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	<title>O k O l l i e  ---  B l o g &#187; Sales Psychology</title>
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	<description>The Business of Winning - Think monetizing your life with a hint of laziness</description>
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		<title>Sales Principle Three: Overcoming Resistance</title>
		<link>http://okollie.com/sales-principle-3-overcoming-resistance/</link>
		<comments>http://okollie.com/sales-principle-3-overcoming-resistance/#comments</comments>
		<pubDate>Sun, 12 Apr 2009 17:52:56 +0000</pubDate>
		<dc:creator>Craig Ball</dc:creator>
				<category><![CDATA[Sales Psychology]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Psychology]]></category>

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		<description><![CDATA[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 [...]]]></description>
			<content:encoded><![CDATA[<div id="attachment_149" class="wp-caption alignleft" style="width: 160px"><img class="size-thumbnail wp-image-149" title="Banana Salesman" src="http://okollie.com/wp-content/uploads/2009/04/Bananna-Salesman-150x150.jpg" alt="Want a Banana?" width="150" height="150" /><p class="wp-caption-text">Want a Banana?</p></div>
<p class="western">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?</p>
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		<title>Sales Principle Two: Build up the Customer</title>
		<link>http://okollie.com/sales-principle-two-build-up-the-customer/</link>
		<comments>http://okollie.com/sales-principle-two-build-up-the-customer/#comments</comments>
		<pubDate>Sat, 07 Mar 2009 21:11:12 +0000</pubDate>
		<dc:creator>Craig Ball</dc:creator>
				<category><![CDATA[Sales Psychology]]></category>
		<category><![CDATA[Psychology]]></category>
		<category><![CDATA[Sales]]></category>

		<guid isPermaLink="false">http://okollie.com/?p=16</guid>
		<description><![CDATA[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 [...]]]></description>
			<content:encoded><![CDATA[<p class="western" style="margin-bottom: 0.14in">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?</p>
<p class="western" style="margin-bottom: 0.14in">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.</p>
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		<title>Sales Principle One: Norm of Reciprocity</title>
		<link>http://okollie.com/sales-principle-one-norm-of-reciprocity/</link>
		<comments>http://okollie.com/sales-principle-one-norm-of-reciprocity/#comments</comments>
		<pubDate>Tue, 03 Mar 2009 06:13:55 +0000</pubDate>
		<dc:creator>Craig Ball</dc:creator>
				<category><![CDATA[Sales Psychology]]></category>
		<category><![CDATA[Psychology]]></category>
		<category><![CDATA[Sales]]></category>

		<guid isPermaLink="false">http://okollie.com/?p=15</guid>
		<description><![CDATA[When someone does a favor for you, what is your most natural reaction? If you are like me, you want to pay back the favor—to reciprocate. This hidden social rule for behavior is true across cultures, and is called the norm of reciprocity. A norm is a social expectation that we all unconsciously agree to. [...]]]></description>
			<content:encoded><![CDATA[<p style="margin: 0in 0in 10pt"><span style="color: #000000;">When someone does a favor for you, what is your most natural reaction? If you are like me, you want to pay back the favor—to reciprocate. This hidden social rule for behavior is true across cultures, and is called the norm of reciprocity. A norm is a social expectation that we all unconsciously agree to. Its not usually written down, but we learn it through observation, and it becomes part of what we consider “normal.”<span> </span>We feel guilty when we violate an important social norm—as if we are letting people down. This guilt can also spur consumer behaviors. One of the reasons why we want to reciprocate favors is that we want to maintain a feeling of equality in our relationships (equity theory). Another reason is that we hold an unconscious belief that we have a certain responsibility towards others in our community. This may be why it is so effective when you offer a cheap or free service to a potential customer. When I was working at a pizza place at the age of fourteen, we gave out free samples of pizza to passers by. During college, I was offered a free weekend in Breckenridge if I would attend a presentation on time sharing for a condo. After college, a financial adviser offered me a “free” profile (allegedly worth $1000) in exchange for allowing him to do a presentation in my home. </span></p>
<p style="margin: 0in 0in 10pt"><span style="color: #000000;">Sometimes we even feel this obligation to return the favor if we just see that the other person is making some kind of concession for us. This may be why the door-in-the-face tactic works so well. With this strategy, you make a request of the customer that they will likely turn down (you don’t actually want them to accept this initial offer). When they refuse, you immediately follow up with, “That’s understandable. But would you be willing to do this instead?” The second offer seems much easier to accommodate because it requires less risk, less investment, or less time of the customer. The contrast effect is called a perceptual contrast. There are theories about why the door-in-the-face works so well. One theory is that we feel guilty for turning the salesperson down for the initial favor, and when they ask the second favor, they seem to be making a concession. Therefore, we want to reciprocate the favor. <span> </span>This effect has been shown to increase the amount of volunteer work college students will donate to a soup kitchen for the homeless. It had also led home-owners to allow researchers to place a huge billboard in their front lawn for two weeks! It is surprising how helpful we all want to be. This gives me a little hope for humanity, after all. <span> </span>We salespeople are just helping the customer to know what they want to buy. They will buy something anyway. It might as well be our products.</span></p>
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