Speaker:

Ecamm Live Recording on 2023-10-26 at 13.34.32: Hi, it's Dennis again.

Speaker:

Time to Connect & Convert.

Speaker:

About 20 years ago.

Speaker:

I had the great.

Speaker:

Fortune and honor going out to Phoenix Tempe, Arizona to

Speaker:

the Arizona State University.

Speaker:

And I got to meet and study with Robert Cialdini, Dr.

Speaker:

Robert Cialdini.

Speaker:

Yes, Dr.

Speaker:

Robert Cialdini.

Speaker:

The godfather of influence.

Speaker:

I think in the mid 80s, I first became aware of him.

Speaker:

He wrote the definitive book on the principles of influence.

Speaker:

It's been used by anybody who's been in sales or marketing or any, related field.

Speaker:

We've all used it.

Speaker:

I used it and I had a chance to meet him.

Speaker:

He had a, workshop called influence at work.

Speaker:

There was only about.

Speaker:

Eight or 10 of us in that workshop, but he taught most of it.

Speaker:

And wow, what an experience.

Speaker:

So yeah, I'm a fan boy of Robert Chaldee have been for a long time.

Speaker:

And he basically taught me how to get to yes, very fast and ethical way.

Speaker:

And he's taught.

Speaker:

Millions of people how to get to yes in an ethical way.

Speaker:

All of a sudden, recently, they decided to form the Chaldean Institute, and I was

Speaker:

fortunate enough to be one of the founding members of the Chaldean Institute.

Speaker:

What does that mean?

Speaker:

That means that I have access to all of Chaldean's research, all of his works

Speaker:

everything that I can teach and use.

Speaker:

In any way that I see fit, of course, in an ethical way and I love that.

Speaker:

I love the fact that I'm now a qualified Chaldean coach, an ethical

Speaker:

practitioner of influence, a founding member of Chaldean Institute.

Speaker:

So I guess that puts a little pressure on me now because I'm

Speaker:

supposed to know the answers, right?

Speaker:

And I get a lot of questions, particularly.

Speaker:

How does this relate to sales?

Speaker:

When I started using it back when I first was introduced to this, I

Speaker:

was running radio stations in Miami and I said, how can this stuff work

Speaker:

in our marketing, our advertising?

Speaker:

How can it work in the communications that we put out there?

Speaker:

And also, how can it work in our sales?

Speaker:

Obviously we had 20, 25 salespeople at the time, how can we use the principles

Speaker:

of influence to improve sales?

Speaker:

Guess what I found out.

Speaker:

Yes, it worked all the way around.

Speaker:

So again, I am a devotee.

Speaker:

I'm a fan.

Speaker:

I'm a believer.

Speaker:

I definitely had a drink of the Kool Aid.

Speaker:

And today I want to talk a little bit about how this can help you in sales.

Speaker:

Okay.

Speaker:

First of all, as already, I'm sure our brain has two systems.

Speaker:

System one and system two.

Speaker:

System one is that automatic brain.

Speaker:

It's on autopilot.

Speaker:

It's 90 plus percent of the thinking that we do.

Speaker:

The system two brains are our factual brain.

Speaker:

Okay.

Speaker:

When we need to make a particularly tough decision, not a decision we're

Speaker:

used to making every day, we engage the factual brain and the slower

Speaker:

thinking brain, the system one brain.

Speaker:

Fast.

Speaker:

It works on heuristics.

Speaker:

It works on, it, works on automatic responses to things.

Speaker:

And that's how we can influence the sales situation because most buyers, I don't

Speaker:

care what level of customer you're talking to, they buy with system one brain.

Speaker:

We all do 90 percent of what we do is system one and the principles

Speaker:

speak directly to system one.

Speaker:

Okay, not that there's anything wrong with system two.

Speaker:

That's just not what we normally do.

Speaker:

So why not go with the part of the brain that's exercised most system one.

Speaker:

So his works are iconic but I'm often asked now that I have

Speaker:

the name in my credentials.

Speaker:

How do we use these things?

Speaker:

Yeah, we know there are, there were six and now there are seven.

Speaker:

How do we use these?

Speaker:

Oh, I did also meet one of them in Phoenix, a gentleman by the name of Dr.

Speaker:

Gregory Neidert.

Speaker:

He was a very close, and still is, a very close colleague of Chalbeny's.

Speaker:

And Neidert created what he calls the Core Motives Model.

Speaker:

Now, what the heck is that?

Speaker:

He wanted to define the seven principles and where they can

Speaker:

be used the most effectively.

Speaker:

Not all seven principles should be used in every situation.

Speaker:

If you use the wrong principle of influence in a certain situation that's

Speaker:

not appropriate, it's not going to work.

Speaker:

And then you're going to throw it all out and say this crap doesn't work.

Speaker:

That's why Neider created this is to say there are times when each of the

Speaker:

seven principles Can't play a role.

Speaker:

Okay, so he divided it into three.

Speaker:

Different tasks, if you will, the number one task, how do we cultivate or begin

Speaker:

a relationship and fails, how do we.

Speaker:

Bring on a new client.

Speaker:

How do we meet people?

Speaker:

How do we cultivate that, that new fresh relationship in sales?

Speaker:

Number two, how do you reduce uncertainty about you or your company or your product?

Speaker:

Okay.

Speaker:

So there are principles that apply to that.

Speaker:

And third, how do you motivate action?

Speaker:

How do you get somebody to, how do you get somebody to make a decision?

Speaker:

How do you get to close?

Speaker:

So depending on which you're in new relationship, remove

Speaker:

uncertainty or get action that.

Speaker:

Defines the principle of influence you should use.

Speaker:

THIS IS THE NEXT EPISODE.

Speaker:

Ecamm Live Recording on 2023-10-26 at 13.34.32: So let's break that down a little bit.

Speaker:

There are three principles that are most helpful.

Speaker:

Okay.

Speaker:

When you're trying to build a new relationship, let's take First,

Speaker:

unity involves the blurring of the boundaries between ourselves and others.

Speaker:

It's creating a sense of we ness, a sense of belonging, a shared background.

Speaker:

Think of your college.

Speaker:

Think of perhaps a church that you're affiliated with.

Speaker:

Think of a club or a group that you belong to.

Speaker:

Think of that we ness.

Speaker:

I'm, I, for one, I'm a Miami Dolphins fan through and through.

Speaker:

I've lived through some tough years.

Speaker:

This year, Look better.

Speaker:

So I have a weenus with people who wear the aqua and orange when

Speaker:

I see that I say that's my tribe.

Speaker:

Those are my people.

Speaker:

There's some confusing confusion.

Speaker:

I'm sorry about that.

Speaker:

The principle of unity.

Speaker:

It's often confused liking the principle of liking.

Speaker:

We'll talk about that as well.

Speaker:

But liking is saying yes to people who are similar to us, similar people.

Speaker:

We like to cooperate and say yes to people like us.

Speaker:

Unity is about saying yes to people who belong to the same group as us.

Speaker:

Maybe they live in our neighborhood.

Speaker:

Maybe we play tennis with them.

Speaker:

That's a very powerful.

Speaker:

An easy yes.

Speaker:

When we are appealing to a group that we belong to in common.

Speaker:

There's also some confusion with unity and social proof.

Speaker:

Social proof will talk about well as well.

Speaker:

That says that we will say yes to a request based on the actions of others.

Speaker:

We look to others to get a clue of how to act.

Speaker:

And Unity says yes again because we belong to the same group or community.

Speaker:

So they're similar but yet different.

Speaker:

Have you ever heard of a guy, named Ponzi?

Speaker:

You probably have.

Speaker:

It's usually in reference to a Ponzi scheme.

Speaker:

Have you heard of a Ponzi scheme?

Speaker:

This guy was really named Ponzi.

Speaker:

There was a real Ponzi and he's an, he was an Italian immigrant to the

Speaker:

United States, and he will forever be known by the bad stuff that he did.

Speaker:

He created a Ponzi scheme, which is a pyramid game where he promised high

Speaker:

returns on investment, except the problem, he was paying those high

Speaker:

returns from the next guy's money and the next guy's money, the pyramid scheme.

Speaker:

And of course he got caught and he got, went in jail.

Speaker:

Okay.

Speaker:

But how did he recruit these people?

Speaker:

Because they were from the same ethnic group.

Speaker:

He recruited other Italian immigrants.

Speaker:

They're going to say, Oh, he's one of us.

Speaker:

I can trust him.

Speaker:

Yeah.

Speaker:

Trusted him right to the poor house.

Speaker:

Okay.

Speaker:

Able to carry it out by appealing to their heredity.

Speaker:

We're in the same group.

Speaker:

We're in this all together.

Speaker:

We're all immigrants, the same background.

Speaker:

Oh, There was a recent case here in the U.

Speaker:

S., we won't mention the name, but you probably know it was

Speaker:

a very similar situation.

Speaker:

Okay, what's the second?

Speaker:

And again, let me be clear, that is an unethical use of the Principle of Unity.

Speaker:

We all care about ethical, but we use that to describe it, showing you How it

Speaker:

works, but that is not the proper use of unity or of any of the principles.

Speaker:

Let's jump to reciprocity.

Speaker:

Everybody's heard of that.

Speaker:

Everybody thinks, okay, I know what that is.

Speaker:

I give you something.

Speaker:

Therefore, give me something.

Speaker:

Not exactly.

Speaker:

Yeah, close, but not exactly.

Speaker:

When considering that gift, there are two things that you think about.

Speaker:

Is the gift significant and is it unexpected?

Speaker:

Okay.

Speaker:

Reciprocity works best when it's a significant gift that's unexpected.

Speaker:

Those are the two amplifiers of reciprocity.

Speaker:

So what is the effectiveness of reciprocity?

Speaker:

Always give first.

Speaker:

Don't wait for somebody else to give.

Speaker:

You give first.

Speaker:

That's how we exercise reciprocity.

Speaker:

Also, another mistake that's often made is everybody thinks

Speaker:

it has to be something you pay.

Speaker:

It's something.

Speaker:

Most reciprocity is intangible.

Speaker:

It's intangible.

Speaker:

You can give your attention.

Speaker:

You can listen to somebody.

Speaker:

You can give information.

Speaker:

You can share information.

Speaker:

You can give someone your trust.

Speaker:

You can give someone advice.

Speaker:

You can do favors.

Speaker:

Those are somewhat intangible.

Speaker:

And yet, we don't claim those.

Speaker:

So here's a pro tip.

Speaker:

In sales conversations, time is There are many intangible

Speaker:

gifts that we give out of habit.

Speaker:

Of course, we fail to claim them.

Speaker:

It's not perceived as a gift unless we claim it.

Speaker:

We bring it to awareness.

Speaker:

So what, are some of them?

Speaker:

Hey thank you, sir.

Speaker:

I've spent my time and I've listened to you carefully.

Speaker:

I've gotten a bunch of good information and good needs from you.

Speaker:

I've learned a lot from you and now it's time for me to go back and put

Speaker:

together some custom options for you.

Speaker:

And give you my best advice right in that sentence there's about four

Speaker:

intangible gifts to activate reciprocity.

Speaker:

Okay, let's jump to the principle of liking the third principle that works on

Speaker:

building relationships we tend to like people who are similar to us gee whiz.

Speaker:

Yeah, think about that.

Speaker:

So true.

Speaker:

By the way, even small similarities count.

Speaker:

They did, a study of people with the same name or even a derivative of

Speaker:

your name and they did a direct mail campaign and they got more response.

Speaker:

If the person sending the direct mail was John Smith and they were sending

Speaker:

it to someone by the name of Johnson or anything derivative of John, guess what?

Speaker:

Yeah, the donations went up.

Speaker:

That's a tiny little insignificant similarity, but it moves up the

Speaker:

response to the direct mail piece.

Speaker:

So what's the idea here?

Speaker:

Become more interested than interesting.

Speaker:

That sounds weird, doesn't it?

Speaker:

Yeah, become more interested in the other person before you become interesting.

Speaker:

Prioritize listening before talking.

Speaker:

Listen before talking.

Speaker:

That's a hard one for most of us, isn't it?

Speaker:

And do your homework to find out.

Speaker:

Some similarities.

Speaker:

Okay.

Speaker:

Homework is back when I started selling the dark ages, it was hard.

Speaker:

Now you make two or three keystrokes and you can have a whole list

Speaker:

of things that could be similar interests and organizations

Speaker:

that you share with that person.

Speaker:

Here's another intriguing study by K.

Speaker:

P.

Speaker:

M.

Speaker:

That's a big, financial services company.

Speaker:

They wanted to know how the relationships between their account managers, their

Speaker:

sales, basically sales guys, and their clients using a very complex

Speaker:

algorithm that they've developed, they categories, categorize the

Speaker:

relationships as either weak, average, or strong, weak, average, or strong.

Speaker:

Okay.

Speaker:

They're trying to find out if the quality of the relationship had

Speaker:

anything to do, any correlation with the acceptance of proposal.

Speaker:

And the club of financial services deals.

Speaker:

Remarkable.

Speaker:

The results were remarkable.

Speaker:

Weak relationships, maybe 30 percent acceptance.

Speaker:

Okay.

Speaker:

Average relationship jumped by 15 percentage points up to 45%.

Speaker:

However, the strong relationship, are you ready?

Speaker:

70 percent more than double that of a weak relationship.

Speaker:

Wow.

Speaker:

So The message, build rapport, make a connection before diving into business.

Speaker:

Okay.

Speaker:

Maybe 10 or 15 minutes.

Speaker:

Again, be interested before you're in.

Speaker:

Are you willing to invest 10, 15 minutes to possibly double their closure rate?

Speaker:

How about that?

Speaker:

Okay.

Speaker:

Next one.

Speaker:

How to reduce uncertainty.

Speaker:

We've already talked about trying to get the relationship.

Speaker:

Now we've got the relationship, but there's some uncertainty.

Speaker:

The principle of authority.

Speaker:

We rely on surface level cues such as title, uniform, dress, type of dress,

Speaker:

type of car, type of house, articles published initials behind your name.

Speaker:

We rely on that surface level cue to decide who is an authority.

Speaker:

I did a personal experiment years ago.

Speaker:

I was playing with this and I was speaking to a group of about 25 people.

Speaker:

It was a planned speech and I decided to try an experiment.

Speaker:

For this speech, it had nothing to do with the principles of influence,

Speaker:

but I wanted to try something.

Speaker:

I donned the attire.

Speaker:

Of what would appear to be a maintenance man.

Speaker:

Okay.

Speaker:

I had a hard hat on.

Speaker:

I had a working vest.

Speaker:

I had a tool belt.

Speaker:

I had a credentials around my neck.

Speaker:

I had my tool.

Speaker:

I dressed up to appear to be a maintenance man for the hotel.

Speaker:

This man was in a hotel and the people who were attending this

Speaker:

were People staying at that hotel.

Speaker:

So they didn't know me.

Speaker:

So I came in and said, Hey here I am.

Speaker:

Let's say that I came up to your room number and I knocked on the door.

Speaker:

And I said, Hey, I'm here.

Speaker:

There's a problem with your electrical system in this room and I've been sent

Speaker:

up here to fix it so that it doesn't cause a fire or cause a big problem.

Speaker:

And I said, how many of you based on what what I look like and, what I said

Speaker:

would have let me from almost a hundred percent, almost a hundred percent.

Speaker:

And I was a total fraud.

Speaker:

Okay.

Speaker:

Total phony.

Speaker:

Okay.

Speaker:

That's scary, isn't it?

Speaker:

But not, unusual.

Speaker:

Here's another one.

Speaker:

This one's crazy.

Speaker:

There were some nurses who received a phone call.

Speaker:

They were working in the hospital.

Speaker:

They got a phone call and it said, give this specific

Speaker:

medication to a certain patient.

Speaker:

It was against policy of course, to do that over the phone, to

Speaker:

take instructions over the phone.

Speaker:

It was not approved for use.

Speaker:

And if they had administered the dose that was recommended by the

Speaker:

caller, Double the daily maximum dose.

Speaker:

The phone call was from someone they had never met, but they identified as Dr.

Speaker:

So and and guess what?

Speaker:

95 percent of the nurses prepared to administer it, even though it

Speaker:

violated third major policies, however, they were stopped.

Speaker:

They didn't do it.

Speaker:

This was an experiment.

Speaker:

But they were prepared to do it.

Speaker:

Wow.

Speaker:

How could this happen?

Speaker:

It's blind obedience to the title.

Speaker:

The voice on the phone said they were a doctor.

Speaker:

They sounded right.

Speaker:

It, they sounded like a doctor.

Speaker:

They gave their name and they told, they mentioned the name of the patient.

Speaker:

So they had a lot of information that only the doctor could have.

Speaker:

But they're used to following instructions and directions from a doctor.

Speaker:

Wow.

Speaker:

System one.

Speaker:

Takes control.

Speaker:

So in our sales efforts, who holds authority in the eyes of your audience?

Speaker:

If 10, 000 people said that Dennis Collins is the greatest

Speaker:

sales trainer in the world.

Speaker:

Okay.

Speaker:

However, if sales guru, author, speaker, Jeff Blum says, Dennis

Speaker:

Collins is the greatest sales trainer, who would you believe?

Speaker:

The 10, 000 people or the sales guru?

Speaker:

That's easy.

Speaker:

Which one is more persuasive?

Speaker:

Social proof.

Speaker:

Next one.

Speaker:

When we are trying to reduce uncertainty, you've got a customer

Speaker:

who just, they're on the fence.

Speaker:

I don't know.

Speaker:

Guess what?

Speaker:

You're in luck.

Speaker:

People decide what to do based on what other people do.

Speaker:

Okay.

Speaker:

I'll give you an example.

Speaker:

Have you ever gone online to book something on orbits or booking.

Speaker:

com or whatever some of these are, and notice they've started doing

Speaker:

this years ago, but I really notice it more now, X number of people are

Speaker:

looking at this same hotel or at the same air flight right now, and.

Speaker:

Only two left at this price or today we have booked 1000 people

Speaker:

in this hotel in the past day.

Speaker:

Wow.

Speaker:

Social proof.

Speaker:

Dessert sales at McDonald's.

Speaker:

Cialdini's people did a study.

Speaker:

McDonald's wasn't selling enough desserts in one particular location.

Speaker:

So they asked Cialdini, Hey, what can we do?

Speaker:

What principle can we use?

Speaker:

Person on the intercom when you pull up to the drive thru, making, what

Speaker:

do they order their hamburger, their French fries, blah, blah, blah.

Speaker:

Okay.

Speaker:

Hey, would you like a dessert today?

Speaker:

And those people said, no, not today.

Speaker:

They added a line.

Speaker:

Hey, could we interest you in the dessert today?

Speaker:

Our most popular dessert is the XXX.

Speaker:

I forget what it was.

Speaker:

Guess what?

Speaker:

Just adding those few words, social proof, people are buying this.

Speaker:

It's our most, and it wasn't a lie.

Speaker:

It's our most popular choice.

Speaker:

Doubled and tripled sales of dessert.

Speaker:

Making a few changes in words.

Speaker:

What can you change in your approach in sales pitch?

Speaker:

What can you change?

Speaker:

So social proof and authority.

Speaker:

That's how we try to reduce uncertainty.

Speaker:

Okay.

Speaker:

And now we're down to.

Speaker:

Motivating action.

Speaker:

How do we motivate action?

Speaker:

We're down to consistency.

Speaker:

Okay, we human beings are interesting species.

Speaker:

We want to avoid what's called cognitive dissonance.

Speaker:

That's the experience that we have when we make a statement and Are not true to that

Speaker:

statement when we stake out a position.

Speaker:

It's important to note that we must be mentally consistent with Things we have

Speaker:

publicly said that's why in sales we get what's called micro commitments.

Speaker:

So maybe we have Seven or eight micro commitments during sale.

Speaker:

Why do we do that so that the customer is consistent with their?

Speaker:

Commitment to make a purchase.

Speaker:

We ask the micro commitments in an effort to get a series of commitments

Speaker:

that they might be true to.

Speaker:

So we act in a manner consistent with what we have previously committed to.

Speaker:

The more public the commitment, the better this principle works.

Speaker:

I'll give you an example.

Speaker:

There was a restaurant, a popular restaurant in Chicago.

Speaker:

I don't remember the name.

Speaker:

I think the guy's name was Gordon, last name Gordon, but I don't remember

Speaker:

the exact name of it, but he was having a problem with no shows.

Speaker:

He was a very high end restaurant.

Speaker:

And of course, if he had a limited number of seats, no show was.

Speaker:

A big problem for him.

Speaker:

And people weren't letting him know.

Speaker:

So his people were on the phone with the reservation came in.

Speaker:

Hey, I'd like to make a reservation or next Saturday for people at 8 p.

Speaker:

m.

Speaker:

And the receptionist would say certainly we have availability.

Speaker:

Your reservation is confirmed at Saturday, 8 p.

Speaker:

m.

Speaker:

Please call if you if you have to cancel call, if you

Speaker:

have to cancel and discussion.

Speaker:

Okay.

Speaker:

He was getting 30 percent no shows.

Speaker:

He said, I got to fix this.

Speaker:

So he went to Chaldini, said, how can we do this?

Speaker:

So Chaldini looked at this and he said, all you have to do is add two words.

Speaker:

Yeah.

Speaker:

What are those two words?

Speaker:

Will you put, will you please call if you need to change or cancel your reservation?

Speaker:

Will you please call?

Speaker:

And the answer was everyone said, yes.

Speaker:

Guess what?

Speaker:

You got it.

Speaker:

They made a commitment to call small.

Speaker:

It doesn't have to be signing your life away.

Speaker:

It can be that small of a commitment.

Speaker:

They made a commitment to call.

Speaker:

They reduced no shows from 30 percent to just 10%.

Speaker:

The transformation occurred because he gained an active

Speaker:

commitment from his customers.

Speaker:

Last but not least, our principle of scarcity.

Speaker:

Now, this is the one, in my opinion, that's usually misused.

Speaker:

Okay.

Speaker:

Limited time.

Speaker:

Only last one in stock.

Speaker:

Act today.

Speaker:

The price goes away.

Speaker:

Now I'm not saying those aren't true, but they sound very unethical

Speaker:

and manipulative and most of us who are hit with that rejected.

Speaker:

So the principle of scarcity, though, is very powerful when it's used ethically.

Speaker:

The principle that I like the most is scarce information.

Speaker:

Okay?

Speaker:

It doesn't just have to be scarce.

Speaker:

Commodities.

Speaker:

Let's say you have information that is very hard to come by.

Speaker:

A database that you set up you have some kind of secret network that gets you

Speaker:

information that most people don't have.

Speaker:

Okay.

Speaker:

Let's say you have that.

Speaker:

How can you leverage that with customers?

Speaker:

If you have a proprietary database that can't be reached anywhere else, bingo.

Speaker:

But you can't say that you've got to use that.

Speaker:

Okay.

Speaker:

We happen to have information that's proprietary and scarce.

Speaker:

It's not available to everybody, but we make it available to our customers.

Speaker:

Okay.

Speaker:

As a VIP customer, you would have access to that.

Speaker:

No one else has that.

Speaker:

Ooh.

Speaker:

So I'd love the whole scarce information concept, not just some obviously

Speaker:

something that is in short supply, Okay.

Speaker:

It's scarce.

Speaker:

That's obvious.

Speaker:

But what's not so obvious is sometimes we have information or we know

Speaker:

something or we have a methodology.

Speaker:

We have a way of doing business that we and only we do.

Speaker:

That's scarcity, too.

Speaker:

So that's the one that's usually forgotten.

Speaker:

So scarcity.

Speaker:

Consistency.

Speaker:

Those two principles are you motivate that.

Speaker:

That's a very quick run through.

Speaker:

of using my core motives model to say, okay, when do we use this?

Speaker:

I know some of you may want more on this and I will give more.

Speaker:

I will try to take one of these episodes and we'll focus on just

Speaker:

one of the principles of influence.

Speaker:

How would that be?

Speaker:

Okay.

Speaker:

Hope this was helpful.

Speaker:

It's Dennis Connect & Convert until next time.