Monday, February 27, 2012

Even Superheroes Rely on the Powers of Persuasion

As I was watching Spiderman 2 with my daughter on a lazy Sunday afternoon something leaped out at me. No, it wasn’t Peter Parker from the top of a tall building; it was Spiderman’s need for the power of persuasion when his superhero powers couldn’t do the trick.

As the movie concludes, Spiderman battles Dr. Otto Octavius who had become the evil Dr. Octopus. Spiderman momentarily bests the evil doctor and pulls off his mask to reveal his true identity. Dr. Octavius recognizes Peter Parker, a former student. The following exchange ensues as Peter tries to convince the doctor to shut down the octopus-like machine he’s created.

Spiderman: You once spoke to me about intelligence; that it was a gift to be used for the good of mankind.
Dr. Octavius:  Privilege.
Spiderman:  These things have turned you into something you’re not.
Dr. Octavius:  It was my dream.
Spiderman:  Sometimes we have to give up the thing we want the most.
Dr. Octavius:  You’re right.

At that point the doctor having regained his old notion of right and wrong proceeds to help Spiderman defeat the tentacle monster.

Despite his “spidey” super powers our superhero decided the better course of action was to tap into a different super power; the power of the principle of consistency. This principle of influence tells us people feel the psychological need to be consistent in word and deed. This need arises from the fact that most people feel bad about themselves when they say one thing and then go back on their word. This principle is so powerful that sometimes we even find ourselves doing things we don’t really want to do just because we said we would.

An example of this might be the appliance salesman noticing you looking at a particular refrigerator model. Knowing full well there’s plenty in stock he might say, “I think we just sold the last one earlier today.” This taps into scarcity and makes you want it all the more. Then he taps into consistency, “I could go in the back and take a look if you like. If we have one left do you want it?” Feeling the tug that it might be the last one then giving your word that you do want it might lead you to make a purchase you might not have otherwise. After all, it will be hard to back out when he returns and tells you, “Great news, I was wrong. We do have one left. Let’s go get the paperwork started.”

Fortunately Spiderman didn’t rely on stretching the truth like the salesman might have. During that final exchange between Peter Parker and his former professor, Peter simply reminded Dr. Octavius he told students his goal was to use artificial intelligence for the good of mankind. The doctor acknowledged it was indeed a privilege and this was the turning point where foe became friend and the two worked together to defeat the evil machine.

Tapping into the power of consistency is available to us more often than you think. We can do so by asking questions or learning about the other person in advance of the conversation where you need to be persuasive.

So here’s my persuasion advice: next time you want to persuade someone do your homework first. Can you find out something about the other person’s values and beliefs? Can you learn their stated position on things or uncover some of their prior actions? If you can and you figure out how to align your request with them, the odds of them saying “Yes” to you will go up rather dramatically. You might not be in a battle for the supremacy of good versus evil or trying to save a city from a mad man but nonetheless, I’m sure your request is important to you.

Brian, CMCT 
influence
people 
Helping You Learn to Hear “Yes”.

Monday, February 20, 2012

Will J.C. Penney’s New Business Strategy Positively Influence Sales?

Have you heard J.C. Penney is going to radically change its business strategy?  The giant retailer is getting rid of its traditional sales in favor of low prices all the time, slashing many items by 40% or more! In addition, they’re going to do away with confusing pricing for a simpler approach. No more $14.99 items, they’ll be $15, and those $19.99 items you love will be a nice round $20 or $19.  Yahoo Finance ran an article, J.C. Penney gets Rid of Hundreds of Sales, which gives more details on Penney’s new strategy and some of the reasoning behind it.

On the surface you might be thinking this is great for the consumer but don’t forget, Penney’s isn’t doing this for customers, they’re doing it to help the bottom line. The company believes sales and profits will be stimulated by the new strategy of lower prices and simplified pricing. To help with the implementation, the company has brought in some heavy weights in the retail industry from Target and Apple. This is obviously no ill-conceived idea but I want to look at whether or not it will positively influence sales.

Let’s start with doing away with the term  “the sale.” The sale is as all-American as baseball, apple pie, and motherhood! People love a big sale because it makes them believe they’re getting a great deal and that makes the buying decision easier for the consumer.  When you buy something on sale, part of the purchase decision is triggered by the contrast phenomenon. While $26 might sound reasonable for a certain item, it looks really good when compared to the normal $45 price, and you know saving $19, more than 40%, is a great bargain.

The downside is Penney’s is losing the bang for the buck, so to speak, because there will be no higher price to compare to and thus create the desire to take advantage of the deal. Considering nearly three quarters of Penney’s sales revenue came during promotions last year where prices were slashed by 50% or more, you begin to see how much they could lose if this strategy backfires.

And what’s up with that pricing? Charging $39.99 for an item doesn’t fool anyone because we know it’s practically $40. Selling an item for $14.99 can’t possibly induce more sales than a $15 price can it? It sure can!

In William Poundstone’s Priceless: The Myth of Fair Value (and How to Take Advantage of It) he cites a study in which sales were tracked for an item which sold for three different prices: $34, $39, and $44. Unit sales were highest for the $39 price as was the total revenue. When the item was priced at $39 total revenue was 9.5% higher when compared sales coming from the $44 price. When the $39 revenue was compared to the $34 price, total sales revenue was a whopping 50.6% more than when the item was sold for less! There are different theories as to why sales tend to be higher for items ending in $9 or $.99, but one thing is undeniable – it works. If it didn’t retailers would have abandoned the strategy a long time ago.

As I noted earlier, with former Target and Apple executives this change looks like it makes total sense on the surface and the new strategy might work. But let me bring to mind something many of you probably remember, New Coke. The new flavor for the world’s best selling soft drink was a well planned, thoroughly tested idea. Because New Coke was preferred by a margin of 2 to 1 in blind taste tests over regular Coke, it was thought to be a sure thing when it hit the shelves.  After all, what could be better than improving the best selling product in the world? And yet it was an abject failure, considered one of the 100 worst marketing ideas of the 20th century. And you know the rest of the story as New Coke gave way to Classic Coke, the old standby!

J.C. Penney’s new strategy may not have the same kind of response as Coke, but my gut tells me after the initial PR wears off, Penney’s will be no better off and perhaps worse off because it will have abandoned some of the psychology that goes into the buying decision for many consumers.

Brian, CMCT 
influence
people 
Helping You Learn to Hear “Yes”.

Monday, February 13, 2012

3 Persuasion Tips to Boost Email Response Rates

A few weeks ago I wrote an article giving readers 700,000 great reasons to use yellow sticky notes as I shared how using the psychology of persuasion helped my company recover from a $700,000 mistake quickly. It’s a great story of putting theory into practice to help the bottom line.

The response to the article was overwhelming so I decided to do a follow up because of a question. Whenever I share the sticky note story at speaking engagements inevitably someone will ask, “I rarely mail things anymore so how can I get a better response rate when I send some type of email blast?”

To address this, let me start with a blunder I made many years ago. I’d done some training where I shared Dale Carnegie tips with several hundred associates. A few months after the training I followed up with an email to everyone which read:
If you have any success stories based on the Dale Carnegie training please let me know and I might include them in an upcoming edition of our newsletter.
More than a week went by and I had no responses – not one! So I rethought the approach and the first thing I did was send another email but this time it was personalized, as one email went to each person and included their name. I didn’t write hundreds of emails, I used Microsoft Word and did an email merge with my training database so it was quick and easy.

The second thing I did differently; rather than make a statement I asked a question:
Have you had any success based on the Dale Carnegie training? Is so, please let me know and I might include it in an upcoming edition of our newsletter.
Within a week I had 125 replies! While most people said they didn’t have anything to share what caught my attention was the fact that they still responded. Personalizing the email and asking a question compelled people to answer and I did get more than two dozen good stories for the newsletter.

Why did this approach work so well?

The principle of reciprocity tells us people feel obligated to respond when someone does something for them. In the sticky note study people responded to the survey request more because in the back of the mind attaching a sticky note with a hand written message shows extra effort on the part of the sender because it’s personalized. It’s the same way with an email; writing someone’s name personalizes it and shows extra effort which leads to a better response rate.

Personalizing your email also helps overcome is something known as “diffusion of responsibility.” This theory tells us quite often people don’t respond in situations, sometimes even emergencies, when groups are involved because everyone assumes someone else will respond but in the end no one does anything. With my email listing so many people for everyone to see (they were all employees so there were no privacy issues involved), I’m sure most people assumed someone else would share a story so they didn’t need to.

The other significant difference with the second email was my question. As noted above, people feel compelled to answer questions. Think about when you walk through the shopping mall and someone from a kiosk engages you with a question about trying their product. At a minimum most people respond with “no thanks,” because we’re conditioned to do so which is an application of the principle of reciprocity noted above. Social norms dictate a response because not acknowledging the person asking a question makes you appear rude, as if you’re ignoring them.

A third tip I’ll share that can help is to include your photo on your email. Studies show the more familiar your face is, even if someone doesn’t know you, the more compliant people are when you make a request. Every time I interact with new employees, vendors, or consultants I include my photo on my initial email communications because I know it helps when I need them to do something.

To recap: 1) adding a name, 2) asking a question and 3) including a photo will translate into a significantly higher response rate than the standard email blasts you might be sending today.

Lest you think my story was a fluke or the excellent response was simply because I sent a second email I’ll share one more success story. Each year my company contracts with an outside vendor to survey our agency force to see how we’re doing in key business areas. Several years ago, after learning about the psychology of persuasion and how it can help, we tried a different approach to see if we could boost our survey response rate. Rather than just have the vendor contact agencies directly, we sent an email a few days ahead of the survey to alert agents what was coming. The email came from the VP of sales, was personalized to each agency owner and contained a question specifically asking them if they would take the survey. Hundreds of agents replied to the VP’s email and we saw the survey response jump by more than 50%, going from 900 agents completing the survey to more than 1,400!  

Of all the insurance companies that participate in that particular survey, every year we now have the highest response rate. Coincidence? No, it's the strategic use of the psychology of persuasion. Small changes can lead to big differences with very little time, effort or cost when you understand how people think and behave. Are you still sending emails to multiple people the standard way? If so, rethink your approach like we did and you’ll see better results because the science of influence tells us so. 

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Brian, CMCT 
influence
people 
Helping You Learn to Hear “Yes”.

Monday, February 6, 2012

Influencers from Around the World - The Communicative Feature of Your Favorite Teacher

This month's Influencers from Around the World post comes from Yago de Marta. Yago has been a guest blogger at Influence PEOPLE for several years now. He hails from Spain where he works with clients helping them speak more fluently and persuasively. To learn more about Yago visit YagoDeMarta.com or connect with him on Facebook, LinkedIn and Twitter. 

Brian, CMCT 
influencepeople 
Helping You Learn to Hear “Yes”.


The Communicative Feature of Your Favorite Teacher

We all remember a teacher who made us love a subject in grade school, high school, or perhaps college. We all remember the teacher who helped us love literature, history, mathematics, or some other subject for which we had no passion to start.

That teacher seemed to get better performance from all of their students. He didn’t come to our home to study with us but nonetheless, he inspired us, and helped us find interest for a particular subject. In short, that teacher influenced us.

Even in the case of many poor students, most also had a great teacher somewhere along the way. These students had no interest in school or anything related to school; they didn’t enjoy studying, but they found “something” in that one teacher that motivated them to sit down, take notes and study.

As it is a “universal” example of influence, 13 years ago I began to ask this question in my training clinics: What feature did your teachers have that made you love a subject in high school or college?

Pause to think about that for just a minute. Remember back to your favorite teacher. See him talking to you, notice how he moved and what he did. Remember how that made you feel, how you began your relationship with that subject. Well, you’ve done it! I bet one of the features that came to mind is listed below:
A. He was explanatory
B. He made you participate
C. He knew his subject
D. He cared for you (the class)
E. He loved what he shared (the subject)
For the record, I bet most who read this article chose option E and perhaps one of the other answers.

The point is we all know that one teacher influenced us in an ethical and positive way. We also know that the five characteristics noted above were decisive in our experience. But how are they related to the Principles of Influence?

He was explanatory – On the one hand, to be explanatory implies a difference from the traditional teacher who was merely descriptive. So “to explain” implies effort, which implies an interest in the person – the student – to make sure he or she understands what is being shared during class. When the student understands that gives meaning to the class and that's a comforting feeling. Thus, we find Liking. Striving to explain something involves approaching the figure of the student, and that is translated into a form of mutual identification.

Likewise, when the student feels he understands something, some of the barriers he had about not study are demolished. In short, he is now open to learn more. This is an example of Commitment and Consistency which the teacher can draw on to further the learning.

Finally, when the teacher strives to explain the subject, strives to approach the students, this creates an obligation to respond which taps into Reciprocity. So the more explanatory is the teacher, the better results are obtained.

He made you participate in the class – The student feels important when he feels he is part of what’s going on. This feeling is comforting only if the teacher knows to balance the fears or nerves the student may have. However, in general terms the student will always feel positive when involved with peers. The student perceives the other’s participation and Consensus – going along with the crowd – makes him want to participate as well. This process increases the degree of student involvement with the subject so he feels more “compelled” to study after class. While making the class more horizontal, the teacher is placed on the same level as the student, a form of identification, and liking is increased.

He knows a lot – This is obviously Authority. We see that element is very important because the above items, with the great presence of Liking, need to be balanced. In this sense, the students value the use of anecdotes and examples unknown. On the other side “to know much” is a point of reference for students. It becomes a reference image that can be pursued to improve, and it becomes an element of inspiration.

He loved what he talked about – As I noted earlier, this is the most important point of all. This is what makes all the other points possible. To love your subject means you have passion and that passion is contagious, motivating people to listen. It also makes learning more fun. It is the perfect combination of liking and authority. As others get involved because of that passion which makes it easier for those on the fringes – consensus – to join in and feel a part of what’s taking place.

We all know the influence a teacher can have because we have all felt that force. The key is that we should make people feel those same things as we meet them in our everyday life. And that can influence them to change and improve.

Yago


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