Business development · 14 June 2019

How to transform a no? into a yes? in business

restructuring business
Business growth and the conversion of sales are all underpinned by smart conversations, persuasive dialogue, and building rapport. Whilst you can’t control the final outcome, you can responsibly influence it.In order to do so you need to understand the way human’s make decisions.

Cognitive bias is defined as an error in reasoning that causes us to deviate from good judgement and make illogical decisions.

The theorem demonstrates that humans arent purely rational: not only do our emotions get in the way, but we also tend to repeat our reasoning mistakes.

To help increase conversion rates and communicate more successfully, I have listed the most common seven cognitive biases: describing what they are and what that means for salespeople to succeed.

1. Anchoring effect:

A prospect’s inbuilt bias to give greater weight to the initial piece of information they hear when forming an opinion.

This subliminal prejudice is extensively used in retail stores, to convince consumers to purchase items. For example, the ‘sALE? sign on a price tag informs the purchaser that they are getting a bargain.
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What that means for you:

Use the anchoring effect to structure your pitch in the most effective way possible.

Before you begin highlighting the various features and benefits of the product/solution you are selling you must understand exactly what your prospect needs as a solution.

£2. Ambiguity effect

A prospect’s tendency to mistrust what they don’t understand. The implication of such a bias is simple, people prefer to choose an option with a known probability of a favourable outcome, over an option where the probability is unknown.

What that means for you:

This cognitive bias can impact the choice between a prior solution/product that isnt that effective or losing value; rather than taking a chance on a new product/solution that promises a better offering, but is missing information that makes the outcome unknown.

To ensure you don’t fall prey to the ambiguity effect, simplify your proposition, provide relevant facts and figures and tell a compelling story in a language tailored to your prospect’s backgrounds and interests.

3. Bandwagon effect

A prospect’s susceptibility to trust social proof, primarily because other people are doing/using it, regardless of their own beliefs and opinions. This cognitive behaviour is prevalent in various social situations, from politics to popular TV series.

What that means for you:

This cognitive bias can be very useful in sales conversions, through utilising highly relevant case studies that bring the product/solution on sale to life and garner prospects? trust.

4. Confirmation effect

A prospect’s preference for things that are in line with their preconceptions.

The challenge with this bias is that decision makers tend to interpret the sales proposition as a means of confirming their individual bias, rather than considering the product/solution on its own merits.

What that means for you:

It is vital that you spend time listening to your prospects. This way, youll be able to understand what they need and think to provide the relevant information that confirms their beliefs.

5. Halo effect


 
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ABOUT THE EXPERT

Tara Bryant, Global SVP of Sales at Pipedrive has spent over 20 years helping companies?from start-ups to Fortune 500s?get the most out of their complex revenue generating systems. She has much executive leadership experience in rapidly building successful, high-growth global companies in SaaS, technology and e-commerce. Tara specializes in building strong, multi-channel sales teams.

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