| What new sales techniques are coming out of the | | | | customers were offered twenty jams to choose |
| science of behavioral economics? Mostly better | | | | from. You might think that with more options, |
| explanations and applications of old techniques. | | | | people are more likely to find and buy the one |
| Though the science it is relatively new, many of | | | | they like, but the first group actually bought more |
| its findings have been known intuitively by good | | | | jam. |
| salesmen and marketers for ages. Maybe now, | | | | How would you apply this as a sales technique if, |
| however, it is time to apply this knowledge more | | | | for example, you sold paint? Maybe you wouldn't |
| systematically in the real world of business. | | | | tell the customer about all 84 colors he can |
| There are dozens of principles that have been | | | | choose from. Limiting his options may be a useful |
| identified by the scientific research. Each of them | | | | technique, according to this research finding. Of |
| can be used to develop or refine sales techniques. | | | | course good salesmen have historically overcome |
| Three of them are explained below. | | | | this "decision paralysis" by using the either-or sales |
| The Science Behind The Sales Techniques | | | | technique: "Would you me to order the x or the y |
| Confirmation bias is the scientific name for the | | | | for you then?" |
| tendency we have to act economically in a way | | | | Extremeness aversion refers to the fact that |
| that confirms our current beliefs. A great example | | | | people avoid extremes. No big surprise there, but |
| is found in a study of Mercedes Benz buyers. | | | | the power of the effect in a consumer situation |
| When buying the same model, it was found that | | | | probably surprised even the researchers. In a |
| current owners, who presumably already believe | | | | typical study, for example, customers might be |
| in the value of a Mercedes, paid $7,000 more, on | | | | given a choice of televisions costing $300, $500, |
| average, than new Mercedes customers. | | | | and $700. Not many choose the $700 one, unless |
| You can imagine the value of this knowledge to | | | | one simple change is made: add a $1200 television |
| companies that sell high-priced items more than | | | | to the selection. Consistently, then, more will |
| once to a customer. You can use this principle in | | | | choose the $700 television, because it is no longer |
| other ways too. Suppose you are selling homes. | | | | the most expensive one (the extreme). |
| Asking the buyer what style of home he thinks is | | | | It doesn't take much imagination to think of |
| best, and letting him make his arguments might | | | | applications for this principle, does it? Add an |
| also make him much more interested in a home if | | | | expensive table or two to the showroom to sell |
| you show him "his" style. | | | | the previously most-expensive ones. Show a |
| Decision paralysis is the phenomenon of having | | | | buyer a few expensive homes to adjust their |
| too many choices to fell comfortable making a | | | | price expectations. Put a more expensive cereal |
| decision. In one study, customers had four | | | | on the shelf with the others. Sales techniques |
| samples of jam available.. Then for several hours, | | | | don't get much simpler than this. |