Decision Making And How We Actually Make Decisions

Multiple Choice Decision MakingDecision-making —  how do we actually do it? Most perceive it as an exercise in analyzing and logically approaching problems, and in some respects, that is true. However, the fact is, there is a lot of science behind the process we go through.

For many in business, it has been thought that marketing your product was a psychological game, and as such, for many years people marketed their products based upon the selling of an idea. Just give ’em more information and they will eventually buy, right?

What we have found out, however, is that people do not make their decisions based upon what they know. In fact, if you give them too much information, they won’t be able to make a decision and your sale will fail because the buyer will go into “choice paralysis” and not be confident about their decision. 

What is choice paralysis?

Have you ever been shopping in a store only to approach a sample table and on that table is a sample of jellies? There’s a very definite scientific methodology about the way that they display these jellies. Notice they never give you a choice of more than three or four if they want you to actually choose your favourite. This is because, over the number of three, the typical human will have “Choice Paralysis”

Choice paralysis in Decision MakingAlso known as over choice, choice paralysis, or the paradox of choice describes how people get overwhelmed when they are presented with a large number of options to choose from. While we tend to assume that more choice is a good thing, in many cases, research has shown that we have a harder time choosing from a larger array of options.

So decision making works how, again?

It’s important to understand that all decisions involve emotions. In fact, every decision that you make is about your emotions. You can use certain words to make people feel confident within their decisions, however, it will always boil down to emotions.  In this way, it’s a bad idea to provide more than four options to choose from with anything that you do.

Emotions In Decision MakingDecisions are not made from an informational or rational point of view.

We’d like to think that we are rational and logical animals and that when we make a decision we carefully weigh all the options. However, research has shown that the truth behind it all is actually counterintuitive. There are literally hundreds of decisions that we make every day, and while the information that we possess does influence those decisions, 100% of those decisions are based upon the feeling that we get from the knowledge that we understand and how that understanding makes us feel a certain way.

Most of our decision-making is unconscious.

Neurological research shows that activity while making a decision, researchers were able to predict what choice people make 7 to 10 seconds before they themselves are even aware of having made a decision. STUDY SOURCE: Unconscious determinants of free decisions in the human brain. Nature neuroscience.

“Do you write your messaging and content to appeal to logical thinking? If so, it’s possible and even probable that your logical, persuasive arguments to your target audience about why they should go with the premium service or why they should purchase a particular product may be in vain.” ~ Susan Weinschenk, Ph. D.

Is there ever a time that our decision-making is making “rational decisions”?

The short answer is no. If you can’t feel emotions, then you can’t make decisions. This is largely thanks to our Ventromedial Prefrontal Cortex… we’ll just call it the “VPC” for now, but science calls it the vmPFC.

Essentially, in the front of your brain lies the prefrontal cortex and within that is the VPC. It’s important in regulating fear, while other parts of your brain — specifically the amygdala — tells you when you should be afraid and what you should be afraid of. So if you’ve ever heard the term “fight or flight” that is a direct reference to the functions of your amygdala. 

This is all within the limbic system, a collection of regions of the brain that specifically regulate emotions. And people decide when they feel varying emotions. They buy when they feel confident and do not buy when they don’t.

The science behind decision making.

According to researchers, there is a neuron that fires in the brain that triggers people to take action. Then the brain decides whether it is a confident action or not. This subjectivity is not based on the amount of information you have, it is based on a feeling you have… in this case, “confidence” or “no confidence”.

So, in business sales, if you want people to take positive action and buy what you are selling, you must be able to make them feel confident.

What Decision Making Looks Like

So is the information you know weighing heavier in the influence of a decision?

The answer is yes. In business sales, there’s an old adage that says only give more information to people if they’re making a goal-based decision. And while all decisions are made from our emotions, there are surely different levels that this takes place. 

As an example, some decisions are made in the Orbital Frontal Cortex or OFC, so during the times that you are looking for solving a goal-based decision or value-based decisions, your heavy emotional decision making has mostly been done; all you were deciding upon now some of the more habitual details e.g. you like white better than black, or foods with less salt, etc. 

So in closing…

People liked having more choices to choose from but they were more satisfied with their choice when there was less to choose from. Silly humans, let’s have a chat.

Emotional Selling and Why It Works

If you are new to sales & marketing or even someone with some experience under your belt, emotional selling is much more prevalent than you have likely ever realized.

Emotional Selling and ApopheniaIn fact, the more you learn about emotional selling, the more you will discover that this is a lighter form of apophenia, a condition where one has the spontaneous perception of connections and meaningfulness of unrelated phenomena… kinda like owning a Volkswagon Beatle and then seeing them everywhere. Now you perceive like you are part of a club and this is the way many successful items and services are sold & marketed.

All decisions are based on emotional selling hooks.

So, in an effort to not make this a “how to take advantage of cognitive biases to make people want what you’re selling” post,  I had to examine my own language in this blog. This is NOT about manipulating your audience.

People are extremely emotional with their cognitive biases.

What is Cognitive Bias? Common in psychology, the term cognitive bias refers to an error in reasoning that causes us to deviate from good judgment and make illogical decisions. If you’re responsible for selling, you’re responsible for understanding people – so you should try to learn about cognitive bias and use it to your advantage. Again, this is NOT about manipulating your audience.

Emotional Selling EffectivenessOur irrational behaviours are not random. If consumer behaviour is predictable, then success in sales comes down to understanding emotional selling and communicating accordingly.

You can’t control the final outcome, but you can influence your prospect’s decisions with confidence. We may feel like we’re making logical and rational decisions, but so many influences subconsciously affect our emotions and steer our judgment.

DISCLAIMER: With this knowledge, comes a responsibility — use it wisely (cue Star Wars theme). There is a big difference between persuading someone to buy your solution and manipulating or misleading them. You are also susceptible to these biases so imagine the situation in reverse. Treat this tactic as an ethical influence. Use it to try and overcome objections, but remember that if you convince someone to buy something they end up not finding valuable, the negative customer experience could have a nasty impact on your business!

Emotional Selling - The Anchor EffectThe anchoring effect of emotional selling

Don’t you love it when you go to book a holiday and the booking site has suddenly displayed a price drop? The cost is still high, but it’s half the price it was before. That’s surely reason enough to justify handing over your credit card, right?

This is the anchor effect and we have all fallen victim to it at one point or another. In fact, 100% of our decisions are based on our emotions — the interesting part is that this is not psychological, but biological.

Us humans are more emotional than we like to admit and rely heavily on the information we’re given. However, that ten turns into an emotional response and we intuitively use that information as a base for how we feel about subsequent decisions that we need to make, e.g. buying or acquiring something.

Emotional Selling Buyers DecisionsIn fact, the very first thing you say matters in emotional selling. So, whether your first point of communication involves a call or email, you should always, carefully, plan out how you want to introduce yourself and make sure the first piece of info your prospect receives about your product sets a positive tone for the rest of the conversation.

  • Play to this bias by unveiling the price of your solution in stages.
  • If you are offering a discount, start with the full price and follow with the discount cost.
  • Alternatively, demonstrate a price comparison by referencing a competitor price that’s higher.
  • When your prospect sees the second price, they’re more likely to view it favourably as they still have the initial quote in mind.
  • Strengthen your case by sharing testimonials that show how customers have earned or saved far more than they paid for your solution.

The Ambiguity Effect

Imagine you had the choice between two routes to reach your destination. You’ve travelled the first route often and you’re familiar with the roads. You can plan your time of arrival down to the second. You have never taken the second route before. The roads could be bumpy, traffic could be bad. You can’t guarantee you’ll reach your destination on time.

Which route are you more likely to take? Most people are risk-averse and will opt for route one. This is called the ambiguity effect and it causes people to lean towards the familiar and avoid options that are unknown. It also causes people to shy away from making decisions if they don’t fully understand what’s involved or what the results will be.

Knowledge Is Not PowerSo, before you reach out to your prospect

Emotional selling requires that you make sure to anticipate any knowledge gaps. Having the relevant information available to hand over when your prospect has questions is key to conquering this bias.

  • Don’t overload your prospect with information on your first email or call – focus on the highlights and simplify what you are offering.
  • Try to gauge the existing knowledge of your prospect. Don’t use jargon, acronyms or technical terms, especially if they don’t fully understand what you are selling. It will scare potential buyers away.
  • Focus on results and clearly inform your prospect of what they can expect. Include case studies to share concrete examples of customer results.
  • Do your research on your prospect to help anticipate questions or objections. Smart contact data allows you to find valuable insights quickly to prequalify your leads. This allows you to store key information so you can have it on hand when contacting your prospect.

The bandwagon effect of emotional selling

From Beanie Babies to Bitcoin, at some point in our lives, we have all fallen victim to the bandwagon effect. You might also know this bias as a social influence or social proof.  As an example, the cool kids on Instagram have a new career path because of the human urge to compare ourselves with a peer and aspire to their position.

The Bandwagon Effect

As such, it goes without saying that social influence can have a profound impact on how people make decisions. We like to think that we’re strong enough to resist letting others influence our decisions. But whether we like to admit it or not, we tend to trust something a lot more if we know it’s already popular with others.

  • Talk about your customers.
  • If your first point of contact is on a call, leverage social influence by referencing other customers in your conversation, for example: “Most of our clients use X to achieve Y”.
  • If you are reaching out to your prospect via email, include case studies that demonstrate how your prospect’s peers are using your offering. Don’t be afraid to show your prospect what their competition is doing.
  • Why not run a split test to see which customer stories are most effective to create interest and close deals.
  • Social proof is powerful – when you hit a customer milestone, broadcast it on social channels, your email newsletters and whenever you can drop it into the conversation!

The halo effect of emotional selling — first impressions matter.

Nicholas Boothman claims when you meet someone, you only have 90 seconds to make an impression. If you don’t spark a connection within that time, it’s highly unlikely that you’ll ever trigger their interest, and the timing is critical. If your prospect likes you, they are more likely to have positive associations with your business and product.

Emotional Selling - Do First Impressions Matter?

The opposite is also true, so it’s important to set a positive tone from the very beginning of any relationship or customer conversation (on email, over a call, and in a face-to-face meeting).

  • Pay attention to your facial expressions, eyes and body language. It’s essential for all three to convey a sense of warmth and openness.
  • Position your body with your heart facing towards your prospect and avoid crossing your arms.
  • Don’t be afraid to make eye contact – it is an effective way to gain trust.
  • Smile! It shows that you’re enthusiastic. Like yawning, it’s infectious so it won’t be long before your prospect is smiling back.
  • Make sure your voice, body language and expressions match. Lack of consistency can make you appear ingenuine and compromise your credibility.
  • Mirroring your prospects’ mannerisms also brings synchronicity into the conversation. As human beings, we do this quite naturally and it helps to build rapport. This can include posture, the volume of speech and facial expressions. A mismatch in communication styles can destroy a deal. If your prospect is particularly softly-spoken, loudness certainly won’t work in your favour! Focus on what you want to get out of your conversation. Ask the right questions and actively listen. Truly understanding your prospect and where you can bring value is key to building a genuine connection.
  • You can also use this to your advantage when pitching your solution. Focus your pitch on your best skill or product benefit first – then let the Halo Effect shine onto your other products and services too.

The Ikea Effect in SalesThe Ikea effect of emotional selling

Have you ever assembled a shelving unit by hand? It may be a little wonky, however, I bet it means a lot more to you than the superior antique shelf that you had delivered. The pride you feel in your creation is described by the IKEA effect! People value something significantly more if they feel they have played a role in building it (regardless of the result).

Work with your prospect to customize your solution to cater to their specific needs.

  • Make them feel like they have a hand in shaping the solution. Offer them a free trial and ask for feedback.
  • This can also work nicely when it comes to customer retention.
  • Get your customers involved in BETA trials for new products. It makes your customers feel important and shows you value their opinion. In return, you receive valuable feedback to enhance and refine your offering.

Emotional Selling and the Sunk Cost FallacyThe sunk-cost fallacy

We instinctively want to finish what we start. We are often irrationally, committed to finish and stick it out when we have already invested time, energy or money into it. Think about a game of monopoly that goes on for hours and hours. Everyone’s starting to get tired and there is no end in sight, but you feel like you have to keep playing. Otherwise, it all would have been for nothing, right?

  • Encourage your prospect to agree to small commitments. This is similar to the IKEA Effect – you want your prospect to get involved.
  • Send questions for your potential buyer to consider before your next meeting. This is also a useful technique to frame how your prospect thinks about your offering.
  • Email some reading materials and useful resources to your prospect. This not only works to increase commitment but shows that you are helpful and want to add value.
  • If your prospect has cooperated with the requests so far, it’s likely that they’re interested in your solution. Why not offer a free trial to dial up the commitment levels?
  • This also plays nicely into the Hyperbolic Discounting Effect (yes it’s a real thing!) – we are more attracted to immediate wins, than long-term rewards. Delayed payment terms are an effective way to satisfy your prospect’s desire for an instant pay-off.

Use cognitive bias to create urgency and increase your conversion rate

Research shows that if you know your prospect before you reach out, your chance of a deeper connection is 200-300% greater! Match prospects against lookalike customers to anticipate any possible objections, challenges and preconceptions.

Are you ready for a one-on-one copy-boarding session to identify your emotional selling points? It is currently only $95.; schedule now.

To help your cognitive biased copy, actively listen and ask open questions and give your prospect the opportunity to express their opinions and needs. Active listening establishes rapport. Try to truly understand your prospect’s values, pain points, and wants, and most importantly, what they already believe.

First impressions matter

Carefully plan your opening line, how you want to present your solution, and how you present yourself. You need to be likable, confident, and positive immediately to build a strong connection.

Selling the problem you solve, not the product you haveEmotional selling focuses on the prospects’ needs and creates value

Focus on something your prospect really cares about, like a personal desire or individual career goal. Look at your solution from their perspective. Think about the person, not the business. What problem can you solve for them? How is your product or service going to make them more successful?

At the end of the day, when selling, you must remember, you’re not selling a product, you’re selling outcome.

“Sell the problem you solve, not the product you have.” ~ Mike Serulneck

Let’s have a complimentary discovery chat about your business.

 

Brand Colors – How To Pick Your Color Scheme

Picking Your Brand Colors
So you are at the stage of picking your brand’s colors or you have decided to rebrand your business. How do you go about picking the colors for your new brand?

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Regardless of whether you’ve decided to branch out from a company or are launching a game-changing new startup, understanding the impact of color on consumer behaviour will help solidify your brand become a success.

Remember, we buy emotionally and research shows that up to 85% of consumers believe color is the biggest motivator to choose a particular product, while 92% acknowledge visual appearance as the most persuasive marketing factor overall.

How Do People Respond to Brand Colors?

Every color elicits a different response from humans. Having a clear idea about what your brand’s goals are and how you want your target audience to feel will help you hone in on the most impressive colors to choose for your brand.

Colors can be divided into two main categories: warm and cool. Warm colors tend to be associated with energy, while cool colors are linked with calmness and security.

But how do each of the following colors affect us and what does that mean for your brand? Here’s an overview — courtesy of Marketo — of what differentiates each color and how your brand can pick the right mix of them.

Red

Red evokes a passionate and visceral response. It is a color that increases your heart rate, makes your breath faster, and is generally associated with energy, excitement, and passion. It’s one of the colors that is attention-grabbing, while it can also be provocative and excitable.

Color code: aggressive, energetic, provocative, attention-grabbing, passionate

Purple

Purple is a sophisticated yet mysterious color. It tends to be used with higher-end products due to its association with royalty and elegance. Purple’s mysterious element is also linked with spirituality, and it can bring a magical element to your branding.

Color code: royalty, sophistication, nostalgia, mystery, spirituality

Blue

Blue is the most popular color choice for the top brands. It is thought to put people at ease, as it reminds them of the sky and the ocean. Blue is also associated with trust, security, and confidence which make a great combination for the brands that want these elements in their message.

Color code: trustworthy, dependable, secure, responsible, confident

Green

Green is a color that is synonymous with calmness, safety, and freshness. Its various shades can create a unique brand identity for your company. Green tends to be associated with health along with the feelings of peace and serenity.

Color code: Wealth, health, prestige, serenity, generosity, safety

Yellow

Yellow is a popular color choice for brands that want to evoke a feeling of positivity in their identity. Its association with the sun on its different shadows brings out hope and optimism. Yellow also stands out among other colors, which makes a yellow brand identity creative and appealing.

Color code: positivity, light, warmth, motivation, creativity, happiness

Orange

Orange makes an ideal color choice for brands that want to blend the optimism and the brightness of yellow and the passion and the energy of red. It is a creative and cheerful color that evokes a friendly and adventurous feeling.

Color code: vitality, fun, playful, exuberant, outgoing

Brown

Brown represents the earthly simplicity and it is usually preferred to reflect stability and strength. It’s comforting in its simplicity and is preferred by brands that want to be classical and trustworthy, without proceeding to bold moves. Brown is associated with the earth and can also remind people of dirt, so there needs to be a careful use of it, especially if it stands out as the main color for a brand.

Color code: earth-like, natural, simplistic, durable, comforting

Black

Black is another popular color option for brands and it tends to be one of the most classic options. It’s both classic and sophisticated and it can make a brand identity stand out. It seems to work perfectly with luxury products, blending the classic and powerful elements. Black is one of the colors that can be combined with others to add a stronger emotion, without losing the classical appeal.

Color code: Prestige, value, timelessness, sophistication, power

White

White represents simplicity, purity, and also cleanliness. These three make it extremely popular in the healthcare sector, in the cleaning business, but also in the child-related businesses. White can also bring out a feeling of trust by tapping in to purity and simplicity.

Color code: pure, noble, clean, soft

So what is your choice? Need some additional guidance? I love chatting about this kinda stuff, so, for a 20-minute, at no cost chat, visit here!!

2019 Marketing Trends – The Top 7 You Must Know!!

2019 marketing trends show that in just the past 10-years, the marketing world has been flipped on its head.


Originally Published in the Visual Capitalist


“Spending on digital media surpassed television ads in 2017. Now global digital spend is anticipated to top $333 billion this year.

As a result, today’s entrepreneurs and small businesses are starting to think about marketing in almost exclusively digital terms. And to have a successful online strategy, it’s important to see the data on what tactics are actually working.

2019 Marketing Trends — Visualizing 100+ Marketing Stats

Today’s infographic comes to us from Serpwatch. Serpwatch highlights seven of the most important digital marketing trends to keep an eye on this year.

Along the way, it highlights over 100 useful marketing stats that help to reveal the strategies and tactics that maximize ROI in the online arena.” ~ 

2019 Marketing Trends - SEO 2019 Marketing Trends - Social Media

2019 Marketing Trends - Video Marketing
2019 Marketing Trends - Email Marketing2019 Marketing Trends - Paid Advertising2019 Marketing Trends

If you would like to visit website or have a chat, give me a call @ 1-888-502-3523, write to me here.

Claude C. Hopkins’ Quotes — Thoughts For 2018

“A salesman’s mistake may cost little. An advertiser’s mistake may cost a thousand times that much. Be more cautious, more exacting, therefore. A mediocre salesman may affect a small part of your trade. Mediocre advertising affects all of your trade.” ~ Claude C. Hopkins in Scientific Advertising

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