Selling to Surgeons with Psychology: (Part 6 of 6) Scarcity

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According to fundamental economic theory, scarcity relates to supply and demand.

The less there is of something, the more valuable it is.

The more rare and uncommon a thing, the more people want it.

Remember the "urban campers" waiting overnight to pounce on the latest iPhone?

In the final article of this series, we will look at using the principle of scarcity to influence our sales efforts with surgeons.  

Experiment

If I gave you $50 with the following two choices, what would you do?

• Keep $30.
• Gamble, with a 50/50 chance of keeping or losing the whole $50.

An experimenter posed that question to subjects, and found that 43% of the subjects chose to gamble.

Then the options were changed to:

• Lose $20.
• Gamble, with a 50/50 chance of keeping or losing the whole $50.

With the dollar amounts being exactly the same, we shouldn't see much of a difference between what was picked.

However, 62% of the subjects chose to gamble.

Expressing the first option as a loss caused a 44% spike in the number of people avoiding that choice!

This research, published in Science News and described in Dean Buonomano’s Brain Bugs, exhibits two key points:

• Framing (the way we describe something) has a huge effect on behavior.
• People are loss averse.

The researchers found that over the course of a series of decisions like this, 100% of the subjects gambled more when the other choice was posed as a loss.

There were some variations seen in the experiment.

Some subjects gambled a little more and others gambled a lot. 

However, it’s surprising that every single one was influenced by the way economically identical options were framed.

You've got nothing to lose

The tendency to be more sensitive to possible losses vs. possible gains is one of the best-supported findings in social science.

What the scarcity principal does is it trades on our weakness for shortcuts.

We naturally feel challenged emotionally when our freedoms are threatened.

Dr. Robert Cialdini suggests that individuals have a difficult time emotionally and cognitively with the idea of losing freedoms.

Therefore, it may be worthwhile to switch your product campaign’s message from your product’s benefits to emphasizing the potential for a wasted opportunity:

•  “Don’t miss this chance…”
• “Here’s what you’ll miss out on…”

In any case, if your product or service is unique, be sure to emphasize its unique qualities to increase the perception of its scarcity.

The Problem with Surgeons

Surgeons are used to being pitched products and technologies that are "one of a kind" and the "only product that can do [insert feature here]". 

So how do we create scarcity with a group that has an abundance of "scarce" products? 

One solution is urgency.

Amazon deploys this tactic beautifully by stating that only a certain amount of items are left in stock. (Really? Only 20 Ipads left in all of Amazon's warehouses?)

So why do we act on our emotions in these situations? We do so because we react when we're about to lose something. 

A Surgical Action Plan

Follow these steps when creating scarcity with a surgeon:

1. State THEIR problem. This brings a pain up.

1. Dr. Smith, I know you are having difficulty with "X" procedure
2. as you shared your frustration dealing with the surprise of[complication/poor result/loss of time].

2. Say what you are going to do and when.

1. My company is holding a lab next week but it's about to fill up today. 
2. The lab is around a technique and product that will help you [insert positive effect of using the product].
3. Corporate is blasting out an email today but I heard about an open seat from my contact at corporate. 

3. State the consequences of not doing it.

1. If YOU don't grab that seat you won't be able to get that training
2. for the next couple of months,
3. and I'm afraid some of the other surgeons (aka their peers/competition) at the other hospital reserved spots for the other labs.

4. Emphasize the limited time, availability, and urgency.

1. I can get you that last spot but I need to do it now. 
2. Would you like me to reserve the spot later today through email or should I just call corporate now to be safe?
3. (Ask for the sale and go for the close with options that both involve the same outcome-signing the surgeon up).

I advise against being relentlessly negative in your advertising and sales pitches.

However, when the opportunity presents itself, framing the alternative to buying as a loss is a strong closing tactic compared to others.

A vital step in this process is to make sure to ask for the sale or commitment. 

Surgical Precision for Non Surgical Thinking

Utilizing System 1 (fast, intuitive) vs. System 2 (slow, logical), you want to guide prospects into System 1 by providing the next step right in front of them.

Do not gamble on where they must expend energy making a decision or even coming up with one. 

You must provide options and help them choose the right one. Part of being a trusted advisor is advising on what to do and moving a customer towards that decision.

Leaving these decisions up to chance is a dangerous game to play.

Understanding our own psychology is powerful enough. But understanding the psychology of your customers is equally powerful.

This six part article series isn't worth a thing until you put it into action.

And then when you put them into action, that's when things happen. 

These are not theories, but valid information tested by science and tried by thousands.

Take this to heart, put it to work and do it now.

Want to catch up on the other Principles of Persuasion? Click below.

• Part 1: Reciprocation 
• Part 2: Social Proof
• Part 3: Consistency and Commitment 
• Part 4: Liking
• Part 5: Authority 

This 6 part piece references the book "Influence: The Psychology of Persuasion" by Dr. Robert B. Cialdini. I have adapted the book to be applied to medical device sales and marketing.