Archive for October, 2008

Sales – The Social Proof Model

Friday, October 31st, 2008

Different societies and cultures have different attitudes towards salespeople. The vast majority of salesmen and women in this country are intelligent, highly motivated individuals that use their skills to provide a good product or service, and provide an income to support their family. Since the service sector represents the UK’s biggest industry, it could be said we are a nation of salespeople.

Yet why do some people have a negative and suspicious view of the salesperson – the typical ‘double glazing’ or ‘second hand car’ type. The media doesn’t help; we are constantly reminded that some or these scoundrels rely on persuasion and influence to charm and befuddle the customer into buying their ‘snake oil’.

Here’s an example of some psychological tactics employed which some might find distasteful, or perhaps clever:

The social proof model is a way of showing that something must be good, because others have demonstrated its value. Examples:

  • Advertising a product as ‘biggest seller’ or ‘fastest seller’
  • Charities listing the ‘large number’ of people already donating
  • Club owners orchestrating large queues of people ‘waiting’ to enter
  • Salesmen telling ‘stories’ of numerous customers who have already purchased the product
  • Bartenders who put higher denomination coins into their ‘tip jar’
  • Producers ‘overlaying’ live laughter recording onto their TV shows
  • Product ‘placement’ in film and TV

If you want to become the best in sales, and want to have a long term relationship with your client base, look for a good communication and sales training provider.

Sales & Customer Commitment – Put pen to paper

Friday, October 31st, 2008

As discussed in the article ‘Sales – The power of pen to paper’, we explored how the salesperson’s psychological commitment to achieving a goal improves when they write it down.

As those of you who have undertaken some sales training will know, a similar approach can be taken to obtain a customer commitment to an order, even if it’s not ‘in the bag yet’.

Direct selling and ‘hard sell’ companies used to employ skilled negotiators to visit clients door to door, who weren’t expected to leave the client’s property without an order in their pocket.

Due to later changes in legislations, clients were then entitled to ‘cooling off periods’ which initially results in a spate of cancelled orders, much to the frustration of the commission based salesperson.

The companies then adopted a simple approach which drastically cut the risk of a cancelled order; they had the customer fill in the sales agreement or contract, rather than having the salesman fill it in to have it signed.

This simple act had a strong psychological effect on the client, because they filled out the form or agreement, they felt a lot more commitment to going through with the sale. They were still entitled to the cooling off period, but by putting pen to paper themselves, were much less likely to cancel the order.

As a salesperson or sales manager, think of ways in which you can get a new client to write down their needs or requirements on your paperwork, either during a quotation stage, pre-order or contract. Get them to associate you with meeting their solutions which they have written down.

Sales – The power of pen to paper

Thursday, October 30th, 2008

The past three or four decades of psychological research in the study of human behaviour have created a vast number of hypotheses which can be useful to the salesperson.

If you are a salesperson who has invested in a sales training course, you may have come across the power of positive thinking and making a decisive commitment to take action. These are basic principles which have been and continue to be consistently explored by business and personal development gurus across the globe.

Here’s a simple example of how this can work. We may have heard of the following expressions: ‘What you see is what you seek’ or ‘Perception is projection’. This is built on the fundamental principle that if we identify a vision or belief structure, we will subconsciously set about to find it, or meet it.

If you’re a sales manager, get your sales team to individually write down on a piece of paper their own sales goals for the day, week or the month. Encourage them to position it so it is in view of them (perhaps permanently placed on the desk, or taped to their monitor). If they set their own goals, write them down, and display them they are much more likely to achieve them than if they have come about through a verbal discussion in their supervisor’s office.

Recruitment: Moving towards tests

Wednesday, October 29th, 2008

A machine operator gets trained on the equipment and a sales person seeks self improvement from sales training. A manager’s job is less specific, and there are a plethora of subjects available to study on a management training course. One key area in which a manager should consider strengthening their abilities is in recruitment and selection.

In previous articles, the importance of moving towards a structured interview with behavioural and situational questions has been discussed. Now let us look at the concept of testing.

Psychological Tests
Typically you will need to seek the advice of a professional who can provide and interpret a test which will enable you to know which candidate best fits the profile you are seeking.

Team Exercises
With your shortlist of candidates (or perhaps involving current staff), set them a team oriented goal and observe, or have someone observe, each of the candidate’s behaviour and input. This is especially useful if you are appointing someone to work in a team environment; it will provide indicators as to which team role they will adopt (see articles on Belbin’s ‘Team Role Analysis’).

Work Sample Tests
It’s incredible how few organisations do this. Set each candidate a test or tests which directly relate to the job function they are likely to perform. For example, if you’re recruiting an I.T. engineer, create a simulated condition where they are expected to resolve a technical problem or problems.

New Business Orders – gaining small commitment

Wednesday, October 29th, 2008

In the competitive environment we face in the current economic climate, retention of the existing customer client base is paramount. However, many organisations are finding that orders are getting smaller as clients are feeling the pinch of the credit crunch.

There has never been a better time to be proactive and try and get some new customers. There are many strategies that a salesperson can adopt to try and get new business, some of which they may discover when undertaking sales training courses. This may involve a range of indirect and direct marketing and sales approaches, aiming to try and promote the organisation and its products.

Studies of sales psychology have suggested that one way of ‘getting the foot in the door’ is to start small and try and gain an initial commitment from a new customer. A good strategy for a salesperson to try and obtain a large order is to start with a small one. Almost anything will do, for the goal of the first order is not to gain profit, but to establish a level of psychological commitment.

Identify a product or service which you can approach and offer directly or indirectly. Once you can persuade a new client to comply, it provides a much stronger platform for building a future relationship. In some cases, it may not even involve selling a product. If you’re a service based company, with under used manpower, consider offering a free no obligation consultancy service to new clients.

Mental and Physical Health in Organisations

Tuesday, October 28th, 2008

Many organisations, particularly in forward thinking countries, are increasingly looking at the personal development of their staff in terms of their mental and physical health. They realise that if they invest time, money and resources in programmes to improve their employee’s mental and physical fitness, the benefits will be reciprocal and come back to them in terms of productivity.

We have an odd relationship with the mental and physical health in Britain. Our psychological framework and social conditioning through the centuries have left us slightly cynical about investing in our mind and body. We have a ‘stiff upper lip’ and a ‘grin and bear it’ attitude to dealing with stress. Under no circumstances do we ever talk about mental health.

Eastern practices of workplace Tai Chi (or Chi Kung) have been utilised for decades, to improve the health, well-being and productivity of employees. This is an area of growth in the West now, and many companies are offering services to UK business and organisations.

The United States of America have some of the leading business and personal development gurus in the world. This multi million dollar industry has spawned greats such as Steven Covey (best known for his publication ‘The Seven Habits of Highly Effective People), Anthony Robbins (e.g. ‘Awaken the Giant Within’) and more recently, Brian Tracy (e.g. The Success Mastery Academy). These people are great examples of the practical use of psychology to improve or professional and personal lives.

The Meditative Manager

Monday, October 27th, 2008

If you’re a city high flying manager, or a rural agricultural manager, or anything in between, you’re possibly feeling a bit stressed at the moment. And who would blame you – the media is constantly bombarding us with negative messages, about the banks, about the economy, about the socio-political climate. Have you noticed how if you think about these things enough, you feel mentally and physically heavier and more tired?

The power of information and thought that makes us feel worse can also be used to invigorate and refresh us. Some managers wisely invest in management training courses to become better at their jobs and reduce their stress levels. Other managers are using a more holistic personal development approach and seeking out different approaches to relaxation.

Now, the idea of relaxing and meditating sounds fine in principle, but unfortunately its image has been tainted. The notion of some new age, goat wool sock wearing hippie, lighting a joss stick and humming cross legged, doesn’t seem to be something one might apply to tackling board room battles and rumours of redundancies.

However, there are numerous methods a manager can employ to reduce their stress levels, which employ some kind of meditative and thoughtful activity. These techniques are used regularly not only to relax but also to increase the positive association between mind and body, which can also kick start real and effective changes both in you, and how you function in your job.

Management – Training out the Stress

Monday, October 27th, 2008

Dolly Parton may have sung about ‘working 9 to 5’, but it’s not a theme tune many managers hum to themselves when coming in to work of a morning. The modern manager’s job function is getting increasingly complex, varied and time consuming. The current financial and economical climate doesn’t help either; it can just seem like more pressure on their shoulders.

Many managers suffer from stress, and in some cases burn out well before their time. If this sounds familiar to you, then you need to take personal and professional steps to make your time at work a more positive experience.

From an organisational point of view, it’s definitely worth investing in some management training courses. There are such a wide range of subjects, tools and techniques you can cover which will empower you and enable you work more efficiently and effectively. From time management to people management, you can never have enough knowledge to constantly shape who you are and what you do.

Some of you may feel that you can’t afford to take time out to enrol in your personal development, as it means you’ll have more work to come back to afterwards. Think about the potential for you to return refreshed and refocused, and what a positive impact that will have on your workload.

Body Language – Voice Tonality

Sunday, October 26th, 2008

In previous articles we have discussed the power of matching another person’s body language and breathing patterns in building rapport. Those who have had some in depth sales training will recognise this. Managers who undertake management training courses to improve their presentation and persuasion skills may have also come across the concept of voice tonality.

Have you ever experienced being totally engaged by a powerful speaker, or an actor at the theatre? Often, you might be left with an overall impression of them rather than remembering their specific choice of words. This is because they have become experts in the use of voice tonality, which accounts for up to 38% of the effective communication of their message, whereas the words themselves account for as little as 7%.

By matching speed, rhythm, tonality, volume and even diction of the person you are speaking to, you can gain rapport. This is especially critical if a lot of your work takes place on the telephone. It’s like sharing the same musical tastes, except your using the music of your voice.

You can use a range of tone to convey different messages to your audience, and encourage them to ‘Take Action!’ What tone of voice would you use for that command? It depends what you want them to do. The clarity of the message is in the perception of the receiver.

You can also use mismatching; changing your vocal qualities to elicit a different response. This is especially useful if you’re trying to end a lengthy phone call, or trying to pacify an angry customer. In the latter case, if you’re skilled, you can also pacify them by matching their heightened tonal state and speed!

Atonal salespeople and managers should strongly consider working on their vocal range.

Body Language – Breathing

Saturday, October 25th, 2008

Any salesman or manager that wants to build a strong rapport with another individual will consider learning body language in depth. Increasing sales training courses and management training courses are recognising body language’s role in communication.

In a previous article (see Sales – Body Language Mirroring and Cross Mirroring) we discussed the power of matching another physical signals. The same principle can also be applied to breathing.

A reason a smoker may use (which is often as an excuse) when avoiding quitting is they describe the activity as ‘social thing’. Think of huddles of smokers gathered outside pubs as a result of the smoking ban. Often they can be complete strangers, but can be happily engaged in a conversation, that as stereotypically reserved Brits they may not otherwise have.

They stand in a similar way. They are engaging in the same activity. They are performing arm movements that match each others. The vocal chords and therefore tonality can be similarly affected by smoke, thus they sound similar. They are inhaling and exhaling smoke in equal measures – even their breathing matches!
Breath mirroring is also something seduction specialists know about; it’s what amorous couples do subconsciously – matching breathing patterns.

It may sound far fetched, but someone’s breathing rate will have a direct correlation with their emotional state, and mirroring or deliberately mismatching can be very useful both face to face and on the telephone.