Hidden Psychology in Sales: An Example of Using Cognitive Biases
John Kenny
I coach founders, sales leaders and teams in how to sell the way big companies like to buy. I focus on WYAD (What You Actually Do).
People often talk about cognitive biases and their use in selling. So, I thought I would show you how I used them in a real case.
I was selling supply chain consultancy to a client who was not aware of their poor state of operational efficiency. There was plenty to go at.
The first effect I used was Social Proof bias (people are more likely to do something if others are doing it). I asked for the introduction to the new prospect from an existing customer who had worked with them years before. Their connection got me a meeting with a positive review.
For our first meeting I created an agenda that covered our recent similar engagements (Authority bias - positioning myself as an expert).
I also emphasised that we were a global brand who worked with a charity that the prospect also supported (The Halo effect - where positive assumptions are made due to one particular positive trait). Obviously, I asked many questions to get a clear understanding of their needs, too, which is not a psychological trick, it is just good sales practice.
I offered to do a discovery exercise, free of charge, having established the rough scope of the work was suitable for us (that is called qualifying and never changes).
This is the Reciprocity bias - people feel obliged to return a favour after receiving one. We would be more likely to get an order this way, in addition to setting the scope for the work.
Naturally, the prospect wanted to know the cost of any project we would do. I gave them a cost that was a broad range (two numbers 50% apart) to trigger the Anchoring bias (people rely heavily on the first piece of information they hear). The prospect would not now have any major problems with the bill when it arrived.
But first, obviously, they thought the price was too much, so I used the Framing bias to put the number range into perspective. The current rate at which they were losing money due to their operational problems plus their chances of growing with these problems made the investment in our services seem very modest.
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I listened carefully for key phrases and stories they told me to describe their problems, their culture and their way of buying. In subsequent meetings and calls I made sure to use their phrasing and important words.
This uses the Priming bias, which is the idea that people are influenced by subconscious cues and phrases. Prospects like hearing their own understanding reflected back to them.
Whenever a disagreement arose in meetings, as is inevitable, I always sought to reinforce their existing beliefs and expectations if possible. This is the Confirmation bias, where people seek information that supports their current world view and tend to discount contrary information. If there was complete disconnect, then we were back to careful framing as when we discussed pricing.
Finally, to close the deal, two more cognitive biases. I used Loss aversion bias, which is the fact that we all feel a potential loss more acutely than we get pleasure from a gain.
I emphasised that they were currently leaking money and the good will of staff and customers due to their problems.
Then I played in Scarcity bias, which means we value things that have limited availability. I simply said we had an opening to do a project in the next two weeks and after that it would be a three month wait.
Ten well known psychological effects used to close an ￡800k opportunity in around three weeks.
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