About 32 years ago, I attended a downtown big shot awards dinner. My networking model is a simple one. I buy the ticket, I get there 15 minutes before it is supposed to start, I work the room, and when they ring the bell and everyone goes into dinner, I head for the escalator, and I am on the way home.
But then an unintended consequence. That night I spent the entire cocktail time talking to one particular woman, the room didn’t get worked. I was mesmerized and driving home in the rain, I call my mother. I tell her that I have just met someone special, but frankly I think she is too good for me.
My mother agrees. (This explains my 35 years of psychoanalysis).
Now the game is afoot. How do I “persuade” Barbara Bry to go out with me? OK, entrepreneurs, welcome to the science of persuasion. I know your software is unbelievable and you have the cure for cancer and your device can sequence the genome in 11 seconds, but you still have to persuade someone to buy it.
Robert Cialdini, a leading expert in persuasion and influence, has written extensively on how to get to yes. Herewith are some of his thoughts.
Cialdini’s thesis is that there are six fundamental principles of persuasion. The seventh is practiced by Don Vito Corleone and is not taught in most business schools.
The principle of “liking.” The best example is the famous “Tupperware party.” The reason it works is that the group that came together liked the hostess. Their purchase decision is heavily influenced by their affection for that individual. You don’t want to disappoint.
Two elements are in play here – similarity and praise. Oh, so you like flyfishing, so do I. Find a bond or tell the prospect that you have only heard great things about him/her.
The principle of “reciprocity.” I invite you to lunch and I pay. Like it or not, you have just entered the beholden room. You owe me. No free lunch. Next time, just coffee.
A “gift” can work as well. That explains all the pens I get with my company name on them.
The principle of “social proof.” This is why the charity dinner circuit is so effective. You see the names on the host committee, and you know some of them. That is why the host committee usually has 239 names. Peer pressure works. And then toss in a few testimonials from appreciative customers. And finally, the personal phone call. Trust me, they who doesn’t show up.
The principle of “consistency.” You need to stand for something. In the charity racket, this is the infamous “paddle raise” where the other people in the room can see you. No place to hide. Often referred to as up a creek.
In the entrepreneur adventure, you and your company need to offer promises about the product that you will absolutely keep. Customers come to you wanting to trust. Don’t disappoint.
Showing consistency to your employees and partners is extremely important. No random jerking people around. (I am not naming names here.)
The principle of “authority.” People defer to experts. In my financing deck, I use a powerful quote from a famous venture capitalist, in an effort to affirm to my potential investor that I am on the right road.
But there is a contrary here as well. The experts say to do it a certain way, but you think you can build a better mousetrap. After all, that is why you are starting a company.
Finally, the intersection of persuasion and “scarcity.” I recently wandered into a fancy boutique on a lark. I like to look at what I can’t afford. This store never discounts. But there it was, one day only. Unbelievable. And on the spot, I bought a designer handbag for that aforementioned woman, now my wife.
A week later, Barbara Bry is at an event, and a friend comes up to her and ires the bag and tells her that she had just seen it herself earlier on that same day. She loved it, but wanted to think about it and went to lunch first. When she returned later that day, it had been sold.
Consider the persuasive power of scarcity. Tempus fugit and carpe diem.
Rule No. 845: An offer you can’t refuse.
Senturia is a serial entrepreneur who invests in startups. Please email ideas to [email protected].
