Influencers from Around the World – “Tiny Habits” and Principle of Consistency

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The April “Influencers from Around the World”
post comes to us from Seoul, South Korea, thanks to my good friend Hoh Kim. Hoh
and I earned our Cialdini Method Certified Trainer® designations together in
2008. Hoh is an incredibly intelligent individual and an expert when it comes to
ethical influence. I encourage you to check out his website, The
Lab h,
and his blog, Cool Communications. Hoh is also on Facebook, LinkedIn and Twitter so reach out to connect with him.
Brian Ahearn, CMCT® 
Chief Influence Officer
influencePEOPLE 
Helping You Learn to Hear “Yes”.



“Tiny Habits” and Principle of Consistency
Many of you may have heard about a recent
bestseller, The small Big, by Steve
Martin, Noah Goldstein, and Robert Cialdini. I recently co-translated this book
into Korean language and it is now in Korean bookstores too. Big differences
influencing others can come about from small changes. The “small big” principle
also applies when I want to create a new habit. Recently, I participated in a
program called “Tiny Habits for Work” by Liz Guthridge. Liz uses “tiny
habit” methods created by Dr. B.J. Fogg. The program was interesting and
quite useful. Let me introduce what I learned from the program about “tiny
habits” as it may be quite useful for you too.
When a new year starts, we normally think
about creating a new habit such as to stop smoking, eat less, exercise more,
read more, etc. Normally, in the first week of January, our motivation to try
new things is quite high, but then doesn’t last long. Probably, by the end of
January, we return to “normal state.” Motivation is not reliable, and you
should not try things based solely on your motivation. So what we have to try are
“tiny habits.” According to the handout of the program, tiny habit
can be defined as follows: 1) you do at least once a day; 2) that takes you
less than 30 seconds; 3) that requires little effort.
Then, there is a recipe for tiny habits. You
need to combine “anchor” behavior (which you already established and do every
day) and new “tiny habits.” Liz recommended I come up with three tiny habits,
and here they are:
— AFTER my feet touch the floor, I will state
my one big intention for the day.
— AFTER I hang up the phone, I will take
three deep breaths.
— AFTER I lay down at night, I will think of
one thing about work for which I’m grateful.
Do you get the idea? You link new “tiny habits”
to behaviors you naturally do every day. Some of the other examples given were,
“After I get in the car, I will think of one thing I can do differently and
better at work today” and “After I walk through the office door, I will smile
at the first person I see.”
Among the three tiny habits, the second tiny
habit didn’t work well. I kept forgetting it. So, Liz shared an explanation with
me. As I would take too many calls, it might be hard to do every time. That being
the case, we looked to see if I could change to something I do once a day such
as “AFTER I return to office from a lunch time…”
While participating in this program, I thought
about the principle of consistency. When influencing
others, it often is useful to leverage small commitment. The tiny habit method
is also in line with the “foot-in-the-door” technique. You start small (tiny
habit), and if you can do the tiny habit continuously then you can move to a
bigger habit.
We are already into April so perhaps it is
good time to reflect our New Year’s resolutions. If there’s something that didn’t
work out as planned, perhaps you might be interested in trying the tiny habit.
By the way, among the six principles of influence, the principle of consistency
has an important difference from other five principles. It is about
self-persuasion.
Hoh Kim
Founder, Head Coach & Lead Facilitator,
THE LAB h
Address: THE LAB h, 15F. Kyobo Bldg. Jongno 1,
Jongno, Seoul 110-714, Korea
E-mail: hoh.kim@thelabh.com
Phone: 82-2-2010-8828

Home:
www.THELA

The Psychology of the Sales Cycle – Negotiations

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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 which translates 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.

The Psychology of the Sales Cycle – Objections

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“Let me think about it” and “Your price is too high” are two phrases salespeople dread. They’re perhaps the most often cited objections put out by prospects during the sales cycle. As I noted in closing last week, it’s not often a sale is made without resistance. Objections might come after your presentation or they could be peppered throughout. This week we’ll look at some principles of influence that can be very helpful in overcoming objections.

Two principles that are particularly useful are consensus and authority. They’re the ones to focus on because more than any other principles they help people overcome uncertainty and that’s the root of most objections. We’ll also touch on the contrast phenomenon because it’s particularly useful to demonstrate your offering is actually a better deal than the prospect might believe.

You may have heard the old saying, “The devil you know is better than the devil you don’t.” What that means is, as bad as things may be sometimes, there’s always the chance they could be worse with change. That fear of change is always in the back of the prospect’s mind, especially with big-ticket purchases. Below are a few thoughts prospects may have as you present. In fact, you may have held some of these very thoughts last time you bought something expensive.

  • Will it last?
  • Will it perform as advertised?
  • Will it be worth the extra money?
  • Will I regret this decision down the road?
  • Can I really believe the salesperson’s claims?

The challenge for the salesperson is to uncover the real objection. For example, when it comes to, “Let me think about it,” there may be something underneath that statement. Perhaps the prospect met with another salesperson and kept their appointment with you only because they said they would. It’s okay to ask, “What specifically will you be mulling over? I ask because I might be able to answer some questions for you right now to make the decision easier for you.” People generally don’t like confrontation so it’s easier to avoid it by saying, “Let me think it over.”

Let’s start with price. When it comes to price I tell people, “There’s nothing high or low but comparing makes it so.” If someone says your price is too high it’s because they are comparing it to something else. Your challenge is to find out what they’re comparing your price to and then to reset the comparison point so they’ll see your offer is actually a better value. The contrast phenomenon comes into play because what you present first will make the difference in how they perceive the next item presented.

The principle of consensus, that desire we have to move with the crowd, can help deal with objections. You never want to tell someone they’re wrong because that will only produce resistance. A better approach would be to incorporate consensus through the “feel, felt, found” approach. An example might go like this:

“I understand how you feel because other customers have felt the same way initially. However, here’s what they found…” Then you go on to show them what others discovered. It might be the realization that a higher price, say 10%, is worth it because the product life is 20% longer. Getting 20% more product for only 10% more money makes for a better value!

When we’re in a state of uncertainty making a decision is a lot easier when an expert tells us what to do. Establishing your expertise early on in the prospecting phase makes this much easier. That’s using the principle of authority. You can defer to this casually:

“Ann, as I told you when we first met, I’ve been doing this for 25 years and I can tell you…”

Maybe you don’t have that much experience or the credentials just yet in order to be viewed as an expert. You can still refer to others who are experts and you can share various facts to support your case.

“Bill, there’s a reason Consumer Reports has rated this product #1 for the past three years.”

“Sarah, several independent studies show…”

Dealing with objections isn’t something most salespeople look forward to but there’s good news. First, most of the time people who throw up objections are engaged in the sales process and that means you still have a shot at making the sale.

Second, if you’ve been in your role for any length of time you probably know 80% or more of the objections you’ll face. That being the case, you should be ready to answer those objections each and every time. Give thought to the proper responses, utilize the psychology or persuasion, then drill on the proper responses until they roll off your tongue in a very natural way.

Even if you successfully handle all the objections and the prospect clearly wants to do business with you the sale might not be a foregone conclusion. It’s very likely you’ll find yourself negotiating over price, terms, conditions or other items related to your product or service. The next post will look into which principles of influence will help you negotiate most effectively.

The Psychology of the Sales Cycle – Presentation

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You’ve made it through your first meeting and perhaps subsequent meetings with the prospect. These meetings were designed for you to build rapport, learn what the prospect needs and what it will take to land his/her business. Now comes the big day; your opportunity to present.

Just for clarification; I use the term “present” when you’re sharing intangibles such as insurance, accounting and other services. When you have a tangible product where you show how it works or involve the prospect, I call that a demonstration. Either way, it’s your chance to build compelling reasons why the prospect should choose to do business with you and your company. Here are a few things to keep in mind:

  1. Don’t talk yourself out of the sale – You might have 10 items to cover but if you sense prospects are satisfied after hearing their top three issues addressed, cut it short and ask if they’d like to get to the paperwork. Poor salespeople have a tendency to talk themselves out of the sale during this part of the sales cycle. Here’s a visual from the movie Jerry McGuire,  when Tom Cruise made a long speech to Renee Zellweger asking her to marry him and she said, “You had me at hello.”
  2. Involve the prospect – If possible have the prospect handle your product as you demonstrate it. If not, make sure you ask plenty of questions to keep the prospect mentally involved. What you don’t want to do is drone on and on in a monologue because the prospect will tune you out.

The two principles of influence you want to focus on during this phase are consistency and scarcity. Both of these principles are great when it comes to motivating people to action. Let’s take a look at why.

The principle of consistency alerts us to this reality; we feel internal psychological pressure and external social pressure to be consistent in what we say and what we do. This is why it’s so important to ask the right questions during your initial meetings. Perhaps the most important question is something like this: Exactly what will it take for me to earn your business?

This is not only important because of consistency but also because you might learn some things that you know you can’t come through on. If that’s the case, let the prospect know you won’t be able to help them and move on to another prospect where you might be able to help.

Scarcity highlights the human tendency to want things more when we believe they are rare, going away or can’t be gotten elsewhere. Throughout your presentation you need to highlight aspects of your product or service that are unique to you or your company. Maybe there’s not one thing that’s unique but perhaps there are several features that, when combined, make your product or service unlike any other.

This is important – it’s not enough to talk about what you think is unique. You need to frame it in such a way that prospects realizes that by not going with you they lose something; i.e., that uniqueness that you offer. Six months to a year down the road why might prospects regret not having gone with your recommendation? That’s what will give them pause to think long and hard about what you’re offering.

It’s not often a sale is made without resistance. Objections might come after your presentation or they could be peppered throughout. Next week we’ll cover how to effectively use different principles of influence to handle objections.

The Psychology of the Sales Cycle – Qualification

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You made it through the first meeting with the prospect, rapport was established and he/she liked you enough to allow you to come back and continue the sales process. And you enjoyed the prospect enough to want to pursue the business. Now it’s time to determine if you can do business with the prospect. By that I mean, after you do your fact finding, you have to honestly assess whether or not what you have to offer can help him/her.

On the flip side, you also want to figure out whether or not you want to pursue the prospect any further because not all business is good business. If you get sense that prospects’ demands will be more than you want to take on, or if you begin to get the feeling you might not like working with them, this is the time to politely back out of the process. Better to not take on a customer than to have to end up “firing” him/her.

As you qualify the prospect through a series of well-planned questions the principle of consistency becomes very important. During the follow up meetings after the initial contact, you want to ask LOTS of questions. A rule of thumb is that a good salesperson should talk no more than 25%-30% of the time. That might be contrary to what you’ve experienced with salespeople in the past because a misperception about salespeople is they have to have “the gift of gab” to talk people into anything. Nothing could be further from the truth! Excellent salespeople talk so little because they ask good questions that allow the prospect to do most of the talking. Excellent salespeople are also good listeners because it doesn’t do any good to ask the right questions if they don’t care about the answers.

  1. Here are some benefits of asking good questions:
  2. They allow the prospect to feel in control of the situation.
  3. They help you gather information so you can understand the prospect’s needs.
  4. They will let you know whether or not you should go forward. If you can’t meet the prospect’s needs or requirements then be honest, remove yourself from the sales process and go work with prospects you can help.
  5. They help you tailor your presentation or demonstration.

You will be able to tie back what you ultimately propose to what the prospect told you in earlier meetings. This is where consistency becomes a powerful principle to leverage the sale.

One more point about questions. Whether you win or lose an account, you should always try to understand why. Replicate your winning behaviors and change whatever led to you not making the sale. When you lose, you need to see if there’s a question or two you can add to your qualification process to avoid that from happening again. For example, if you find out the prospect’s brother-in-law works for the company the prospect is currently doing business with then add a question in your qualification process to uncover that next time. Refining your questions over time will make you more efficient and successful.

Last, consider scarcity as you go through the qualification phase. People naturally want more of what they don’t have, can’t have or perceive as going away. By asking the right questions you can start to highlight what prospects might be missing currently and they’ll want it more.

An example from insurance might be the following:

Agent – “If you’re like most customers I work with you probably want to make sure your building is fully covered in the event of a total loss, correct?”

Prospect – “Of course. I can’t get stuck paying tens of thousands of dollars out of pocket if the building burns or a tornado takes it down. That’s why I buy insurance.”

Agent – “How about your employees? If your business was shut down for six months or longer would you want them to come back when you reopen?

Prospect – “Sure. Without them I have no business.”

Agent – “I thought so but right now you don’t have business income coverage. If you can’t pay them while the rebuilding is going on they’ll end up looking for other jobs so they can pay their bills and feed their families. Should I include this coverage in your quote?”

Prospect – “I never thought about that. I couldn’t afford to hire new people, retrain them and do all the other stuff you have to do with new employees. Yea, include it so we can see what it will cost.”

Tom Hopkins, a well-know sales trainer and author regularly tells audiences, “If you say it, they doubt it. When they say it, they believe it.” Telling prospects what they need is never as effective as them seeing the need themselves and verbalizing it. This comes about more easily when you know you product or service and ask the right questions.

Next week we’ll delve into the presentation or demonstration with a prospect looking to leverage certain principles of influence that will help that go smoothly.

Influencers from Around the World – Consensus + Scarcity = FAIL!

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This month, our Influencers from
Around the World guest post comes from Anthony McLean, a long-time contributor
to Influence PEOPLE. Anthony is Australia’s one and only Cialdini Method Certified
Trainer (CMCT®). He started the Social Consulting Group where he teaches people and
organizations the principles of influence. Reach out to Anthony on LinkedIn and Twitter to learn more from him.
Brian Ahearn, CMCT® 
Chief Influence Officer
influencePEOPLE 
Helping You Learn to Hear “Yes”.

Consensus + Scarcity = FAIL
Recently I have noticed a very
interesting phenomenon. Consensus is failing to have the impact it is intended
to have. In our time,  the cues to guide
our behaviour are more prevalent and appreciated than ever before. For example,
when I land on an online shopping page, the reviews, ratings, and testimonials
provide me with vitally important information such as others like me have been
here before; this vendor can be trusted; the products are as they are
described; and so on.  In the traditional
sense it is these cues that help me overcome my uncertainty and help me make a
decision. 
Therefore when I am not sure of
what I should do, I look to the actions of others; especially in unknown and
untested situations. And not just any others, I look to those most like me to
guide my behaviour. 
Rest assured my friends, Consensus
is truly a principle that, when used well, saves time, promotes sales, and
builds communities. It’s a cracker (Australian for really good, awesome, etc.)!
What then, I hear you say, does
the title of this post mean? Let me tell you, but first let me pose a mystery.
Why would a leading publically listed company make a wrongheaded decision and
turn away from the actions of others?
In the delivery of the Principles
of Persuasion Workshops, my keynotes and in my consulting and coaching, I
continually stress to my audience that not all testimonials are same. We know
that by distilling the testimonial data, drilling into the case studies, and
sharing what people most like you are doing now or have done in the past, will
have a great impact on your “persuadee’s” behaviour.
However, recently I have been
working in a space in which the products on offer between companies are very
similar. Many industries have been through a phase in which they have competed
on price. However to cut prices they must cut margin and then services and
ultimately their perceived value. Those industries then got to a point where
price was no longer a determining factor. While they could have continued to
compete on price, at some point there needed to be platform based on value, relationships,
and/or loyalty. The change had to come because buying customers through discounts
was bringing about the wrong type of relationship, where every dollar was held
tightly. Dishonesty between provider and customer was rife because of the
perception that every dollar mattered and after all it was just a transactional
relationship; those who got or saved the most money won!
It is at this point a nuance of
Consensus kicks in; the suppliers are all in the same industry, they offer
similar products, they compete for the same customers, staff and leaders, but
they do not see themselves as the same as each other. How do I know? 
If you present to an organization
evidence of what others in the industry are doing, rather than move toward your
ideas, they immediately repel, back away and dismiss what others in their
industry are doing. Showing them what many others in their industry are doing,
creates a drive in initiative to be different and cut a new path, one less
travelled, in an effort to attract disgruntled and disenfranchised customers
looking to leave their current provider in search of something better. The
competition is so great in this industry that the drive to be unique, to be
something truly valuable, outweighs the power of Consensus.
Now I am not saying Consensus will
not work in this industry – quite the contrary. However, , Consensus can fail to
influence behaviour because of Scarcity – if the competition is doing it we
must do something different and  be seen
as unique. We must have a clear USP (Unique Selling Proposition) and can’t be
the same because then the consumer will not be able to tell us apart. 
In this instance Scarcity was
trumping Consensus.
So what are you to do? Firstly
don’t get caught up in labels and demographics. Just because Company A and
Company B are in the same industry they may not see themselves as the same. Therefore
ask the decision makers you are seeking to influence about their values, their
vision and whom they think across the business world is most like them.  Then start to research, dig into those
companies that your persuadee sees themselves like and show them what those
companies are doing in similar situations. 
Therefore why did a publically
listed company turn away from the crowd and make a decision that seemed at odds
with their industry? Because they did not see themselves as the same as others
in their industry. They were different. They were unique. They were
competitors. Therefore they would do things differently, cut new directions and
be innovative – they wanted to be Apple. So we showed them what Apple did and
low and behold they sat up and took notice. 
By the way they were not in the
same league as Apple but it didn’t matter – in their eyes – they were, so
that’s what we showed them to change their thinking.

Anthony McLean, CMCT®

The Psychology of the Sales Cycle – Initial Meeting

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Congratulations! Your prospecting efforts have paid off and you’ve set up your first meeting with the prospective client. Now comes the fun part because you’re going to start building relationships, selling and enjoying success.

First impressions matter and your initial contact will determine whether or not you go any further for several reasons:

  • Judging the book by its cover. Growing up we were told never to judge a book by its cover, but we do. Sometimes we do it consciously and sometimes it’s subconscious, but we all do it. Your prospect will do it too so leave nothing to chance. How you dress, act and prepare can make all the difference for that initial impression which happens in less than 30 seconds.
  • Do they want to do business? As you talk, beyond the initial judgment we just touched on, the prospect will be assessing many things as he/she decides whether or not to go forward.
  • Do you want to do business? The prospect isn’t the only one making a decision. Not every prospect is a potential fit for you and you should be assessing whether or not this is an individual or company you can, or want, to do business with.

There are two chief aims of this meeting: build rapport and ask enough questions to assess whether or not you can, or even want to, do business with this potential client.

Sales trainer and author Jeffrey Gitomer is fond of saying, “All things being equal, people prefer to do business with their friends. All things being not so equal, people still prefer to do business with their friends.” This goes to the heart of the principle of liking, which says people prefer to say, “Yes” to those they know and like.

Here’s a great example – ladies’ home parties. Whenever I ask an audience how many ladies have been to Tupperware, Mary Kay or Pampered Chef parties, nearly every female’s hand goes up. I can also tell by their reactions they don’t particularly want to go to those parties so I ask why they go. Inevitably they say, “Because a friend invited me.” They’d have no problem saying “No” to a stranger but when it’s a friend it’s hard to say “No.”

The more you put someone at ease, the more you offer genuine compliments and the more you connect over what you have in common, the more the other person will come to like you. But wait, there’s more! As you employ this strategy you will come to like them too and when they sense you really like them everything changes!

Another way to build rapport is to engage the principle of reciprocity. The reason this builds rapport is twofold. People feel positively towards those who give to them. Secondly, if what you give or share benefits them in some way they feel more positive towards and more indebted to return the favor. That’s effective use of this powerful principle of influence.

Here’s an example. Someone who went through one of my Principles of Persuasion Workshops gave his copy of Influence Science and Practice to a client’s son who was just starting out in business. He was amazed at the look on both of their faces and knew what he’d just done was appreciated and would make a difference in their relationship going forward.

Knowing what to give and what you can connect on or compliment requires some up front leg work. Doing a little research online and talking with people who know the prospect shouldn’t take much time and might be a goldmine of ideas on how to leverage both liking and reciprocity. Again, one major goal of the meeting is to have the opportunity to go to the next step in the sales process so building rapport is a must.

Next time we’ll look at the qualification process where you really begin to understand the prospect, his/her business and needs. Two principles of influence are especially helpful in this phase of the sales cycle.

The Psychology of the Sales Cycle – Prospecting

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Dictionary.com defines a prospect as “a potential or likely customer.” By extension, prospecting is the act of searching for potential or likely customers in hopes of setting up an initial meeting.

How salespeople go about prospecting varies by industry, product or service, and personality. Here are just a few ways in which salespeople tackle prospecting:

  1. Cold calls – Getting on the phone and asking to speak to a decision maker.
  2. Mailings – We all get marketing fliers and brochures in the mail where businesses hope we’ll respond.
  3. Email blasts – It’s easy to find email addresses to build a database. This approach is more effective than mailings because you can send the same message to hundreds or thousands at a time with little effort or cost.
  4. Door hangers – Bypass the mailbox and go door-to-door leaving marketing material.
  5. Door-to-Door – It used to be the case that salespeople simply knocked on doors to meet people and sell their wares. This is a very time consuming and expensive approach!
  6. Internet – You can search by various criteria to see who or what businesses in a geographic area fit your customer profile with a goal of target marketing.
  7. Conventions – Going to some event where you set up a booth and interact with customers.

The list could go on and on and I’m sure you’re thinking of a way or two to prospect that I’ve not touched on. Creative prospecting means doing something to stand out from the crowd, something that makes people take note and listen to you when they’re not paying attention to others.

The focus of this article is not to cover the different ways of looking for customers. The purpose is to talk about the principles of influence that will give you the best chance to stand out using whatever approach is best for you. You have one overriding goal when you’re prospecting – to get an initial meeting with a potential decision maker.

When you’re requesting time with someone, did you know they’re listening to their favorite radio station? That’s right, they’re tuned on to WIIFM – What’s In It For Me? In other words, with all the other salespeople who would like their business why should they meet with you?

First and foremost, and this can’t be emphasized enough, you have to believe in your company and product. Will doing business with you make the prospect better off in the long run? If you don’t believe it will, if you doubt your company or product, prospects will sniff you out like an animal smells fear. It’s a survival instinct. For the sake of this series I’m going to assume you have that belief in your company, product and your potential to help the customer.

Knowing the prospect is uncertain about whether or not to give you consideration, the three principles that come into play most prominently when prospecting are consensus, authority and scarcity.It’s natural for the vast majority of people to feel comfortable going along with the crowd. That’s the principle of consensus at work. It’s natural because we look to others when we’re not 100% certain of the course of action we should take. Just remember the old adage, “There’s safety in numbers.”

In your marketing material, emails, phone calls, etc., can you tap into this principle by talking about all customers you already serve? The more you have, the more that consensus comes into play. Allstate Insurance did this effectively many years ago when its spokesman Dennis Haysbert stood in the Rose Bowl and said 100,000 people would watch a game there on Saturday. He went on to say Allstate filled the stadium ten times with the number of people who made the switch last year. When more than one million customers switch insurance companies you can bet many viewers called an Allstate agent or went online to compare!

If you don’t have a huge number, or even of you do, it’s always more effective when you can point out customers or clients who are just like the prospect you’re talking to. After all, dealing with a restaurant owner can be very different than dealing with a grocery store owner, or hotel manager for example. When talking to one of those business owners, if you can refer to other restaurants, grocery stores or hotels you do business with, the prospect will feel more comfortable and you’ll gain much more credibility.

Speaking of credibility, the other principle of influence that comes into play is authority. When people are unsure what to do, quite often they want to defer to an expert, someone they view as having superior knowledge or wisdom. This can be conveyed through your title, years in business or years of experience, awards you’ve won, degrees you’ve earned, credentials and designations. Any opportunity to get this information in front of a prospect conveys you have expertise. It’s a strong reason for them to consider meeting with you as opposed to someone who lacks expertise or has not conveyed their expertise.

The last principle that could come into play is scarcity. It’s a natural response to want things more when we believe we can’t get them anywhere else. Does your company, product or service have something unique or a combination of features that make it unique? This is important because you want the prospect to see he/she can’t get something exactly like what you’re offering anywhere else. If so, and you point it out so they understand what they might lose by not considering you, that might be enough for them to give you that initial meeting.

So the three principles to thoughtfully consider as you approach potential clients during the prospecting phase of the sales cycle are: consensus, authority and scarcity. Engage any or all of these ethically and correctly and you should land more initial meetings with prospects.

Next time we’ll look at the initial meeting with a prospect and how to leverage that opportunity using the principles of influence.

The Psychology of the Sales Cycle – Overview

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Selling, like most endeavors you want to succeed at in life, requires a disciplined process, sharp skills, and good planning. Just as there are specific sales skills that need to be honed through continuous learning and practice there are parts of the sales cycle that require attention and planning. Sharpening your sales skills and refining your sales process are great ways to ensure success over the long haul.

I will be devoting a series of nine posts to exploring the sales cycle, looking at which principles of influence are most appropriate to focus on at different points in the cycle. My goal for this series is to help you understand how to get the most “bang for the buck” when you’re selling.

Let’s start with the sales cycle. Other sales trainers may combine some of these steps and in some businesses the cycle might look a little different. I see the typical sales cycle as an 8-step process, which includes the following sequence:

  1. Prospecting – Looking for new potential customers or clients.
  2. Initial Meeting – The first contact with a prospect.
  3. Qualification – Fact finding sessions primarily designed to assess whether or not you can – or want to – do business with the prospect.
  4. Presentation – Presenting your service or demonstrating your product to the prospect to show him or her how it meets some need they have.
  5. Objections – Dealing with reasons the prospect might bring up that indicate a hesitancy to move forward.
  6. Negotiating – Potentially altering pricing, terms and/or other aspects of your product or service in order to reach a final agreement.
  7. Closing – Getting the prospect to agree to do business with you and your organization.
  8. Referrals – Getting the names of people or organizations you can approach using the client’s name as a lead-in.

The six principles of influence, as popularized by Robert Cialdini, we’ll look at in conjunction with the sales cycle are:

  1. Liking – We prefer to do business with people we know and like.
  2. Reciprocity – We feel obligated to give back to those who first give to us.
  3. Consensus – We look to others to see how we should behave in certain situations.
  4. Authority – We often defer to those with superior knowledge or wisdom (i.e., experts) when making decisions.
  5. Consistency – We feel internal psychological pressure and external social pressure to be consistent in what we say and do.
  6. Scarcity – We desire things more when we believe they are rare or diminishing.

Another psychological concept that will come into play throughout the series is the contrast phenomenon. This isn’t a principle of influence but is a psychological concept that works in conjunction with the principles of influence at different times. Contrast, sometimes known as “compare and contrast,” alerts us to the reality that two things will appear “more” different depending on what was presented first.

I encourage you to stay tuned because if you do, your ability to sell, and getting to yes, will be much easier when you add the science of influence into your sales approach. Next week we’ll start with prospecting.

Influencers from Around the World – Three Lessons from Arnold

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This month our “Influencers from Around the
World” post comes from Marco Germani. Marco is a native of Italy, originally
hailing from Rome. He’s been a fan of influence for decades and wrote a book on
the subject in Italian. The father of two youngsters, he now gets to apply his
influence skills outside of his business pursuits. I’m sure you’ll enjoy his
post on lessons he’s learned from Arnold Schwarzenegger.
Brian Ahearn, CMCT®
Chief Influence Officer
influencePEOPLE 
Helping You Learn to Hear “Yes”.
 
Three Lessons from Arnold
I have recently given a second go at the
spectacular Arnold Schwarzenegger’s biography, Total Recall – The Truly Unbelievable Story of My Life, which
didn’t fail to impress and inspire me, as it already did last year when I first
read it. You may or may not  like the man,
but it is undeniable that what Arnold has accomplished in his life thus far is
nothing short of incredible. Arnold was a legendary bodybuilding champion, a
record-breaking Hollywood action movie actor, and an accomplished real-estate
investor who made his first million from this business. If all that wasn’t
enough, he was also the “Governator” of California.
I thought Arnold’s story would fit well in
this blog because in order to accomplish all that he has, Arnold had to develop
the capacity to influence millions of people.
I’ll try to extrapolate a short, actionable
lesson from each phase of his career, which enabled him to accomplish such
extraordinary things and maybe each of us will become a better influencer
because of it.
Lesson
1: Focus on your strength
Since he was a teen, Arnold had a clear vision
in his mind: Go to the USA and become famous. He had no idea how to accomplish
this, not even the field of endeavor. He then started his quest, his search for
his unique talent, which would bring him fame and fortune.  As he realized that nature had gifted him
with a body built to grow and become incredibly muscular, he put all of his
heart and soul into a single project; becoming the most muscular man on earth
and winning all the existing body building competitions around the world. It
didn’t matter if it meant endless hours in the gym lifting huge weights, it
didn’t even matter if sometimes it meant fainting or vomiting in the gym out of
exhaustion.
All that counted was getting to the top. And
he made it! Not only that; he set new standards for his sport and made bodybuilding
famous to around the world, becoming the international ambassador for the
sport.
He worked on the mental aspect of competition
(the “Pumping Iron” documentary is a great testimonial of this), he even went
to ballet classes to perfect his posing; in other words, he did whatever it
took to become outstanding and make his dream come true. Thanks to bodybuilding,
Arnold finally got to the USA. He was penniless, with no other skills under his
belt, but ready to pursue his second lifetime goal: to make it big in Hollywood.
Lesson
2: Persistence in spite of obstacles
When Arnold, already a celebrity in the bodybuilding
circuit and on his way to financial independence thanks to real estate
investments in Santa Monica, started to pursue his acting career he had all the
odds against him. He spoke English with a thick Austrian accent, he had below
average acting skills, no particular artistic talent and he was even told his
name was too long to fit on movie posters! Thanks to his body, he managed to
get a part in a B-movie called “Hercules” in New York where he first had to be
dubbed due to poor English pronunciation. The movie itself was never released
due to production financial issues but is now a cult movie because of Arnold’s
fame.
In spite of this, he did not get discouraged,
he kept the vision clear, he simply ignored everybody else around him advising
him to open a gym and to let go this impossible dream to become a world-famous
actor. He patiently waited several years, turning down dozens of parts, even as
a leading actor, in movies which would have not benefited his career in the
long run. His big movie break was “Conan the Barbarian.” Arnold knew this movie
would be a game-changer and, once again, he put his heart and soul in
preparation for this part, taking care of every single detail. In the first
scene of the movie, he was actually bitten by a real wolf and had to have a
dozen stiches on his leg, but this didn’t discourage him a bit to give his best
and make this movie into a cult classic, which he did.
The rest is history. Conan brought Arnold into
the firmament and just a few years later, with movies like “The Terminator,” “Total
Recall” and “True Lies,” he was paid as much as $25 million per movie, becoming
the highest paid action movie star in Hollywood…as he originally planned.
Lesson
3: Expand your expertise
After becoming a Hollywood superstar Arnold
was ready for a new challenge and decide to enter politics. Though married to a
Kennedy family member, Maria Shriver, he was never afraid to express his liking
for the Republican Party. He got close to the Bush family and openly supported
them. When he saw the opportunity to run for governor of California, he
understood he had to massively expand his knowledge and expertise in order to
become credible and have a serious chance to win.
Almost anyone who spent his life in body
building and acting probably would have be intimidated by the massive amount of
information, in many different subjects an aspirant governor must assimilate.
That was not the case for Arnold. He established the “Arnold University” instead.
He gathered notable experts in each of the fields he needed to learn such as
economic, public health, the environment, etc. He worked long hours taking
notes and learning everything he needed to learn. When it was time to debate on
national television with seasoned and shrewd politicians, ready to attack his
weak points with no mercy, he used humor as his best defense, having a set of
punch lines written by professional comedy authors and memorized in endless
preparation sessions. His motto was, “It is just reps, reps, reps,” in
bodybuilding and in life. That is what made a farm boy from a small village in
Austria the Governor of the richest state of America.
Of course Arnold had his lows as well – like
his divorce from Maria due to a secret child he had with an housekeeper 20 years
ago or admitting using steroids in his competition days – but he was not afraid
to expose these in either of his books. However, his life remains a shining
example of what a human being is capable of, when ready to pay the price.
Arnold was able to touch many lives and influence many people along the way, for
which he deserves, in my opinion, the highest recognition as a master influencer!
And who knows what he will accomplish more in the next 20 years…
Marco