Sales Psychology Explained: How to Influence Buying Decisions Using Human Behaviour

Definition:
The feeling of obligation we experience to return the favour when we are given something of value.

The Science:
In 1976, sociologist Philip Kunz sent handwritten Christmas cards with a family photo to 600 random people. Despite being complete strangers, nearly 200 of them responded with their own Christmas cards.

The Application in Sales:
In sales, reciprocity comes into play when a sales rep offers the customer personalised advice, a free trial, resources, or content. When done correctly, this gesture can encourage the customer to reciprocate by sharing their contact information or making a purchase!

How to Use the Reciprocity Principle in Sales:

1. Set up free trials and/or demos
2. Offer personalised advice
3. Provide free resources or content
4. Grant exclusive access
5. Take the prospect out for lunch
6. Gift something with a purchase

Definition:
People are more likely to be influenced or make a purchase from someone they find likable.

Three key factors drive consumer likability:

1. Physical Attractiveness: Suggests honesty.
2. Similarity: We trust people who are like us.
3. Compliments: We like compliments and are drawn to those who give them.

These principles work in both personal interactions and marketing strategies.

The Science:
In 1984, Dr. Robert Cialdini introduced the Liking Principle in his book Influence: The Psychology of Persuasion. To support this, Cialdini cites The Effects of Similarity on Compliance study conducted by Jerry M. Burger and colleagues. In this experiment, participants were approached to complete a survey or lend assistance. In conditions where shared traits like being from the same city or having the same birthday were highlighted, compliance increased, showing that people are more likely to agree with requests when they perceive similarity with the requester.

The Application in Sales:
Successful reps are ten times more likely to use collaborative words like “us,” “we,” and “our,” because these foster a sense of belonging, which naturally attracts people.

The success of demonstration parties, popularised by Tupperware in the 1950s and 60s, is one example where we can see the Liking Principle in action. These events relied on hosts inviting friends and family to their homes to showcase and sell products for a commission. This sales model thrived on blending social gatherings with direct sales.

How to Use the Liking Principle in Sales:

1. Give genuine compliments: For example, find something you truly like about the client’s work or company and call it out, or send a follow-up email complimenting a client on a recent achievement.
2. Identify similarities and create a connection: Individuals can ask engaging and meaningful questions to highlight commonalities and shared experiences. Businesses can highlight their relatability through features like an “About Us” section on their website, showcasing shared values.
3. TIP: Build rapport and earn genuine “liking” before you try to influence someone. If you only start working on being liked after you’ve begun your pitch, your chances of success drop dramatically.

Definition:
The tendency to look to others for guidance in making decisions, especially when we are uncertain about what to do.

The Science:
A 1982 study by Peter Reingen tested social proof in charity donations. Researchers showed residents a list of neighbours who had already donated, and found that the longer the list, the more likely people were to give.

The Application in Sales:
In sales, social proof is powerful when customers see others making a purchase or endorsing a product. This could be through testimonials, reviews, or seeing others use the product. According to the sixth annual consumer review survey by BrightLocal, 84% of Americans trust online reviews on platforms like Amazon, Tripadvisor, and Trustpilot just as much as they would a personal recommendation. People are more likely to trust and follow the decisions of others, especially when they feel uncertain about their own choice.

How to Use the Social Proof Principle in Sales:

• Show customer testimonials and reviews
• Display user-generated content (photos, stories)
• Use case studies and storytelling to highlight successful outcomes
• Feature endorsements from influencers or experts
• Show the popularity of a product (e.g., "Best Seller" or "Limited Stock")
• Highlight social media mentions or shares
• Create a sense of community (e.g., customer groups, forums)

Definition:
The tendency to comply with requests or follow advice from individuals perceived as credible, knowledgeable, or in positions of authority.

The Science:
In a 1974 study by Leonard Bickman, 92% of people gave a dime when asked by someone in a security uniform. However, when the requester wore civilian clothes, compliance dropped to just 42%.

The Application in Sales:
When customers perceive the salesperson as an expert on the product or service, they are more likely to trust their recommendations. Knowing your product, company, and market thoroughly is crucial for advice to be seen as valuable rather than a sales pitch.

How to Use the Authority Principle in Sales:

• Leverage industry certifications or awards
• Know your product, your company, and the market inside and out
• Share case studies
• Offer free consultations or advice showcasing expertise when possible
• Use professional titles or affiliations in marketing
• Create high-quality, informative content on social media that demonstrates knowledge
• Demonstrate thought leadership by being active on LinkedIn