InsuranceNewsNet Magazine January 2012 : Page 12
FEATURE | SIX PRINCIPLES OF POWERFUL PERSUASION FELDMAN: How do you define influence? CIALDINI: Influence means change and moving people in a particular direction. About 16 years ago, one of my col-leagues asked, “What is the single best sales strategy?” But my research found that rather than one sales strategy, there are six universal principles of influence. We would be fools if we went into every situation using the same strategy. We have to adjust our approach based on what we see in front of us: the per-son, the situation, the challenges. Then we employ the principle of influence that resonates with that individual to move that person in a positive direction. FELDMAN: I find your six universal prin-ciples of influence incredibly powerful. Can you describe those principles and how they can be applied? CIALDINI: The first principle is what I call reciprocation , the idea that people give back to you the kind of treatment that they’ve received from you. If you do something first by giving them some-thing of value, be it more information, or even a positive attitude, it will all flow back to you in kind. The second principle is scarcity. People will seize opportunities that are rare or dwindling in availability, so it’s important to remember that we need to differentiate what we have to offer from our rivals. That way we can tell people honestly, “You can only get this aspect or this feature or this level of security by moving in the direction I’m recommending.” FELDMAN: As far as insurance goes, there’s somewhat limited scarcity, other than a client couldn’t qualify for it or maybe the interest rate is going down next month. What are some ways to apply scarcity to insurance? CIALDINI: You can tell people the unique features that you, your agency or your product have to offer. What are the fea-tures that can’t be matched by rivals? Often, it might not be a single fea-ture. It might be a bundle of features 12 InsuranceNewsNet Magazine January 2012 that together cannot be matched. Making them aware of that scarce, rare or exclusive aspect of what you have to offer will moti-vate them to move off the fence. The second thing is that when we describe those unique features, it’s not enough simply to say, “These are the benefits that you will gain if you choose what I’m recommend-The credible communicator who ing.” That is because the has expertise and trustworthiness is the research is clear now that single most powerful communicator that people are more motivated social science has ever uncovered. to act by the idea of los-ing something rather than gaining that very same thing. an influence attempt and that’s a big In the insurance industry, we can pro-mistake. vide people with the same benefits and Also, the authority principle doesn’t say, “We don’t want you to lose that secu-just involve credentials—it also involves rity for you and your family, that extra trustworthiness. To be truly credible, we margin of confidence that you have with have to convince people that not only that income in the future that you will are we providing them with authorita-have from this annuity. We don’t want tive information but that we’re also pro-you to miss that opportunity.” viding that information in a straightfor-This idea that loss is more powerful ward, honest way. and more mobilizing than gain actually If we get those two perceptions in the won the Nobel Prize in economics for eyes of our audience, the research shows a man named Daniel Kahneman a few no one can beat us as a persuader. The years ago when he showed that the pros-credible communicator who has both pect of losing something is more acti-expertise and trustworthiness is the sin-vating than the prospect of gaining that gle most powerful communicator that very same thing. social science has ever uncovered. So that’s how we might leverage the scarcity principle into an arena where FELDMAN: Some people are afraid or the concept of insurance isn’t scarce but reluctant to talk about themselves and the particulars might be and the idea of yet you’re saying that this is the most losing those particulars is really the ulti-important thing. How do they overcome mate form of scarcity. Loss is scarcity that resistance? squared—you can’t get it anymore. CIALDINI: You’re exactly right. You can’t FELDMAN: The third principle is go to someone and say, “Before we begin, authority. What does it take to be an let me just tell you how great I really am.” authority? That goes against all the rules of social interaction. But if you are genuinely a CIALDINI: People will be most persuaded credible source of information, how do by you when they see you as having you get that across to people who don’t knowledge and credibility on the topic. know you? You’d be surprised how many people fail If you have no track record with this to inform their audiences of their gen-person, I would suggest two things. The uine credentials before launching into first is conveying your expertise and “ ”
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