7 Cognitive Biases Every Sales Rep Should Know (To Close More Deals)

We aren’t always rational.?

In fact, our irrational behaviors are predictable.?

And this is something salespeople can use to close more deals.

Cognitive biases are systematic errors in reasoning that deviate us from making logical decisions.

By understanding the basic principles of cognitive psychology, sales reps can craft high-impact conversations and influence prospects' decision-making more methodically.

Here are seven cognitive biases you should know about to dominate sales calls:

1. The Ambiguity Bias

The ambiguity bias refers to when people avoid an option because of the lack of clear information, which makes the decision feel riskier.

On the sales call, it’s important to add as much clarity and context as possible that establishes the known probability of success if the prospects go with your product.

You can do this by defining the exact benefits the prospect will see by using your product – and the timeline of those benefits.?

You can also eliminate ambiguity by showing testimonials and case studies, as well as other relevant stats that highlight the objective usefulness of the product.

2. The Bandwagon Bias

The bandwagon bias (or bandwagon effect) refers to when people do something primarily because others are doing it too. It's a form of groupthink, which essentially defines the majority of the social media viral trends today.

In sales, you can highlight how many customers are using your products, the number of positive reviews the product has gotten, how many customers you have onboarded in the last month, which is the most popular product (or pricing plan) among customers, and more.

The idea is to create an imaginary bandwagon of happy customers, which itself will compel the prospect to join it (provided, of course, you have checked all the other boxes).

3) The Halo Bias

The halo bias (or halo effect) refers to when a positive impression of a person or brand in one area positively influences our feelings in another area.

For example, if you like a certain brand (and/or one of its products), you will be more inclined to like its other products as well.

In sales, this means if you manage to create a good first impression, the prospect will be more likely to buy from you.?

So, how do you make the first impression good? By focusing on what you say and how you say it.?

Use the right tone, be polite in greetings, actively listen to prospects, show genuine interest in their pain points, and personalize your interaction based on the persona.

Remember, you can have the best product, but if the prospect doesn't like you, they will not buy from you.

4) The Sunk-Cost Bias

Sunk Cost Bias (or sunk-cost fallacy) refers to our tendency to finish what we start. When a person has already invested resources into an activity, they are more committed to finishing it even if the outcome is suboptimal.

Take this example: A big company introduces a new product feature, which many people don’t like. But the company will still push that feature because it has already invested a lot of money, time, and energy in it.

In sales, this means if you can get the prospects to make small commitments that demand investments in their time and energy, they may end up buying your product.

You can do this by getting them to answer questions, check out your catalog, watch video tutorials, take demos, and do any other particular activity.

5) The Mere Exposure Bias

The mere exposure bias follows the familiarity principle that suggests people prefer products or brands simply because they are familiar with them. (So, if someone is regularly exposed to a certain brand, they are more likely to buy its products as opposed to buying from its unfamiliar competitors.)

In sales, this implies getting in front of prospects is very important. And this should happen across the sales cycle, even before the discovery call, throughout the follow-ups, and until the close happens.?

Running retargeted ads, sending emails, engaging on social media, and leveraging content distribution platforms can help you tap on the mere exposure bias. The sales and marketing teams are required to work together.

6) The Risk Compensation Bias

The risk compensation theory (or the Peltzman effect) refers to how our behavioral response adjusts based on our perception of risk.?

If we sense higher risk in certain engagements, we become more careful or cautious. As our perception of the risk declines, so does our care or caution.

In sales, reps must effectively communicate in a way that reduces prospects' perception of risks in the deal. Repeating phrases like "money back guarantee", "easy return", "24/7 customer support", and "instant refund" throughout the conversation will help win prospects' trust.

7) The Compromise Bias

The compromise effect refers to our tendency to choose an option from a set that doesn't have extreme attributes. So, when you're presented with a line of products or pricing plans, you're more aligned to choose the middle option over the extreme ones.

In sales, you can use this bias in your pricing strategy.? For instance, you can offer two extreme price points with the actual price (aka the "compromise price") that you really want the prospect to choose.

You can use this cognitive bias even when selling products that come in different sizes. For instance, there are two products. 'Product A' is small-size and 'Product B' is medium-size. Between the two, many people will choose 'Product A'. However, if you add one more option to this set, 'Product C', which is big in size, many people will now choose 'Product B' instead of 'Product A'.

So, there are several ways how you can use the compromise effect in influencing prospects' decisions.

Level Up Your Sales Game

The best sales reps close the biggest deals not by accident. They leverage well-established principles to navigate prospects in the right direction.

They keep ethical selling at the forefront and prioritize helping prospects over selling products.?

We hope the mentioned cognitive biases unlock some newer ideas on how you can refine your existing sales pitch and how you can communicate with prospects in a way that provides value for them and expedite the close for you.

Continue Learning: The Ben Franklin Close (And 7 More Sales Closing Techniques)

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