The Science of Selling: Proven Strategies (2016) PDF

Advance Praise for The Science of Selling “A crisp, unmissable guide.... Hoffeld’s deft guidebook is a must-read for salespeople unsatisfied with anecdotal data and hungry for real data to improve their techniques.” —Publishers Weekly “A terrific book! Sales trainer David Hoffeld has built his selling methods on a solid foundation of science. Let his research-based insights into why people buy help you increase sales and retain loyal customers.” —Dan Pink, bestselling author of To Sell Is Human “David Hoffeld provides strong, clear, and practical advice about selling, supported by the relevant research and not just one-off anecdotes. Sales reps and sales managers are wasting their time with the vast majority of blogs and books and training ‘tips’ offered to them. But they should read and study The Science of Selling: It’s perhaps the best discussion yet of the core essentials about this key business, and life, activity.” —Frank Cespedes, Harvard Business School; author of Aligning Strategy and Sales “Is selling an art or science? David Hoffeld proves conclusively it is a science rooted in universal buyer behaviors that yield predictable, repeatable results—and in The Science of Selling, he explains precisely how you can apply that science to produce far greater sales results. Grab your yellow highlighter and be prepared to use it on every page.” —Stu Heinecke, author of How to Get a Meeting with Anyone “This book is a breath of fresh air. While most sales books are based on the author’s experience, every chapter in this superbly well-written book is rooted in science. The Six Whys formula is a great tool any sales organization can use to increase their chances for selling more and accelerating their sales cycle.” —Gerhard Gschwandtner, CEO of Selling Power “This book is a must-read if you would like to excel in the game of influencing others! What David has pulled together in this masterpiece will surely advance your career or business. A science-based approach to selling that is revolutionary.” —Chris Spurvey, vice president, KPMG Canada; author of It’s Time to Sell “This is a refreshingly different kind of sales book. In it, David takes an almost shockingly different approach. He looks deeply at the science behind what happens during the sale, assesses the causes and effects, and serves up his conclusions in a way that translates to actionable awareness for sales reps and their managers. This book is a must-read.” —Dave Stein, principal, DaveStein.biz; author of Beyond the Sales Process “Can science and selling come together? YES, and in a powerful way—just read this book! The Science of Selling is as good as it gets—fantastic and really usable. I have already given it to my sales team to read.” —David Horsager, CEO, Trust Edge Leadership Institute; bestselling author “Many believe that sales is just a numbers game, but David Hoffeld has proven that there is actually a science to it. In The Science of Selling, he elevates sales from a robotic process to one rooted in recognizing behaviors and triggers and applying proven strategies that result in sales success. Hoffeld proves that selling is a skill that can be developed and perfected. A fascinating book.” —Donna Serdula, founder and president, Vision Board Media & Linkedin-Makeover.com “David has done a great job separating the science from the art of selling. It’s refreshing to see research-backed methods and practices versus guesswork and theory around how influence really works. Hats off to Mr. Hoffeld for advancing our understanding around how to turn the practice of selling into a true profession.” —Marc Miller, bestselling author of Selling Is Dead and A Seat at the Table “The Science of Selling is outstanding; I haven’t been able to put it down. It’s helped me reexamine and rethink how I sell. Scientifically, I now understand the best way to present options, how to make my sales stick, and how to better use stories. In short, The Science of Selling eliminates guessing and common sales myths. It has my highest recommendation.” —Ed Tate, principal, Ed Tate & Associates; World Chamption of Public Speaking “The Science of Selling is buttressed by extensive studies on ‘how people buy,’ along with David’s real-world applications. I can’t recommend this book enough!” —Victor Antonio, Sellinger Group “For many years, we have been taught that salespeople are successful because they are either born with a natural ability to influence others, have outgoing personalities, or are just good with people. But we no longer have to rely on anecdotal methods like these. David Hoffeld uses scientific data to reveal why many salespeople underperform (and why the select few who succeed do) and shows you and your sales team how to implement his well- defined, repeatable sales strategies that are scientifically proven to improve your results. The Science of Selling is the future of selling!” —Ray Reyes, managing director, Globalize Localization Solutions “Finally, you can get inside your buyer’s head and this book is your blueprint. David Hoffeld unpacks the science behind what makes us choose, purchase, and trust those we buy from—essential insights for any sales professional wanting to become even more effective.” —Leary Gates, venture coach and founder, Lumina Consulting Group and StrategicCEO.com “Following on from the science behind selling that Dan Pink introduced in To Sell Is Human, Hoffeld dives deeper into how to use scientifically proven ways to build rapport, influence with ease, and pass through the skepticism that’s inherent in the selling process. If you believe successful sales pros are made and not born, this book was written for you.” —Mary Poul, founder, Sales Mastery Magazine “In the world of educational leadership, we know that the most effective leaders are those who do so through the utilization of research-based best practices. David Hoffeld provides an incredible resource of research-based strategies for influencing others—effective not only for meeting the needs of the salesperson, but for anyone who is in leadership or aspires to leadership.” —Toby Travis, International Head of School and educational consultant/trainer “David Hoffeld believes that ‘selling is too important to be based on anything other than proven science.’ In The Science of Selling, he engages the reader in a fast-paced and fact-filled analysis of the sales process in which he demonstrates how scientific principles of influence and decision making can improve sales effectiveness. He focuses on how potential customers formulate buying decisions and teaches how sales success can be achieved by aligning sales strategies with how the brain is influenced. You will have a much deeper understanding of the sales process and how you can be more effective after reading his book.” —David Fairbarn, president, Kinney & Lange “A groundbreaking book that lays the foundation for a new way to approach the study and execution of sales. Based on the latest understanding of cognitive science, David provides sales professionals with a scientifically based framework to replace the sales methodology ‘du-jour’ for one that sales professionals can rely on throughout their entire professional careers. The book also provides insightful examples that will facilitate the sales professional to improve their productivity right away.” —Juan Carlos Cerrutti, managing partner, LinkIT Latam “Finally... a book on selling that is based on scientific evidence. The Science of Selling is an engaging journey that bridges the gap between cutting-edge science and the realities of the modern marketplace. It’s a must- read for anyone who wants to become more influential and increase their sales effectiveness.” —Ron Friedman, Ph.D., author of The Best Place to Work: The Art and Science of Creating an Extraordinary Workplace “Of the thousands of sales books that are published each year only a few are groundbreaking. The Science of Selling is one of these. This book draws on the explosion of recent research around the world to challenge many traditional sales practices—and identify the most effective way to sell. You will learn how to transform the way they sell to enable a much higher level of success.” —John Smibert, Strategic Selling Group “The Science of Selling is a tour de force of scientific research spanning a whole range of critical selling behaviors. Sales in general is going through a transitional period where some traditional skills are more important than ever, some are becoming obsolete, and of course, there are a host of new skills that are needed to address the twenty-first-century buyer. This book has done the hard work of identifying what they are and explaining clearly where to focus and how to adopt them. I highly recommend this book to anyone interested in sales success both now and in the future.” —John Golden, CSO, Pipelinersales; bestselling author of Winning the Battle for Sales An imprint of Penguin Random House LLC 375 Hudson Street New York, New York 10014 Copyright © 2016 by David Hoffeld Penguin supports copyright. Copyright fuels creativity, encourages diverse voices, promotes free speech, and creates a vibrant culture. Thank you for buying an authorized edition of this book and for complying with copyright laws by not reproducing, scanning, or distributing any part of it in any form without permission. You are supporting writers and allowing Penguin to continue to publish books for every reader. Image credits: Images here copyright © Betty Edwards, The New Drawings on the Right Side of the Brain. Photo here copyright © Corbis. Hitler’s interpreter Paul Schmidt attends Nuremburg Trials. All other diagrams and photos courtesy of the author. Tarcher and Perigee are registered trademarks, and the colophon is a trademark of Penguin Random House LLC. Most TarcherPerigee books are available at special quantity discounts for bulk purchase for sales promotions, premiums, fund-raising, and educational needs. Special books or book excerpts also can be created to fit specific needs. For details, write: [email protected]. Library of Congress Cataloging-in-Publication Data Names: Hoffeld, David, (Economist), author. Title: The science of selling : proving strategies to make your pitch, influence decisions, and close the deal / David Hoffeld. Description: New York : TarcherPerigee, 2016. Identifiers: LCCN 2016023463 (print) | LCCN 2016033072 (ebook) | ISBN 9780143129325 (hardback) | ISBN 9781101993187 (ebook) Subjects: LCSH: Selling. | Consumer behavior. | BISAC: BUSINESS & ECONOMICS / Motivational. | BUSINESS & ECONOMICS / Sales & Selling. | BUSINESS & ECONOMICS / Skills. Classification: LCC HF5438.25.H6254 2016 (print) | LCC HF5438.25 (ebook) | DDC 658.85—dc23 Cover design: Jess Morphew Version_1 To my children, Jolene and David, who seem to be able to sell me just about anything. And to Sarah, who read, encouraged, and never doubted. CONTENTS Advance Praise for The Science of Selling Title Page Copyright Dedication Introduction: Why Use Science to Sell? PART ONE FOUNDATIONS OF SELLING WITH SCIENCE 1. Why Sales People Underperform 2. The Two Methods of Sales Influence 3. How to Sell the Way People Buy 4. Selling to Your Buyers’ Emotions PART TWO THE SALESPERSON’S TOOLKIT 5. The Science of Asking Powerful Questions 6. Why People Buy 7. Creating Value, Neutralizing Competitors, and Overcoming Objections 8. Closing Redefined: Obtaining Strategic Commitments 9. Five Science-Based Sales Presentation Strategies PART THREE MERGING SCIENCE AND SELLING 10. The Future of Selling Acknowledgments Notes Index About the Author INTRODUCTION Why Use Science to Sell? We are in the midst of a scientific revolution. Over the past few decades, there has been an explosion of research on how the human brain makes choices and which factors influence what we say, how we act, and what we decide to buy. All of us can benefit from this deeper understanding of what makes us tick. But for one group in particular, these scientific breakthroughs can lead to indescribable success and even revolutionize that entire profession—if they know how to use them. That group is salespeople. One out of every nine employees in the United States works in sales, making it the second-largest occupation in the country.1 (And that’s not counting the millions of other people who do indirect selling every day and don’t even realize it—like presenting a new idea to a boss or encouraging a friend to adopt a healthier habit.) However, in spite of the large community of people working in sales, the profession is in turmoil. Reports from the research firm CSO Insights reveal that up to half of all salespeople fail to meet their quota.2 Even more alarming is the reason why: many of the most common sales techniques actually drive down performance. One study found that the majority of behaviors salespeople engage in hinder the likelihood of the sale.3 (Throughout this book, I will call your attention to these destructive behaviors and what you should replace them with.) What’s more, potential customers now have easy access to information online that allows them to learn about all the sellers offering a product or service and to pick and choose as they want, rather than relying on one trusted source for their purchases. As a result, salespeople are engaging buyers later in the buying cycle than ever before—after buyers have already identified those who are offering similar products or services. These and other factors have created a hypercompetitive marketplace where salespeople must battle stiff competition for every sale. The problem is that the marketplace has changed, but our methods for selling have not. Sales reps, managers, and business leaders generally agree that the old strategies are no longer working. Those in the sales community are wondering what to do and where to find new, effective solutions. I encountered this issue during a conversation with an old colleague (we’ll call him Bill) about the development of a new sales training curriculum. As Bill and I chatted, we turned to the topic of how salespeople can cultivate rapport with buyers. I recommended a particular strategy that I’d found very successful at strengthening relationships. To my surprise, he disagreed. Bill insisted my approach was unreliable, simply an old sales gimmick. Undeterred, I explained how I had personally used it to increase rapport. He responded by sharing how in the past he had also applied the strategy, but had not experienced any positive outcomes. I quickly countered by launching into some examples of salespeople I had trained who had employed the strategy and had testified that it had helped them enhance rapport with buyers. He told me that early in his career he too had taught others to use it, with dismal results. I paused, both to avoid escalating an argument I wasn’t sure how to win, with a colleague I admired and liked, and because I was perplexed by his refusal to embrace what I had seen with my own eyes was a useful sales tool. At this point in my career, I was a highly successful sales professional who had risen to the top of every sales force I’d been on. Over the years, I had also been a top-producing sales manager, director of sales, and vice president of sales. Surely my success alone should prove my approach worked. Why didn’t he believe me? Was I wrong? Could I have been using and teaching sales strategies that were actually hindering sales performance? But my accolades, of course, didn’t mesmerize Bill into submission. After all, he was a productive salesperson as well, who had advanced to become a successful manager and trainer. Instead, whenever I would reference my record of success as evidence that I was right, he would point to his achievements as a counterargument. That’s when it hit me: We were each relying on our individual experiences and those of others we knew to prove that we were right and the other person was wrong. Yet neither of our sales methodologies was defensible because they weren’t based on factual evidence that could be proven to work again and again. The reason I sold the way I did was rooted in my own anecdotal experience and knowledge. It was the same for Bill and, I slowly realized, for every salesperson we knew. Even the training that salespeople receive is commonly based on anecdotal evidence grounded in the experiences of one or a few individuals. No wonder the replicable success rate of any sales approach was so unpredictable; it wasn’t based on anything that could be empirically proven to succeed. No one was using science to determine what strategies worked consistently. I also realized that not being able to verify the most effective way to sell something amplifies your likelihood of failure, because it forces you to guess your way through the sales process. However, in sales, failure is not an option. If you’re a salesperson, your capacity to earn sales will affect your job satisfaction, the trajectory of your career, and your income. And if you are a sales manager or business leader, your success is tied to the performance of the salespeople who serve under you. Sales ability is not a minor issue because it will determine your career success and, as a result, impact the quality of your life. Even if you don’t work directly in sales, this still applies. For example, if you are going on job interviews, you’ll attempt to sell yourself and your skills to a prospective employer. If you are starting a business, your ability to pitch your idea and gain clients will determine whether or not your company survives. Selling is the lifeblood of our society. Directly or indirectly, it influences most aspects of our lives, especially our careers, businesses, and relationships. That’s why we all need a proven, research-backed method for successful selling—because it’s vital for achieving whatever we want to accomplish in life. WHY SALESPEOPLE STILL MATTER Because of the importance of selling, I began searching for real answers, studying different selling systems, hoping to find one that was evidence based. However, as I explored countless methods taught by well-known sales trainers and companies, I became increasingly discouraged. Though each training system promised they were right or “the best!” none offered definitive proof to back up those claims. After a couple of years sifting through these sales methods, I made a decision that almost seemed crazy at the time. In spite of my own success, I decided to start over and discard every idea I had about selling. I embraced a healthy skepticism by adopting the belief that if I could discover why and how we make a decision to buy something, I could use that as my guide for determining what sales strategies are more effective than others. As I embarked on what would turn into nearly a decadelong undertaking, it wasn’t clear where to look for answers. So I put to use the research skills I had acquired while working on my master’s thesis on nonverbal communication and started analyzing the many activities and behaviors that salespeople regularly engage in. When I deconstructed each activity and behavior, I was struck by the fact that everything salespeople do is for the primary purpose of influencing someone. This was true regardless of whether a salesperson was engaging in precall planning, discovering a buyer’s needs, presenting a product or service, or closing the sale. Even when salespeople utilize social media, customer relationship management (CRM) systems, and sales intelligence providers, they do so in the hope that this technology will help them positively influence prospective customers. It quickly became clear from my research that influence is the foundation of selling. It is what inspires others to take an idea seriously and act on it. Information alone will rarely persuade someone to take action. (If it could, then salespeople would be unnecessary.) Rather, what moves people is how that information is presented and who presents it to them. As neuroscientist Gregory Berns explains, “A person can have the greatest idea in the world— completely different and novel—but if that person can’t convince enough other people, it doesn’t matter.”4 To be sure, in our technology-saturated world, potential customers are now forming initial impressions about a company, product, or service from information they glean online. But this doesn’t negate the importance of salespeople. In fact, it makes them more essential than ever. Buyers rarely make purchases based solely on information provided over the Internet, unless the product or service is a very low-priced, low-risk item. In any other situation, and especially for higher-priced, higher-risk purchases, potential customers need to interact with a salesperson to make an informed and confident decision. This was clearly shown when the Journal of Business & Industrial Marketing published the findings of a survey that asked buyers how the Internet has changed their purchasing behaviors.5 The survey revealed that they still consider salespeople a more significant source of information than the Internet. As sales thought leaders Ben Shapiro and John J. Sviokla explain, “Despite the tremendous contributions of information and communications technology, selling is still largely a function of interpersonal relations, which are guided by the artful ability to recognize motivations, needs, and perceptions.”6 In other words, despite the undeniable role that technology plays in selling and buying these days, people still buy from people. Research studies have shown that a persuasive appeal is enhanced when it is done through interpersonal relationships, and salespeople create the relationships that inspire a confident buying decision. This is why salespeople need to know how to guide buyers through the buying process and what evidence-based sales strategies will help their customers make the right choices. That’s where this book comes in. WHY SELLING WITH SCIENCE WILL INCREASE YOUR SALES AND SUCCESS As I began researching the role of influence in selling, I stumbled on an academic journal that contained studies that revealed how influence occurs. This experience fueled my research, as I was excited to discover that there is now a consensus in the scientific community about which behaviors specifically support and enable influence. Behavioral scientists Douglas Kenrick, Noah Goldstein, and Sanford Braver affirm, “The study of persuasion no longer exists only as an ethereal art. It is now a science that can reproduce its results. What is more, whoever engages in the scientific process can reproduce its results.”7 There have been thousands of scientific studies focused on understanding the behaviors that generate influence. This has transformed the process of influencing others from an art to a proven science. I pored over academic journals, methodically investigating a variety of scientific disciplines, such as social psychology, which is defined as “the scientific study of how people think about, influence and relate to one another.”8 I also delved into communication theory, the scientific study of how humans communicate both verbally and nonverbally. This research provided a strong understanding of how certain communicative signals can increase a person’s receptiveness to a persuasive appeal or idea. A third field that offered some valuable insights was neuroscience. I focused specifically on advances in cognitive neuroscience and social neuroscience. I researched how human thought, emotion, and behavior occur and how each are influenced.9 I also investigated how the brain perceives, learns, and retains information. Cognitive psychology—which focuses on mental processes such as attention, perception, critical thinking, and problem solving—provided many meaningful insights that guided me in grasping how influence occurs and how buying decisions can be shaped. Last but not least, I explored behavioral economics, which is the integration of social science and economic theory, to uncover the factors that inspire buying decisions. As I analyzed the information gathered from my intensive research into these scientific disciplines, the way I approached the act of selling radically changed. No longer was I forced to guess my way to the best solution to clinch the sale. Instead, with this knowledge, I could develop effective sales strategies that could be successfully applied in any situation. In other words, I figured out how to change the way selling is perceived, transforming it from an innate talent some have and some don’t to a predictable science that can be learned by anyone. Now it was time to reenter the world of sales and begin testing what I had learned in real-life situations. I used myself as the first test case, joining a respected sales team and selling using the scientific principles I’d gleaned. The improvement was instantaneous. I immediately noticed I was able to build trust faster, diagnose buying motivators more accurately, outsell competitors, and guide buyers through the key stages of the sale with little resistance. Within months I became the number-one performing salesperson in the company. Others noticed the impact too. My colleagues began asking me for advice and the company I was selling for requested that I train their entire sales force. However, unlike my training in the past, this time I was armed with strategies that I knew for a fact would guide those I trained to be consistently successful in their efforts. What happened next shocked me. I figured that when salespeople began utilizing science, there would be a reasonable increase in sales, but I was wrong. There was a staggering increase. The company’s closing rates increased by 92 percent and their sales revenue grew by 156 percent. From there, I began to accept invitations to provide training and consulting for various organizations. I formally launched Hoffeld Group, which has grown to be a leading research-based sales training, coaching, and consulting firm, specializing in taking science and applying it to selling. This finally gave me the opportunity on a much larger scale to provide salespeople, managers, business leaders, and CEOs the training, knowledge, and strategies to improve their selling success. My clients experienced the same dramatic improvement in their sales results I had the first time I deployed my science-backed sales approach. One client raised their average sale size by 34 percent; another experienced rapid sales growth, increasing their overall sales by more than 230 percent. Not only were sales increasing, but so was customer loyalty, as yet another company I conducted training and consulting for lowered their loss of customers by almost 50 percent! I also noticed that this knowledge could be applied across a variety of selling environments. It didn’t matter how long the sales cycle was, or the size of the sale, the methods I developed based on my research improved sales success across the board. What impressed me most was that not only were salespeople selling more and selling better, but they repeatedly reported that their customers and prospective buyers were enjoying being sold to a lot more. It makes sense: when salespeople align their activities and behaviors with the science of influence, they actually sell in the way that human beings are designed to receive messages and make purchasing decisions. This harmony between buyer and seller amplifies the buyer’s receptiveness to the salesperson’s pitch and increases the likelihood of the sale. Even though I could now verify that selling with science would make anyone more successful, I still felt that I needed to put my research through one more test. I wanted to step back and critically analyze what I was observing because the results that I and those I had trained were achieving seemed almost too good to be true. So I decided to attend Harvard Business School and further study selling. I also used this opportunity to share my research findings with fellow students and a few of the professors who taught sales and marketing. It was during one particular conversation with a professor that I realized the far-reaching impact selling with science could have. It was what the profession of sales had been waiting for, some fresh air for this industry mired in old ideas and struggling to adapt to the modern sales environment. My research and method had the potential to transform the entire industry of selling. I also began to conduct some unique research experiments that analyzed things like how the brain makes a buying decision and identified the core components of sales performance enhancement. The findings of this research, which will be shared in this book, led to some revolutionary innovations that have been field tested and implemented by companies and industries across the globe to significantly improve their sales success. WHAT THIS BOOK WILL TEACH YOU I’ve broken the book down into three parts. Part One gives you the knowledge and background that you need to use the strategies you’ll learn in Part Two. Part Three discusses the science-based selling movement and how you can set yourself up for continued success into the future. PART ONE: FOUNDATIONS OF SELLING WITH SCIENCE In Part One, I reveal a framework you can use to incorporate science into any selling situation. The chapters in this section will uncover the foundational principles that every sales methodology should be built on. Because this part will equip you with the knowledge to begin applying this powerful science to selling situations in your own career and life, I strongly recommend you read the chapters in Part One in the order they’re presented. In Chapter 1, “Why Salespeople Underperform,” you will see how the success of salespeople is linked to the overall health of an organization. Yet salespeople are struggling in today’s complex marketplace, and thus their careers and their companies are suffering too. This chapter sheds light on the daunting obstacles salespeople face, and exposes why they’re struggling and how this trend can be reversed. Chapter 2, “The Two Methods of Sales Influence,” discusses the scientific research that shows the two primary routes of influencing others. Salespeople must utilize both ways to increase their success. Throughout, I’ve included entertaining stories and real-life examples of how people have put these two methods of persuasion to work. You will also learn numerous practical strategies that will help you generate more influence when selling. Chapter 3, “How to Sell the Way People Buy,” unveils groundbreaking sales research that confirms that when the brain makes a buying decision, that decision is comprised of a series of small, incremental commitments that naturally guide a customer’s mind through a progression of consents and into the final commitment to purchase. The Six Whys® are six specific questions that represent the mental steps the brain takes when formulating a buying decision. In this chapter, I will show you how to structure your sales processes to gain a commitment to each of the Six Whys®, so that you are selling the way buyers mentally construct their purchasing choices, and thereby substantially increasing your chance of earning the sale. Chapter 4, “Selling to Your Buyers’ Emotions,” explores the science behind how the brain assigns meaning and value through emotions. There is compelling research showing that if potential customers do not become emotionally connected to a product or service, they will not care enough to buy it. That’s why emotions are a determining factor in the success of the sale. In this chapter, I disclose the two primary types of emotional states and share numerous strategies that you can use to stimulate your customers’ emotions and improve buying behaviors. PART TWO: THE SALESPERSON’S TOOLKIT Even experienced salespeople often behave in ways that contradict science and obstruct their ability to generate sales. In Part Two, you will be shown how to apply science to the major parts of the sale so you can avoid these mistakes. Chapter 5, “The Science of Asking Powerful Questions,” tackles the topic of how to ask great questions. Despite the fact that questions are mission critical in creating successful relationships with customers and prospective buyers, many of the ways that salespeople have been trained to formulate questions directly conflict with how the brain discloses information and encourage buyers not to share key information. The chapter begins with the scientific evidence that reveals how the brain naturally conveys information. Then I share a practical, easy-to-execute questioning strategy that is aligned with how our brains divulge information, and I demonstrate how to implement it in a variety of scenarios. In Chapter 6, “Why People Buy,” you will explore how to identify the conditions that will cause potential customers to purchase a product or service. These buying triggers are called primary buying motivators. Once you determine your buyers’ primary buying motivators, you will be able to demonstrate real-world value by tailoring your sales process to what truly matters to your potential customers. Chapter 7, “Creating Value, Neutralizing Competitors, and Overcoming Objections,” delves into how you can apply science to boost your capacity to create value, reduce the influence of your competitors, and overcome challenging objections. This chapter will give you a look inside your buyers’ minds and show you how to sell with an understanding of how the brain is wired to positively perceive people, products, and services. In Chapter 8, “Closing Redefined: Obtaining Strategic Commitments,” I demonstrate that the ways most salespeople have been taught to close the sale are antiquated and ineffective. In fact, most closing techniques conflict with how the brain instinctively makes a buying decision and, as a result, inspire negative feelings of pressure and anxiety in the buyer. This chapter is packed with powerful closing strategies that align with the science of decision making and are proven to increase sales results. You will learn that although a positive buying decision may be revealed only at the close of the sale, it must be cultivated throughout the sales process. This ensures that the close is a stress-free event for both parties, which also makes your buyer more likely to buy from you again. In Chapter 9, “Five Science-Based Sales Presentation Strategies,” you’ll see what makes one presentation highly persuasive and another fall flat. I will also show you how to apply numerous scientific strategies to improve the effectiveness of any sales presentation. By the end of this chapter, your ability to present in ways that will result in buying decisions in your favor will be at an all-time high. PART THREE: MERGING SCIENCE AND SELLING The third part of this book consists of the concluding chapter, “The Future of Selling.” Here, I explore three significant shifts that will occur as science begins to permeate selling. I’ll also describe the five core qualities that enable heightened levels of sales performance and that should guide sales hiring practices. Then you’ll learn why merging selling with science will alter the future of sales and how you can be at the forefront of the transformation. — Selling is a noble and necessary activity, a critical endeavor for every organization. I believe that those in the profession of sales, as well as anyone who has to do any kind of indirect selling in their everyday lives (which is all of us), deserve to learn about the science that has the power to enhance their ability to sell successfully. I also believe that selling is too important to be based on anything other than proven science. My hope is that armed with the knowledge and research-backed methods and strategies you will learn from this book, you, your colleagues, and your customers will benefit from long, prosperous business relationships. So how exactly can you do this? Turn the page and we’ll begin by looking at why salespeople underperform and what can be done to make sure you succeed. PART ONE FOUNDATIONS OF SELLING WITH SCIENCE CHAPTER 1 Why Salespeople Underperform A study published in the Harvard Business Review a few years ago should cause everyone in sales to cringe. Why? When the researchers analyzed the behaviors of eight hundred salespeople on sales calls they found that only “37% of salespeople—were consistently effective. What’s more, some of the behaviors of the remaining 63% actually drove down performance.”1 In other words, the way that these salespeople were selling was actually preventing them from making the sale. Unfortunately, these salespeople are not alone in their struggle. Lack of sales production is a devastating problem. In fact, surveys that measure the sales performance of thousands of companies found that 38 to 49 percent of all salespeople do not make quota every year.2 This means that roughly four to five out of every ten professional salespeople fail to meet the minimum standard their company has placed on them. The way that salespeople sell is a mission critical issue, because the behaviors they use when interacting with potential customers is a determining factor in the buying decision. For instance, when the performance measurement firm Chally Group conducted a series of studies examining the buying behaviors of more than 100,000 decision makers, they identified the salesperson as a deciding factor in whether buyers chose to purchase from one vendor or another.3 In addition, research published by CEB, a leading advisory company, found that 53 percent of customer loyalty—customers choosing to buy from a company repeatedly—is not the result of the product, company, or service, but the behaviors salespeople use when selling.4 Every day, the fates of careers and companies hinge on salespeople because they serve two imperative functions: creating customers and producing revenue to keep their organization alive. As Peter Drucker, legendary management expert and author of many culture-shifting business books, famously said, “There is only one valid definition of business purpose: to create a customer.”5 That said, there is no doubt that selling has become more challenging than ever. The marketplace is extremely competitive. Potential customers are blitzed by sellers fighting to earn their business. At the same time, buyers are extremely busy and have less time to deal with salespeople. To further complicate the situation, as I mentioned in the introduction, technology allows buyers to research potential solutions online before talking to a seller. As a result, salespeople are entering into the buyer’s decision process later than ever before. The data indicates that around 60 percent of the buying cycle is completed before a salesperson is able to engage a potential client. Because of these new realities, salespeople have no room for error. They are selling in an extremely complex and competitive environment where they must battle competitors for every sale. To make matters worse, these daunting challenges aren’t the only reasons salespeople are struggling. NATURAL ABILITY IS NO LONGER ENOUGH For years, many in the sales community believed that success in selling is dependent on innate communication skills and a gregarious personality. The assumption has been, if you didn’t have “it,” you couldn’t be taught it. However, a tidal wave of scientific research studying what makes people successful has disproven that idea in recent decades.6 Though some people do have heightened levels of natural ability, talent is not enough to become a top performing salesperson. Because of the exceptionally crowded marketplace, you must continually improve your knowledge and skills. To be successful in sales today, you must sell beyond your natural ability. One fascinating example of this is seen in the work of Carol Dweck, professor of psychology at Stanford University, who has conducted several studies on how one’s mentality influences one’s performance.7 She has found that people tend to embrace one of two common outlooks: 1. Fixed mindset: the belief that you can do little to change your abilities. 2. Growth mindset: the belief that through effort you can improve your abilities. Below is a short quiz that will help you identify what mindset you have. QUIZ Which of the following statements do you believe to be true? 1. Your ability to sell is part of who you are and not something you can change. 2. No matter how good you are at sales, you can always improve. 3. You can learn new selling strategies, but you can’t change much about your ability to influence others. 4. Selling is a skill that you can develop, regardless of your natural talent or personality. Options 1 and 3 are fixed mindset statements, while options 2 and 4 are growth mindset statements. — So do these mindsets influence sales results? Yes, because the outcomes these mentalities produce are radically different. Those who have a growth mindset are far more likely to be successful than those who don’t.8 One of the main reasons a growth mindset drives high achievement is because it alters how the brain perceives failure. Those with fixed mindsets are more prone to see failure as a judgment on themselves. If they fail, they feel like failures. In contrast, people with a growth mindset view failure as the feedback that shows them how to adapt and take their abilities to the next level. Over the years, I have witnessed the vast difference in performance between salespeople who are content to rely on their giftedness to bring in enough sales to squeak by (fixed mindset) and those who work hard to surpass their natural aptitude to achieve or beat their sales goals each year (growth mindset). In fact, this is one of the things I recommend that sales leaders test for when hiring for an open sales position. (We’ll talk more about how to do this in Chapter 10.) Those with a growth outlook are more motivated to succeed and, as a result, far more likely to become top performers. What about you? If you have a growth mindset, great! If you have a fixed mindset, you should address it because it will hinder your ability to achieve the level of success you desire. The good news is that your mindset is your mindset, and you can change it. By choosing to embrace the new, empowering belief that your sales skills are like a muscle that needs to be continually strengthened, you will inspire the work ethic necessary to achieve high levels of sales performance. SALES TRAINING HASN’T BECOME MANDATORY... YET Why do elite salespeople make selling look effortless? It’s easy to assume they have always been terrific at selling. But rest assured, they make selling look easy because they have been capably trained. Science has shown that these individuals’ brains have been altered by training, and this is what allows them to competently execute selling behaviors. Let me explain. People used to believe that the human brain was static, remaining unchanged through adulthood. However, neuroscientists have recently demonstrated that the brain contains neurons that are constantly changing based on one’s thoughts, behaviors, and experiences.9 Neuroscientists describe the brain’s flexibility as “neuroplasticity.”10 When you learn any new behavior, your brain changes and new neural pathways are created. The more these neural connections are used the more they develop and, as a result, the more proficient you become at the activity they are associated with.11 For example, research published in the Proceedings of the National Academy of Sciences analyzed the brains of experienced London taxi drivers who were skilled at navigating the complex streets of London.12 The researchers identified that the part of the taxi drivers’ brains (the hippocampus) that deals with spatial relationships (navigation) had grown in size and contained an elevated number of neural networks. Essentially, these taxi drivers had changed their brains. In much the same way, when salespeople go through effective training, their brains are being rewired. New clusters of neurons are formed and existing clusters connected with previously learned behaviors are strengthened. Here are two fascinating examples that illustrate how training reprograms the brain and equips people to perform well beyond their natural abilities. Behavioral scientist K. Anders Ericsson has led a series of research studies over an almost thirty-year period on how training can produce exceptional levels of performance. In one of his most famous studies, Ericsson and two other researchers studied how memory could be enhanced with continuous training.13 They recruited a college student (whom they referred to by his initials, S.F.) with a normal IQ and memory; after listening to a sequence of numbers, he could recall around seven digits. After several hundred hours of memory enhancement training, S.F. drastically exceeded the goal of the training (fourteen digits) and was able to memorize eighty-two random digits. Just so you appreciate the impact of this, below are eighty- two random numbers. Read through them and try memorizing all these yourself. It’s harder than it looks! 2479362532689110363261734627 9014978252351792845279214059 63705279566821720864869521 The researchers attributed the vast improvement of his memory to his use of mnemonic associations—such as converting random numbers into running times, so 247 became 2 minutes 47 seconds—and relentless training. The effects of training on memory performance have been replicated many times by numerous researchers and participants.14 When behavioral scientists from Florida State University analyzed the decades of research in this area they concluded that there is no “evidence that would limit the ability of motivated and healthy adults to achieve exceptional levels of memory performance given access to instruction and supportive training environments.”15 Even more fascinating is that when Ericsson and others analyzed how those in other professions such as business, music, mathematics, and sports become experts capable of superior performances, they found that it was due to continual training.16 Another intriguing example of how training can significantly boost skill levels is seen in the work of Betty Edwards, an art teacher who takes people with ordinary abilities and teaches them how to draw impressive self- portraits. She accomplishes this feat not in years, months, or even weeks. She does this within a mere five days. In her book, The New Drawing on the Right Side of the Brain, Edwards writes that once a person understands the technical components of drawing, he or she will progress rapidly with focused practice.17 She emphasizes that most people do not lack drawing skills, but rather seeing skills. She maintains that once she shows her students how to perceive things such as edges, spaces, lighting, shadows, and relationships among objects, their ability to draw quickly improves. On the next page are some examples of the self-portraits her students drew on the first day of the class and the same students’ drawings on day five.18 Likewise, I have witnessed salespeople who were struggling to keep their jobs go through high-quality sales training and transform their careers. Salespeople cannot sell beyond their training. Why? Because the training they receive is what creates their philosophy of selling, which I refer to as “sales truth.” These are the core beliefs that govern how they sell, and especially which sales activities, behaviors, strategies, and skills they use or ignore. As professors at the Leavey School of Business James Kouzes and Barry Posner confirm, “the investment in training will pay off in the long term. People can’t deliver on what they don’t know how to do... you have to upgrade capabilities.”19 The way you do that is by training them how to do something better. What’s more, in today’s hypercompetitive marketplace, if salespeople do not receive proper training they will fall behind; selling, like any other skill, must be developed. This is why a competent, well-trained sales team is often a company’s most significant advantage—and an incompetent one its biggest liability. As intertwined as sales training is with the success of salespeople, sales leaders, and companies, there is a glaring problem with modern sales training: most of it does not properly equip salespeople to sell in today’s challenging business environment. MODERN SALES TRAINING HAS NOT ADAPTED TO THE NEW SELLING CLIMATE The marketplace has radically changed, but sales training has not. No longer can salespeople get by using the same old selling strategies that have been used for generations. (I will share some of these antiquated and ineffective strategies with you later in the chapter and throughout this book.) This is why, alarmingly, when salespeople go through sales training, much of it makes little difference in their job performance. For example, research published by both ES Research Group and CEB has identified that 85 to 90 percent of all sales training has no positive impact after the training.20 Now, this does not negate the need for competent training, but it does illuminate the fact that modern sales training is failing salespeople. When you add together the fact that most of sales training makes no impact on the sales results of trainees and the widespread lack of sales production that was discussed at the beginning of this chapter, you start to see the scope of the problem. There is something horribly wrong. Many in the profession of sales realize this problem exists, but they fail to properly identify the cause. Often, the finger is pointed at a variety of concerns, such as: Failing to follow-up and reinforce training Ineffectively leveraging technology (social selling) Making training an event, not a process Improperly assessing sales people before training (thus trying to solve the wrong problem) Participants or management not buying in sufficiently Not linking the training with the strategic initiatives of the company To be sure, each of these issues should be addressed, but the evidence points to something much deeper as the reason why sales training and selling is in dire straits. WHY SELLING SHOULD BE FOCUSED ON BUYING In the introduction, I admitted that years ago, before I delved into finding and developing a successful sales strategy based on science, the way I sold was completely subjective, and relied on my own opinions and experience. I have since realized that I was not alone in this predicament. Virtually everyone else in business struggles with this issue, because our modern sales training methodologies are not founded on any objective standard, but rather are rooted in conjecture. That’s a bold declaration, I know, so let me demonstrate what I mean. A while ago, I led a Webinar whose audience included salespeople from numerous leading organizations. During my talk, I polled the participants, asking them a multiple-choice question: “In your organization, what are your sales behaviors based on?” In other words, why do you sell the way you do? Here is how they answered: 1. Trial and error (45 percent of participants) 2. Recommendations from experts (45 percent of participants) 3. Wishful thinking (5 percent of participants) 4. Unsure (5 percent of participants) 5. Scientific findings on how the brain formulates a buying decision (0 percent) These responses mirror those I have received in numerous training seminars and workshops I’ve conducted over the years. The two most common answers are always trial and error and recommendations from experts. Let’s stop for a minute and consider the implications of each. Trial and error is precarious for two reasons. First, because of the dynamic nature of selling, testing one sales strategy in an effort to validate causation is not an easy task. This is something that even scientists struggle with, and most salespeople and business leaders are unfamiliar with how to carry out this complex process productively. Second, continual testing with trial and error takes time, and revenue generation (sales) is hardly the place to gamble on experimentation. Recommendations from experts are equally problematic because their advice is usually based on flimsy evidence. These experts will refer to their personal experience or their observation of what elite salespeople do. Yet these ideas typically conflict with the ideas of other trainers, also pointing to their experiences and observations, to suggest that they are right. So which experts should you believe and, more important, why? (This is the same debate with my colleague that I described in the introduction.) Even more concerning is the fact that many of the sales techniques that experts recommend blatantly contradict what science has proven regarding how the brain constructs a buying decision. In other words, the experts are often wrong. In the poll I shared earlier, the option that no one has ever chosen is “the scientific findings on how the brain formulates a buying decision.” This is the root of the problem in selling. The way most salespeople are taught to sell is grounded in selling, not buying. Salespeople are shown sales activities and behaviors and then taught to make their buyers conform to their model of selling. It’s the exact opposite of how it should be. The way most salespeople are taught to sell is grounded in selling, not buying. Salespeople are shown sales activities and behaviors and then taught to make their buyers conform to their model of selling. It’s the exact opposite of how it should be. Think about it: shouldn’t selling be focused on how people buy? How can salespeople guide their buyers through the brain’s decision-making process when they do not know how it occurs? I know these are deep questions, but nevertheless, they are important ones. If salespeople, managers, and trainers do not know how buyers mentally construct buying decisions, how can they know if a sales behavior is aligned with or violates that process? The obvious answer is they can’t. Is it any wonder that the majority of the behaviors that salespeople engage in drive down their performance? — But this does not have to be the case. My goal is to make sure that you don’t act in ways that hinder your ability to influence others. Yet it is hard to fight against the unknown. So before we can talk about how to correct this, we must first take a quick look at some examples of how conjecture-based sales training leads people astray. MODERN SALES TRAINING CONFLICTS WITH SCIENCE How would you feel if you found out that you were regularly using sales strategies and tactics that actually clash with how human beings are wired to be influenced? Unfortunately, you probably are. It is not your fault. Many popular selling strategies have been disproven by science. In fact, in this book you will see that some of the most commonly taught sales ideas on topics such as prospecting, asking questions, presenting value, creating urgency, justifying cost, negotiating, and closing, all conflict with science. This is a serious concern, because science discloses reality. When salespeople sell against science they are inadvertently selling in ways that decrease their effectiveness. — Here are two examples of common sales practices that oppose science: EXAMPLE #1: ARE EXTROVERTS THE BEST SALESPEOPLE? Traditional sales wisdom claims that the best salespeople are extroverts, outgoing, social individuals believed to be so naturally gifted they can “sell ice to Eskimos.” There is just one problem with this supposition: It’s wrong. Numerous research studies have shattered this myth.21 One meta-analysis of the findings of thirty-five different studies concluded there is no causal relationship between extraversion and heightened levels of sales performance.22 Another study, conducted by Wharton’s professor of management Adam Grant, examined the effect of extraversion on sales performance. Grant scrutinized the results of 340 sales representatives over a three-month period.23 He discovered that the introverted salespeople generated $120.10 per hour, while those who were extraverts sold slightly more, averaging $125.19 per hour. But interestingly enough, the higher they scored for extraversion, the lower their performance fell. The biggest surprise was that those who were neither introverts nor extraverts, but exactly in between—referred to as ambiverts—had the highest hourly revenue of $208.34! Extraverts often make poor salespeople because they are so gregarious they have trouble listening to buyers, which hinders them from understanding their buyers’ perspectives. This is their downfall, because without ample knowledge of their potential customers they will unintentionally sell in ways that are out of sync with those customers’ needs and desires. The reason the extravert myth has persisted is that there seems to be a bias, especially in sales, toward extraverts, because they engage in outgoing social behaviors traditionally associated with selling. In addition, until recently there had not been any scientific inquiry into this topic, so no one had the data to mount a compelling counterargument. As a result, this notion, like many other false ideas, has lingered in the profession of sales. EXAMPLE #2: HOW SHOULD YOU BEGIN A SALES CALL? At the start of a sales call, should you ask buyers how they are feeling? There is widespread agreement from sales trainers that the answer to this question is an emphatic “no.” They claim that asking such a question is “salesy” and “adds nothing to the conversation.” Yet is that true? This may seem like a minor issue, but when it comes to influencing others, sometimes a small behavior can make a surprisingly big impact. This is what social psychologist Daniel Howard found when he conducted a series of psychological studies that demonstrated how this single question significantly increased receptiveness to a persuasive appeal.24 Howard worked with representatives of the Hunger Relief Committee, who called homeowners and asked if they would be willing to allow someone from the organization to come to their home and sell them baked goods. Howard analyzed the script that the representatives used when calling. He calculated that when the representatives followed their script, 18 percent of the people they spoke to agreed to the request. After observing the organization’s representatives set appointments, Howard asked them to make one change. After introducing themselves, he had them ask the potential customer, “How are you feeling this evening?” When the representatives asked this question, the vast majority responded with a favorable reply. This caused the acceptance rate to nearly double: 32 percent of those contacted agreed to allow a representative into their home! In spite of the overwhelming success of the study, Howard wanted to further confirm that it was that specific phrase and the person’s verbal response to it that had triggered this substantial increase in compliance. So he organized a second research experiment, returning to the Hunger Relief Committee. Once again he had the representatives ask the question, “How are you feeling this evening?” at the beginning of the call. The rate of compliance was nearly identical with the level it had been in the previous experiment. Howard then changed the script and told representatives to stop asking, “How are you feeling this evening?” but instead to state, “I hope you are feeling well this evening.” The impact of changing the question to a statement resulted in a drop in agreement to only 15 percent. After analyzing his research findings, Howard explained, “Before you ask anyone for a donation, you first ask them how they’re feeling. After they tell you they’re feeling good... they’ll be more likely to contribute.”25 (The reason for this will be described in Chapter 8.) The notions that top salespeople are extraverts and that you should never ask buyers how they are feeling at the beginning of a sales call are just two of the many established sales ideas that have been refuted by science. Now that you understand the problem, let’s talk about the solution. The time has come for the profession of sales to look to science as its single source of sales truth. No longer must you guess your way to success. Sales, like almost every other discipline, can now be guided by science. In the next chapter, we’ll begin this journey by looking at the two foundational ways that salespeople can influence buyers—and learning how to use them to increase your sales effectiveness. CHAPTER 2 The Two Methods of Sales Influence Let’s say you’re meeting with buyers to deliver a formal sales presentation, and you know a direct competitor will also be there to make their own pitch. Should you go first or last? Behavioral scientists Norman Miller and Donald Campbell analyzed the impact that presentation order had on decision making.1 Their research found that whether you should present before or after your competitors depends on one factor: the time between presentations. If you and the competitor are presenting back-to-back, you should go first, because your presentation will shape buyers’ perceptions and create biases that will put your competitor at a disadvantage. This is because of what researchers call the primacy effect, which is the brain’s tendency to be more influenced by what is presented first than by what is presented later. This is also why first impressions matter. They create strong confirmation biases that effect one’s perception of another person, situation, or idea. If you’ve ever had a tough time shaking a wrong first impression of someone or something, you know what I mean. However, the research also shows that if the time between the presentations is considerable—more than a week—you should go last. That’s because the memory of your competitor will have faded, while your presentation will be fresh in the buyers’ minds, increasing the likelihood that you’ll be chosen. This is just one of the many factors that influence the decision-making process we’ll examine in this chapter. The process of making buying decisions is no longer a mystery. There is a science to it, and once you know the rules of this science, you can develop an advantage over competitors who do not. In this chapter, I will take this research out of the laboratory and into everyday selling situations, showing you how to leverage it in your favor to sell yourself and your product or service more successfully. HOW INFLUENCE OCCURS For decades, scientists have been investigating how influence occurs. Much of this research was initiated by the U. S. government in the middle of the twentieth century in an effort to discover ways to protect its citizens and POWs from enemy propaganda. Building on these federal initiatives and their findings, behavioral scientists Richard Petty and John Cacioppo conducted vigorous research on why some messages were considered more convincing than others.2 Through various experiments that analyzed how the brain perceives persuasive messages, they were able to do the unthinkable: they deconstructed the process of influence. Petty and Cacioppo identified that the brain perceives influence in two different ways, the peripheral route (influencers outside of the message) and the central route (the influence of the message). These mental pathways are interconnected as they occur simultaneously, which scientists refer to as parallel processing.3 Understanding both of the ways that influence occurs is extremely important, because they are what determine how others receive, interpret, and respond to your ideas—and what you can do about it. These two methods of influence are at the core of an effective sales process, and shape the outcome of every sales call. In fact, for you to become highly successful at selling you must successfully leverage both paths of influence. If you do not use or unknowingly sell against either, your capacity to influence others is severely diminished, which will drive down sales performance. Let’s take a look at what they are and how to apply them when selling. THE PERIPHERAL ROUTE OF INFLUENCE The peripheral route of influence refers to factors that are outside of the message itself, but still have considerable sway on how we make decisions. It includes essential elements of selling such as building rapport, compellingly presenting a product or service, and enhancing trust. This method of influence is made up of a series of mental reflexes, known as “heuristics.” These mental shortcuts shape perception by producing a conditioned response, enabling the brain to form a judgment quickly without actively contemplating the issue or situation at hand.4 The brain is an incredibly efficient organ and it instinctively creates heuristics—rules of thumb—that allow it to make fast decisions so it can conserve mental energy. Though it may seem odd or dismaying that your decisions are influenced without thinking them through, your brain performs these mental shortcuts out of sheer necessity. If it did not, you would be paralyzed by the staggering amount of decisions you make every day! Even though heuristics drive our behavior, most people are unaware of them and, as a result, they do not suspect their impact. As Nobel Prize– winning cognitive psychologist Daniel Kahneman confirms, heuristics require “little or no effort and no sense of voluntary control.”5 Harvard Business School’s Amy Cuddy agrees that they are instinctive and occur naturally through “very unconscious and implicit processes.”6 There is one more very important thing you need to know about heuristics. They are not always rational. Because these mental constructs operate below the level of consciousness, they are not analyzed in the same way a thought or belief may be. As University of Chicago professor and behavioral economist Richard Thaler explains, “heuristics causes people to make predictable errors.”7 One famous example of this is found in an experiment that asked international travelers how much they would pay for $100,000 of life insurance for their upcoming flight.8 Some travelers were told that the policy would pay out if they died for any reason, while others were told that it would only pay out if they died in a terrorist attack. Shockingly, people were willing to pay more for the policy that only paid out if they died in a terrorist attack than the one that would pay out for any reason. (The fear that people associated with a terrorist attack provoked such a strong emotional response that it caused them to assign more value to the policy that directly addressed this threat.) This behavior makes no logical sense, because, well, neither do heuristics. They are why our brains often don’t make logical decisions. Yet what makes heuristics so powerful—even though they aren’t logical—is that they are predictable. As Thaler mentioned, they cause “predictable errors.” Another well-known behavioral economist, Dan Ariely, has even coined the term “predictably irrational” to describe this phenomenon. He states that human behaviors “are neither random nor senseless. They are systematic, and since we repeat them again and again, predictable.”9 Herein lies the power of heuristics; they are the rules of influence. Once you know what they are and you begin to sell in accordance with them, your ability to influence others will be enhanced. Why? Because you are behaving in ways that are aligned with how the brain constructs choices. — The following are four potent yet practical heuristics that you can use to improve your ability to help potential customers perceive you and your message in favorable ways: HEURISTIC #1: SINGLE-OPTION AVERSION Does the number of product options presented impact whether or not a purchase will be made? This was the question that behavioral scientist Daniel Mochon sought to answer. His research, which was published in the Journal of Consumer Research, determined that the number of product options did heavily influence buying behaviors.10 In one of his experiments, consumers were asked to purchase a DVD player. When a single DVD player was shown, only 10 percent purchased. However, when two different brands were shown sales skyrocketed, as an impressive 34 percent agreed to purchase the original DVD player, while 32 percent agreed to purchase the second DVD player. In total, a whopping 66 percent of shoppers agreed to purchase at least one of the DVD players when two options were shown. When buyers are presented with only a single product or service, they rarely feel confident enough to make a positive buying decision and will want to look at alternatives. The reason is because of single-option aversion. This heuristic causes the brain to assign more risk to a decision when there is only one option in a choice set. Without something similar to compare a product or service to, the brain struggles to identify value and the decision-making process will often stall. On the other hand, when the brain is shown competing alternatives, it will automatically assess each and select the best. This evaluation drastically reduces the perception of risk and the fear of making a poor decision. When presenting your products or services, always give buyers a few options. Doing so will make it easier for their brains to arrive at a decision. HEURISTIC #2: ASYMMETRIC DOMINANCE EFFECT When comparing vastly different product or service options, buyers will frequently struggle to make a decision. This is because it can be very challenging for the brain to analyze selections that are not alike. In fact, many describe this as trying to compare apples to oranges. Just think about it. If you were hungry and were given a choice of either an apple or an orange and you had no inclination for one over the other, how would you choose? Most likely, your brain would have trouble comparing these options. This difficulty would impede the decision process. This is what it can feel like for potential customers when they are trying to decide between dissimilar yet competing options. In these situations, a surprising yet extremely effective way to help the brain decide is to introduce a third option that is inferior to one of the others. The lesser alternative makes the option that it is dominated by look more appealing. In this case, when a substandard apple is presented, the brain unconsciously judges the two apples and selects the better one. This victory over the inferior apple will cause the brain to find the good apple even more attractive, which increases the probability that it will be chosen over the orange. The notion that offering a decoy will make it easier for the brain to arrive at a decision is a phenomenon referred to as asymmetric dominance effect. It was first put forth in 1982 by three behavioral scientists.11 Since then it has been researched and confirmed in numerous studies.12 One of the most fascinating of these studies was led by Dan Ariely, who demonstrated how the asymmetric dominance effect shifts perception and can even cause the average sale price to rise. In one of his experiments, Ariely asked MIT’s Sloan School of Management students to evaluate subscription options for the Economist magazine.13 Experiment #1: Students are presented with two annual subscription options: Option 1: $59 for online access Option 2: $125 for print and online access In this experiment, 68 percent of the students chose the print and online option, while only 32 percent chose online only. Experiment #2: Students are presented with three annual subscription options: Option 1: $59 for online access Option 2: $125 for print only (new option) Option 3: $125 for print and online access The addition of the decoy—Option 2—caused the average sale to jump, as 84 percent of the students chose the print and online option, while only 16 percent chose online only. No one chose the print-only selection. Buyers will often get overwhelmed when evaluating radically different options. This will prompt them to become frustrated, since they are unable to reach a decision. It is here that you can deploy the asymmetric dominance effect to relieve the pressure by making the task of comparing the options less cognitively demanding. For example, I have a client who, when customizing their product with buyers, would frequently encounter stalls when those buyers could not make up their minds between two competing options. I showed my client numerous science-based strategies to remedy this dilemma; one of those was the asymmetric dominance effect. Here’s what they would do. When potential customers were agonizing between two choices, the salesperson would introduce another option that was similar but inferior to one of the selections. The buyers would quickly say that the new option was not right for them and then more often than not choose in favor of the one it was dominated by. Why? For the brain to discard the new option it would compare it to the one that it was most similar to. This win made the option seem like a safer choice than its alternative and, as a result, significantly increased the likelihood that it would be chosen overall. HEURISTIC #3: LIKABILITY BIAS Think of someone you are almost indifferent to—you neither like nor dislike her. Now imagine that a close friend told you she said something extremely positive about you. Did your view of her change? Most likely, without any conscious effort, you began to look more favorably on her. The reason is because of a heuristic that I refer to as the likability bias. You’re not the only person with this heuristic; your buyers have it too. Likability matters a lot in selling because it impacts how potential customers view you and everything you do. One study by behavioral scientists Jonathan Frenzen and Harry Davis identified that likability shapes buying behaviors almost as much as the product or service.14 What’s more, a vast amount of scientific research has shown that likability also enhances one’s ability to positively influence another person.15 Freud profoundly described this reality when he wrote, “One cannot explain things to unfriendly people.”16 The importance of the likability bias is clearly seen in one scientific study that analyzed the response two rival political leaders received from constituents when they matched their opponent’s views, even using the exact words.17 The research found that those who were supporters of a politician’s political party were far more likely to agree with his position than they were when the opposing politician said the same thing. Selling is relational and thus being liked is not a luxury, it is a prerequisite for survival. When buyers do not like salespeople, their focus will be on getting away from them, not on productively collaborating together to work toward a common goal. A study published in the Harvard Business Review offers one very convincing piece of evidence that illuminates the positive outcomes likability has on relationships.18 The study analyzed the traits of 51,836 leaders and determined that only a meager 27 of the leaders were rated in both the bottom for likability and the top for leadership effectiveness. This means that the probability of a leader being fiercely disliked and still being a productive leader is about 1 in 2,000. Now that you know that likability matters and why, let’s talk about how to be likeable. What you should not engage in are any shallow, disingenuous, or manipulative techniques. These tricks don’t work; they erode your integrity and will make you come off as phony. A direct and scientifically validated way to boost your likability is to show your buyers that you like them. Just like we saw in the example I shared earlier, when you find out that someone likes you, it is almost impossible not to like them back. Numerous scientific studies have confirmed that when a person finds out that someone likes him, he instinctively begins to look more favorably upon that person.19 One example of this I often share in my seminars involves my great-aunt, Aunt Ann. She was loathed by almost everyone in my family, and for good reason. She was argumentative, stubborn, and miserly. Aunt Ann never had any children; in fact, she did not enjoy being around children—with one exception, me. When I was a baby, just a few days old, Aunt Ann held me and formed a bond with me. From that moment on, she would go out of her way to demonstrate to everyone that she was fond of me. That may sound sweet, but I am not an only child. When my family visited her, she was not shy in showing that she liked me more than my siblings. Aunt Ann passed away when I was twelve years old. Only a few people came to her funeral; most didn’t care. Nevertheless, one person did miss her —me. As I reflect on why I liked Aunt Ann so much, I have to admit it was because she liked me so much. As I said, it is almost impossible not to like someone who really likes you. A straightforward way to show buyers that you genuinely like them is to identify something about them that you sincerely appreciate. This could be anything from attire, business acumen, work performance, ideas, or character qualities. Once you have put your finger on something that you honestly admire, focus on it and then communicate it to that person. People can tell when you like them, and when they do they will instinctively respond in kind. Furthermore, by viewing your prospective customers in this way, you will naturally treat them in a more responsive manner, which will further increase your likability. HEURISTIC #4: SOCIAL PROOF Imagine that you are in a new city and you need to find a place to eat. You notice two diners next to one another. Neither are familiar to you, but you quickly notice that there is one big difference. One is jam-packed with people, while the other has no customers. Which restaurant would you choose? If you are like most people I have posed that question to, an answer immediately comes to mind. You intuitively know that the busy diner is the better option. Yet why is eating at a full restaurant superior to dining at an empty one? The reason your brain was able to quickly evaluate both restaurants and make a confident decision is because of a heuristic called social proof. In fact, social proof is one of the most powerful heuristics, because it connects the persuasiveness of an idea or behavior to how others are responding to it. Additionally, when many other people are engaging in something, it triggers the brain to reduce the perception of risk associated with an idea or activity. It is the reason we are all drawn to best-selling books, blockbuster movies, crowded restaurants, and businesses that have many satisfied customers. Social proof also creates strong social norms, which are expected standards of behavior. It is very hard for most people to go against these behavioral expectations. One of my favorite examples of this is a standing ovation. How many times have you been in an audience when a few people give the performers a standing ovation, then more audience members quickly follow? Soon it seems that everyone around you is standing up and applauding. In spite of the fact that you had not planned on doing so, you find yourself rising to your feet and joining in. Why? What force caused you to stand and why does it feel so odd to resist the urge? By now you know that the answer is social proof. There is a lot of research on social proof, more than a hundred years’ worth,20 although one of the most significant research studies ever conducted on social proof was led by renowned behavioral scientist Solomon Asch in the 1950s.21 His study consisted of groups of seven to nine people being shown one straight line and then three additional lines that varied in size. The participants were asked to publicly share which of the three lines they believed was most similar in size to the first line shown (see example below). Almost every participant reported that the exercise was uncomplicated and they exhibited a 99 percent accuracy rate. However, this study has an unexpected twist. Everyone in each of the groups—except one person—was collaborating with Asch. The goal of the experiment was not to test the participant’s ability to estimate the length of the lines, but to see if he or she could defy the pressure that social proof stimulates. After a few rounds of everyone answering identically, the accomplices would begin to intentionally select an incorrect answer. As the experiment continued and those working with the researchers kept choosing the wrong lines, the various test subjects began to show signs of extreme anguish. They became worried, awkward, embarrassed, and hesitant to select the answer they knew to be right and defy the choice of the rest of the group.22 The conclusion of the experiments was that most of the true participants could not withstand the pull of social proof. A shocking 75 percent later confessed that they deliberately chose the wrong answer because of the pressure they felt to conform to the group. (This experiment has been repeated many times, each time with similar results.)23 As fascinating as Asch’s experiments were, even more revealing is research that was done in response to them. Neuroscientist Gregory Berns and his colleagues wanted to delve deeper into the effect that social proof has upon the human brain. To do this they conducted Asch’s line study while participants’ brain activity was measured by functional magnetic resonance imaging (fMRI).24 The fMRI revealed that when the participants were judging the size of the lines, the posterior area of the brain, which is dedicated to perception, lit up. However, when participants realized that the line they believed was the right size was different than the line that all the others in their group chose, the amygdala, which is the part of the brain responsible for intense emotions, was activated. As the amygdala was stimulated, Berns and his colleagues also noticed that the participants were experiencing visible emotional anxiety. In short, defying what others said elicited forceful emotional reactions within the brain that caused such feelings of discomfort that, more often than not, participants would disregard what they knew to be right. How to Use Social Proof When you utilize social proof successfully, you convey to potential customers that buying your product or service is the safe thing to do. Doing this is central to the success of the sale because, like the participants in Asch’s and Berns’s studies, people are risk averse. The higher the perceived risk associated with purchasing a product or service, the less likely it is that the buyer will make a positive buying decision. Many businesses are already using social proof to increase their audience’s desire for their product or service. For example, Ford Motor Company gave away Ford Focus cars to some key influencers so they would be seen driving the car. Hebrew National also sought to activate social proof when it hired “mom squads” to host hot dog get-togethers for friends.25 Even the marketing firm that promotes Red Bull attempted to market the energy drink by filling up popular sidewalk trash cans with empty Red Bull cans.26 The impact that social proof has on changing consumer behaviors is so significant that researcher Steve Martin said, “Organizations are getting good results from these techniques; in fact, some have begun realizing billions, not just millions, in added revenues and efficiencies.”27 Social proof is not just for big businesses; you can also use it to boost desire for your products or services. One study found that when salespeople described their products as “the most popular” or “selling faster than we can bring them in,” potential customers’ desire for the products and their assessments of their value surged.28 Another way to apply social proof is to tell buyers about your customer success stories. These types of stories demonstrate the widespread acceptance of your product or service. (How to create and share captivating stories will be covered in Chapter 9.) When a lot of people are enjoying something you also want to try it, and when you do, because your expectation is positive, you are more likely to enjoy it as well. One fascinating example of how social proof can enhance perception can be seen in numerous studies that found that television comedies that have canned audience laughter generate more laughs from viewers and are rated as funnier than when they are aired without the laughter.29 In the same way when you share how your customers are benefiting from your products or services, you will motivate others to purchase and experience the benefits for themselves. When it comes to harnessing the positive power of social proof, remember that similarity matters. A significant amount of research has disclosed that the impact of social proof is amplified when people from one’s own peer group have embraced the idea or behavior.30 So if you show buyers how others similar to them have purchased your product or service and experienced positive results, they are much more likely to buy it as well. To activate social proof, you can reference your past customers by using phrases such as “so many people... ,” “most businesses in your situation,” or by offering customers’ names or organizations. THE SHORTFALL OF THE PERIPHERAL ROUTE It is evident that the heuristics of the peripheral route of influence are potent motivators of human behavior and vital parts of the buying process. However, this method of influence does have a serious deficit. It’s short- lived.31 When buyers are persuaded to purchase a product or service primarily through the peripheral route, their confidence in their decision will diminish over time, especially if the decision is challenged. This is problematic, because if a buyer does purchase, the decision is weak, since it was made not because of the salesperson’s message (the central route), but because of factors outside of the message (the peripheral route). Moreover, in today’s extremely complex and competitive marketplace, the peripheral route of influence is rarely enough to guide potential customers through the buying process. This is because the brain needs to process both routes of influence in order to create strong, confident buying decisions. Yet, in my experience, most salespeople mainly focus on selling through the peripheral route. (The reason, as you will see later in this chapter, is because many of them are unsure how to sell via the central route.) For instance, over the years I have asked countless salespeople what they attribute their success in selling to; by far the most common answer is that they believe they are good at building rapport. A prime example of this approach is commonly referred to as “relationship selling.” This is when a salesperson focuses on persuading buyers to purchase because of the good relationship they’ve established. As I confirmed earlier in this chapter, a lot of research has proven that likability improves influence and the likelihood of the sale. But if it is the main method of influence you use, remember that it exerts a strong but temporary sway on your buyers. Once the memory of their interaction with you fades, so will their commitment to you, your company, and the product or service. As a result, these customers are highly susceptible to being stolen by competitors or to canceling their orders. It is not that they are disloyal; they just made a purchasing decision predominantly based only on the peripheral route of influence. Think of using only one route of influence as trying to fly on a plane with only one wing. You would never board that plane, because you know it needs two wings to get off the ground successfully. Likewise, you should sell via both routes of influence because they are what the brain uses to construct a positive buying decision. So let’s learn about this second method of influence, the central route, because once you begin intentionally selling with both routes simultaneously, your sales influence will go to an all-time high. THE CENTRAL ROUTE OF INFLUENCE Through dozens of experiments, Petty and Cacioppo identified the second way influence occurs, which they called the central route.32 This is the message of the persuader. As a salesperson, the central route of influence is mission critical to the success of every sale, because only after buyers contemplate and commit to the salesperson’s message will they be able to confidently make a buying decision. In fact, your ability to convey and gain commitments to the key components of the central route will be the number one factor that will determine your level of sales success. The goal of every sales process should be to guide buyers to commit to the salesperson’s message (the central route) while using heuristics (the peripheral route) to effectively convey that message. Let’s take a moment to make sure we’re clear on the difference between the central route and the peripheral route. The best example of both of these means of influence noticeably on display is at a political debate. As politicians volley back and forth during the debate, viewers are being persuaded by both routes of influence. The message of the politician, which is how he or she will deal with various issues, is the central route of influence. This is what produces strong loyalty. It is also why in every political season many vote for a certain political party regardless of the candidate; they believe in what the party stands for—its message—more than they care about the candidate. However, the peripheral route also persuades voters. Many, especially those who are undecided or not devoted to one side of a political issue, judge the candidates based on how they conduct themselves during the debate. These peripheral cues include the candidate’s charisma, likability, dress, word usage, and so on. Though these peripheral signals are very persuasive, as we’ve seen, they fade quickly. When a politician displays mannerisms that convey him in a negative light, those who are not loyal to his message (the central route) may switch sides or find their positive feelings waning, which explains why minor political gaffes can often derail or even end a politician’s career. Just as voters are often intensely loyal to a political message, when buyers are persuaded by the central route they become deeply loyal to their decision to purchase. As potential customers reflect on and agree with the salesperson’s message (the central route), their perception of risk is reduced. Also, unlike the peripheral route, the effects of being influenced via the central route last.33 As behavioral scientists Robert Gass and John Seiter explain, “Persuasion that takes place via central processing also tends to be more resistant to counterinfluence attempts than persuasion via peripheral processing. This also makes sense: If you have thought through your position, you’re less likely to ‘waffle.’”34 When you guide your customers in arriving at a purchasing decision through the central route, they will be significantly less likely to be swayed by the wooing of competitors. Because this method of influence grounds them with an understanding of why they purchased, they are more committed to their decision. Also, armed with this conviction, buyers are able to coherently explain why purchasing was the right decision. This has been proven to increase customer loyalty, which translates into heightened levels of customer referrals and retention. What Is the Salesperson’s Message? What should your message (the central route) be when selling? When salespeople, managers, or trainers are asked this pivotal question, they often have no idea how to answer. At best they usually reference something about their company, products, or services. Yet a salesperson’s ability to sell via the central route is linked with successful selling and is far too important to be based on mere guesswork. In addition, until you know what your message should contain, you cannot know which activities and behaviors you should use when selling because you don’t know what you are trying to accomplish. Don’t worry, there is a clear answer regarding what a salesperson’s message should be. LEVERAGE THE CENTRAL ROUTE: SELLING THE WAY THE BRAIN BUYS We now know exactly how salespeople can apply the central route of influence, as the next chapter reveals. What the research shows is that a salesperson’s message should mirror the way that buyers’ brains formulate buying decisions. The more that sales messaging is aligned with the mental steps the brain goes through when creating a buying decision, the more effective it will be. As I shared in the last chapter, the more sales strategies are focused on how people buy, the more beneficial they are for everyone involved. Until recently, how the brain arrives at a buying decision was unknown. Though previous scientific discoveries had uncovered the peripheral factors that influence buying decisions, the actual mental process that buyers go through when deciding whether or not to buy a product or service was considered a mystery. However, this is no longer the case! Building on the existing knowledge of the central route of influence, I led an extensive research study that focused on deciphering the internal decision- making process. The revolutionary finding of this research showed how to apply the central route in the context of selling. It defined what most believed was unknowable: the steps the brain goes through when constructing a buying decision. This innovation is a substantial breakthrough in the field of sales, because equipped with this knowledge you will be able to judge the effectiveness of any sales process by analyzing how it guides buyers through their mental journey and into a positive buying decision. This will eliminate the need to try out a sales process to see if it works. From now on you will know if it will help you sell more—prior to engaging in it—since you will have an objective, evidence-based standard to compare it to. But now it is time to learn how to sell via the central route by learning the mental steps that comprise a positive buying decision. CHAPTER 3 How to Sell the Way People Buy What enables one salesperson to outsell another? Why does one sales process produce superior results, while others do not? The good news is there’s a clear, science-based answer to these questions. Today we know that heightened levels of sales performance are a result of how closely aligned sales behaviors are with how the brain creates a buying decision. In other words, the more your way of selling mirrors your buyers’ decision-making process, the more effective it will be. The more your selling efforts are aligned with how the brain naturally formulates buying decisions, the more successful you will be. However, the opposite is also true. If you sell in way

The Science of Selling: Proven Strategies (2016) PDF

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