Tag Archive for: scarcity

The Role of Influence in the Markets

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I’m willing to bet the majority of you reading this week’s post have seen the 1940s Christmas classic It’s a Wonderful Life which starred Jimmy Stewart as George Bailey. You know the story; George Bailey contemplates suicide on Christmas Eve because his building and loan business looks like it’s going to go under and he thinks the world would have been better off had he not been born. In the scene that leads to his despair there’s a run on his Building and Loan company and it nearly goes under. What’s clear in the movie was panic set in and more and more people wanted their money fearing they might not get it if they waited much longer. We saw something similar in recent weeks in the stock and bond markets in the United States so I thought it would be good to look at some of the psychology behind what happened. First there was the debt crisis. Americans and the world started getting very antsy as they watched the game of chicken played by President Obama and the democrats with House Speaker Boehner and the republicans. There was talk that an agreement might not be reached because the two sides have very different viewpoints on the role of government, the use of debt and how the economy best operates. The uncertainty lead to fear and as the old saying goes, “Perception is reality.” The fear is rooted in scarcity, the principle of influence that tells us people want something more when they believe it will be less available. When investors think the government will make moves that could hurt their investments they will take actions to minimize their potential loss and quite often that means they sell while they can. The result of the uncertainty; the market lost several hundred points that week even though a deal was ultimately reached. Unfortunately it went from bad to worse the following week! The market reacting to fears of a worldwide recession and not being too pleased the government compromise on the debt started another sell off. On Thursday, August 4, I recall looking at some news outlets during lunch and seeing the Dow Jones was down 350 points! By the end of the day it was down over 500 points which meant it had lost about 1000 points, or nearly 9% of its value, in just over a week. Not good for those of us saving for retirement and/or kid’s college! While the run might have been sparked by fear it was compounded as investors looked around, took note of what others were doing and followed suit. In other words, consensus, the principle of influence that tells us people look to others for their cues on how to act, was at work. This particular principle is magnified in times of uncertainty and we saw something similar to what George Bailey was facing with the run on his little Building and Loan business. By the end of the week, for the first time ever – including during the Great Depression – the United States bond credit rating was lowered from AAA to AA+ by Standard & Poor’s. This creates more uncertainty as investors are waiting to see how the other major credit rating bureaus will react. If they follow suit things could continue to snowball. However, if the other agencies express confidence in the U.S. government’s ability to meet its debt obligations and keep their AAA ratings things might even out some. The White House vigorously contends S&P’s measurement that led to the lower rating was an inaccurate representation of the debt and government spending. Unfortunately, given all that’s gone on government officials may not have much credibility (authority) in this “he said, she said” back and forth that’s taking place. Confidence is not something that can be measure like speed, strength or IQ. Confidence is a matter of perception and, as noted above, perception is quite often reality until something happens to change that reality. Consider this; no one thought a man could run a mile in less than four minutes. Many tried but all failed over the course of human existence. Even physicians began weighing in saying it was not humanly possible. However, all of that changed on May 6, 1954, when Roger Bannister finally broke the four minute barrier. Once he did it dozens of other runners did so in the ensuing months and years. In fact, just 46 days later, his new record was already history as John Landy set a new world record for the mile. Why all these sub four minute milers setting new records? Because all of a sudden people were confident it could be done. Their perception changed and so did reality. It may not be the government’s doing something that will restore confidence, it might be key investment houses, individual investors or some other outside organization but until it happens we’ll all be like the myriads of runners prior to May 1954, a group of people who don’t believe it can be done.P.S. The DJI fell more than 630 points as this post hit the internet! Brian, CMCT

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Cialdini’s Principles of Influence Applied to Social Media

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I just finished Jeffery Gitomer’s latest book, Social Boom. I’m a Gitomer fan and although the book was very basic I thought it was still pretty good nonetheless. It’s not a “how to” book on detailed things you can do with different social media sites. There are plenty of “how to” books out there to help you in those areas. Gitomer’s focus is more about the strategic use of different social media tools to build your brand and business. The best book I’ve read to date on social media was Trust Agents by Chris Brogan and Julien Smith. I liked the book because the authors tap into many different principles of influence as ways to build your networks. That makes sense because social media is about people reaching out and connecting with one another and whenever people are involved an understanding of human psychology is helpful. Because I know many of you who check in on my blog regularly don’t enjoy reading as much as I do it’s a safe bet the vast majority of you won’t be running out to by a copy Trust Agents or Social Boom anytime soon. However, I know many of you enjoy learning tips that can help you get more out of your social media experience. So here are a few basics ways you can use the principles of influence to get more bang for your buck. Liking is the principle that tells us people prefer to say “Yes” to those they know and like. To engage liking in social media, here are two simple things to focus on – similarities and compliments. When you try to connect with someone it can be as simple as putting a personal message that highlights something you have in common in a Facebook friend request. I have many Facebook friends around the world because of this principle. I got those friends because I reached out to many of Dr. Cialdini’s Facebook friends and when I did so I included a personal message to let them know I knew him and was a one of his trainers. He was our connection or similarity if you will. Compliments are easy to use also. If you’re trying to connect on LinkedIn a personal message is the preferable way to go, also, rather than the standard, “I’d like to add you to my professional network.” In your message include something that you admire or appreciate about that person, letting them know that’s part of the reason you’re reaching out, and the odds they’ll accept your request will go way up. Reciprocity is the principle that describes the reality that we feel obligated to give back the same form of behavior first given to us. For example, on Twitter quite often simply choosing to follow someone will lead them to follow you in return. That’s why most people’s “Following” and “Followers” numbers are so close. I don’t advocate following everyone just because they followed you first but the vast majority of following happens that way. One other way to engage this principle is to reach out to others to help them. Whatever you have in terms of time, talent or expertise, look for ways to give some of that away because those who avail themselves will naturally want to help you when you need it. Consensus lets us know people feel comfortable following the crowd because generally there’s safety in numbers. When we see someone has thousands, or tens of thousands, of Twitter followers, or 500+ LinkedIn connections that sets in the minds of many that those are people worth following. If that wasn’t the case then why would so many others connect with them? Regularly working whatever networks (Facebook, Twitter, LinkedIn, YouTube, Cinch, etc.) you’re on will eventually pay dividends because the more people who are connected to you the more others want to be connected too. Be patient because it can be like a snowball rolling down a hill. It takes time to see the snowball grow but once it gets going watch out! Authority highlights the reality that people like to follow the advice of experts. What is your expertise? Do you highlight it somehow on your social media networks? If you aren’t then you need to start because it gives people a reason to want to connect with you. Until a several years ago I was like many other sales trainers but my passion for influence and persuasion led me to go deeper in that particular area. Now that I’ve started blogging, people in more than 160 countries have taken time to read what I write. When that fact is shared it’s amazing the instant credibility with others. Consistency is the principle of persuasion that tells us people feel psychological pressure to behave consistently with what they’ve previously said or done. The key to tapping into this principle is either knowing what someone has said or done in the past or getting them to commit to you in some way. Getting them to commit to you is easy to do because all it takes is asking questions. Sometimes the person will say no to your request but when they say yes the odds that they’ll follow through go up significantly. So if you need help, ask people. You’ll be surprised at the number that will do so because social media is about connecting, helping and growing. Scarcity describes the reality that people want what they can’t have or what they perceive to be rare. For me something that I can highlight to tap into scarcity is the fact that only about two dozen people in the world are certified to teach influence and persuasion on behalf of Dr. Cialdini. When people learn that fact it makes them more curious and they naturally to want to engage me. What do you have that makes you rare, unique or different? Get that out there and it will make more people want to connect with you. This is a very brief overview of how you can use the psychology of persuasion to make your time and effort in social media more worthwhile. Hopefully you’ll find the tips useful. If you’ve seen how you’ve successfully used some of the principles in your social media circles please leave a comment so we can learn from you.Brian, CMCT
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Influencers from Around the World – Influencing in Australia

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This month’s Influencers from Around the World article is the first guest post from Anthony McLean. Like myself and several of my guest bloggers, Anthony is a Cialdini Method Certified Trainer (CMCT). In fact, he’s the only CMCT in Australia and he’s going to share with us how to best influence should you find yourself in Australia or dealing with an Aussie. I encourage you to connect with Anthony on Facebook or LinkedIn.

Brian, CMCT
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Helping You Learn to Hear “Yes”.Influencing in AustraliaAs a Cialdini Method Certified Trainer I often get asked what principles work best when influencing people from other countries. In joining Brian’s Influencers from Around the World I thought I would discuss the influence culture within Australia.Many of you may already know about Australia and our culture. Perhaps you know Aussies, have done business here or with Australians abroad, have visited our far away shores or watched Steve Irwin (The Crocodile Hunter) or Crocodile Dundee on the big or small screen.Internationally Australians have a varied reputation from being laid back and casual to being beer guzzling loudmouths. The actual fact is Australia, while only having a population of 23 million, is a rich multicultural tapestry. Apart from Indigenous Australians we are all immigrants, some more recent than others; therefore, in such a large and diverse country each principle still applies.Liking – we prefer to say YES to those we know and like.
In World War I and II, Australians found themselves standing side by side with like-minded countries including our close neighbours and friends, New Zealand. It was in the caldron of battle that the ANZAC tradition was forged. We fought together, came from a similar part of the world and had similar values, attitudes and beliefs. This attitude of standing by your mates is still strongly identified with today and like many siblings, Australia and New Zealand have a fierce but friendly rivalry.

Australians are very parochial, whether it is our sporting teams, our political parties, our choice of beer or even the city or suburb we come from. Identify with the things you have in common with an Australian and you are well on your way to making a connection. If you find an Aussie who is not a sports fan, commenting on the fanatical nature of sports fans and the delusional commitment to this activity will also generally strike a chord.Many Australians are willing to give new things a go. In order to create a relationship, look to the experiences or activities you can share with us and it will be this common interest and cooperation that is sure to succeed in building a relationship based on Liking. If all else fails simply make a joke at the expense of a New Zealander or try and say “G’day” and this will generally spark a smile if not raucous laughter.Reciprocity – we prefer to give back to those who have given to us firstAn integral part of Australian society is helping out your mates. While Australians and New Zealanders love to give each other a hard time, when the chips are down that spirit of camaraderie comes to the fore. No better example was seen than during the recent natural disasters in the Asian Pacific rim. Queensland experienced a near one-in-one hundred year flood, then within weeks the biggest cyclone to ever cross our shores hit North Queensland and not surprisingly the first offer of help came from New Zealand. When the earthquake hit Christchurch it was not a consideration of if we would help but how much help we would send. Similarly with the recent earthquake in Japan, Australian search and rescue crews were dispatched immediately to support the teams on the ground because they have done the same for us in the recent past.Reciprocity is a core element to all societies and it is no different in Australia.In the outback it is not uncommon for your nearest neighbour or town to be several hours away. If you were driving on a remote country road and someone needed a tow, or a spare part, or whatever, you would stop and lend a hand because you never know when it may be you who needs some help. If you want to build a relationship with an Australian, going first is the key. Whether it is a kind word in the train, a helping hand with tipping (as we are not very good at it) or buying the first beer; these simple gestures will often ensure you have a friend for life. If nothing else you know we will be there if and when you need us.Consensus – we look to those like us to guide our behaviour when we are uncertain
In the multicultural mix that is Australia we have found that collective Asian-based cultures are becoming a greater influence in our society and connectedness a greater part of our lives. We have people from all over the world flocking to enjoy our beaches, climate and lifestyle. When trying to influence an Australian in a situation where they are not sure of what to do, don’t miss the opportunity to show us what others like us are doing. Whether it is in a work or social setting, highlight what those who are most like us, i.e., those who live or work near us, have the same job, other supporters of our sporting teams, other members of our social or age group are doing in this situation. Show us this and we will be keen to join in.

By way of example in the recent Queensland floods, reports of tens of thousands of volunteers rushing into the streets to help their neighbours spawned even more volunteers to show up until the officials asked volunteers to stop coming as they couldn’t transport all the people to the affected areas.
Authority – when we are not sure of what we should do we look to those with knowledge and wisdom we do not possess.In Australia we suffer from the “tall poppy syndrome,” where those who rise from the bunch can tend to get unnecessarily cut down. It is unfortunate but true.That being said, we are attracted to those whose actions speak louder than their words. Often the person who tends to say the least is listened to when they speak and we even have affectionate names for them like “Rowdy” (i.e., a sarcastic play on the fact they don’t often make much of a fuss). So in demonstrating Authority to influence an Australian, do what you say you will, present yourself as a knowledgeable source that is willing to listen and this will gain our respect. Like others, we are guided by Authorities, but we will expect you to do more than turn up in a big car, tell us you are from a bigger more sophisticated town than ours and name drop.Those who are an Authority will quickly gain our respect; those who rely solely on their position of Authority may not have the same success.Consistency – we are compelled to live up to the commitments that we make.Australians love to exaggerate in telling a good story, so if you want us to live up to what we say, just make sure we aren’t joking when we say something. That notwithstanding, in a country as big and sparsely populated as ours those who fail to live up to what they say they’ll do are quickly identified and are not positively thought of. It is unusual to find people who take great pride in failing to live up to the things they say they will do – it flies in the face of standing by your mates. Therefore, if you want an Australian to follow through with something, align your requests or proposals with the things they already stand for and you will have little problem getting us to do what we say we will.Scarcity – we are motivated by those things that are rare or dwindling in availabilityEven though Australia is often referred to as the lucky country, we cannot stand to lose the things we need any more than someone from overseas can. In a broad brown land that is often plagued with drought we understand the importance of seizing the opportunity when it presents. Therefore, when influencing an Australian show us what we stand to lose and we will be motivated to act. As keen sports people, show us we are in competition with others for your services and we will certainly take notice.One last point — to influence an Australian remember that we don’t tend to take ourselves too seriously. So feel free to share a smile, a joke or a kind word. Tell us when you make a mistake and show us how we can fix it. Treat us with respect and you will always be welcome to come around for a barbeque.Finally, replace the word Australian with wherever you come from and you’ll see that we are not that different to you. The principles of persuasion work all over the world, but they are about influencing people not countries. With the global village getting smaller every day, do your research on the person you are trying to influence and once you find out what types of things they stand for don’t bungle the opportunity to improve both of your positions.Anthony McLean, CMCT

 

How Bernie Madoff with our Money

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We all know the name Bernie Madoff, perpetrator of the biggest Ponzi scheme ever in American business. It’s estimated that $36 billion was invested with Madoff’s firm and that upwards of $18 billion is still missing.

A few weeks ago I was in Cleveland to speak at the local chapter of the Chartered Property Casualty Underwriters (CPCU). I was asked to talk about ethics so I decided a unique approach for this insurance group would be taking a look at Dr. Cialdini’s principles of influence and how they were used by Bernie Madoff. The title for my talk was “How Bernie Madoff with our Money.”

When I talk about the principles of influence I usually refer to ethical influence and persuasion so talking about the unethical use was an interesting change for me. The principles of influence tap into the psychology of human behavior – what causes someone to say “Yes” to a request – and they are powerful! Social scientists and behavioral economists have been scientifically studying human behavior for more than five decades so there’s plenty of data to back up that statement.

Con men may not know the science but through trial and error they quickly figure out how to use the psychology to their advantage. I think it’s important that people understand the principles not only to become more adept at ethically influencing people but also to avoid being manipulated by con men such as Bernie Madoff. I’m going to briefly describe each principle then share something Madoff did that helped him continually bring in new investors for decades. After all, Ponzi schemes depend on a continued inflow of investors and money or else they quickly collapse, so landing new clients was of the utmost importance for Madoff.

Reciprocity – We feel obligated to give back to those who first give to us. When someone does us a favor we want to return the favor in some way and silly as it may sound Bernie made it seem like he was doing his clients a favor by letting them invest with him. After all, his clientele were the rich and famous, he’d been a glowing success for decades and he was well respected. It was a privilege to let him handle their money. The favor was returned as people told others about him and new clients came by way of referral.  

Liking – People like to do business with people we like, especially those who are similar to them. Madoff tapped into this principle based on his similarities to many of his clients. For starters, he recruited from his country club. That’s not out of the ordinary at all because men gauge one another’s character a lot based on shared experiences like golfing. In addition to this, Madoff tapped into similarity through his Jewish heritage because many of his victims were Jewish and trusted him more based on this.

Consensus – We feel more comfortable doing what everyone else is doing or doing what people just like us are doing. If you’re rich then you hang with people who are rich too. Inevitably conversation turns to business so undoubtedly Madoff’s name was passed around like the offering plate at church. If you know many of your most successful friends invest with someone that’s going to give you pause to consider making a switch.

Authority – People tend to trust those who are viewed as experts and Bernie had this one down! He’d been investing successfully since the early 1960s, but what was more impressive was that he helped start the NASDAQ. His trustworthiness was impeccable because he also served as the Chairman of the Board for the National Association of Security Dealers. Why wouldn’t you automatically trust him with those credentials on his side?

Consistency – We like to be consistent in what we say and do because when you do something you usually do it because you believe it’s the right thing to do. If someone asks who you invest with and whether or not you’re doing well of course you’ll respond positively. Being the con-man he was, I’m sure Madoff occasionally asked his biggest clients for referrals and recommendations which they were probably all too willing to do. After all, it would be inconsistent not to.

Scarcity – People want more of what they can’t have or something that is hard to come by. I don’t think Madoff’s firm was one in which any person could pick up the phone and ask to open an account. When you’re dealing in the billions like he was it tends to be a very exclusive club and the more exclusive, the more people wanted in. How would you feel if you knew a business only took on a limited number of new clients each year and you were one they were considering? Most people would jump at the chance.

So there you have it, a quick overview of some of the psychology of How Bernie Madoff with our Money. Hindsight is 20/20 so it’s easy for us to look back and think we’d never be fooled in such a way. However, think about the kinds of people who invested with him – the rich and famous – people who were smart or had smart people managing their money. No, the reality is we’re all susceptible because we’re human and the same psychological pull would be at work in us. Madoff’s situation and science both confirm that. Here’s my advice to you; continue to learn about influence, keep your eyes and ears open, and learn to trust your gut because when something seems too good to be true it usually is.

Brian, CMCT
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The Psychology of the Sale

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I’m a big reader but that wasn’t always the case. In fact, as strange at this sounds, as a kid I hated reading and writing. I say it’s strange because now I write all the time and I read about a book a week. For me, part of a great weekend is spending time at Barnes and Noble with Jane, Abigail and a cup of Starbucks coffee (Venti coffee of the day, cream and sugar). And if there happens to be a sale I’m the kind that will use the coupon no matter what.

In January I received an email with what I thought was a unique coupon from Barnes and Noble. What I thought was unique may not be to some of you more “professional” shoppers, but nonetheless it prompted me to want to write about the psychology of the sale this week.
There was the standard expiration date on the coupon, 1/30/11. That’s no big deal because we’re all used to seeing that. The expiration date incorporates scarcity, the principle of influence that tells us people tend to value things more when they believe they are rare or diminishing. The simple fact that the sale has an end date will prompt many people to stop by the store if for no other reason than to just look. Of course, a good percentage of people will end up using the coupon and buying when they might not have otherwise. This isn’t unique but it is part of the psychology of the sale.

What I found unique was the potential savings. Most of the time we simply see a percentage we can save when we get a coupon. It may be 10% off an entire purchase, 20% off of one item, or buy two and get one free. I could go on for quite some time with all the variations but you get the point. What was unique about this coupon was that it said I could save 10%, 15%, 20%, 30%, or possibly 50% off one item! The catch was; I wouldn’t know until I got to the register.

So now scarcity becomes a little more important because what if I miss out on saving 50%? That would really stink, especially for a book lover so I might as well go and see how much I could save.Would you have gone to the store to save 10%? Maybe or maybe not. Sometimes I do, sometimes I don’t. How about 15%? Perhaps you go. I always give it strong consideration. At 20% you might start think it could be too good to pass up, so the odds that you visit the store are pretty good. It’s not too often I miss a 20% off sale on books. When you get the 30% coupon you can imagine loads of people make it a point to stop by the bookstore. I know I’ll go out of my way to drop by. With a 50% coupon nearly every book lover will stop by because there’s always something worthwhile still on the reading list and it’s easy to justify buying a book for half price. I am definitely in that group!But still, you don’t know how much you’ll save. You know at 30%, and certainly at 50% off, you can find that book you’ve been wanting to read — the hardback edition because you like hardback books — and you can justify the additional cost because of the extra savings you’ll get…even if you’re not sure how much you’ll save.You get to the front of the line and eagerly anticipate your savings as you hand the cashier your coupon. She scans it and bingo, you saved 50%! Life is good! But wait, you know there will be very few people who get 50% off. The truth is most people will save only 10% and as the percentage of savings goes up the odds that your coupon will be one of those big winners goes down.Are you going to tell the cashier you don’t want the book after all and return that $25 or $35 book because you only saved 10%? I bet the vast majority of people won’t. First reason I bet you won’t is consistency. This principle of influence tells us people like to be consistent. Driving to the store to buy a book then not buying it feels wrong to most people. After all, you’ve spent gas money driving there and at $3.15 a gallon people are changing driving habits so you don’t want to waste that trip. In addition to the gas, you invested time driving there and browsing in the store so you convince yourself saving 10% isn’t too bad…even if knowing that ahead of time might not have gotten you out the door.The other factor that comes into play is compare and contrast. I see this happening two ways. First was the structure of the coupon. When you start by reading the 10%, 15% and so on, by the time you get to 30% and 50% the savings seems even larger by comparison and that gets your hopes up. Compare and contrast also comes into play when you save 10%, let’s say $2.50, and you rationalize that saving another $2.50 would have been nice but not necessary, especially after your time and effort are taken into consideration.So there you have it, a little bit of the psychology of the sale. There are quite a few things going on in the mind of the potential customer and the reality is, most people are completely unaware of how those outside influences are impacting their behavior. Martin Lindstrom, author of Buy-ology, says 85% of our actions are driven by non-conscious thinking. Most people don’t really know why they do what they do but having a little more insight can hopefully help you make the right decision when it comes to a sale.Brian, CMCT
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Influencers from Around the World – The Unavoidable Influence of Death

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This month’s Influencers from Around the World article is from Yago de Marta. If you’ve been a reader of Influence PEOPLE for any length of time then you’ve no doubt read some articles by Yago. I think you’ll find his perspective on influence and death intriguing. I encourage you to check out his website and reach out to him on Facebook, Twitter and LinkedIn.

Brian, CMCT
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Helping You Learn to Hear “Yes”.

The Unavoidable Influence of Death

Some months ago a very popular person from my hometown died. His name was Jose Antonio Labordeta. The purpose of this article is not to remember his life because media all around the world, especially in Spain, have already done that. The article that appeared in The Guardian (UK) made me ponder the following questions about death’s influence on the living:
What involves death that makes it so influential? Why does death go beyond our daily affairs and routines? What is the mechanism of death’s influence?In Labordeta’s case there is an element which allows us to follow his influence. In 1975 he composed “Song to Liberty” (Canto a la Libertad). At that moment and many times since there were people who proposed this song as the regional anthem of this area, Aragón. And from that time forward the song was sung in different historical events.
However, on September 19 Labordeta died and from that moment on everything changed. Google tells us about the great number of people who attended his funeral. Maybe some of them had never heard of his songs but the crowd of people shows us the way individuals and associations mobilized to make “Canto a la Libertad” the anthem of Aragón.At this moment the song hasn’t officially become the anthem so it’s difficult to give a final valuation on the way Labordeta’s death will influence his works. Nonetheless, we do observe most of Robert Cialdini’s principles of influence in death and that’s what this article is really about.
Reciprocation: Yes, it’s true that the dead cannot give us anything to invoke reciprocity but in some way, if we show ourselves to be understanding and kind with the dead, we hope others will show empathy with us when we die. One of the most common activities of the human mind is to wonder, “Who will come to my funeral?” Taking this idea, if we are kind with the dearly departed then we think people will be kind with us when we pass on.Commitment and Consistency: From childhood on, we are told to be respectful of the dead. This has happened since the origins of humankind. This expectation causes a kind of fixed attitude toward death in our minds throughout life. Even when we are older, if somebody dies we show ourselves to be sad and sorrowful. We are that way partly because we are expected to act like that.Social Proof (Consensus): This is very remarkable in the case of film or pop stars. Regardless of whether you liked or disliked Michael Jackson’s music, or regardless of the fact that some months before he died many people thought he was a pedophile, when he died almost everyone felt something different; they felt a little sad and depressed. And most people around the world felt similarly. Knowing and seeing how others felt was like a multiplier effect.Liking: We are going to die, every single one of us. Such is life. This obvious idea is what makes us identify with a person who dies. We don’t always identify in the same way, but every time somebody dies around us we get this feeling. Further, the mirror neurons come into effect, when we identify with the person who has just died. We tend to be more empathetic, softer and kinder.Authority: Myths are built in death. It happens this way with famous painters, writers and even politicians. Death tends to make the principle of authority grow. When somebody dies, his or her personality reaches highest levels because we are more respectful with the dead. It could also be because of traditions or culture, but respect is a form of authority.Scarcity: There’s nothing in our whole life that creates more scarcity than death. When we die everything we could have said, made, painted or sung seems to be not enough. Life is short and limited. Before dying we can keep on painting, singing or doing whatever we please but from the moment of death it is no longer possible. And so there you have from my perspective, how we are all influenced by death. Death’s influence, like death itself, is unavoidable. Yago

 

Parenting Made Easier with Influence

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Today, December 6, is our daughter Abigail’s 15th birthday. I can still remember looking at her in the crib thinking, “I can’t believe she’s been with us a hundred days.” Wow, does time fly! In just over three years she’ll be heading off to college and no matter where you are in the world you might hear me crying because I’ll miss seeing her every day.

To say that raising Abigail has been one of the biggest joys in my life would be an understatement. The only person luckier than me will be the man who spends the rest of his life with her. She is beautiful, fun, intelligent, has a great sense of humor, thinks deeply, is athletic and so much more. Jane and I have been very fortunate because for the most part she’s been an easy kid to raise. However, I also know some of that ease has been due to good parenting and that’s the focus of this week’s post.

I’m no child psychologist or parenting expert by any means but I have learned enough about psychology to effectively use the principles of influence in the process of raising Abigail. I believe that’s been incredibly helpful so what I’d like to do is share a few things I’ve tried and hopefully it will stimulate some ideas for you.

Liking – It’s not our job to be Abigail’s friend but it’s no secret that if your kids like you they’ll be more apt to do what you ask. We go out of our way to make sure she knows how much she’s loved and that certainly helps us as parents. For a really good parenting idea check out my post on something we call Special Day.

Reciprocity – Most parents give kids an allowance and we’re no exception. An allowance however doesn’t engage reciprocity because it’s a reward, not a gift. To engage this principle you need to be the first to act.

One way I effectively used reciprocity this summer was to give Abigail a raise in her allowance before I asked anything of her. I didn’t say, “If you’ll cut the grass I’ll give you a raise,” because she would have declined (she hates cutting the grass!). What I did was give her a raise then about a week later asked her to cut the grass. She protested a little until I said, “Abigail, I gave you a raise in your allowance and didn’t ask you to do anything. Can’t you help me out?” She cut the grass.

Consensus – This one is always at play with teenagers but most of the time parents are fighting against it because of “peer pressure” and Jane and I are no different. Rather than go into detail on on how we’ve handle the pressure to conform I’ll refer you to the post I wrote on helping teens deal with peer pressure.

Authority – It’s always good to have an outside expert come to your aid. One situation that comes to mind is eating dinner together. It’s become all too common for families to not eat dinner together and when they do it’s often in front of the television. I won’t tell you we eat together every night but we do most evenings because we know it’s a great way to stay connected. Referring to a simple fact from an expert, like most happy families eat together, helps deflect the common question, “Can’t we eat in front of the TV?”Here’s a funny, but not totally ethical, story. When Abigail was very little she didn’t like certain foods and our pleading with her didn’t help. One day Jane acted like Abigail’s doctor was on the phone. As soon as she said, “Abigail, Dr. Klinger says you need to eat your vegetables,” she ate them. Not ethical but effective because even as a little girl she knew he was an authority.
Consistency – I spend a lot of time talking to Abigail and have ever since I can remember. When something we ask her to do goes well I make sure to point that out because it acts as a mile marker down the road. The reason I do that is because it makes the next request easier. For example, I can say, “Abigail, you know I love you right? And you know mom and I want you to be happy and have fun, right? Last time we asked you to do [fill in the blank] it turned out well, didn’t it?” See where I’m going with this? I’ve built on a series of consistent “Yes” responses to get her buy-in. She knows we love her, that we want her to enjoy life and know we’ve given good advice in the past. Reminding her of those things makes it easier for her to say “Yes” to whatever we’re asking of her currently.
Scarcity – We try not to pull the threat lever too often but that is a legitimate use of scarcity. As parents we’ve all had to say, “If you don’t [fill in the blank] you’ll lose the privilege to [fill in the blank].” I do think effectively using the other principles of influence greatly reduces the need to have those kinds of tough talks with your kids. One area I was able to use scarcity was with club volleyball last year. Abigail wasn’t big on the idea of playing but I let her know if she didn’t there was probably no way she’d make the high school team. Knowing she was going to a new school where she didn’t know anyone we all agreed being on the volleyball team would be a good way to start the high school experience. Although she would have rather done things other than club volleyball she went ahead and played.
Please don’t think that using the principles is a surefire guarantee to hear “Yes” every time because it’s not. What I can tell you with confidence is that your children will say “Yes” more often if you effectively use the principles of influence – and all of this is backed by science and the understanding of human psychology. I encourage you to give it a try. It’s made our lives easier and I know it can do the same for you.PS The reason for the 4:38 AM post this week is because that’s exactly when Abigail came into the world 15 years ago. Happy Birthday Abigail, Love Dad!!
Brian, CMCT
influencepeople
Helping You Learn to Hear “Yes”.

 

The Joy of Winning vs. The Pain of Losing

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A few days before the big weekend of turkey and football, I saw the following quote on ESPN.com regarding the Iron Bowl—the intense Alabama–Auburn rivalry:

“The fear of losing the game is worse than the joy of winning and participating.”

That statement came from David Housel, retired athletic director at Auburn, and it was repeated during the game by Gary Danielson, one of the CBS broadcasters covering the matchup.

There’s a principle of influence known as scarcity that illustrates Housel’s point perfectly: people are more motivated by what they stand to lose than by what they stand to gain.

In simple terms, if you’re like most people, you’d feel more pain from losing $100 than pleasure from finding or winning $100. In fact, according to some behavioral economics studies, the pain of loss is about twice as powerful as the pleasure of gain.

Was Alfred, Lord Tennyson correct when he wrote, “’Tis better to have loved and lost than never to have loved at all”?I’m willing to bet that some who loved, lost, and never loved again might beg to differ.

Now, I’m not advocating avoiding love. But you’d do well to consider carefully who you give your heart to, because the potential pain could outweigh the perceived joy.

So, how can this insight into scarcity help you?

Two ways:

  1. Motivating people to take action.

  2. Avoiding unnecessary or impulsive actions yourself.

If you want to motivate people to act, scarcity can be a powerful ally. When you make a request, is there a legitimate downside if the other person doesn’t take action? If so, make that downside part of your message.

For example, where I work, we have to renew our benefits each year by selecting exactly what we want. A reminder like, “If you don’t select your benefits by November 19, you won’t have any,” is a surefire way to get people moving. Nobody wants to lose their health benefits.

On the flip side, some people use scarcity in less-than-ethical ways.

Have you ever had a home repair salesman—roofing, siding, painting—tell you at the end of a presentation:

“This discounted price is only good today because I have so many other clients to see. If I have to make a return trip, I won’t be able to offer you this price.”

If you hear something like that, consider toying with the salesperson a bit:

“So if I call you tomorrow ready to buy, you’re telling me I can’t have this price? You’d rather go spend 90 minutes with someone who probably won’t buy than return to make a guaranteed sale in 15 minutes? Good luck with that strategy.”

Then politely show them the door. You don’t need to deal with someone who’s being manipulative.

Yes, there are times when scarcity is real—supplies run out, deadlines matter—but all too often, that “only good today” line is just that: a line.

During the holiday season, sales often end at certain times, and you may need to act quickly. But it’s always worth asking yourself:

“Am I making this purchase based on the item’s value—or am I just afraid of missing out?”

Fact is, sales come and go so frequently that it’s rare we truly lose a meaningful opportunity.

Now, when it comes to love? If you don’t ask out that person you’ve had your eye on, someone else might—so give that some serious thought. Love can be awesome.

Despite the risks scarcity presents, I’m in the camp that says: go for it, and deal with the consequences later.

Oh, and back to that Iron Bowl: Auburn won 28–27, keeping their national title hopes alive. I suspect the joy Auburn fans felt didn’t come close to the pain experienced by Alabama fans—especially since the game was played at Alabama, and they had a 24–0 lead at one point.

Ouch.

Brian, CMCT

Influence PEOPLE
Helping You Hear “Yes”.

Flubber Shoe Ban by NBA Will Cause Sales to Jump!

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First it was performance-enhancing drugs and now it’s performance-enhancing shoes that are banned in sports. That’s right; performance-enhancing shoes have been banned by the NBA. The ban is a first for the league but I predict that censoring the new shoes will cause sales to jump out of the gym. This begs the question; has “flubber” finally made it to the NBA?

Not exactly but still, Fred MacMurray might be rolling over in his grave. Fred played Ned Brainard in the 1961 movie The Absent Minded Professor and Robin Williams later played the professor in the 1997 remake of the Disney classic which was renamed Flubber. You might recall Professor Brainard invented the substance known as “flubber” which was short for “flying rubber.” Flubber created amazing bounce to whatever it was applied to. If you’ve seen the movie then no doubt you remember seeing his college basketball players jumping as high as the gym ceiling during an important game as they trounced their opponent.

So thesenew shoes don’t exactly give the same jump as flubber but supposedly the new $300 shoe will give an “unfair competitive advantage” because it enhances a player’s vertical leap. My intent today isn’t to delve into the specifics of the shoes but rather the psychology of buying so if you want to read the full story jump over to this site; Bizmology.
Why do I predict sales of the new shoes will increase dramatically? In a word, scarcity. This principle of influence tells us people value things more when they think they are less available or diminishing. If you read Influence Science and Practice you’ll see that censorship creates a form of scarcity. The makers of the shoe also recognize this and are gearing up for higher sales.
While the shoe is no less available the perception that’s created by the ban will play on the psychology of the young athlete looking for an edge. If they’re not banned from high school or college you can bet your last dollar kids will buy them. And even if schools do ban them, that doesn’t extend to playgrounds across the country where the greatest numbers play the game. It may be a “performance enhancing shoe” but it’s not as bad as the performance enhancing substances many athletes put into their bodies so what kid wouldn’t want these shoes for pickup games?
This is no different than golf balls that are banned because they fly farther or certain golf clubs that give more distance. Many weekend golfers could care less what the PGA says because they want to feel like Tiger, Phil and the rest of the tour pros when they crush their drives on the first tee in front of their buddies.
You’ve probably heard the familiar saying, “There’s no such thing as bad publicity.” Sometimes “bad publicity” just makes us want to see, hear, touch, taste or do the thing that’s supposedly “bad” even more. I’m not the only one who thinks this.
“There is no such thing as bad publicity except your own obituary.” Brendan Behan
“The only thing worse than being talked about is not being talked about.” Oscar Wilde
One last point; the shoe maker couldn’t afford all the publicity they’re currently getting – for free I might add – because of this controversy. I first learned about it on CNN so I’m sure the story will make its way to other news networks, sports casts and most importantly, ESPN.
Beyond the interesting phenomenon I’ve described I encourage you to think about yourself, your product or your ideas. What are some truly unique things, or combination of things you could bring to the forefront that would allow you to incorporate scarcity to create a heightened desire? Figure that out, ethically leverage it and I guarantee desire for you, your product or your ideas will jump too.
Brian, CMCT
influencepeople
Helping You Learn to Hear “Yes”.

Don’t Live in “Scare City” this Christmas

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Yes, it’s mid October and I’m already writing about Christmas. Ho, Ho, Ho, the only surprise might be that I’ve not written about it sooner. I’m not sure what stores are like where you live but around Columbus, Ohio mega-malls are big business and very soon you’ll see Christmas on display. What this means in many cases are great deals to lure shoppers into the stores early. In the retail war the initial battle is to win your attention. “Battle” is not too strong a word because according to Dawn Hudson, Senior VP Marketing at Pepsi, “The average American receives more than 3,000 marketing messages a day!”
So how can a marketer help a retailer stand out from the crowd? A favorite tactic of marketers is to utilize the principle of scarcity to motivate you to get off the couch and visit the store. Scarcity is the term we use to describe the psychological response where people tend to place more value on things when they believe those things are rare or dwindling. If you’re wondering why this is used any more than other methods that’s because it works primarily on the subconscious level. In his book Influence Science and Practice Robert Cialdini describes our almost automatic response as a “click whir” phenomenon.
A while ago a friend at work who sat in on my influence training stopped by to give me an advertisement that caught his eye. He was aware of the influence approach Bed, Bath and Beyond took in this mailer his wife received.

The 20% coupon isn’t much different than most retailers. What was different with this one was the call to action: The Sooner You Use it the More it’s Worth! By using the coupon right away you save 20%, but if you wait it’s only worth 10% later. I think that approach is creative for a couple of reasons.

First, the ad incorporates the compare and contrast phenomenon. Most things only have value, or make sense in relation to other things. For example, if I offer you $20 you’re probably pretty happy. But, I’m willing to bet if I offer you $10, then change my mind and give you $20 instead, you’re much happier than having been offered $20 straight up. Why? Simple, now my offer is twice as much as you originally thought you were going to get. If you don’t believe me try it with a few people sometime and see how they react.

The second element of the ad that works well is how it incorporates scarcity. If you don’t use the mailer now it’s only worth half as much later. On the back of the mailer you would have seen the recipient had four full weeks to save 20% on one item, then four more weeks to save 10% on a single item. Something about that seems more motivating to me than a straight up use it or lose it approach.

Pay attention as the Christmas ad bombardment begins. Not only will you see scarcity applied, you’ll see consensus too. After all, if everyone is buying a certain gift you’re kids will probably want that same item too. But if you don’t hurry you might just miss that golden opportunity so get it soon for your kid’s sake! Seriously, there may be great deals and some items might truly be limited but with your eyes open to how retailers are trying to motivate you at least you can pause, think and make the best decision, instead of an impulsive one.
Brian, CMCT
influencepeople
Helping You Learn to Hear “Yes”.