival.

Where the hand of the government couldn't reach, there you had a small group of “friends” ready to kill for each other in order to keep order and peace and fight against the “bad guys.” If you wanted protection, you must become their friend too. If not, bad things could happen to you. Assuming this theory has some part of truth, it must be eradicated in our DNA a sense of loyalty to our group of friends, not anymore for survival, but to have some kind of advantage in our daily lives, according also to the principle of reciprocity.

This can be observed also when two or more Italians meet abroad. We tend to establish as soon as possible a sort of connection, because we know that we could, as a small team (or clan) be more effective in overcoming problems and finding solutions. Of course this happens without any criminal or illegal intention nowadays. On the other hand, in a business setting, this is a universal rule, which transcends cultures: always try to build a relationship with your customer or business partner before talking shop. With us Italians, it is even more important and it is an aspect which should never be underestimated by any serious negotiator or influencer.

Marco

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An Education in How to Apply Persuasion to a School Levy

The Influence People Blog — Mon, 15 Jun 2015 21:30:00 +0000

Many years ago I wrote a blog post that was one of my best read. It even caught the attention of Jeffrey Gitomer and he ran it in his weekly Caffeine Ezine. The article was called 700,000 Great Reasons to Use Yellow Sticky Notes. It showed how we took a concept from the book Yes: 50 Scientifically Proven Ways to be Persuasive and implemented it to recover from a $700,000 mistake quickly.

The person I worked with to make that happen was our home office accounting manager Steve Ruble. Steve recently told me he was taking the concept of personalizing information into a school levy campaign in his town. He said if the levy failed there would be many more cuts than residents realized. Being a big school supporter and having children in the school system, Steve had a vested interest in making sure this didn’t happen. The odds were against the levy as none had passed since 2010.

Working with other supporters of the school levy they were able to identify 2,000 people who hadn’t voted in the last levy ballot. A frequently asked questions (FAQs) flier was delivered to these people. On the FAQ was a section highlighted in yellow that read, “Please Vote Yes.” Steve personally signed all 2,000, writing “Thank You” next to the highlighted section.

Now you might be thinking something as trivial as a personalized note would have no effect on your decision to vote, let alone to vote yes on the levy. You would not be alone in that thought, but much of persuasion happens at the subconscious level, meaning it impacts you without you actively thinking about it.

In the studies cited in Yes,both times signed sticky notes were used the response rate doubled. When a hand written note was used without a sticky note the response rate was still 33% higher. You can’t explain away those results in a controlled experiment.

Back to my friend Steve – he had seen the difference it makes to personalize requests to our agents when it came to money and he knew it worked. That’s why he made sure the Please Vote Yes was highlighted in yellow and that’s why he endured writer’s cramp to sign 2,000 FAQs!

Quite often elections come down to a few percentage points and in small towns that might mean a few hundred swing voters can make the difference. In Steve’s case the levy passed by a whopping 74% to 26% margin!

Did the personalization – an application of the principle of reciprocity – make all the difference? Perhaps not all the difference, but Steve knew it could be a big part of the difference they would need to pass the levy and he was wise enough not to let the opportunity slip by.

Whenever you want to persuade someone – to get them to do something they’re not doing at the moment – take a moment to personalize your request and your odds of hearing yes will be much better.

Brian Ahearn, CMCT®
Chief Influence Officer

influencePEOPLE
Helping You Learn to Hear “Yes”.

The post An Education in How to Apply Persuasion to a School Levy appeared first on Social Engineering Blogs.

Influencers from Around the World – Some Acts of Giving Can Span Decades and Lifetimes

The Influence People Blog — Mon, 01 Jun 2015 21:30:00 +0000

This month we have another new guest writer. Like myself and several other guest bloggers for Influence PEOPLE, Debbie Hixson is a Cialdini Method Certified Trainer®. Debbie is a manager in the Leader Strategy and Programs division at Kaiser Permanente where she’s been for nearly 20 years. She earned her B.A., Psychology, has an M.Ed. in Counseling and Educational Psychology, a Masters of Arts in Human Resources Development and is currently working on her Ph.D. in Organizational Leadership! I know you’ll enjoy Debbie’s insightful perspective on influence and persuasion.

Brian Ahearn, CMCT®
Chief Influence Officer

influencePEOPLE
Helping You Learn to Hear “Yes”.

Some Acts of Giving Can Span Decades and Lifetimes

I read in my Sunday paper about a cemetery in Holland where American soldiers who fought the Nazis in World War II are buried. It seems that each of the 8,300 graves in Margraten, a small village in the Netherlands, are tended by Dutch, Belgian or German families, along with schools, companies, and military organizations. On Memorial Day this year they came as they do several times a year to place flowers in front of headstones of people they didn’t know and to honor their service.

At the cemetery’s annual commemoration 6,000 people flooded the 65-acre burial grounds including many descendants of the American soldiers who traveled from all over the U.S. They came to pay tribute to their parents and grandparents who fought to defeat the Nazis. And they came to thank the people who had been tending the graves of their loved ones for over 70 years. Some of the caretakers have passed the responsibility on from generation to generation. The responsibility is felt so deeply that there is a list of over 100 people waiting to become caretakers of the graves.

What would cause a nation recovering from the trauma of being invaded during World War II and their own personal losses to adopt the fallen of another nation? And what would keep this commitment alive all these years later, when the pain and significance of the war had faded. It is unique in this world, wouldn’t you say?

In September 1944, the village of Margraten and its 1,500 inhabitants had been freed from Nazi occupation. The war was not over and many American soldiers died in nearby battles with the goal of breaking through the German lines and trying to capture bridges that connected the Netherlands to Germany. The losses sustained were heavy and the American nation needed a place to bury its dead. They choose a fruit orchard just outside Margraten.

The villagers of Margraten embraced the Americans and grieved for their fallen. They provided food and shelter for the U.S. commanders and their troops. After four years of being occupied by the Nazis, they were free. Life could return to normal and once again they could enjoy the freedoms they had before the invasion. They realized that they had the Americans to thank for that freedom.

For the gift of their freedom, the people of Margraten reciprocated by tending year after year to the graves of the solders who gave their lives to restore it. The rule of reciprocity, according to Dr. Robert Cialdini, says that when we receive something, a favor, a kindness, etc., we feel obligated to repay it. He says that “so typical is it for indebtedness to accompany the receipt of such things that a phrase like ‘much obliged’ has become a synonym for ‘thank you,” not only in the English language but in others as well.” Although obligations extend into the future they can be short lived unless they are notable and memorable such as the American sacrifice to free the people of Margraten. In some cases such as this, the obligation is felt so keenly that the thank you never ends.

We can see this illustrated in a recent ceremony in Margraten to honor the fallen Americans. One American conveyed the essence of the bond between the Dutch and the U.S. His name is Arthur Chotin and the Naaijken family tends his father’s grave. He said to the audience of Americans and current caretakers, “By making these dead part of your family, you have become part of our family. You have created a bond between us that will never be broken. So, from this day forward, from now until the end of time, a heartfelt thank you.”

In our own lives we have experienced reciprocity. We all learned as children that when someone does something nice for us, we do something nice for that someone in return. It works well for us and in our society to reciprocate. We have not-so-nice words for people who do not reciprocate. Reciprocating with others establishes relationships whether they are professional or personal in nature.

In my work, I use reciprocity to develop long-lasting relationships with my clients that are mutually beneficial. Before I make a request of them, I consider giving them something first. It might be giving time to listen to their concerns, or sharing ideas to address their problems. In return I ask for their trust to be completely honest in our coaching relationship. Then I ask them to listen to my feedback as well as try out my suggestions for addressing their leadership challenges. Because we keep reciprocating the relationship continues indefinitely for as long as we work together.

Reciprocity is a powerful tool to influence others. It is based on the idea that we help those who help us. It begins by giving someone a gift – your time, your advice, etc. In turn they will usually support your request because the rule says we’re to give back to those who first give to us. It is a powerful motivator for us to comply with other’s requests when they have given to us and it’s powerful because others will do what you ask when you give to them first.

So start with this thought, “Whom can I help?” rather than, “Who can help me?” Do so and you will initiate and develop long-lasting, mutually beneficial relationships. Try it.

Debbie Hixson, CMCT

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The Psychology of the Sales Cycle – Referrals

The Influence People Blog — Mon, 20 Apr 2015 21:30:00 +0000

For the most part salespeople don’t have a great reputation. This is so because many people feel they’ll be pressured into buying something they don’t want or need by someone who is manipulating them. I teach sales and don’t always like dealing with salespeople because most of the time they don’t add value to the transaction. If someone can only tell me what I can already read on online or find on a label, then they’re not doing me much good.

Good salespeople add value because they:

Ask questions to help uncover a need you might not have considered before.
Save you the time and effort of having to do lots and lots of research on your own.
Point out features you might not have known about and demonstrate how they’ll be beneficial for you.
Can be a “go to” person for you when something goes awry.

When you interact with someone who really helps you, it’s natural to want to help him or her in return. That’s the principle of reciprocity and it will make the client happy to help you by giving you some referrals.

It’s common for salespeople to ask for referrals at the close of the sale.

“John, I’m really glad we’re doing business together. One way my business grows is through referrals. Do you know anyone else who might be interested in the services I offer?”

Personally I think that’s a terrible approach because you’ve not done anything yet to deliver on your promise! If the client doesn’t say no right off the bat it’s likely to be met with a name or two off the top of their head quickly just to satisfy you.

Here is an approach that combines the principles of reciprocity and consistency that is sure to get more and better referrals! You disarm the client by telling them you’re not going to ask for referrals but would like to ask a favor. Ask if you can talk sometime in the future about referrals, after they’ve had a chance to see how your product or service performs. This is where planning comes in because you’re planting a seed. Here’s what I recommend to insurance agents. I’m sure some variation might work for you in your business:

“John, I’m really glad we’re doing business together. At this point in the sales process I know a lot of insurance agents would ask for referrals but don’t worry, I’m not going to do that. I would like to ask a favor though. After you’ve had a chance to experience our service, say nine months to a year from now, if we’ve done what we said we would and you’re happy with us, could we talk about referrals at that time?”

Humans are funny in many ways and one is our willingness to put things off into the future that we’d rather not do today. I guarantee nearly everyone will agree to talk with you in 9-12 months about referrals.

Now it’s up to you to have an efficient diary system for following up with clients.

“John, it’s Sue. I’m calling to see how things are going and if there’s anything you need from me as we approach your renewal date?”

Towards the end of that conversation try this:

“John, do you remember when we started doing business together last year? I asked if we could talk about referrals if we’d lived up to our promises and you were happy. I feel we’ve done that (reciprocity). Are you happy with the decision you made to move your business to us?”

Don’t just ask for names and numbers at this point because the customer will be scrambling. They were not thinking about referrals when they picked up the phone, so continue in this way:

“I don’t want to take any more of your time today and I’d like to give you a chance to think about who might appreciate the kinds of things we’ve done for you. Could we set a time next week to talk for about 15 minutes?”

You’ve planted the seed for them to really give this thought and they will because they told you they would. On next week’s call you’re sure to get the names of people who would be most likely to appreciate what you have to offer.

This is the final post in this series where we’ve looked at using particular principles of influence at different points in the sales cycle. I hope you’ve found the posts enlightening but more importantly, that you employ what you’ve learned and see your sales soar as a result!

Brian Ahearn, CMCT®
Chief Influence Officer

influencePEOPLE
Helping You Learn to Hear “Yes”.

The post The Psychology of the Sales Cycle – Referrals appeared first on Social Engineering Blogs.

The Psychology of the Sales Cycle – Closing

The Influence People Blog — Mon, 13 Apr 2015 21:30:00 +0000

I remember when I was young and single I would go out with friends and see pretty girls, but rarely had the gumption to go up and talk to them. The reason was fear of rejection. Nobody likes that feeling so we do what we can to avoid that possible self-inflicted wound.

In the same way I was afraid to talk to a pretty girl, salespeople are reluctant to ask for the sale for fear of rejection. It’s safer for the ego to let the prospect “think it over and get back to you.” In their uncertainty, prospects do one of two things: 1) take the safe route and don’t change anything, or 2) go with the salesperson who fearlessly asked them if they could start on the paperwork.

The number one question salespeople ask during The Principles of Persuasion Workshop® is, “What’s the best way to close?” My standard response is, “The best way to close starts the moment you meet prospects for the first time, look them in the eye and shake their hand.” From that point forward how easy or difficult closing is depends on what you do. I believe closing the sale should just be a natural part of the ongoing conversation with a prospect. The best compliment a salesperson can hear from a client is, “I never felt like I was being sold.”

Early on in this series I quoted Jeffrey Gitomer, “All things being equal, people want to do business with their friends. All things being not so equal, people still want to do business with their friends.” Tapping into liking early and often will make a big difference by the time you ask for the business. Always start your contact with a prospect on a social level bonding over things you have in common and looking for opportunities to offer genuine compliments.

The more you’ve done for the prospect and the more you’ve gone out of your way on their behalf, the more likely they are to look for some way to give back to you. If you’re unable to close the deal for some reason you might still leverage all you’ve done as a way to get some referrals because of reciprocity.

People want to know they’re doing business with an expert because it gives them more confidence in their decision. As you make your way through the sales process, show yourself to be professional and someone your prospects can rely on for answers when they need them. In short, tap into authority.

I believe consistency is the most important principle to tap into during the closing. Reminding people of what they said is a powerful motivator of behavior! This is where the upfront close comes in handy early in the sales cycle. At some point during the initial meeting or qualification stage you need to find out exactly what it will take for you to earn the right to do business with the prospect. If you know you can’t meet their requirements, cut your losses and move on. But, if you believe you can meet the requirements you might want to say something like this:

“Shirley, from what you’ve shared it sounds like if we can meet your specifications at the agreed upon price by the delivery date you mentioned, we’ll be doing business, correct?”

You want the prospect to come back with:

“Correct. Meet those specs at that price by the delivery date we discussed and you have a deal.”

This is also the time to confirm there are no other hidden reasons that might crop up to kill the deal:

“Just to be very clear Shirley, are there any other reasons I’m unaware of that could get in the way of us doing business?”

Again, you want her to confirm what you’re asking. When it comes time to close you only need to refer back to what you’ve already agreed on:

“Shirley, great news. We can meet the specs at the price we discussed and can even deliver a little earlier than you requested. Can we go ahead and start the paperwork so we can get everything in motion?”

It would be very hard for Shirley to come back and say no at this point after you’ve done everything she asked for. Will there be times when someone backs out? Sure. But, using consistency in an approach like this will have more people saying yes and will make it much easier and natural for you to seal the deal.

Last, but not least, is scarcity. Pointing out what someone might save or gain by going with your proposal will not be as persuasive as honestly sharing what they stand to lose by not taking the step you recommend. For example, if you are in financial services, talking about how much more someone might be able to save for retirement by setting aside an extra percent of their income will not be as motivating as sharing what they will lose if they don’t save a little extra.

Ineffective – “Ed, if we can find a way to set aside just 1% more you’re going to have more than $100,000 extra in the bank by the time you retire.”

Effective – “Ed, if we can’t find a way to set aside just 1% more you’re going to lose out on more than $100,000 by the time you retire.”

Hopefully these examples of weaving the principles of influence into the sales process will take some of the fear out of closing. There’s one more post in this series – asking for referrals. Next week we’ll look at ways to make that happen as naturally as the close, by effectively working the principles of influence into your sales cycle.

Brian Ahearn, CMCT®
Chief Influence Officer

influencePEOPLE
Helping You Learn to Hear “Yes”.

The post The Psychology of the Sales Cycle – Closing appeared first on Social Engineering Blogs.

The Psychology of the Sales Cycle – Negotiations

The Influence People Blog — Mon, 30 Mar 2015 21:30:00 +0000

If you’re like the vast majority of people, when you make a purchase you want to believe you got a good, or great, deal. What’s your definition of a good deal? The deal is really the value you get from the transaction and when I talk about value I use the following equation:

V = WIG/P

Value equals What I Get divided by Price.

There are two simple ways to look at it. If I can get more of something for the same price, that’s a better value. If I can get the same amount but pay less, again, that’s a better value.

When it comes to value, getting a good deal, everyone would like to get more for less. We might not get as much as we want, or pay as little as we’d like, but believing the old adage – everything is negotiable – we’ll try our best to get more and/or pay less. And so will your prospects.

Negotiating isn’t simply about lowering your price or giving away more stuff to make someone happy and close the sale. It’s about knowing when to deviate from traditional pricing or when to make concessions that will make both parties better off in the long run. It’s fair to say all the principles of influence and the contrast phenomenon might come into play as you negotiate but a few will stand out a little more.

Liking remains very important because the more the prospect likes you and really wants to do business with you, the better your chance of getting to yes as you go through negotiation points. Continue to remain friendly, bond over things you have in common and offer compliments when warranted because those simple acts will grease the wheel. One study I regularly share in my influence workshops clearly shows people put in a negotiation scenario had a much better chance of avoiding a deadlock if they take the time to get to know each other on a personal level.

The principle of reciprocity describes the reality that when you give, quite often people feel they should give in return. This is very important in negotiations because your act of conceding on some point might cause the other person to make a concession too and you’re now closer to agreement. A concession might be sweetening the deal with something that may not mean much to you but might mean a lot to the prospect. Again, your act of giving is met with something in return. That’s the basis for bartering. The key here is to be the first to take the step to the middle.

Consistency allows you to fall back on what the prospect said earlier in the sales process. If they wanted certain features and those features have a price tag then the reason for the price being what it is might be due to their choices. Reminding them of what they said they wanted is powerful because most people won’t come back with, “I know what I said but I’ve changed my mind.”

Scarcity is closely aligned with consistency because you can always offer to remove certain features to get the price more in line with customers’ expectations or budget. If you recall in the post I wrote on qualifying the prospect, I shared a conversation between an insurance agent and prospective customer. The agent shared a little about business income coverage and the prospect asked to have the price included in the insurance quote. The new coverage will cause the premium to be higher but could be modified in some way or removed as a concession if the prospect feels the price is too high. With a new understanding about the coverage and their exposure, prospects might just find a way to keep it because no one wants to think about an exposure they clearly know is not covered.

Contrast is used to help the prospect see what is being offered is in fact a good deal. If they believe your price is too high you need to figure out what their comparison point is. Whatever they have currently might not be a valid comparison point because the features may have changed. If that’s the case you need to move away from the old price and get them to see the value in what you’re offering.

For example, how does being $1,000 higher than a competitor breakdown over the life of a product with a five-year lifespan? Over five years, there are 260 weeks so your product will cost the prospect less than $4 a week. Can you show the prospect how your product is worth much more than the extra $4 a week you’re asking them to pay?

Bottom line – Don’t be offended that the prospect wants more for less. We’d all love to have a Cadillac but it’s not reasonable to think we can get it for the price of a Volkswagen, is it? And so it is quite often in your negotiations during a sale. You need to work with the prospect to come up with a solution that makes them feel their needs were met and they got a good deal.

Next time we’ll look at the part of the sales cycle I’ve seen salespeople struggle with the most – closing the sale, i.e., asking for the business. This doesn’t have to be difficult if you’ve set the expectations early on. Using the principles of influence effectively can make closing a natural part of the sales conversation.

Brian Ahearn, CMCT®
Chief Influence Officer
influencePEOPLE
Helping You Learn to Hear “Yes”.

The post The Psychology of the Sales Cycle – Negotiations appeared first on Social Engineering Blogs.