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.