Archive for the ‘Sales Psychology’ category

Sales Principle Three: Overcoming Resistance

April 12th, 2009
Want a Banana?

Want a Banana?

The biggest form of customer resistance is their privately held belief, “This guy (or gal) is trying to sell me something. Must be a scam.” This is especially true for skeptics like me, so I know a lot about the thought process underlying the resistance. In social psychology, we call this a boomerang effect—when the compliance strategies we use basically backfire and scare the customer off. It is essential to convey sincerity and an absence of deception in order to gain buy in, while making realistic claims that are perceived to be legitimate. One technique for overcoming resistance is called the “disrupt then reframe” method. In this tactic, you identify and speak to the hidden fear or resistance of the customer BEFORE they even voice it. In addition, you add some alternative ways of viewing the situation (the reframe), thus disrupting their resistance-laden belief structure. The goal is for the customer to begin telling themselves, “This is a bargain!” or “What a great opportunity!” One way to guide the customer to this strategy is by sweetening the deal just before they are ready to commit (the “that’s not all” technique). Another method is to use the scarcity principle (act now while supplies last), which helps the customer to see that this opportunity may go away if they delay, or that there is a scarce amount of time or product for them to seize quickly. Another method to gain buy in is the take away (I guess this opportunity just isn’t for you). This shows that you aren’t desperate, and conveys that you have other offers out there, thus making you more attractive to the target. What works better than playing hard to get?

Sales Principle Two: Build up the Customer

March 7th, 2009

Social psychologists have shown that one of the most predictable drives people have is to build up their self esteem. We will bask in the reflected glory of so-called “winners,” cast off signs of reflected failure in those who we feel are low status by distancing ourselves from them, stage performances to show our talents in case someone misses these talents, use the trappings of competence (signs of our success like cell phones, pagers, high status clothes), conspicuously consume (to show we have enough abundance to waste) and self-promote (brag, point out our strengths while still projecting an image of modesty). Much of this very human behavior is to get others to like and respect us. What happens when you give people what they need?

We call it ingratiation if we compliment someone else, give them the idea that we agree with them, or mimic their behaviors (gestures, way of speaking, dress). But the truth is that ingratiation works! When we feel that we are being complimented and built up in a genuine way (it is specific, it is something that we believe to be true of ourselves), we tend to start liking the source of the compliment more. We then want to help them and do favors for them. A number of experiments show that we are more likely to be persuaded by salespeople who: remember and use our names, make eye contact, show that they are listening to us (riveted to our every word), agree with us, imitate our speech patterns and gestures, and compliment us. Basically we want to believe good things about ourselves. If we give people a positive label about themselves (you are so generous, you are so helpful, you give to others, you are a risk-taker, you are courageous and independent), the listener wants to act in a way that is consistent with that label. It is a self-fulfilling prophecy.