Archive for marketing

Building Vital Credibility with Prospects and Clients – Part One

Brian Williams

These days, credibility is often in short supply.  NBC’s Brian Williams’ standing with viewers took a big hit when it was revealed that, despite his earlier claim, the helicopter he was riding in didn’t take one from an RPG.  We have all become too accustomed to learning that something we’ve heard from someone we trusted just isn’t true.

Research by Duke University behavioral economist Dan Ariely found that many people are willing to fib for their own benefit– but just a little.  And when people we believe in tell us less than the whole truth, it’s not always an attempt to maliciously deceive.  An NBC staffer, responding to questions about Brian Williams, told The Washington Post, “He’s a

Warren Buffet 2great storyteller. But sometimes storytellers embellish.” But, as the Williams case illustrates, the habit of stretching the truth a bit too far can devastate your reputation. As legendary investor Warren Buffet put it,

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.

A good name as a trustworthy, expert professional is one of the most valuable assets you can have.

Years of research in persuasion psychology explained by eminent social psychologist Dr. Elliot Aronson reveals that to effectively persuade others, you must be viewed as both expert in the subject and trustworthy.   Salespeople, attorneys and marketers may know their facts, but unless their audience trusts them they will have a hard time winning over clients, consumers or juries.Presenting

People hear so many stories about swindlers and their scams that a straight shooter who knows what they’re talking about is truly refreshing.  People seek to do business with someone like that.  How can professionals – salespeople, marketers, and attorneys whose professions are sometimes viewed skeptically by the public – build and keep vital good reputations? And how can they assure that clients, juries and audiences recognize them as the credible sources they are?

The most important factor

AvisSocrates said, “The way to gain a good reputation is to endeavor to be what you desire to appear.” So, when DDB copywriter Paula Green came up with the iconic “We Try Harder” tagline for Avis Rent-a-Car, the agency explained to Avis executives that they had to live up to what they were telling consumers.  Avis employees really had to try harder and give customers what they wanted. They did.  Advertising Age relates:

It was a huge success for Avis. In a matter of a single year, that campaign reversed the company’s fortunes, helping it to go from losing $3.2 million to turning a profit of $1.2 million for the first time in 13 years.

 

Although this campaign is often cited as an example of great advertising, it is also a case study in the benefits of making consumers a promise – and then keeping it.  Making exaggerated claims for products and services is common.  It can result in short-term success.  But there are few better ways to ruin your good name than promising things you do not deliver.

Should you ever lie to clients?

No.  True, lying can help you make a sale.  But once your customer realizes that you’ve lied you will lose credibility, and they’ll often tell others.  Even if lying works in the short run, once the lie is discovered your ability to persuade will nosedive.  And if the falsehood was about something significant, you will lose a customer and may well make a vocal enemy.

1896 Toyota CorollaDeceiving people may injure them.  Years ago, during my 25 year sales career, I went to a well-known dealer and found what I thought was a great deal on a new car.  Left over from the previous model year, it had less than 80 miles on the odometer.  The salesman offered me a full 1/3 off the sticker price.  When he told me the car was brand new and had only been used as a demo, I asked, “Why are you giving me so much money off?” “We have to clear the lot for a new shipment,” he explained, “the boss said to do whatever it takes to sell these cars now.”

I bought that car because it had a great reliability rating, a full warranty and a terrific price.  It sounded too good to be true.  It was.  The manufacturer was dumping them.  Its high crash-test rating turned out to be for frontal impacts only.  My new car lacked reinforced doors, which a new Federal law mandated.  And when a speeding full-size SUV broadsided me, I quickly learned the truth.

My 1986 CorollaI suffered 6 broken bones and a ruptured spleen.  I nearly died in the emergency room.  And none of it had to happen.  If the salesman had told me the truth I would not have bought that car.  But, because his candor would have built trust and credibility, I would likely have bought another, more expensive model from him.  My injuries have healed, but as research predicted, my feelings about that dealership have not.

I have told many people, including their competitor, about my bad experience.

Manufacturing Credibility

Scientific research shows that even someone who has lost the trust of their audience can regain it.  Studies also reveal how to effectively deal with weaknesses in your product or argument, tell the truth, and still make the sale.  Watch for Part Two of this series.

Larry Rondeau’s marketing campaigns have achieved ROI of 16.5 to 1. The psychology-based sales techniques he teaches have improved sales closing rates by as much as 83%.  If you’d like to discuss an opportunity in marketing, sales, training or copy/content writing please email him at larryrondeau@gmail.com.

 

 

 

 

 

Rejection – the Road to Lasting Agreement?

No one likes rejectionunless they recognize that, used correctly, it can lead to agreements that stick.  Researchers like renowned influence expert Dr. Robert Cialdini found that this truth stood out in many controlled scientific studies.  One example was an experiment where Cialdini tried to encourage college students to volunteer to help troubled youth.

In this study, Dr. Cialdini wanted to see how to best get undergraduates to both Zoo-kidsagree and follow through to chaperone a group of troubled young people on a trip to the zoo.

  • A Direct Request group was straightforwardly asked to participate.  Only 17% agreed.
  • Testing the Rejection-then-Retreat technique, researchers requested that members of a second group agree to spend 2 hours/week every week for a minimum of 2 years acting as counselors for troubled youth. As expected, all refused.
  • As a concession, students in that group were told, “If you can’t help as counselors, we need chaperones for an upcoming trip to the zoo.”  Now 50% agreed, an increase of 294% over the group given a Direct Request.

How many actually showed up (and did not cancel or become a “no show” for the trip)?

  • Direct Request Group:                 50%
  • Rejection-then-Retreat Group:     85%

The Rejection-then-Retreat technique nearly tripled agreements and increased the participation rate by 70%.

Is this ethical?  

The Rejection-then-Retreat technique is derived from the Reciprocity Principle.This principle, which emerged from years of research, describes a fact of human nature.  It’s hard-wired into our brains. The ethics of using this principle hinge on how we use it.  It can be employed in ways that help others or take unfair advantage of them.  The choice is ours.  Those that want to enjoy the many benefits a good reputation brings will use the Reciprocity Principle in ways that work for the good of their customers, employees and community.

How Does it Work?

For the purpose of this discussion the key research-proven points on the Reciprocity Principle include:

  • People automatically feel obligated to repay in kind what others have given them
  • Recipients will often pay back more than they received
  • The need to reciprocate is universal, motivating the majority in every culture examined

Thus, in Dr. Cialdini’s experiment, when students in the Rejection-then-RetreatYes love group refused his large request they did something most people don’t like to do – they said NO.  This influence expert refers to occasions when others tell us NO as “Moments of Influence.”  When we have to say NO it makes most of us uncomfortable.  We look to relieve our “cognitive dissonance” by saying YES to something else.

As a result, when Cialdini or his assistant responded to their refusal with a smaller request, fully 50% of the Rejection-then-Retreat group agreed to it.  And since the researcher had made a concession to them, nearly all (85%) felt obligated to follow through and show up to chaperone the trip.

Application

Women-younger+olderAs a salesperson, do you seek to close more sales and reduce cancellations?  The Rejection-then-Retreat strategy may be the perfect way to accomplish these goals.

Rather than being quick to offer a price concession, persist in first showing prospects how your product provides excellent value.  Help customers see why your standard offer is a good one.  Consumer research shows that a higher price is considered a hallmark of a superior product.  Initially holding to it reinforces its value.

If prospects will not buy without a lower price then and only then offer to Women sales agreementsee if you can give them a discount.  If they agree to let you check, they will feel obligated to wait a reasonable time for you to return with an answer.  If you come back with a lower price, your willingness to compromise makes them feel obligated to make a concession of their own.  If you’ve established credibility along with good customer rapport and your discount seems reasonable, frequently the concession they make will be to accept your offer and buy.

Research has also found that the payback often exceeds the gift.  Thus, as Dr. Cialdini’s study found, not only will more people accept your lesser request, but more will feel obligated to follow through.

Salespeople, executives seeking cooperation and those recruiting volunteers to help good causes can benefit greatly from mastering the Rejection-then-Retreat technique.  If done ethically, asking people to agree to things that will truly benefit them and others, it can be a valuable tool that improves the lives of all involved.

 

 

 

Can Marketing and Sales be Ethical and Effective?

Rock & Hard PlaceMarketers often find themselves between a rock and a hard place. Clients require proof that every marketing activity they pay for increases sales. There are ever greater demands to produce tangible results. But consumers often look skeptically at advertising, assuming that marketers are “puffing their wares,” misleading them, invading their privacy or trapping them into paying for services they don’t really want. The actions of a few unethical advertisers have made life difficult for many.

Do they have to cheat to win?

This pressure to produce can make unethical practices seem like the only viable option. I worked for a short time after college at a company where lying was regarded as a magic bullet to increase sales.

Their sales manager said to me, “If you think you can make a living telling people the truth, you’re welcome to try. But I think you’re going to fall flat on your face.”

Was he right? Does success in business demand lying, cheating and tricking customers? Not at all. Within 3 months of starting that job I was one of the top salespeople in the office. I treated customers honestly and gave them a good deal. They, in turn, actively referred their friends and clients to me. Acting ethically made selling – and sleeping at night – easier, not harder.

The psychology of ethical marketing

As mentioned above, marketers face ever-growing pressure to produce results. As more and more advertisers flock to the web, ads are becoming more intrusive. Clutter makes it harder to get consumers’ attention. Some may feel a growing temptation to trick prospects with phantom offers or trap them into visiting websites they never intended to browse.

Deceptive adBut as discussed in “Marketing Works. But Could an Ill-Conceived Campaign Hurt your Business?” tricking consumers irritates them, attaching their anger to the product advertised. This is self-defeating and could actually result in the loss of market share. Social networking, monitored by the national media, makes it easy for negative stories about double-dealing companies to spread like wildfire. Cheating is a risk few advertisers can afford, because negative publicity can decimate a brand.

In contrast, providing helpful information creates good feelings which then become associated in consumers’ minds with the advertised product. Giving customers and prospects something they value produces another helpful effect that makes them want to do business with you.

Reciprocity Rules

One well proven social psychology principle is regarded as a universal moral law. Influence expert Dr. Robert Cialdini calls it the Reciprocity Principle. Research finds that people around the world feel an obligation to help those who have helped them. This can be both an ethical and extremely useful tool for marketers. Cialdini writes:

One of the reasons reciprocation can be used so effectively as a device for gaining another’s compliance is its power. The rule possesses awesome strength, often producing a yes response to a request that, except for an existing feeling of indebtedness, would have surely been refused.

One classic experiment found that people who liked an acquaintance selling raffle tickets were more likely to purchase them from him.  That was no surprise. But those for whom he bought a Coke purchased even more – whether they liked him or not.

Dove Positive_self_esteem

 

Thus, women and girls whose self-esteem has been raised by Dove’s Real Beauty campaign will feel gratitude, appreciation and a sense of indebtedness to the Dove brand. They will want to buy Dove soap to repay that debt. And if they like what this product does for their skin, they will probably remain customers for a long time.

 

A better way

Social psychologists have spent seventy years researching what attracts consumers, what repels them and what moves them to action. The ranks of scientists dedicated to the study of persuasion have included some of the most influential psychologists in history. The principles uncovered in their research have been tested in the same painstaking peer review process used for major discoveries in medicine.

A number of effective “tools of influence” that can help any product, service or cause succeed in the marketplace have been revealed. Basing marketing campaigns on the right established psychological principles can significantly increase response rates and have been proven to boost sales.

Dove SoapAnd, unlike underhanded tactics, well designed marketing campaigns using these principles strengthen brands and the companies they represent. Dove’s use of just one of them, Reciprocity, will help its line succeed into the foreseeable future. Finding the appropriate influence tool for a product and situation isn’t easy. But once found and properly used, it can bring the kind of ROI that makes clients and stockholders smile.

Behavioral marketing techniques have helped Larry Rondeau design marketing campaigns that have achieved ROI as high as 16.5 to 1.  Email him at larryrondeau@gmail.com.

 

 

Writing and Marketing to an Inattentive Audience

Distracted audienceBusiness writers and marketers alike navigate the same minefield – getting and holding attention.  They must both effectively communicate with audiences that often won’t give much thought to their messages. Why is it so hard to get people to really listen to what you say? What strategies can aid communication when much of the audience is barely paying attention?

Why attention is so hard to get

Researchers have long noted that some individuals, like Einstein, DaVinci and Galileo possess both a love of learning and the brain power to delve deeply into subjects. In contrast, many of us enjoy diving into a topic, but too soon find that we need to come up for air.  Why?

Einstein's brainWhat’s different about the genius mind? According to a National Public Radio report, the pathologist who examined Einstein’s brain after his death found it had an abnormally high number of glial cells. “Glia” means glue. Scientists now recognize that these cells, once thought to merely hold neurons together, actually provide power, speeding electrical impulses throughout the brain. They also re-energize neurons engaged in intense mental activity.

Thus, Einstein (and presumably other geniuses) have high-powered brains that can “refuel in flight,” allowing Refueling planesthem to persist in mental journeys when others are forced to turn back. Most of us lack this ability and live in power-saver mode, trying to get the most done with the least amount of mental energy. Researchers call this majority of the human race “cognitive misers.”

Marketing to cognitive misers

Consumers’ automatic attempts to make good decisions while conserving brain power requires marketers and merchandisers to make a number of adjustments. One effective method is Iyengar Jar Studyto limit their offerings. A marketing study by Columbia University professor Sheena Iyengar offered supermarket shoppers the chance to sample 6 different gourmet jams and receive a $1 off coupon. The result: 30% bought a jar. But when the offering was increased to 24 varieties, a mere 3% of shoppers made a purchase. It appears that the large selection made choosing too difficult, so few expended the mental energy needed to make a choice.

Thus, when discussing pricing strategies, marketing experts, J. Paul Peter and Jerry Olson wrote:

The cognitive activity involved in purchasing can be a very important cost…The cost involved in decision making is often the easiest one for consumers to reduce or eliminate.

Shoppers will reduce mental effort in surprising ways. A study of online insurance sites found that ease of use often trumped brand equity when it came to buying insurance on the web. Many prefer to effortlessly purchase policies from lesser-known regional carriers than struggle to obtain them from famous national insurers.

Social psychology’s Elaboration Likelihood Model (see Part Seven of this series) demonstrated that consumers and business buyers alike pay careful attention only to messages they find personally relevant. The takeaway? Accurate data and effective database marketing that shows consumers information they individually value can be crucial in advertising complex, high-involvement products.

Writers and advertisers beware

Hard to read adMost writers and marketers recognize the importance of images in drawing attention to ads and readers to blogs. However, eminent social psychologist Dr. Elliot Aronson and colleagues warn of the dangers of what legendary adman David Ogilvy called “art-directoritis.” In an effort to make their message attractive, designers and bloggers may set it in a quaint typeface, reverse type or amid a background of dramatic images.

Researchers find that while these tactics can gain attention, they actually make it difficult for readers to absorb the message. Cognitive misers, who make up the vast majority of their audiences, may never fully grasp their compelling arguments. The mental effort needed to examine hard-to-read text or even long paragraphs may prove daunting.

Making it work for skimmers and power-savers

It’s important for communication professionals and copywriters to perform the brainwork that most of their readers seek to avoid. They must simplify and clarify the message to the level that fits the needs of the target audiences. Even industry experts and academics will favor material that doesn’t waste their mental energy on needlessly technical or overly precise jargon and awkward sentence structure.

bleu cheese saladReaders appreciate similes, metaphors and illustrations that make complex concepts truly understandable and memorable. Those that merely sound good without actually aiding comprehension are like breadsticks and heavy salad dressings that fill up the diner before the entrée arrives.

Although it requires more effort, presenting effectively to readers’ and consumers’ power-saving brains reaps many rewards. Those that do it well gain attention, regular readers and customers. And if we choose to spend some mental energy to think about it, isn’t that what marketers and business writers really want?

Larry Rondeau is a marketing strategist and business writer seeking full-time employment, consulting opportunities or freelance writing work. Email him at larryrondeau@cox.net.

Marketing When No One Knows your Name – Part One

Brand XEveryone knows the advantages of brand strength and name recognition. Products supported by substantial advertising budgets virtually always perform better, even during tough economic times. Well-advertised brands have the ability to gain market share during recessions, as rivals cut back and lose ground.

Does a smaller marketing budget doom you to the back of the pack? Not necessarily. Consumer psychology research comes to the rescue, revealing effective ways to advance your brand or cause with the people who matter most.

Gaining Qualified Prospects’ Attention on the Web

Marketers whose products have substantial brand equity (strength and value) enjoy strong name recognition. People will readily find and interact with those brands on Facebook, Twitter and other sites. But who will buy or go looking on social media for a brand they hardly know? How can you gain attention – and market share?

Step One – Determine your Market’s Interest

Skilled advertising strategists and copywriters know how to manufacture a need. Listerine ad - bridesmaid Warner-Lambert did this in the 1920s, turning a surgical antiseptic called Listerine into a major consumer product.  Ads whipped up fears of social rejection because of bad breath with headlines like, “Even your best friend won’t tell you” and “Always a bridesmaid, never a bride.”  As supermarkets and drug stores across the world can attest, Warner-Lambert’s strategy was a remarkable success.

The Listerine example shows that if you’ve got time and a substantial marketing budget, creating a need for your product can pay dividends.  But if you don’t, it’s vital to determine what your audience already knows they want or need.  It’s much easier to fill an existing requirement than to convince someone they must have something they didn’t know they needed.

Free web tools that help you see what your audience is searching for online can provide needed insight into what concerns your prospects.  Determining this is an important first step in marketing a lesser-known cause or product.

Why would people buy your product?

The next crucial step is understanAir Conditioner - publicdomainpicturesding why people buy your product or service.  It may be for its utility – what it does to help them.  Or it may be how it makes them feel – directly or indirectly.  Understanding this is critical in effectively marketing your product.

For instance, people buy air conditioners for what they accomplish – cooling their home in a quiet, energy efficient manner.  Messaging that emphasizes important product features that make its benefits rise above those offered by competitors could be very effective.

But with Listerine, the ads that made sales really take off emphasized its emotional reward – avoiding rejection by friends and lovers.  Telling consumers that it effectively killed bacteria that caused tooth decay would have sold some mouthwash – but not nearly as much as those that hit consumers’ strong emotional need for acceptance.

Understanding your target consumers’ interests and their real motivation to buy are two important steps in marketing a lesser-known product.  Knowing what to do with that information can really help your product or service succeed.  We’ll consider some points on that in Part Two.

Skillful use of marketing psychology helped Larry Rondeau’s marketing campaigns achieve superior ROI – as high as 16.5 to 1. Email him at larry@larryrondeau.com.

 

Research Reveals the Best Marketing Strategies – Part One

Merchants have marketed their wares for millennia.  But their efforts took a giant leap in effectiveness when Dr. Kurt Lewin began the modern study of social psychology.  One of Lewin’s early research studies, done in 1943 for the USDA, was used effectively by ProcterCrest Whiting Expressions toothpaste & Gamble just a few years ago.  The principle gleaned from Lewin’s study became the basis for the most successful new product launch in company history.

Social psychology research was also behind a successful Bose campaign in the previous decade.Bose Wave Radio + iPodSales of the Wave Radio had gone flat.  Bose hired influence expert Dr. Robert Cialdini to recommend improvements to Wave Radio advertising based on psychology research. He advised changing ad headlines to read, “Hear What You’ve Been Missing.” During that period’s strong economy, many wanted to do just that, and shoppers flocked to Bose stores. Wave Radio sales increased by an astounding 45%. Bose is again using this successful headline in its current campaign.

Clearly, marketers and account planners can benefit from the work of social scientists. Like other scientific research, the studies they perform must survive the painstaking and sometimes painful peer-review process. Those that survive are often the subject of new research by other psychologists. Their studies must pass through the same scrutiny as the original research. Eventually a pattern emerges as important results are replicated again and again. The principles that finally achieve scientific consensus often form a highly reliable basis for marketing and campaign strategies. This is the first in a series of blog posts that will examine some key findings and their application.

Research-based keys to successful campaigns

Research demonstrates that the most successful campaigns accomplish four main goals.  First, they create a favorable climate for influence to occur. Eminent social psychologist Dr. Elliot Aronson calls this pre-persuasion. This frames how issues are viewed by the public. It allows advertisers to prepare the soil in which their brands will grow. Without it, marketing campaigns, no matter how worthwhile, can wither.

Consider – after the 1973 Oil Embargo by Middle Eastern OPEC nations, a large percentage of Americans favored finding alternative fuels and green energy. But that talk quickly died out when the embargo ended and gasoline returned to prices less than 40¢ a gallon. No effective communication campaigns had enlightened US citizens to the dangers of relying on foreign oil – or dependence of fossil fuels that harm the environment. Decades of valuable time were lost and Americans are still chained to gasoline that is now racing towards $4 a gallon.

Second, according to Aronson and his coauthor is the need to establish source credibility. The communicator
Coke Polar Bearmust be viewed favorably by the audience. This can be done by demonstrating knowledge and expertise so consumers view the advertiser as an authority. Or, efforts can be made to encourage people to like the brand. Research clearly shows that people are more easily persuaded by someone they like.

Like Pavlov’s dogs, we associate positive emotions generated by “feel good” or entertaining commercials with the brands they advertise. In addition, consumers are more likely to listen to organizations they view as trustworthy. So, efforts to support brand authority, liking or trustworthiness can increase the likelihood that consumers will buy the product.
Apple 1984Third, marketers must build and deliver messaging that effectively appeals to prospects, focusing their minds on things that will achieve the advertiser’s goals. Research finds that this may be accomplished by highlighting the brand’s strengths and competitors’ weaknesses in ways that make those traits the features consumers view as most critical. Or advertisements may shine the spotlight on a powerful image that makes their point, like
Apple’s classic “1984” Super Bowl commercial that linked the Macintosh with freedom and avoiding political repression. Studies show that powerful images consistently beat facts and figures.

A different tactic involves marketers impressing a few key thoughts on consumers’ minds by embedding them in ads that are so entertaining that viewers won’t tire of or counter-argue against them. Or account planners can find ways to encourage consumers to sell themselves.toddlers

Fourth, advertisers must arouse and connect with their target audience’s emotions. Studies find that stirring strong feelings and then providing viewers a way to satisfy their sentiments – by supporting the advertiser’s goal – can be a highly effective way to encourage them to take the desired action.

Research by social psychologists, headed by Elliot Aronson and Robert Cialdini, illuminates the path to more effective marketing communications. I have personally applied principles based on social psychology studies in campaign planning and obtained excellent results – in 3 cases getting ROI in excess of 14 to 1.

Technology and social trends change, but people largely stay the same. Understanding how substantial segments of the population will react in certain situations can give advertisers an enormous advantage. Smart account planners and marketers will not miss the opportunity to use the right social psychology research in their campaigns.

Pre-persuasion can be a powerful tool for advertisers. What techniques can prepare an audience to more quickly accept a marketing message? We’ll consider some in “Research Reveals the Best Marketing Strategies – Part Two.”

Larry Rondeau, BS – Marketing Psychology, is seeking opportunities in marketing, writing or content management. He can be reached by email or through LinkedIn.