Tag Archive for: consensus

Systems Plus Persuasion Equal Success

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Something I’ve noticed over time is how much systems contribute to success. It’s not to say that being carefree and creative don’t have value – they do. However, my observation has been with most things – learning, fitness, health, sales, coaching, leadership, etc. – having good systems in place are much more beneficial than winging it. Even with creative endeavors like improv comedy, there’s a system or approach that’s used. It may appear as though those doing the comedy are just going with the flow but there’s a structure underneath their creativity.

Two athletic examples come right to mind when I think about systematic approaches: weightlifting and running.

As a teenager I learned a system for weightlifting that made a world of difference. Before my junior season of high school football, I worked out consistently for a year and only gained 5 lbs. Pretty disappointing! During the offseason before my senior year I learned a system for working out and put on 30 lbs. before the season started. At my peak in college I was 90 lbs. heavier than when I first started lifting.

When I took up running my first marathon was a disaster. I covered the 26.2 miles in four hours and fourteen minutes and “hit the wall” about 20 miles into the race. Then I learned a system for running and eventually cut an hour off of that first marathon time and qualified for the Boston Marathon in the process.

In business I’ve seen this play out time and time again. People and organizations with systematic approaches win consistently. Let’s take leadership, sales and coaching as examples.

I’ve spent a lot of time learning and applying leadership concepts from Focus 3. At a high level their system focuses on three things: leaders, culture and behavior.

In the Focus 3 approach leaders create the culture that drives the behaviors that lead to results. If you want better results you need better behaviors which means creating the right culture to support the right behaviors. That’s why culture is the #1 responsibility of leaders.

When it comes to behavior Focus 3 uses the following formula: E+R=O. In plain English this means Event plus Response equals Outcome. Life happens (events) and we usually have no control over those events in the moment. We can influence outcomes in the direction we want by choosing disciplined responses. These disciplined responses are our behaviors.

When it comes to sales the system is pretty simple. Selling is about building rapport with the prospective customer, overcoming objections they may pose then closing the sale.

Coaching has a system very similar to sales. Coaching also starts with building rapport, gaining trust, then motivating the person being coached to new behaviors. Without relationship and trust it’s not likely someone will follow the advice of a coach.

Where does influence come into these business systems? Every step of the way! According to Aristotle, persuasion is about getting people to do things they wouldn’t ordinarily do if you didn’t ask. Whether you’re leading, selling or coaching, the principles of influence can be used to support the system because they can be used to change behaviors. For example, the principles we call liking and reciprocity are excellent ways to build rapport. To gain someone’s trust or overcome objections the principles of authority and consensus come into play. And finally, to close a sale or motivate behavior change try the principles of consistency or scarcity. Do you have a system in place that will lead you to success? If so, then consider how you’ll execute your system. If your system involves other people at any point then you’ll want to decide which principles of persuasion you can tap into to get a better result.

Brian Ahearn, CMCT®, is the Chief Influence Officer at InfluencePEOPLEand Learning Director for State Auto Insurance. His Lynda.com course, Persuasive Selling, has been viewed more than 130,000 times! Have you seen it yet? Watch it and you’ll learn how to ethically engage the psychology of persuasion throughout the sales process.

We Know What to Do but Often Fail to Do It

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Something I’ve consistently observed in people is this; quite often we know what to do but too often we fail to do it. Here are a few examples that come right to mind:

  • We know exercise is good for us and yet very few people do even minimal exercise.
  • We know how to eat healthy but still make lots of poor choices because of momentary temptation.
  • We know we should save for retirement but let immediate desires take precedence over our long-term financial goals.

When it comes to persuasion this is often the case too – people intuitively know what to do but don’t act on that knowledge. This important because it hurts your chances for professional success and personal happiness. When I speak to audiences they intuitively know the answers to many of the questions I pose when it comes to human behavior. However, my observation is that very few people act on what they know to be true in their gut. Let me give you examples for each of the principles of influence.

When it comes to reciprocity people know it’s good to be a giver. They know it makes them feel good, makes the other person feel good, and can lead to good outcomes like return favors. But when it comes to trying to change other’s behavior most people reflexively go back to a reward system that isn’t always so effective.

We all know it’s easier for people to say yes to us when they like us. That’s liking in action. However, too often people forego relationship building so they can “get down to business.” They let the busyness of the day get in the way of doing simple things that could help them get more accomplished and enjoy those they work with in the process.

We know there’s power in the crowd (consensus). After all, as the old saying goes, “Everyone can’t be wrong.” Well, the crowd can be wrong but usually going along with the crowd works to people’s advantage. If it didn’t we’d have stopped following the crowd long ago. Even though folks know this they don’t like to “pressure” someone by invoking the principle of consensus despite the fact that what they’re trying to get the other person to do would be in their best interest.

We know experts are believed more than the average person. Despite knowing this I’ve come across very few people who would think of sharing their bio with someone to get a third-party introduction. Even fewer are comfortable personally sharing their background for fear of coming across as a braggart. This is a big lost opportunity.

The principle of consistency can be easily invoked by asking someone to do something rather than telling them what to do. Although people know that they fall back on telling out of habit or a stubbornness. The stubbornness is revealed when a person says something like this, “As a parent (or boss) I shouldn’t have to ask!” Maybe you shouldn’t…unless you want be more effective at changing behavior.

Scarcity it perhaps missed the most. Intuitively crowds I speak to know people are more motivated by what they might lose as opposed to what they might gain. Although they know this they shy away from using legitimate scarcity because they don’t want to come across as negative or some kind of fear monger. If the studies are correct then they could be 2.0-2.5 time more effective if they would legitimately incorporate scarcity into their request.

Each instance where someone fails to act on what the psychology of persuasion has to say (something they quite often know in their gut) they hurt their chances for professional success and personal happiness. Don’t let that happen to you! Learn what the science has to teach you about how to effectively influence people then make the choice to act on it.

Brian Ahearn, CMCT®, is the Chief Influence Officer at InfluencePEOPLEand Learning Director at State Auto Insurance. His Lynda.com course, Persuasive Selling, has been viewed nearly 130,000 times! Have you seen it yet? Watch it and you’ll learn how to ethically engage the psychology of persuasion throughout the sales process.

Hurry Before It Goes Back Into The Disney Vault!

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I just returned from Orlando where I spent two and a half days at Coronado Springs, a Disney resort hotel. I was there with more than 1800 learning professionals from around the globe to attend Elliott Masie’s Learning 2017 conference. It was an awesome experience! As I sat in the airport I thought about Disney’s phenomenal brand success.

There are many reason Disney appeals to young and old alike but one that stands out in my mind is the Disney Vault. The mental picture of a vault compels us to buy certain products because it taps into scarcity. This principle of influence teaches us we want things more when we believe they’re rare or going away. With that in mind, let’s analyze the concept of the vault.

The imagery of the vault conveys a secure place where precious item are stored. We use vaults for safekeeping jewelry, money, cash, passports and other valuables. We don’t store everyday items in vaults and neither does Disney.

Disney reserves the vault for its most valuable items – it’s feature length films. Every generation has its favorites such as Cinderella, Snow White, and my daughter’s all-time favorite, Beauty and the Beast. I bet you have a favorite Disney movie that conjures up strong emotions and brings to memory magical times.

When a movie goes into the vault the door is closed, the lock is spun and you can no longer get the movie because you don’t know the combination. Only Disney knows that and only Disney knows when they’ll unlock the vault next.

When items finally come out of the vault Disney does two significant things. First, whatever is brought out is only available for a limited time. After that it goes back in for an undisclosed amount of time. In other words, if you don’t act quickly you might miss out on your opportunity.

Second, when something comes out of the vault it’s not the same as when it went it. Something magical always happens. The movie that comes out might be digitally remastered in Blue-Ray with never before seen extended scenes! Your mind screams, “Holy cow!” You think to yourself, “I have the movie but how much better will it be in this new, digital version? And those scenes, what they are?”

As you ponder these thoughts you can bet your bottom dollar others are ordering so now consensus is at work on you. When we know lots of others are doing something we consider doing it even more. That wisdom of the crowd gives some validation that the new movie version must be worth it.

Between consensus and FOMO (fear of missing out) you psyche is taking a pounding! Maybe that’s not enough to get you to order…this time but it’s undeniable that this Disney approach works like a charm. I write that because marketers are savvy. They test different approaches and measure everything. If the concept of the Disney Vault didn’t work they’d have abandoned it long ago. The fact that you keep seeing it, no matter how ridiculous it might seem to you now, is proof enough about its validity.

What’s an unsuspecting shopper to do? First, remember almost everything is available on Amazon or EBay. If you miss your opportunity someone somewhere is selling the latest Disney stuff. And if your patient enough the Disney vault will open again and the same item – only enhanced and better – will come out for a brief time.

Brian Ahearn, CMCT®, is the Chief Influence Officer at InfluencePEOPLE. His Lynda.com course, Persuasive Selling, has been viewed more than 100,000 times! Have you seen it yet? It will teach you how to ethically engage the psychology of persuasion throughout the sales process.

Why Don’t We Just Listen for a Change

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I was inspired to write this week’s post after watching an enlightening Ted Talk from Theo E.J. Wilson called A Black Man Goes Undercover in the Alt-Right. Don’t worry, this post is not to advocate for any particular position on the political and social spectrum. Rather it’s about the lost art of listening and communicating to understand one another. Theo rightly points out things that prevent us from understanding each other and I have added some of the principles of influence that make it easy to happen:

Online Algorithms

These algorithms begin to filter information to us that we already view and believe, an application of the principle of consistency. It’s no different than the Amazon recommendations that pop up based on prior purchase decisions and sites you’ve viewed. Isn’t it someone freaky how you can start to type in a Google search and the choices that appear almost always contain the exact search you need? It’s as if Google read your mind! This curating of information is constantly going on behind the scenes and may be limiting your worldview.

Media Outlets

We make active choices that narrow our worldview such as only watching Fox News or CNN to the exclusion of all other media outlets. We do so because other large groups of people like us – the principle of consensus – hold the same views. I try to watch MSNBC and Fox in equal amounts because it’s like viewing the world from the North Pole and South Pole. Doing so gives me a better view of the entire planet. Make no mistake, news outlets are run by human beings and have their own bias points of view so be wary.

Our Associations

We tend to hang out with like-minded people. This is a natural phenomenon – the liking principle – because we like people who are similar to us and it’s less taxing mentally to have conversations with people who think like we do.

Social Media

Online “conversations” aren’t really conversations at all. They’ve become forums to espouse views then vehemently defend them. This is one way the principle of consistency can lead us astray. For more on this I will refer you to a post I wrote years ago called Why Facebook Doesn’t Change Anyone’s Opinion.

I’m sure you can think of more things that limit our ability to understand each other. Here are some ideas to perhaps change this. By change I don’t necessarily mean your views have to change but, if you come to understand another person, their point of view, and can maintain respect for them, then isn’t that a good thing?

When was the last time you had a conversation with someone who was different than you, not to convince them of your point of view, but to simply get to know them and their point of view better? I find it’s best to do this in person, over coffee, a drink, or a meal, where there can be dialog instead of monologue.

Have you ever asked someone what it’s like to be them? Two conversations I’ll never forget happened with a couple of African-Americans; a coworker and my best friend. With my coworker, I asked her on a flight from Nashville to Columbus what it was like to be an African-American working at my company. She talked non-stop the entire flight and I had a new, enlightened point of view.

The other conversation was with my best friend after Barack Obama won the presidential election in 2008. You cannot imagine the pride he expressed at something he never thought he would see in his lifetime. I don’t believe in either case the conversations would have happened if I had not opened the door with questions. Give a safe place for people to express themselves and you’ll be surprised at what you hear.

What was refreshing in the Ted Talk was hearing Theo acknowledge that many people who held views completely opposite from his were still people just like him. He saw pictures of kids and families. He saw people who enjoyed activities and liked to have fun. They were humans who viewed the world differently. When we lose sight of other people’s humanity we’re in big trouble because we treat them as things to be opposed. We need not look any further than Nazi Germany and the Holocaust to see what people can do to those they consider less than human.

It was also refreshing to hear Theo acknowledge flaws in the thinking of people he more closely aligned himself with. Every side has flaws because they’re made up of human beings, all of whom are flawed.

Someone asked me recently if I thought our country was more divided than ever. My response was no because there was a time we were so divided we plummeted into civil war. We have an opportunity to turn much of our negativity and opposition into something better. In order to do that I believe we need to stop opposing each other, stop shouting each other down and start having real, person to person conversations. Steven Covey encouraged us to “seek first to understand, then be understood.” That would be a great starting place.  I encourage you this week, reach out to someone who is different than you and start a dialogue.

Risk, Reward and Following the Crowd

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A little over a month ago I wrote a post I titled Everyone’s Doing It: The Impact of Consensus. It provoked quite a reaction, especially on LinkedIn. Here’s a small sample of comments from readers:

“It’s called groupthink. Look it up. Don’t hide in the flock of sheep. Emerge the solitary extrovert with an independent brain!!”

“Consensus is not a reality- it’s an abstract concept. Dissent is always essential.”

“Lemmings…”

“Consensus is an effective (cowardly?) way to hide from having to face the fact that no innovation took place because of consensus, but in spite of it.”

If I had to characterize most of the response it was resistance to the idea of consensus, following the lead of others. People don’t like to think of themselves as followers but we all follow more than we realize. It’s why we generally buy Amazon products that are rated four and five stars and avoid products that primarily get one or two star ratings. It’s why we tend to go to crowded restaurants instead of empty ones. And seldom do we go to movies that get poor reviews. (An exception to that might be movies that “critics” pan because the views of “critics” are often contrary to the average moviegoer.)

The subject of consensus (a.k.a. social proof) came back to awareness as I watched Ray Dalio’s Ted Talk “How to Build a Company Where the Best Ideas Win.” Dalio is a well-known hedge fund manager and what caught my attention were his comments about risk, reward and following the crowd.

In a nutshell, Dalio told the audience when it comes to investing following the crowd, the market, won’t make you rich. Why is that the case? It’s like riding in a bike race and staying in the pack. You can do okay but you won’t win being in the pack the whole race. The people who are willing to take a risk and break from the pack have a chance to win but there are risks that could lead to big time failure too. And so it is when it comes to investing. Breaking from the market and conventional wisdom might help you make a lot of money but it could also result in big losses.

Why don’t more people break from the pack? Because human beings are generally risk averse. Daniel Kahneman won the Nobel Prize in Economics for his work on loss aversion. Kahneman and his late partner Amos Tversky statistically proves humans feel the pain of loss anywhere from 2.0-2.5 more than the joy of gaining the very same thing. Consider for a moment the safety of the crowd combined with the aversion to loss most people feel and you see why the so many generally play it safe and go along with the crowd.

Are there exceptions to the rule? Absolutely! I’m sure as you read this you can recall times when you went against the grain. We generally do that when we’re convinced we’re right, regardless of what everyone might say or do. That same sense of certainty is what leads some people to go against the crowd and gamble on their dream job, go for broke in the stock market, or passionately pursue their dreams. That’s how some people make it big. But don’t be deceived, far more people don’t land their dream job or become wildly rich because it’s hard and the odds are against them. After all, if all it took was the courage to take the first step or determination to do the work then everyone would be going for it and everyone would be rich. But that’s not the case because the greater the payoff the greater the risk and as we’ve already seen, most people are loss averse.

This post isn’t intended to discourage you from pursuing great things. On the contrary, it’s intended to open your eyes about what may be holding you back. Hopefully after reading this some readers will realize why they’ve not already taken that first step and decide to go for it. Even if you fail, there may be great things in store for you. I’ll end with the famous quote from Teddy Roosevelt on this subject:

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”

Everyone’s Doing It: The Impact of Consensus

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“Usually, if everyone else is doing something then it’s probably the right thing to do.” I posted that in a graphic on my social media networks a few weeks ago. Several people disagreed with my statement so I thought I’d address it in this week’s post.

Let’s start with a quick review of what consensus is when it comes to persuasion. The principle of consensus, sometimes called social proof or peer pressure, tells us people’s thinking and behavior is heavily impacted by how other people are thinking and behaving. Those other people who influence us could be the masses or sometimes they’re just a few people who are like you or me. Either way, what others are doing has some degree of influence on me, on you, and on others.

Why is this psychological principle relied on so heavily? Over the course of evolution going against the crowd could have led to bad things. Consider the tribes people lived in long ago. If the majority decided to head south for the winter or move to a new location on the river, then deciding to not go with the larger group could have meant for a quick demise for an individual or small band of people. While we may not live in times where that’s the case, that psychology still applies to us today because the human brain is essentially the same as it was tens of thousands of years ago.

As I noted in the opening, a number of people disagreed with my statement. First let me say that you can never fully explain something in 140 characters or less so I’d like to point out a couple of things. Notice my statement starts with “usually.” That means not always and there are exceptions. For example; usually people who eat well and exercise outlive those who don’t eat well and exercise. But we can all think of exceptions to that rule where someone did all the right things and still died prematurely.

I also used the word “probably” because even when everyone is doing something that doesn’t mean it’s always the right thing. For a person with a bad heart running or other forms of exercise might be the worst thing they can do. And sometimes groups do things that aren’t very smart. We need not look any further than peer pressure where young kids experiment with drinking, drugs and sex.

One friend pointed out that most people used to believe the earth was flat and that the sun revolved around the earth. No disagreement from me that the masses were wrong on those examples. There are many more we could point to as well like this one from The Battle for the Soul of Capitalism by John C. Bogle, “17 of 18 analysts rated Enron a buy just a month before its collapse.”

We know lots of people lost lots of money following that advice. But let me ask this – if you had to bet tomorrow on what stock to buy would you feel more comfortable going with 17 of 18 experts or would you roll the dice on the one lone wolf? The lone wolf will be right some of the time but I’d venture to guess the person who consistently goes with the majority (consensus) will come out on top far more often than the investor who rejects the majority.

We’ve seen the rise in popularity of “the wisdom of the crowds” because we know two heads (or many more) are usually better than one. This is a big reason we still seen consensus routinely at work in our lives. In the information overloaded society we live in we don’t always have the time, skill or energy to do all the research for every decision so we rely on mental shortcuts to help us. Following the crowd is one of those shortcuts because it works out well most of the time. Having said that, if time and time again we realized the majority of people were wrong we’d stop paying attention to what everyone else was doing…but that simply isn’t the case.

Lastly, I will point to more than seven decades of research from social scientists on the impact of consensus. Despite my information overloaded life this is an area I have spent quite a bit of time studying and the data is clear – consensus is powerful because far more often than not, following the lead of others works out well for us.

Persuasive Coaching: The Right Relationship, The Right Coach

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Not too long ago, on a Saturday afternoon I was having a cup of coffee with my daughter Abigail. One of her friends stopped by and as you might expect, the conversation turned to what each of them had done the previous Friday night.

Abigail’s friend talked about how she and her boyfriend played pool. Her friend said she’s not a good pool player and her boyfriend tried to “coach” her. If you’re thinking, “I bet that didn’t go too well,” you’re right.

After a while I shared with the two of them that in order for coaching to work you have to have the right relationship and the right coach. For example, my wife Jane is an avid golfer. On her best days, she shoots in the upper 70s. I learned the game as a kid, took lots of lessons, and even played at one of the best courses in the United States – Jack Nicklaus’s Muirfield Village Golf Course. Despite my background, I don’t give Jane any advice unless specifically asked. If you’re been married for any length of time you know what I’m talking about. Having shared that, many people – perhaps even you – could give unsolicited advice to Jane and she’d give it serious consideration.

This phenomenon doesn’t just apply to spousal relationships. Why is this the case? Sometimes the more we’re known the more we’re taken for granted. Jesus noticed this an said, “A prophet is not without honor except in his own town, among his relatives and in his own home.” (New Living Translation)

Sometimes those most familiar to us, even though they have our best interest at heart, are rejected when it comes to advice. This can happen in business as well as personal life. Someone within the confines of a company can be seen as just a coworker and not an expert even though they may have plenty of expertise.

How can you overcome this? Tap into the principle of authority in two specific ways; create expertise inside the business and establish your expertise outside of your company.

Within the business work on getting one coworker to listen to your advice and try it. Once you’ve done this (assuming your advice worked well) you’ve established beachhead of sorts. With one person won over it becomes easier to win over the second, third and so on. By doing this you gain advocates (the principle of consensus) which makes future opportunities easier because those advocates can “brag on you” in ways you cannot, at least without seeming like a boastful jerk.

Outside of the business how can you establish expertise? You can blog, write a book, give presentations, create videos to name just a few. As you do this and begin to gain some notoriety. When people at work see others paying attention to your expertise it’s likely they will too. That’s also the power of the principle of consensus.

When it comes to persuasive coaching, assuming you’ve done a good job establishing rapport and building trust, people want to know they’re dealing with someone who really knows their stuff – an expert. What are you good at, known for and/or passionate about? Make sure others know that about you and you’ll begin to attract the right people to coach because you’ll have the right relationship and be seen as the right coach.

8 Simple Phrases to Become a More Persuasive Salesperson

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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.

Don’t be so Quick to Restock that Shelf

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My daughter Abigail’s good friend, Maxie, used to work at a bakery in our hometown of Westerville.  One Saturday morning Abigail and I stopped by to say hello and get a sugary treat after having coffee. I noticed Maxie was busy replacing donuts and making sure the pastry trays were completely full. Unfortunately, it was a bad persuasion move on her part.

I asked Maxie why she was so quick to restock the trays after a few donuts or pastries were purchased. She said the bakery owner liked the trays to be full and he believed they looked better that way. I told her that approach is actually working against the bakery making more sales. Let me explain.

Two principles of influence were potentially at work in the bakery if the situation was handled correctly. The first was consensus – we look to others to see how we should behave in certain situations. The second principle was scarcity – we value things more when they’re rare or diminishing.

When people walk into a bakery and see a tray with very few donuts left, consensus kicks in as the first thought is – those must be good donuts because everyone seems to be buying them. Next comes scarcity – with so few donuts left, if I don’t get one soon I might not be able to get one. Both principles become a huge draw do make a purchase!

I’m pretty confident the owner of that bakery has many things for employees to do other than constantly restocking the shelves. One big thing would be having them engage customers to share what items are “selling like hotcakes.”

Have you ever been to a store where you obviously needed help but employees seem more concerned with stocking the shelves? That’s frustrating. Some of that may be due to their hesitancy to interact with people but I’m sure some of the pressure comes from managers who believe fully stocked shelves are a high priority for the store. Not smart if you want to sell more goods.

Think about where you work. Are there things you have that people actually see? If so, don’t be so quick to “restock the shelves” because doing so reduces the impact of consensus and scarcity. Rather, manage the process so you convey what other people are buying and get your customer to “act now” so they don’t lose an opportunity. If you’re worried about employees standing around, teach them how positively engage customers in such a way that customers enjoy the buying experience and keep coming back.

V = WIG/P … What?

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Don’t worry; this post isn’t about algebra or calculus. This week we’re going to look into the value proposition and how salespeople can use the principles of influence to make sure their product or service offering shines.

First, let me say my introduction to the value proposition came nearly 20 years ago when John Petrucci joined State Auto. I learned more about sales from John in his first year with the company than I had in my previous 10 years in the industry. One concept he shared with me, and others throughout the company, was the following formula for the value proposition:

V = WIG/P

Value equals What I Get divided by Price

Let me illustrate. Let’s say currently you can buy 12 widgets for $6. That means the value of each widget is 2. At some point in the future, if you can get 18 widgets for $6 then the value of each widget is 3. Or, maybe you can get still get 12 widgets but now they’re only $3, which makes the value of each widget 4. In each case the value of the widget has gone up which is a better deal for you!

Conversely, if you can only get 12 widgets but the price has gone up to $8, then the value of each widget is only 1.50. Perhaps the price stayed at $6 but now you can only get six widgets. The value you get from widgets has dropped to 1. In both cases, not as good a deal as it once was.

Bottom line; if you can get more and pay the same OR if you get the same but pay less, you’ve received more value. On the flip side, if you get the same and pay more OR get less but pay the same as you always have, then you’ve received less value.

Oh if life were only so easy as a formula! If it were, we would just plug in the numbers and always make the best choice. But here’s the problem – rarely do things play out in real life like they do in the classroom or on paper. Most of the time what we’re offering, be it a product or service, has many components that become hard to value in a formula. Here’s an example from the insurance industry. Many people assume one automobile insurance policy is like another. To some degree that’s true but here are factors that may account for much of the price difference:

  • Coverages – Not all policies have the same coverages and not all have the same coverage limits. More coverage or higher limits means paying more.
  • Bells and whistles – Many policies have extra coverages that are intended to make the policy more valuable. While these may be free (you can’t remove them and save money) they add value to the policy.
  • Claims – Not all companies handle claims the same. Those with better claims service usually charge more because they have more and better staff.

As you can see, it becomes hard to measure value when there are so many factors involved. However, if you’re in sales you’d better know how your product or service is different from your competitors. Your offering may not appeal to everyone but you may have a niche market you go after. That usually makes highlighting value easier.

So how you do use some of the principles of influence to highlight value? Here are three easy-to-incorporate examples.

Authority – People look to experts for guidance when they’re not sure what to do. Can you point to unbiased sources that show the superiority of your product or service in certain areas? Can you fall back on your expertise (years in the business, training, breadth of experience) to make a potential customer feel more comfortable?

Consensus – Humans are essentially pack animals. The vast majority of people feel better knowing what others have said about a product. Can you incorporate information about what the masses think about your product? Is there an opportunity to narrow the focus to people just like the person you’re trying to sell to?

Scarcity – People are much more motivated by what they may lose versus what they might gain. Talking about saving $100 (if your product is less expensive) will not be as effective as telling the prospective customer what they’ll will lose out on by overpaying.

Most people only have a vague idea about the value of what they’re getting even when they do a little research. For more on that just go back and reread my article on buying something as simple as an iron. Do we really know the value of the work done on our car? How about buying a lawnmower? Hiring a personal trainer? The list could go on and on with products or services where we can only “ballpark” to get an estimate of value.

A good salesperson will ask lots of questions to identify someone’s needs. From there they’ll begin to point people to products or services that best meet those needs. While doing so they will look for ways to ethically incorporate authority, consensus and scarcity to the degree that each is available. Doing so will help highlight the value of their offer and lead to a better buying experience for the customer.

So remember, even if you’re not a math whiz, V= WIG/P is a formula you want to know cold if you hope to succeed in sales.