By Matt Hall
Merritt Hall Insurance
I recently had the opportunity to spend a few hours with Dr. Robert Cialdini, author of the New York Times bestselling book – Influence: the Psychology of Persuasion. In the brief time we spent together, he shared some new discoveries he made in the field of human psychology based on recent research findings… findings that should be of great interest to entrepreneurs who desire to gain influence in the marketplace. Some of the information I’m about to share with you is currently unpublished and not available to the public from any other source.
Maybe you think psychology doesn’t have any relevance to your business or industry. As a whole, you’re probably right. However, I think you’d agree that a simple understanding of how the human mind works (especially concerning the principles involved in the decision making process) can have a tremendous impact on your business. After all, businesses don’t make buying decisions, people do. All markets are made up of people, and that makes the study of human psychology more important to your business than it may appear at first glance.
You’ve probably heard the phrase: “Money follows trust.” Well, that’s true now more than ever, because research tells us that in uncertain times, when people are not sure what to o, they don’t look inside themselves for the answer. They instead look to credible sources (people) of authority to tell them what to do. And that’s the position you need to be in. You
want to be the credible authority… the expert everyone is looking to for advice and guidance. That’s the position of power and influence.
Knowledge and trustworthiness grant license to authority and credibility. Where you truly have expertise, you have warranted authority, but that doesn’t mean you can wield it universally. Before exercising authority, you must demonstrate expert status (what you are known to know). The person you wish to influence must perceive you to be a both
knowledgeable and trustworthy before they will grant you authority to influence them. So what can you do if you’re not currently seen as the expert or don’t have a lot of credibility in the eyes of your market?
Relax. I’m not going to suggest you spend thousands on branding, image building or trying to get on T.V. and radio shows. Now don’t get me wrong, those things can work, but they don’t always make sense in every situation. Instead, try this strategy based on psychological research. It’s simple. It’s free, and most importantly, it works. And you could start using it in the next 60 seconds.
Research shows that you are afforded a brief moment of power immediately after admitting a weakness. So when making a proposal or presentation to a prospect, before presenting a powerful benefit or feature, mention a weakness in your case. Being trustworthy enough to describe the negatives has a disarming effect. Sharing a weakness or shortcoming before mentioning the benefits causes your prospects to feel that you are trustworthy and you gain credibility in their eyes. Remember, money follows trust.
Now maybe you’re concerned that revealing a weakness in your argument will cost you sales. Not to worry. There’s a simple solution. Use the word “but.” It has an interesting function in the mind. It says, “Forget any and all comments that came before me.” So, if your presentation has a weakness, position it before the “but!” By strategically placing any perceived or real shortcomings in front of the word “but”, you instruct the reader or listener to discard the preceding shortcomings and focus on what comes next.
Perhaps you think this strategy is too simple to work. Well, there are some big companies taking advantage of it: L’Oreal (Cosmetics): “We’re expensive, but you’re worth it.” (Forget that we’re expensive. You deserve this!) Avis (rental car): “We’re #2, but we try harder.” (Forget that we’re 2nd. We’ll try hard to please you!)
Berkshire Hathaway (holding company). They have no product. All they have is credibility. It’s interesting to note that in their annual stockholder reports, they always cite a mistake or error before relaying the victories. And this is a stock that costs $116,000 per share!
Be careful, though. This principle works the other way too. The Ford motor company (among others) has violated it many times to their own harm. Their CEO has often been quoted saying things (in stockholder meetings) like, “We’ve had a great quarter, but we still have a long way to go.” Might as well say, “I know we look promising on paper, but don’t believe what you see.” So make sure you’re using this principle to your advantage.
Remember, history has shown – it’s when the going gets tough that the best become the best, because winners find ways to win, and all it takes is one idea to turn your business around… provided you implement.
Matt Hall
Merritt Hall Insurance
2421 Production Drive, Suite 203
Indianapolis, IN 46242
317-247-7737
