Issue: 492
Sent: 28-08-2012 13:22:03
In this issue:

The End of the Resources BoomA How To Book Of Self Managed Super FundsYes can be the hardest word part 5Email Marketing For Planners
Return to full article list
HomeFree weekly newsletterSelf Managed Super Fund ArticlesContact usLogin AllThingsConsidered.biz

Yes can be the hardest word part 5

Click here to buy - A How To Book of SMSF's by Tony Negline
Lester Wills

Over the last few weeks I have been discussing ways of getting to the YES word and have provided a number of ideas that I discovered. All of them have been tried and tested in some way. I also mentioned that the book "Yes! 50 Scientifically proven ways to be persuasive" has lots of ideas about how to get people to say that little but vitally important word. Goldstein, Martin & Cialdini came up with a number of ideas and I will outline some more of them in this article in a little more detail:

Consistency - People Want to Act in Alignment with Their Beliefs

The basic human desire to be consistent can play out in several ways. If you want someone to do you a large favor, he or she will be more likely to do so if you lay the groundwork by asking for a small favor first. Remember the idea of small steps. This works as it will establish a specific image in the person's mind.

If you're trying to make a large sale, try selling a small sample first as this has a similar impact.

But wait, there is more. This principle also works when you label a person.

To get people to perform a "socially desirable behavior," like voting, get them to agree to it in public. The more actively you can get someone, including yourself, to commit to an action the firmer the commitment will be.

So write your plans, don't just ponder them. When scheduling appointments, get the other person to select the time. In that way he or she has an investment in keeping that appointment. To boost turnout at a meeting, ask potential attendees how they'd like to be reminded of the session.

To change people's previous behavior, appeal to their desire for consistency. Don't tell them that they did something wrong. Instead, frame the new choice as being more akin to their values. Use a variation of this idea to reshape relationships that aren't going well.

"Scarcity" - If It is Rare, People Want It

When manufacturers announce that they are discontinuing a product due to falling sales, sales usually increase. Why? Simple really. People realized it is not going to be available in the future so they had better get one now. The product becomes scarce and people want rare things. This is a powerful idea as people are generally loss averse: They prefer avoiding losses (or even the thought of losses) to acquiring gains. Those who read my series on Behavioral Finance will recall that the effect of a loss is several times stronger than the impact of a gain, making people keen (very keen) to avoid that feeling.

You don't have to discontinue your product. Just explain what it offers that the customer cannot get elsewhere.

By contrast, you can actually make an offer unappealing by making it free. What you are doing is communicating that it lacks value. So instead, spell out how much the gift would cost. Then emphasize that you are giving it to people without that cost to them. How many times have you seen markets sellers saying that an item is going to cost, not $50, not $40, not $30 etc.. By doing this they are setting the bar in people's minds that this is actually an item of value that they are going to get very cheaply.

This principle works in service situations as well. If a restaurant gives away mints after a meal, customers take them for granted. However, if the servers give customers mints with a personal touch, tips increase. If the servers give people mints, and then more mints, or mention how nice the group has been, tips climb still higher. It is adding that personal touch which sadly is all too rare these days.

Hopefully this is proving to be useful information. More next time.


Share this article
Click to share this article on Facebook Click to share this article on Twitter

Previous article         Next article

 
If you liked this article and would like more by email, subscribe! It's free.

[Bold fields are required]

Your details

Your alternate email address is used only if messages to your primary email address are returned to us.

Industry

Do you work in the financial services industry?

This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.

 
 
Site design by Raycon