5 Tips to Overcoming Common Cognitive Biases

In a business to consumer (B2C) sale, marketers target end users or influencers who (individually) make a purchase decision. In contrast, business to business (B2B) sales involve a complex network of influencers and stakeholders, making the psychology of B2B sales distinct from its B2C counterpart. That’s why it is important to consider unique biases that are present in a B2B sales scenario, so you can navigate the complex psychological forces lurking in the background.

Cognitive Biases

Cognitive biases are mental shortcuts that can lead to deviations from rational thinking during the decision-making process. In the realm of B2B product sales to organizations, understanding and addressing these cognitive biases is crucial to success.?

The following are some common cognitive biases that can interfere (or assist!) with decision making processes.

Confirmation Bias

Confirmation bias manifests itself when individuals seek, interpret, or recall information in ways that align with preexisting beliefs. In product development, confirmation bias can cloud judgment when product teams attach excessive importance to positive feedback while neglecting negative input. Overcoming this bias requires working with impartial experts who can help interpret customer feedback accurately.

?? Tip: When marketing your product, align your message with your prospects' existing strategies and goals to tap into their confirmation bias. This way, you reduce friction in the sales process while increasing your potential for success.

Endowment Effect/Loss Aversion

The endowment effect suggests that people tend to overvalue what they already possess compared to potential alternatives. This effect is closely related to loss aversion, where the fear of losing outweighs the joy of gaining. In marketing, this is often referred to as the "9X problem," implying that a new product must be perceived as at least nine times better than the incumbent solution to be considered an attractive alternative.

?? Tip: To counter the endowment effect, emphasize your product's benefits while highlighting shortcomings in the existing solution. When designing your product, make sure this gap is big enough to overcome the 9X problem.

Framing and anchoring

Framing and anchoring occur when presenting information differently leads to contradictory conclusions. For instance, offering multiple pricing options can influence customers' choices. Careful framing and anchoring of product features or pricing can shape how buyers perceive value.

?? Tip: Leverage this bias by framing your product's value to align with your competitive advantage and anchoring pricing to guide buyers towards desired tiers.

Bandwagon effect

The bandwagon effect leverages social pressure to influence decisions. People often conform to the choices of others, even when they know those are incorrect or unworthy. This psychological phenomenon is used often in advertising to create the perception that many other people have already made a particular choice, motivating people to follow suit. Think about how soft drinks and fashion are sold, for example.?

?? Tip: In a B2B context, use case studies and testimonials to showcase that many organizations have already successfully adopted your product.

Familiarity effect

The familiarity effect is the tendency to rely on familiar information over unfamiliar alternatives. People prefer what they know whether it's choosing a known brand on a supermarket shelf or deciding who to vote for. This bias underscores the enduring importance of branding, even in today’s digital age.

?? Tip: Invest in making your brand familiar to enhance your product's appeal and reduce friction in the sales process.

Conclusion

Understanding the psychology of B2B buying behavior is essential for selling tech products to organizations. It is important to recognize and address prevalent cognitive biases, skillfully frame your product, and leverage social proof, so you can significantly improve your chances of success in today’s competitive B2B sales environment.

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