<p>According to the latest findings from Sirius Decisions, Sales Benchmark Index, and many other respected researchers, an increasingly common outcome for even seemingly well-qualified sales opportunities is not a win, or a competitive loss, but a decision to “do nothing”.</p><p>If you’re involved in complex sales process, your most significant competitor is almost certainly not another vendor, but the status quo.</p><p>So, how do you get your potential buyer to do something and break the Status Quo?</p><p>People weigh up their decisions on what they will lose, not what they will win. Loss aversion is the tendency to prefer avoiding losses to acquiring equivalent gains. The principle is prominent in the domain of economics. Some studies have suggested that losses are twice as powerful, psychologically, as gains. Loss aversion was first identified by Amos Tversky and Daniel Kahneman.</p><p>Loss aversion implies that one who loses $100 will lose more satisfaction than the same person will gain satisfaction from a $100 windfall. In marketing, the use of trial periods and rebates tries to take advantage of the buyer’s tendency to value the good more after the buyer incorporates it in the status quo.</p><p>Now that you know that the fear of loss is more powerful than the gains, you need to show your prospect how much of doing nothing will cost them, as opposed to showing them the size of the prize. Hold their hand over the proverbial flame, keep them in their pain, show them the cost of doing nothing, and what it could cost them, the fear of losing their family, job or even their business. </p><p>Deliver what they want, and then help them with what they actually need.</p><p><strong> - Daniel Hardcastle</strong></p><p>Once you have them in their jail, then demonstrate that it does not have to be that way, show them a new way, deliver them their freedom, what they think they want, and how to get over that impossible wall. </p><p>Now focus on selling the solution, what they actually need!</p>
KR Expert - Daniel Hardcastle
Human insights are irreplaceable in business decision making. Businesses rely on Knowledge Ridge to access valuable insights from custom-vetted experts across diverse specialties and industries globally.
Our flagship service, phone consultations, enables you to get access to first-hand, grass-root level information from our global expert network to form or validate your hypothesis.