Tuesday, June 30, 2009

Laws of Influence & Persuasion by Rod Moore

In recent times in line with the development of NLP there has been a lot of work in the area of influence and persuasion. The most significant studies were conducted Robert Cialdini, a Psychologist who wrote the book ‘Influence – The Psychology of Persuasion’.

From this recent research there are a number of laws of influence and persuasion, which have been proven through numerous studies to be highly effective. Implementing these laws into your marketing can have dramatic results on your success.

Lets consider some of these laws and how they may apply in your business.

1.Law of Consistency – The law of consistency is perhaps the single most important discovery in the research into influence and persuasion. It is redefining the sales process. The exciting news is that it works hand in hand with a lot of the ideas from NLP and how they apply to marketing.

The law of consistency simply states that we have a deep unconscious need to remain consistent. So in other words we always try to remain consistent with our point of view, the things that we state to be true, or the actions and behaviour we engage in. Any time we are placed in a situation where we may violate this law we feel a strong internal pressure to return to a position of consistency.

For sales people and business owners this is possibly the most important concept they will ever integrate into their understanding of the sales process.

It is vital that we create an environment where our prospects are able to remain consistent with their views, the comments they make and their behaviour. Any time we place them in a position were they feel they are being inconsistent then we are building in them at an unconscious level pressure to return to being consistent. At the same time there levels of fear and uncertainty begin to rise.

Understanding the law of consistency is extremely powerful and can virtually eliminate the need to use closing techniques. If we lead our prospects into what is known as an agreement frame of mind and keep them there throughout our presentation then by the law of consistency they are far more likely to make a yes decision.

2.Law of Reciprocity – The law of reciprocity is where we feel a sense of indebtedness or obligation to someone else. When others do something for us we feel a strong need, even a push to return the favour.

In other words, if we go out of our way to help our clients solve their problems and we give of our time and expertise, then they begin to feel a strong sense of obligation and indebtedness to us.

Those sales people who are truly masters of their craft have learnt to focus on how to help their prospects first without coming across as a pushy sales person. They go the extra mile in making sure the client is fully aware of their situation and the possible solutions available to them.

When it comes time to make a decision on the right solution the prospect will be attracted more to the sales person they feel indebted to. This is especially useful when you are in a competitive environment or selling against competition. Because the average sales person will not go out of their way to help prospects you can easily use the law of reciprocity to your advantage.

3.Law of Social Proof – The law of social proof has broader implications in terms of the psychology of human behaviour. It can be very persuasive in selling certain products but should not necessarily be used in all cases.

The law of social proof simply states that people look to others, their peers friends and family, before making a decision about something. Have you ever been out to dinner with a big group of people and noticed that there is always one or two people who look at what everyone else is ordering before they order? Well that is social proof.

Social proof is seeking to gain social validation prior to making a buying decision. It can be extremely persuasive in selling to younger generations or in areas like fashion. If everyone starts wearing face-covering sunglasses then when you are out buying sunglasses again you are more likely to buy them as well.

As mentioned earlier, social proof is not relevant in every business situation. If you are selling complex customised high end IT solutions for instance then social proof is less relevant.

Social proof can be used in other ways though, which are important. The use of customer testimonials is a form of social proof. The more testimonials and satisfied customers you can demonstrate to your prospect the more they will feel comfortable about dealing with you. This is in effect social proof at work.

4.Law of Scarcity – The law of scarcity plays a large role in the persuasion process in our society. Opportunities and things are more valuable and exciting when they are scarce and less available to you.

Whenever choice is limited or threatened, the human need to maintain a share of the limited commodity makes us crave it even more. Scarcity drives people to action, making us act quickly for fear of missing out on an opportunity.

You see the law of scarcity at work at the Myer annual Christmas stock take sale when three thousand people all compete to get the plasma TV screen for $100.

The key is to learn how to create a sense of, or actual, scarcity around your product or service. You can do this through different pricing structures, limited offers, limit your service availability, release limited numbers of each product and so on.

5.Law of Contrast – The law of contrast is introducing two vastly different alternatives in succession. By contrasting two alternatives it can distort or amplify our perceptions of things. Generally, if the second item is quite different from the first, we will tend to see them even more differently than they actually are. As a master persuader you can use this contrast to steer your prospects toward the solution you believe is right for them.

One of the most effective ways to use the law of contrast is to present three possible solutions to your prospect. The first is a low cost cheap solution that does not meet all of the prospects requirements. The second solution is the ideal solution priced possibly higher than the prospect is expecting. The third solution is a high priced solution with excessive features that is well out of the price range of the prospect.

By presenting the three solutions the prospect will gravitate towards the second option presented, even though it is more expensive than they had expected. By contrast with the other two solutions it is more acceptable at the higher price.

Had the second solution been presented in isolation then it would not have been as attractive to the prospect, yet in the light of the other two options it is far more acceptable.

6.Law of Expectations – The law of expectations use expectations to influence reality and create results. Individuals tend to make decisions based on how others expect them to perform.

You can establish expectations in the mind of your prospect quite easily. As a result your prospects feel an unconscious need to live up to those expectations.

An example of this is the car salesperson that says to his prospect ‘you are going to love how this car handles around corners’. This plants the expectation in the mind of the prospect. They now focus on this aspect of the new car when test driving it.

The logical question to ask yourself then is how can you use these laws of influence and persuasion and apply them to the marketing of your business?

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