Housekeeping. What We Will Cover. Make sure you have your workbook printed out and in front of you

Transcription

1 Housekeeping Make sure you have your workbook printed out and in front of you What We Will Cover 1. Why You Need Persuasion & Negotiating Skills 2. The 15 Most Powerful Psychological Triggers 3. Keys to Negotiations Success 1

2 part 1: Why You Need Persuasion & Negotiating Skills Persuasion You are constantly persuading: Customers to buy your products/services Employees to perform at their peak Other companies to work with you Investors to fund you Negotiating You are constantly negotiating and want to get the best outcomes with: Vendors/suppliers/partners Employees Customers Investors 2

3 Summary By mastering negotiations and persuasion skills you will generate more sales, reduce costs, better motivate your team, etc. and ultimately build a great company part 2: The 15 Most Powerful Psychological Triggers Psychological Triggers Trigger = gets people to take action For each, I ll give an explanation and example Take notes in workbook and write down how you might be able to use each trigger in your business 3

4 Trigger #1: Social Validation Explanation: People are much more likely to do something when they see someone else doing it Example: Bar with line out the door; putting a tip in your own basket Trigger #2: Scarcity Explanation: Customers will act right away if they think they might miss out on something Example: Limited time offers. Limited quantity left. Etc. Trigger #3: Reciprocity Explanation: Customers will feel obliged to do something for you once you have done something for them Example: Give customer a free sample or trial; if you really perform for them, they ll want to buy to repay you 4

5 Trigger #4: Commitment/Consistency Explanation: Once someone commits to a cause, they tend to follow through Example: Ask customer if they are truly a patriot. If they say yes and then you explain how true patriots need your product, they will likely buy it in order to stay consistent with their belief that they are a patriot Trigger #5: Liking/Friendship/Attractiveness Explanation: By making customers like or be attracted to you, they ll be more likely to buy from you Example: Attractive staff at trade show booths Trigger #6: Authority/Expertise Explanation: Think about Dr. Oz and Dr. Phil. Millions of people follow wellness and medical advice from these TV personalities because they have their audience s trust Example: Hiring an expert to serve as a company spokesperson 5

6 Trigger #7: The Autocratic Approach Explanation: The power that comes from being the boss such as a military officer, a vice president, a senator, or maybe a trusted guru Example: Build up your guru status so customers listen to you when you say they need to buy something from you Trigger #8: The Passive Approach Explanation: Let results speak for themselves Example: Offer samples, post testimonials, publish objective facts or results that enable consumers to perceive the undeniable value of your product or service Trigger #9: The Logical Approach Explanation: Use data points, charts, or reports anything you can use to show facts will make your message stronger Example: Show actual results from past clients and/or research supporting your offering 6

7 Trigger #10: The Emotional Approach Explanation: Share genuine and relatable stories about challenges you have overcome or key achievements in your career/business Example: Explain how you ve been in your customers exact shoes Trigger #11: Fill Your Message with Benefits Explanation: People want to know what you can do for them Example: My dashboard clients increased their net income, on average, by 25% Trigger #12: Enable Trendsetters Explanation: Have your product be unique/cool and allow early customers to feel like pioneers/trendsetters Example: the ipod. They were perceived as cool and trendy and started an MP3 player revolution 7

8 Trigger #13: Give Customers 15 Minutes of Fame Explanation: Get your customers involved with your brand and give them opportunities to be in the spotlight Example: Run contests; put customer pictures on restaurant wall or on your website Trigger #14: Exclusivity Explanation: Creating exclusive offers for customers Example: Verizon Fios allowing customers on their elite plans to stream new movies a full week before the movie is available on RedBox or any movie channels Trigger #15: Consequences Explanation: Persuading by showing potential negative results (e.g., loss, pain, hardship, etc.) rather than potential positive results Example: Insurance company emphasizing not having valid insurance carries hefty consequences if pulled over by the police 8

9 part 3: Keys to Negotiations Success What is Negotiating An interactive communication process that may take place whenever we want something from someone else or another person wants something from us. ~ Richard Shell 3 Most Critical Elements: Time The period in which the negotiation process takes place Information The more you have available, the better Power Position, authority, knowledge, character 9

10 4 Stages of Negotiation 1. Preparation Stage 2. Exchanging Information Stage 3. Bargaining Stage 4. Closing and Commitment Stage Stage #1: Preparing to Negotiate Determine Your BATNA: Your Best Alternative to a Negotiated Agreement This is what you would get if you walk away without an agreement 10

11 List Potential Negotiating Points Begin with critical issues Imagine where the agreement might extend Assign a value to each issue Know your reason WHY you value what you want Look for where your interests coincide for potential trade-offs Gather Information About The Other Party What is their BATNA? What are their other objectives? The value they might place on each negotiating point Their character and credibility (power) Their budget and financial position Know who makes the decisions Anticipate their strategy Gather Other Helpful Information Research different sources Get objective facts from outsiders Example: Before negotiating with summer interns, call other businesses and ask how much they pay, what perks they give, etc. 11

12 Other Preparations Plan your opening position and what you will expect in return Determine questions you need to ask the person with whom you re negotiating What questions might they ask you? Determine your alternatives if you can t reach a satisfactory conclusion Schedule the Negotiation TIP: Schedule it close to the other party s deadline, when applicable Stage #2: Exchanging Information 12

13 Learn & Confirm What You Need to Proceed to Bargaining Don t jump into suggesting commitments yet! Verify what you think you know about them The most important thing to confirm are their top needs (BATNA) Ask Plenty of Questions Ask until you can see things from their point of view (objectively) Get them talking The more they speak, the more information they disclose Use broad, open-ended questions Provide Them With Information About Yourself Don t volunteer information needlessly 13

14 Listen Closely for Verbal Leaks People often subtly disclose important information They also tend to assume you know more about them than you do and speak more freely Determine their motivations vs. their abilities Ex: Not inclined may mean they can do it, and may consider it Determine the Key Terms Words like have to have vs. like to have show what is critical If you need Items A, B, and C, and they value items D, E, and F the most, ask for the former and offer them the latter Stage #3: Bargaining 14

15 The Bargaining Stage The most important of the four stages This is where the actual deal will begin to take shape Terms and conditions are laid down Both parties will have to compromise on several aspects to come to a final agreement Six Never-Fail Tips 1. Don't get emotionally attached inside 2. Don't look too attached on the outside 3. Never be the first person to name a figure 4. Always ask for more than you need 5. Never take the first offer 6. Don't get suckered by the "rules" trick Concessions Always ask for a tradeoff with each concession you make Avoid these two tendencies: 1. Bidding against yourself through unreciprocated concessions 2. Making excessive position changes 15

16 Other Bargaining Tips Patience and silence are two powerful tools If they don t respond to your proposal, say nothing even if the silence is uncomfortable If you are buyer, downplay value of things being sought If you are seller, exaggerate value Stage #4: Closing and Commitment The Closing & Commitment Stage The most delicate part of the interaction The Closing stage is the time for calm and deliberate action Be careful not to make unreciprocated concessions, particularly in final minutes But try to induce opponents to do so by making it seem the only way to conclude the deal is for them to make concessions 16

17 2 Steps to Closing the Deal 1. Agree 2. Exchange Agree Confirm Understanding Is the Deal Reversible or can it be modified later? Put what has been agreed on in writing Handle final objections and doubts Handle last-minute tricks Confirm the agreement Shake hands Exchange Agree that you have agreed Sign the contract Fulfill your word and keep your end of the agreement Keep receipts and document efforts Follow up with other party on their commitments 17

18 Characteristics of Master Negotiators Are never needy They take advantage of others neediness High confidence Preparation, experience, skill, self-esteem Body language The ability to read people Always have mission/purpose to guide actions Habits of Master Negotiators Aren t interested in Yes They prefer No Never rush to close Always let the other side feel secure Create a clear mental state Pay attention, listen, no assumptions or expectations Know their budgets Time, energy, money, emotion Top 15 Negotiating Mistakes 1. Don t assume the other party won t change their mind 2. Don t assume the other party is telling you the whole truth 3. Don t win the negotiation but lose a friend 4. Don t forget to negotiate other items besides the price 5. Don t figure out who has the decision-making power 6. Nibble, but not too much 7. Don t talk too much 8. Don t assume it s a win-lose scenario 9. Don t forget to build enough value in what you re offering 10. Never start negotiating with an already-lowered price 11. Avoid lowering your price more than once 12. Not having a "expiration date on your offer or discounted price 13. Not having a "walk away" price in mind 14. Don t be impatient! Stay relaxed 15. Giving away too much too soon 18

19 recap 1. Choose and use the persuasion techniques that will help your business 2. Become a master negotiator and get in the habit of negotiating important issues in your favor Complete Your Workbook 19