OG NOTES
Judgement Errors
Mike Example
I’ll start with an example of something that happened to me recently…
I was at a friends party and struck up a conversation with someone I didn’t know previously. Let’s call him Mike. I enjoyed the brief conversation and thought Mike was a nice guy and he’s also from the Midwest, like I am, so we had that connection.
Later in the night, I was talking to a friend and he asked me if I knew of anyone who might be a good candidate to fill the empty spot on our beer-league kickball team. I said… “what about Mike? He seems cool.”
So, I thought of Mike even though the only thing I really knew about him is that he’s easy to talk to and he’s from the Midwest.
In other words, I liked one aspect of Mike’s character, so I just assumed I would like everything else about him and he would be a good fit for our kickball team.
We often approve or disapprove of a person, even when we know very little about them. This is an example of the Halo Effect…
Halo Effect: The halo effect is our minds tendency to oversimplify things without sufficient information, which often leads to judgement errors.
Positive feelings about Mike’s approachability caused me to put a “halo” on him, even though I really didn’t know much about him. (joke) He could have been an asshole.
There are two other cognitive biases that play into this notion…
Recency Bias: The tendency for us to weigh the latest information more heavily than older data.
Because I was asked if I knew of a good potential kickball teammate shortly after I met Mike, my mind went to him without even thinking of other friends who I know a lot more about.
Confirmation Bias: the tendency for people to agree with information that supports their previously held belief, as well as to accept whatever information is suggested to them.
This can be shown if I was asked the question, “is Mike friendly?”
When faced with this question but with no other information other than what I gathered in the 5-minute encounter, I would be likely to consider Mike as friendly, because the mind automatically confirms the idea.
This is also why it’s nearly impossible to have a conversation about politics with someone and why the overall political climate is so hostile.
If you’re on the right, you’ll most likely only support information that supports those views and you’ll also accept whatever information is suggested by people with the same view. Same goes for those on the left.
(serious start/joke finish) regardless of what side you’re on, if you do want to have a conversation about politics… I assure you I’m NOT your guy. Not worth it.
This leads me to what I call…
A Subtle Tip From a Sales Guy
As you know: These three simple words can have a powerful effect and is a phrase I use often during the sales process. Why?
You use it to bring up a point that they know to be true, and play into the message you are trying to convey.
As you know…
As you know, educating employees on their benefits is extremely important and we need to have a good enrollment strategy that helps them understand what’s being offered.
As you know, long term disability is designed to protect the top earning employees income but how they have it setup now, if the CEO went out on claim, he would be making equivalent to $100k
*this also works with phrases like, “as I’m sure you’re aware…” or any similar variation.
The last piece that fits into this category is what social psychologists call… Salience
Salience: Our tendency to focus on the most easily recognizable features of a person or concept
Humans have a limited ability to process information; we cannot attend to every aspect of a situation. Salience determines which information will most likely grab one’s attention and have the greatest influence on perception.
The problem is, the most salient information is, often times, NOT the most accurate or important.
Example: Think of an actor you like. They could be funny, charming, or a badass on film, which is most likely what your perception of him/her is based off.
In reality, they could be the opposite of what you think and you might hate the person they really are.
It’s no different from any other person you encounter. If a client snaps at you or is rude in your meeting, there’s a strong chance you will forever label that person as someone you dislike. I’ve been there MANY times.
But they might just be having an incredibly bad day or something going on at home and they took it out on you.
(joke) Yes, they might just be an asshole but either way, once you get your judgement in your mind about that person, that’s pretty much what they become going forward.
I think the “concept” part of salience is even more important. The take-away is just knowing that our minds focus on the most easily recognizable feature.
As a quick recap…
Halo Effect: the tendency to oversimplify things without sufficient information
Recency Bias: the tendency to weigh the most recent information more heavily
Confirmation Bias: the tendency to for people to agree with information that lines up with their previously held belief and accepting whatever info is suggested
Salience: Our tendency to focus on the most easily recognizable features of a person or concept
*All of these occur because our brain is eager to make quick judgements. Our minds rely on false suggestions and oversimplifications to fill in the gaps in the data, leading us to potentially wrong conclusions.
So who has an idea of taking those understandings and applying them to sales?
Key Sales Take-Aways
Walk in their shoes:
Change your focus from what YOU consider as the most important aspects about your solution and turn your attention to what THEY will consider as the most important. Once determined...
Illustrate how your solution plays into their specific belief and bring it top of mind as much as you can.
Take the feature/concept that will most impact the buying decision and figure out how you can simplify it in a way that gives the customer a better understanding.
Explain it to Grandma
A good tip/piece of advice when it comes to simplifying, is something my first boss told me, and it has stuck with me ever since… Explain it to Grandma.
He was referring to when I deliver an insurance presentation, but it can really apply to anything.
He said, “your Mom and Dad may not know much about how it works, but they are at least somewhat familiar. Your Grandma, however, has been out of the work force for some time and most likely doesn’t have a clue about how it works. So, take that next step and simplify it even more by delivering your presentation with the thought that no one has any idea what you’re talking about.”
Moral of the story: think about how you can simplify the message you’re putting out, then after that, simplify it again.
Be the Expert
Show the buyer that you are the expert in whatever you’re selling. I’m in the belief that salespeople really should be the expert, as the information you’re giving the buyer will have a bigger weight than what they already know and hopefully what your competitor is sharing.
I’ll use a financial advisor for example: I have VERY limited knowledge in that field nor is it something I can devote the time to learning, aside from basics.
So when I talk with a financial advisor, I have to assume they are the expert and he/she will recommend what’s in my best interest. I really hope that’s the case but I don’t know for sure, so whoever can best convince me they know what they are talking about and who can best align their solution with my needs, has the best chance of getting my business.
Since everything we do is strategic, it’s even more impactful if you narrow the focus of what you call yourself an expert in…
If you go into a dealership to buy a car and the salesman conveys he’s an expert on cars, would that do much for you? No, probably not - that’s not very unique and we all know loads of people who are “car guys”
What about if you’re looking for something fuel efficient and the salesperson is an expert on all things hybrids, electric, and eco diesel? Absolutely. The more narrowed down or targeted your focus is, the more impactful it will be on a potential buyer.
For me: I became an expert on Long Term Disability insurance.
It’s a complex product that not many people, even in the insurance industry, know much about; but it’s widely regarded the most important benefit you can have, outside of health insurance, and it’s also what my company specialized in.
So it’s complex, important, and something my company specialized in.
I also made a conscious effort to make my “expert-level” known. I would use the following line in meetings…
“If I had a specialty or if I know one thing, it would be long term disability insurance. It’s a complex product so if you have any questions at all, please don’t hesitate to reach out at any time. Even if it’s a general question and not about a case we’re working on.”
So if/when my clients ever had a question on LTD, they would automatically think to call me and not my competitors.
The key is that you actually have to know what you’re talking about. If they call asking a question, you should have the answer. There’s only so many times you can say, “I’ll have to get back to you.”
Invest the time needed to boost your knowledge and set yourself above the others.
2 things becoming an expert at what you sell does…
Trust: it builds trust. The client is relying on you to have knowledge about what you’re selling. If they trust that knowledge they are more likely to buy and should also lead to building a better relationship. It also builds;
Credibility: this is especially important for younger reps. I’m a young sales rep who looks young, and I was selling to people where the majority have been in the industry for 20+ years. But since my clients knew that I knew what I was talking about and I also was an expert in something they weren’t, the age-difference became irrelevant.
Transition: When you are able to effectively simplify something, it makes your point more familiar to the person you’re communicating to. Let’s explore this further to see how we can take steps to use these and other findings to prepare a more persuasive message.