Sales and Psychology

Puzzled About DerivativesJohn P, wrote in asking the following, “Can you provide a selling system and sales script I can use? I need sale strategies that work. I prefer selling value, but I’m open to your ideas. Any tip’s on cold calling as well?”

Well John here is my article and video on cold calling Telephone Sales Script : Phone Selling Systems

I used to write phone script’s for many corporate telemarketing companies. So, I think that article will answer many of your question’s. Now I’ll talk about how to persuade people to buy by analyzing how customer’s decide to buy.

Pre Programmed Responses

All people have pre programmed responses to certain situations. These automatic responses, tend to be learned, rather than pre programmed at birth.

Each person has prebuilt beliefs that they use to make decisions such as:

  • Expensive = Good
  • Educated = Intelligence
  • Long Lines at a Store = Popular
  • Size = Strength
  • Expert Opinion = True

For example, when a person hears that something is expensive they unconsciously think it is better than an unexpensive product. When people hear words, unconsciously they picture that word in their mind, in a certain way. You should get others to associate good feelings in relation to your product or service, by comparing those benefits most important to them with what you’re selling.

When this technique is used in connection with the creation of a yes mindset, it is easy to get others to see things your way. The creation of a yes mindset is accomplished by getting a person to agree with your comments multiple times. This will get them to be more open to listening to your benefits.

We Have a Desire to Return a Favor

The need to return a favor is ingrained in us. If as a society we all just did what was best for us alone we would have never grown. Its only by working together that we have been able to create the world we now have.

If at all possible, try and use this technique to build your relationship with a prospect. Make sure that your gift is not too large. You never want the prospect to look at the gift as a bribe. Ex. Valuable information not pertaining to what your selling, a pen, balloon for child or any other low value item.

We All Need to Maintain Consistency

Once we have made a decision to do something, we feel a great deal of pressure to continue doing it. Acting in a consistent matter makes a great deal of sense. The opposite would be a person that constantly changes their mind. As with all of the other techniques we use to make decisions, they are used to save us time and uncomplicate our lives.

Research has also shown, that if something stands to impede our ability to follow consistency, we will do whatever we can to stay on the current track. This is one of the most important rules to learn. In your presentation, you must prove your selling consistency. All you are selling, is their ability to continue on their chosen path.

It is very important that you get your prospect to feel that you are not acting against their need to maintain consistency. You get them to feel that your advice is consistent with their past actions, by confirming that they took specific actions in the past. For example:

“You bought your accounting software because it allowed you to maintain orderly financials. You stated this is important because it saved you time in the long run. Because time is money, the more time you save will equal more money in your pocket. Hence, when my product saves you 300 hrs per year, it will pay for itself in 3 months. On top of that you can see that after 3 months my product will be making you money, right?”

It is important that they positively affirm each statement you make, as you are describing decisions they have made. You need to get them to commit that yes that statement is true, after each statement. By getting someone to make many mini commitments through out a sales call, we dramatically increase the chance they will agree to a final sale.

Remember always that any commitment or sale no matter how small, is the beginning of all those that follow. The best commitment:

  • Is noncoerced
  • Is made in front of others
  • Is written down
  • Requires effort
  • Is freely chosen.

Band Wagoning

We determine what is correct by finding out what the majority of people are doing. In fact 95% of people imitate the actions of others, rather than try and initiate their own solutions.

The degree to which we will follow others actions immediately is directly related to the degree of uncertainty we feel. And indeed if we feel that people of the same social status as us are doing something we are more comfortable following their lead.

How can you present your product / service to induce the need to follow the herd?

We Follow Authorities

We have a deep-seated sense of duty to follow those in a position of authority. People have actually gone to almost any lengths on the command of an authority. We are actually trained from birth this principle more than any other. We should be obedient to proper authorities and disobedience is wrong.

The very first book of the Bible, for example, describes how the failure to follow the highest authority led to the loss of paradise for all people.

How can you present your product / service to induce the need to follow an authority?

We Buy from People We Like

It’s not surprising to learn that we prefer to say yes to people we know and like. This is why so many sales people ask for referrals from a person after they buy a product from us. With a referral in hand we can now approach a person not as a stranger, but as a person their friend said they should meet.

If that referral was to turn away the sales person under these circumstances it is as if they turned away their trusted friend. A person armed with a referral vs. one that doesn’t increases their chances to make a sale by 50%. So get referrals!

Here’s an article that will show you How to Get People to Like you.

If I Can’t Have it, I Want it

People have a hard time resisting not taking advantage of an opportunity if they believe they won’t get a chance to get it again. Even flawed items are in great demand today if they have but one quality, Scarcity!

These actions come down to one guiding principle: people seem to be more motivated by the thought of losing something, than, they are interested in buying something of equal value. This principle is especially true in those circumstances of uncertainty.

Loss plays a large role in all human decisions. Research has shown that if we tell someone that an item is in short supply or the cost of manufacturing the product is going up, you’re almost guaranteeing that they will buy more of it.

  • This example is seen with Appliance Stores.
  • The sales person sees you looking at a product.
  • They walk up and state “I see your looking at that”.
  • They then review the advantages of the product.
  • They then either tell you “that one is sold” or “the sell ends today” or “let me see if we have any left”.
  • Sold!

Use words in your advertising that speaks to the scarcity principle such as: “Limited, Exclusive Engagement Ends today!”

The greatest obstacle to a salesperson is the dreaded “We have to think about it.” And the best defense to that objection is to prove that unless they make an immediate decision to buy, they will have to purchase the item at a higher price later or they will lose the opportunity all together.

Why is the scarcity principle such a powerful part of our decision making? It’s easy; we know that the harder it is to obtain something, the better that item is.

Even stronger is our need for freedom. If an opportunity becomes less available, we lose the freedom to get what we want. Also, when free-choice is limited, the need to retain our freedoms makes us go wild. And what drives us to want something more at this point is purely psychological. To make sense of our heightened craze, our brain begins to assign positive qualities to the product that may not even exist.

Also if we actually see something become scarce right before our eyes we will want it more than if it is something that has always been seen as scarce.

For example, how would we feel if we saw a pack of people descend on a product right before our eyes? Let us say that only one of those items was left in the aftermath. How hard would it be for you to ignore that product and just move on?

Stores took great advantage of the scarcity principle this past Christmas when they listed products drastically reduced in price with “Quantities Limited” printed next to the item. What happened?

Normal everyday people were so crazed that they actually stampeded over others to get that product. There may be no other motivating factor stronger than the pairing of scarcity and rivalry.

To increase sales ask, “How can you utilize the scarcity principle to speed up the sales process?”

That’s All Folk’s

If you have any question’s that you’d like me to answer, leave it in the comment box below.

Here to Serve

Think Tank

Leave a Reply

Your email address will not be published.