In the world of B2B sales, the game has evolved from the classical economics of Adam Smith to a more nuanced approach that blends psychology and behavioural science. A Gallup report titled "The Next Discipline: Applying Behavioral Economics to Drive Growth and Profitability" suggests that up to 70% of our economic decision-making is driven by emotion, not rationality.
When it comes to nudging people through a sales pipeline, there are six elements that psychologists and behavioural scientists agree have the greatest impact on how people make the decisions. Let’s go through them one-by-one and explore how each can help you to boost sales performance and enhance customer engagement.
Anchoring:
We rely excessively on the first piece of information we receive while making decisions. This becomes an anchor, rooting us to a spot, affecting how we perceive subsequent data and decide.
For instance, the 2019 Content Preferences Survey Report revealed that nearly half (47%) of the 200 senior-level B2B marketing professionals surveyed considered case studies as the most valuable influencer content format. This statistic can act as an anchor, shaping the perception of case studies' effectiveness in the minds of readers. Another study by Yasseri and Reher also found definitively that "larger stimulus leads to a larger anchoring response". You can use this by when initially asked the price by presenting a wildly high price, which then anchors a normal price.
Scarcity:
Another powerful principle that taps into people's fear of missing out. By creating a sense of urgency or limited availability around a product or service, salespeople can increase desirability and drive action. Introduce limited-time discounts, exclusive deals, or set deadlines for customers to take advantage of additional perks or bonuses. This tactic often works well as it instils a fear of missing out in customers, prompting them to act quickly.
One metastudy concluded that "the results confirm that scarcity cues generally have positive and robust effects" and went on to "highlight nuances in the relationship between scarcity cues and consumer purchase intentions", for example the source of scarcity and the type of product.
Reciprocity:
The idea that people feel compelled to return favours, or “The practice of exchanging things with others for mutual benefit." For buyer engagement, it is increasingly important to provide information that buyers see as relevant and in line with their own priorities. Phil shared an example of the world's most successful used car salesman who simply sent cards to customers saying, "I like you," leading to increased sales and customer loyalty. By fostering a sense of goodwill and reciprocity, salespeople can deepen relationships and drive repeat business.
One statistic that highlights the importance of reciprocity is that “just 20% of sales people are currently seen as valuable by their buyers,” but 74% of buyers choose to work with the sales representative who first added value!
Social Proof:
plays on the concept that people are influenced by the actions of others. By showcasing testimonials, case studies, or customer success stories, salespeople can build credibility and trust with prospects.
In fact, 92% of B2B buyers are more likely to buy after reading a trusted review or testimonial, which speaks to the power of word-of-mouth. In addition, online shoppers expect to see at least 112 reviews for any given product, and a minimum rating of three stars. Make sure you leverage the power of social proof to demonstrate the value and reliability of your product or service.
Loss Aversion:
We are much more sensitive to losses than we are to gains - by as much as 2.5 times.
In one study run by psychologists, the findings were that homeowners were 150% more likely to insulate their homes when the benefit was framed as a loss ("If you fail to insulate your home fully, you’ll lose 50 cents a day") rather than a gain ("If you will insulate your home fully, you’ll be able to save 50 cents a day").
In order to pre-empt loss aversion, ask what might hold them back and then address those concerns, and create a script for common objections so you can address them quickly and coherently. With naturally loss-averse C-suite decision makers, it will be helpful to frame your solution with regards the losses in revenue &c. Of the status quo - for example, if they are concerned about price, you might offer a free trial or show them how to calculate the ROI.
The Labour Illusion:
emphasises how the value of showcasing the effort that goes into a product or service, revealing behind-the-scenes processes, and highlighting the dedication and craftsmanship involved increases the perceived value of their offerings. Customers are more likely to appreciate and respect products or services that they see as the result of hard work and dedication.
Andrea Morales’ 2005 USC research definitively showed the power of the labour illusion: presenting two groups of people with a real estate list supposedly made with different levels of effort. For high effort, they read the list as manual, taking the agent nine hours to create, while for low effort, they read the agent had used a computer, with the job taking only one hour. Participants rated the agent from 1 to 100, and the results indicated that additional effort increased ratings by 36%.
An additional Buell’s study framed a dating app with the pairing effort the algorithm would go to, and found that users who were matched successfully preferred the product due to the labour illusion, but those who were unsuccessful disliked the product more so than those not provided with surplus information.
In conclusion, by understanding and applying these psychological principles in sales interactions, salespeople can create more engaging, impactful, and successful experiences for their prospects. In fact, companies that have successfully applied behavioural economics principles have outperformed their peers by 85% in sales growth and more than 25% in gross margin.
Now, imagine if you could automate this process, ensuring every message you send is not only personalised but also perfectly timed and relevant. Enter Super Benji, an AI solution that does just that. By scraping trillions of data sources, Super Benji identifies triggers in the lives of prospects and crafts personalised emails based on these triggers.
Super Benji believes in putting value and utility back into the messages we send. He believes that consistent, relevant, helpful, thoughtful, and fun messages can build trust and rapport. And he does all this while taking away the hassle of remaining up-to-date with every prospect, brainstorming the ideal subject header and value proposition, and picking the opportune moment for each of your contacts.
In a world where personalisation is key, Super Benji is your secret weapon. He's like a dog with a bone, patiently following all of your contacts and sniffing out the personal updates that trigger him to draft an ultra personalised and impactful message. And the best part? He does all the hard work, so you don't have to.
So, if you're ready to take your sales performance to the next level, it's time to embrace the power of psychology in sales and consider how tools like Super Benji can revolutionise your outreach strategies. After all, no one should have to work like a dog, except for Benji.
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