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OPTIONAL Intro
The MORAL Overview
A high-level breakdown of the key insights & top takeaways shared in A NEW ERA: Part I.
LEARN: the Psychology of Buying Decisions
LEVERAGE: RE-Framing to Maximize Impact
LEVERAGE: RE-Framing to Maximize Impact
See below for primary content + cheat sheets, videos, visual aids and more!
A NEW ERA Part I starts strong, highlighting the monumental research that led to my first breakthrough along with an influence technique that immediately elevated my sales approach to new heights. The MORAL View is our most concise form, so we’re going to dive right in!
Leveraging Our Mind
Technically Selling’s creation stemmed from a single lightbulb moment. My thought, flipping the switch was:
If I can learn the mental criteria around HOW people make decisions – I may be able to figure out a more effective way to – influence decisions.
If I can learn the mental criteria around HOW people make decisions – I may be able to figure out a more effective way to – influence decisions.
If nothing else, the upcoming information teaches how subtle tweaks to a traditional business method can (and will) make a BIG difference in elevating one's sales approach, helping to ensure their solution is in the best position to close. Let's get Technical!
Return on Investment (ROI)
ROI is a measure of performance; most often, the profitability one generates relative to the amount of money they invest in a particular solution. Both individuals and organizations utilize ROI calculations in numerous ways throughout various stages in the buying process.
Pre-purchase, ROI calculations helps evaluate value / post-purchase = improves assessment of performance / positioning = strengthens the attractiveness solutions.
Traditional Sales Approach
The selling standard is to frame gains, touting new value that a prospective buyer receives IF they change from their existing situation and ‘green light’ a new solution. Value comes in many forms but essentially boils down to three buckets: MONEY / TIME / BENEFITS
MONEY: Illustrate cost savings, positive impact on the bottom line, and all other financial incentives (i.e. revenue generation/pricing discounts/bonuses/guarantees)
Traditional Value Framing:
TIME: Highlight solutions that save time, increase efficiency, and boost overall productivity (ex: time management tools/faster processes/fewer tasks/less on to-do lists)
Traditional Value Framing:
BENEFITS: Emphasize the enhancements & new features which improve one’s situation (ex: better service/stronger contract/bells & whistles/job satisfaction)
The MORAL: Return on Investment
In most selling situations, people frame gains & positive outcomes; by sharing good news, a primary objective is to boost buying confidence (<-key sales task; always motivate to move forward!)
Make no mistake, positioning ROI is effective & necessary; you’ll always tout new value when selling to a prospective buyer. However, based on how our mind works – it’s likely NOT as effective as you think. Let’s learn WHY…
Next outlines key insights from Technically Selling’s top research influence: Prospect Theory (Expand)
Developed by legendary cognitive psychologist’s Daniel Kahneman & Amos Tversky, Prospect Theory is a behavioral model that shows how people decide between alternatives involving risk & uncertainty.
No paper or people have had more of an impact on behavioral science than those mentioned above. Prospect Theory is the first of many groundbreaking publications that shaped the field, ultimately earning Kahneman a Nobel Prize.
*The Point: Don’t take my word for it!
During my studies, Kahneman’s bestselling book, Thinking, Fast & Slow, acted as a textbook of sorts, and the insights were unrivaled during my progression through decision science.
When selling technically, we always build approach around decisions, but never your decision. A salesperson’s fate ultimately comes down to the final evaluation, and HOW the decision-maker selects their choice – and WHY.
So, the overall objective, upon setting off on my 'research mission' was simply to gain a better understanding of these areas. I dove deep, centering my focus around the primary components factoring into a sales transaction: RISK & EMOTION. After endless hours, I completed my puzzle.
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Decision Criteria
Below highlights the highlights, providing a quick overview of the primary insights behind human decision-making. All points are brought back, reinforced & applied as we progress (i.e. key only/nothing to over-think).
*Want to Dive Deeper? Click icons below to expand topic / links route to a PDF or video with respective content / all open new windows <- view now or later without losing your spot!
CHOICE
Choice Evaluation: Evaluation of choice is relative to a neutral reference point in the mind.
Starting from status quo, reference point continually shifts; in turn, all evaluations & subsequent decisions form in the present moment.
Value
Value Judgement: We judge value as gains & losses, in relation to our current asset position. When evaluating, people consider (+/-) impact on their situation:
Positive changes: decision-makers consider the pleasure of gaining / negatives = pain of losing.
Decision Weight: The primary carriers of value are changes (+/-) NOT final result. In other words, the ‘change impact’ holds more weight in a decision than outcome.
People favor immediate rewards over the potential for future gains. All humans are wired to want instant gratification. You don't need science to prove that one! (but it's there)
RISk
Risk Assessment: People prefer avoiding losses over acquiring equivalent gains (making +/- values unequal); when directly compared against each other losses loom larger than gains (≈2x on average).
Emotional Impact: Our brain contains a mechanism designed to give priority to bad news; the feelings of fear, pain, & dread yield twice the emotional impact as pleasure & confidence.
Key Insights: Breaking Bias
Loss Aversion: When evaluating gains, people are risk-averse (certainty > gamble), but, when evaluating losses & negative outcomes, decision-makers become risk-SEEKING.
The Framing Effect: Choices can be presented in a way that highlights the positive or negative aspects, leading to changes in their relative attractiveness (i.e. people draw different conclusions from the same information)
Effort
Effort Requirement: the mind steers away unfamiliar info, shifting buying preference toward lowest effort path. Disadvantage of change looms larger than advantage of potential gain.
Side Bar: Effort is an essential decision-making component that steers buying behavior - it's also a topic we're featuring in the next two A NEW ERA books (i.e. more to the story).
Bonus Reads: For any who'd like to get ahead, the buttons below open PDFs with two key chapters from my original research paper, which we'll expand in part II & III, respectively.
Section Recap: Gains vs. Losses
Before leveraging these new insights, let’s unpack what we’ve learned. Salespeople have always led by framing gains; we position positive outcomes, highlighting good news & future rewards IF a target invests in our solution.
When making decisions, along with gains & outcomes, people also evaluate loss & impact of change (+/-) from their current situation (status quo/active expectations). Furthermore:
• Impact of change, NOT outcome, is the primary carrier of value (holds most weight).
• People FAVOR immediate rewards over the potential for future gains.
• Our brain gives priority to bad news & negative outcomes.
• Pain/dread/fear generates (≈2x) stronger emotional impact over pleasure/confidence.
• People FAVOR immediate rewards over the potential for future gains.
• Our brain gives priority to bad news & negative outcomes.
• Pain/dread/fear generates (≈2x) stronger emotional impact over pleasure/confidence.
The Moral: Losses Loom Larger
We all love winning, but we, undoubtedly – hate losing MORE.
We all love winning, but we, undoubtedly – hate losing MORE.
The asymmetry between gains & losses and positive vs. negative outcomes is undeniable. The fear of pain, even when of equal intensity, generates a greater impact than the pleasure of gaining. While a monumental discovery, it is far from a new development.
• These insights, first established with Prospect Theory in 1979, are consistent with evolutionary history.
Organisms that treat threats as more urgent than opportunities have a better chance to survive & reproduce. Humans evolved, NOT to thrive…. but to survive.
Considering the science behind human decision-making, its clear many traditional sales methods are NOT optimal for driving new business… so, what gives?
The Technically Selling approach is driven by impact & leveraging available insights to craft a more persuasive story.
• Per the effects of framing, if choices depend on how they’re presented, I bet there’s a way we can make our respective sales stories more – IMPACTFUL.
A GOOD RULE
People who are threatened with big losses and have a chance to break even will be unusually apt to take risks – even if they are normally quite risk-averse. WATCH OUT." – Richard Thaler
(Father of Behavioral Economics / Nobel Laureate 2017)
Sources/Citation: Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk,"
Bison Mentality: Shifting Focus
Selling ability is about acquiring & utilizing leverage to improve your chances of winning. Gains & losses are in-play on every opportunity; while I position positives like the rest, framing losses helps improve my closing odds (≈2x), so you better believe I take full advantage.
Human behavior is predictable; leveraging insights of our mind isn’t merely part of my approach – it’s the starting place. Why? It works!
The Moneyball Era of selling… is right now.
Performance Enhancing Techniques
Technically Selling teaches situational preparation; our (50+) strategies & techniques help partners achieve various goals, depending on the desired outcome in their unique circumstances.
While it won’t apply to every situation, If you're aiming to influence a buying decision, I suggest framing losses. Showing opportunity costs to the forefront is one of, if not the most impactful actions one can do when selling. Let's take a look:
Bring the Pain
MONEY: Illustrate the extent of revenue your target would LOSE/leave on the table by keeping their current cost & re-frame (again) to maximize the overall impact (ex: annual v. monthly savings).
Traditional: “Our solution saves you $2,200/month – that’s 22% below current pricing!”
RE-Frame: “Your current solution is over 20% higher & costing $26,400 more/per year than what you’d pay by replacing it with ours.”
TIME: Highlight how much time & potential lost productivity, stems from maintaining an outdated process, and show how that effects the well-being of NON-decision-makers.
Traditional: “Our technology reduces tasks – most see a 33% productivity boost!”
RE-Frame: “The existing process includes daunting tasks our technology removes; this, in turn, boosts productivity & overall happiness simply by giving time back you’re currently losing.
BENEFITS: Emphasize key features & enhancements the prospective buyer would LOSE and how the negative impact affects all recipients of your value.
Traditional: “We’re enhancing your solution w/new features that improves user satisfaction!”
RE-Frame: “We can certainly provide a cheaper option; however, to ensure you’re aware, without the enhancements – you’ll lose features designed to enhance user satisfaction.”
AA Example: Selling Sales
Before we open the action plan, I’ll share a few examples of how I close. Keeping it general, below are (+/-) frames I use when highlighting value props around maximizing sales performance.
MONEY: Close MORE Deals / Generate MORE Revenue / Earn MORE Commission!
• RE-Frame (-): WITHOUT proper training, reps lose deals they otherwise could’ve won (fewer sales = less revenue & compensation)
TIME: Improve Efficiency / Boost Productivity / Save Time!
• RE-Frame (-): rising workloads + no tools for time management equates to burnt-out, inefficient reps w/less time to drive business.
BENEFITS: Ongoing Resources / New Insights & Tangible Tools / Attract & Retain Talent!
• RE-Frame (-): aside from long-term development, our resources help prepare reps on a per-case basis; no preparation guidance = hurting performance as they’re relying on gut instinct.
With Technically Selling methodology, there's no ‘winging it’ necessary. Our strategies & techniques are designed to boost the overall impact of your approach. RE-framing your value from gains to losses is one of the most impactful things you can do when selling. Unfortunately, as with anything involving sales/field-level execution... easier said than done.
Sales are won & loss by all actions prior to pitch; to win in the real world, one must prepare to close. We've now done a whole lot of learning and considering information alone won't get you far in the 'results department' let's keep progressing & start working our way to earning the green light.
Ready to initiate action?
Key Question to Consider: If your target’s current solution is less optimal than what it could be, what value are they giving up by passing up the opportunity you’re offering?
RE-Framing (+/-) ultimately boils down to two main areas à EMOTION & MOTIVATION.
Our objective is to trigger a specific emotion intently to boost buying motivation of our target. In this technique, we unleash their pain of losing/fear of missing out.
No matter the content or medium, you evoke certain emotions with everything you say. Those emotions (+/-) will play a large role in determining how your message is received. Take public speaking, for example:
*When you’re listening to a good speaker, you’re engaged, focused on their message, and looking forward to what they say next. If the pace is too slow or if they’re monotone, most become disengaged & start thinking about other things (i.e. ineffective communication).
Regardless, by mindfully triggering emotion, you’re able to bring to light information that likely wouldn’t have otherwise been top of mind.
If properly framed, you can shift their preference in your solution’s favor, directly leading to strengthening sales position & boosting overall odds of winning the case.
Our ‘triggering emotion’ notion holds for many performance enhancing techniques, but it’s also difficult to master and one of the most complex to execute. As with other key topics, emotion is one we will continue to expand & develop continuously.
Bring the Pain, which you use selectively, is built around opportunity costs; the overall objective is triggering the target's fear of losing or missing out on your solution’s value (money / time / benefits).
You know the feeling when you see other people enjoying nice vacations or at a concert/sporting event? It’s the same reaction that your coworkers will have after seeing how many deals you close with the fancy new techniques you’re leveraging.
Primary Sales Objective: Trigger FOMO
This forms a nice little jingle to help you remember, too: take steps to trigger the target's:
Fear of –> FEAR-OF-MISSING-OUT!
Fear of –> FEAR-OF-MISSING-OUT!
Remember, you're triggering emotion with everything you say – our difference is doing it mindfully, and, like every Technically Selling strategy & technique, with a very strategic purpose.
Before we highlight 'the why' behind this performance enhancing technique...
Control Narratives to Pave Paths
INFLUENCE: Advising decision-makers on opportunity costs will significantly heighten the persuasive impact of your message; the effect naturally creates & leaves a stronger impression, even initiating a desire to ‘green light’ a new solution.
IMPROVE: Framing losses, while very influential, also improves the decision-making ability. One can aid a prospective buyers’ evaluation process by merely bringing to light important information that otherwise wouldn’t have been top of mind.
Our brain, in search of the path of least resistance, does everything it can to block-out pain points & negative situations, as they require more effort/energy to process (law of least effort).
Since our internal evaluation process occurs unconsciously, when decision-makers consider new value, unless presented w/information around negative ramifications, it’s likely they’ll ignore key factors necessary for a better-informed decision.
The key component of accomplishing both (influencing & improving) comes down to one primary piece – information.
• Specifically, knowing how to frame information to create a vivid mental image around your solution, intently boosting a buyer’s retainment of its value.
You’ve heard how risk & emotion were the two core focus areas throughout my
research; while everything centers around 'evaluation process' included alongside the others is one more topic – memory.
research; while everything centers around 'evaluation process' included alongside the others is one more topic – memory.
• To maximize the persuasive impact of communication, whether written or spoken,
it’s important to take steps to make your message STICKIER.
it’s important to take steps to make your message STICKIER.
(bring the pain = stickiest form of communication)
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To close, our painful purpose is to raise awareness of ramifications; by framing losses, you’re bringing otherwise unknown information top of mind.
• So, you’re improving their evaluation & selection process while also strengthening your influence and maximizing the impact of your message (win-win-always).
Now that you know WHAT & WHY behind our plan and the technique we're looking to execute, let’s review HOW we can achieve it.
The best strategy with a perfect solution means zero if it fails to translate into...
Raise AWARENESS / ALLEVIATE Pain
The password for our home website (anewera.biz) is raise pain; boosting awareness of ramifications is the primary action behind bring the pain, which is also the technique I consider the most effective way to influence & improve buying decisions.
By framing losses, showing the target opportunity costs which result from their decision, you’re bringing information top of mind that likely wouldn’t have been otherwise.
• So, you’re improving their evaluation & selection process while also strengthening your influence & closing % by maximizing the overall impact of your message (win-win-always).
I’m confident you get the (+/-) gist by now, so I’ll avoid lingering, but considering every situation requires adaptation and the high-degree of behavioral factors in-play, re-framing value is considerably more challenging in the field than it sounds.
Fear not! We’ve got a plan…
Path to Performance
1. Focus on a particular target, solution, and opportunity.
2. Think about the specific value props you plan to position (tout all enhancements!)
3. RE-Frame (+/-) to ensure effectiveness & max impact of your message
MONEY: What’s the extent of revenue lost from NOT buying? (short & long-term impact)
TIME: How much extra time & potential LOST productivity stem from outdated processes?
BENEFITS: Why is the target’s solution ‘behind the curve’ compared to peers? Are they aware?
4. Advise on ramifications of NOT buying – craft mindfully/deliver subtly!
5. Trigger FEAR of missing out on your solution’s value – why might they have FOMO?
6. Initiate ACTION by aligning your value with their pain points & (stated) grow goals.
Sales are won & lost by all actions prior to pitch; solutions, targets, barriers, logistics – every situation is unique, requiring effective & purposeful approach adaptation.
Action Notes
Never trust a sales methodology that guarantees results; salespeople can’t control outcomes, so if someone claims they have a ‘full-proof’ system, know that’s both infeasible & false advertising.
• Selling is about taking steps to improve your chances of earning the green light; the challenge is those steps & the route to achieving end goal shifts with every situation.
(Adapt or Lose)
(Adapt or Lose)
Closing is the name of the game, but, in our approach, preparation plays leading role. So, my job is equipping you with information that will boost your odds of winning, but YOU still need to execute. Here are some notes to consider in the field:
Establish (every) Edge / Architect Influence
Competitive advantage is critical to establishing yourself as the clear favorite; your main competitor is always the status quo, so evaluate barriers & take steps to clear concern.
• While it can be uncomfortable, don’t expect to create impact if you’re unwilling to bring painful information to the forefront; you never manipulate – you’re simply sharing information to raise awareness.
Set the Stage / Facilitate YOUR Story - subtly
Avoid jumping right into framing losses; this information causes discomfort, so teeing-it up before is essential. Start positive (+) & ease with a story that sets up your (-) positioning
• Facilitate means to make easy; make it easy for them to visualize pain stemming from their current vendor, to view you as the clear choice. If perceived as salesy – it’s light out. (proceed w/caution)
Flip the Script / Initiate Action
For crafting strong impressions, it’s important to give buyers something they’re not ready for (i.e. opp costs); venture outside the norm & separate by proving a strategic partnership.
• After delivering, outline ‘next steps’ including post-sale; tout service teams & ease their effort by making the sales process easy to process. Team approach – every step of the way.
Regardless of the lost money, time, or benefits that you frame, the pain points you evoke need to directly align with whatever your solution is designed to alleviate.
• Telling a buyer they’ll lose revenue when you’re hardly showing savings won’t make much of an impact; neither will highlighting lost time, if you can’t prove solution elevates output.
Remember, your job is to raise awareness, but don’t expect them to take your word for it; a key to execution is the information you provide during & after the pitch. Convince & compel; you don’t know what you don’t know, but neither does the buyer.
Align pain w/props and always provide the necessary rationale to support your stance (“you said <X> was a pain/here’s how we can alleviate that with <Y>”).
If executed effectively, when you bring the pain, you're not only influencing the decision in your favor - you're saving the day by showing them how to solve the problem.
Architects of Influence: Framing & Loss Aversion
As I mentioned, Bring the Pain is the most effective technique for influencing & improving purchase decisions. Raising awareness of (-) ramifications then positioning your solution by connecting their pain points with your value (+) will automatically boost the odds of winning.
• Earlier, we highlighted ‘decision criteria’ which is my mental framework for buying behavior; it’s a key piece, but to fully understand your mind puzzle, it’s essential to be aware of cognitive bias.
Over two hundred unconscious variables, all running simultaneously, influences our behavior & every decision we make. Learning cognitive bias helps you understand how to effectively combat their negative, potentially harmful effects; let’s learn to leverage two core pieces of our mind puzzle:
Choices can be presented in a way that highlights the positive or negative aspects, leading to changes in their relative attractiveness.
• Why it’s important: people draw different conclusions from the same information – depending how one presents the information.
How to Leverage: RE-Frame (+/-) Value
The most important part of selling isn’t what your solution is; the key is knowing HOW to position its value effectively; or, at least more effective than the competition.
A buyer’s preference will shift depending how you frame the information, so if done purposefully, you can create stronger impressions around, well, whatever you want.
By flipping the script (+/-), the new path you pave allows both sides a better opportunity to achieve optimal outcomes. Why?
People prefer avoiding losses than seeking gains, making +/- values unequal; when directly weighed or compared (i.e. final evaluation), losses loom larger than gains (≈2x). Another key insight, highlighted in the 'pandemic problem' chapter:
Decision-makers are risk-AVERSE when evaluating gains. Be aware that, when considering good news & positive outcomes (i.e. ROI), decision-makers will be naturally reluctant to take risks.
While savings & enhancements are nice, a prospective buyer’s mind, evaluating off status their quo, will weigh passing up any new value as a foregone gain – NOT a loss (visual aid).
• In other words, value impact varies; waiving/losing your solution’s value will feel the same as when we lose a blackjack hand while UP, playing with house money… "oh well."
Among many insights, loss aversion explains why it’s so easy for decision-makers to say no. This painful insight also proves:
When selling, you will always position gains, new value & positive outcomes that prospective buyers receive w/your solution; BUT if savings & enhancements is all you’re framing, it’s important to know, when it comes to influencing & improving decisions – your impact is minimal.
Thankfully, there’s still more to the loss aversion story. Decision-makers may be reluctant to take risks when evaluating gains, but let’s look at what happens when pain enters the equation.
Why it Works: Loss Evaluation
People are risk-SEEKING when evaluating losses. Advising on ramifications, and negative outcomes resulting from keeping the status quo (i.e. losing new savings/enhancements), naturally creates a strong emotional TRIGGER that boosts buying motivation, thus initiating ACTION.
MORAL CHEAT SHEETS