I travel a good bit and it seems to pick up each year. For example, last year I was away from the office half of the weeks during the year. Quite often my travel entails flying to and fro around the country.When it comes to air travel, I’m a Southwest guy through and through. Rarely am I late and I can’t recall a time when I didn’t make it to my destination the same day I was supposed to. Combine that with the best fares in the industry and people who seem to genuinely enjoy what they do and it’s a no brainer for me to choose Southwest each and every time.If you’ve flown Southwest then you know you have to check in 24 hours in advance. They have me trained better than Pavlov’s dog because I’m on their web site 24 hours ahead of my scheduled flight and check in the moment the clocks tells me it’s exactly 24 hours till take off. That usually gets me an A30 or better assignment which translates into sitting almost anywhere I want to.When I fly I typically have my iPad out to read or get my MacBook out once we’re airborne so I can work. And I’m not someone who throws their seat back so the person behind me has their legs up in their belly or their tray in their chest.Not long ago I went through my usual routine as I got on a flight and almost as soon as I sat down the flight attendant said, “Excuse me sir. You’re sitting in the row right in front of the exit row and that means you can’t recline your seat.” I replied, “That’s not a problem because I never recline my seat.”As soon as we started down the runway I began to think about not being able to recline my seat. The more I thought about it the more I was mentally kicking myself for not changing seats when I had the chance. Once in the air all I thought about was that I wanted to recline my seat. In fact, my mind obsessed over it!What was going on? After all, I almost never put my seat back so why was I so obsessed with wanting to do it on that flight? In a word – scarcity. The principle of scarcity alerts us to the reality that human beings want things more when they believe those things are rare or going away. To put it more succinctly; if we can’t have it, we want it. In the book Scarcity: Why Having so Little Means so Much the authors wrote, “Scarcity captures the mind. The mind orients automatically, powerfully, toward unfulfilled needs.” I didn’t “need” to put my seat back but as soon as I realized I couldn’t I wanted to.If you’ve raised kids you’ve no doubt seen this. As soon as you tell a child they can’t: Watch a particular movie it’s the only one they want to see.Listen to a certain song or artist and that’s all they want to listen to.Play with a toy and it’s the only one they want to play with.Eat or drink something and they want it all the more.Bottom line; deny something to someone and it’s natural that they’ll want it even more. It doesn’t matter if they need it, want it, or possibly have ever considered it before because scarcity changes how their brain views it.An effective persuader understands this and one other important factor. It’s not enough that something is rare, difficult to obtain or going away. The real key is that the other person becomes aware that what you’re offering is rare, difficult to get, or might go away soon.Disney is a master of this when it comes to marketing. For example, Snow White has been around since 1937 so how do you make people want a product that’s been around so long and is so easy to obtain? Change it ever so slightly, offer it for a limited time then throw it into the Disney vault. No one knows the combination and no one knows when the vault will open again. When it does open up you can bet your bottom dollar the whole cycle will repeat itself making people want Snow White once again.Sometimes scarcity causes us to buy things we don’t need or want because its pull on our mind is so strong. Having said that, scarcity was at play in my decision to marry Jane. After 10 months of on again, off again dating, I was talking to her in the break room (we worked together) during an “off” period and she told me how happy she was and told me even if I asked her out again she wouldn’t go out with me. Two weeks later we were engaged! Was I played? Maybe so because I didn’t need her but I sure wanted her and the thought of not having her was too much to bear!Hopefully this gives you a vivid picture of how scarcity works on the mind and causes people to take action. I’ll end with this; since that earlier Southwest flight I’ve flown a lot and not once have I put my seat back. Truthfully, it rarely enters my mind…until someone else brings it up.Brian Ahearn, CMCT® Chief Influence Officer influencePEOPLE Helping You Learn to Hear “Yes”.
The Psychology of the Sales Cycle – Closing
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 Psychology of the Sales Cycle – Negotiations
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/PValue 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 OfficerinfluencePEOPLE Helping You Learn to Hear “Yes”.
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