Loss Aversion Archives - The Sales Evangelist

Category Archives for Loss Aversion

Halloween, Prospecting, Losing Prospects, Donald Kelly

TSE 954: Sales From The Street: “Scary Cat”

Halloween, Prospecting, Losing Prospects, Donald KellyWhen you pursue prospects but don’t get responses, it can be intimidating. We don’t want to lose those prospects, but we don’t know why they aren’t responding.

On today’s episode of Sales From The Street, we’re talking about loss aversion, and how it can be scary for sales reps to lose prospects, and also what you can do to get past it.

It really isn’t so scary.

Loss aversion

The truth of loss aversion is that we’re often more concerned about losing something than we are about gaining something.

Sometimes that fear can be detrimental because we don’t change. We stay with the status quo because it’s safe. It’s human nature.

I struggle the same way in that I didn’t want my prospects to reply to my communications when I wasn’t there.

I sold document management software to city and county governments, and the buying process is long when the government is involved.

If I sent out emails to all the IT people and I didn’t hear anything back, I continued sending the same emails over and over. It was easier to keep sending those repeat emails to people I knew than to find new people.

I was afraid that if I didn’t email them today, I might miss the day when they actually wanted to commit.

If it’s not the right fit, move on.

Market share

Out of the thousands of people who are in your market share, you’re probably communicating with about 60. You’re probably also guilty of thinking you have to keep them because they are the only ones.

If that’s where your head is, you have a mad dose of loss aversion. You’re afraid of giving up stuff and moving on and trying something new.

You’re afraid of trying something new and pursuing new prospects.

Sometimes we have to let go of the things that are holding us back. There’s a fine line between persistence and hoarding. 

Cold campaigns

I use prospect.io for my cold campaigns because it’s simple. I can send a sequence of personalized emails that go out automatically on a scheduled sequence based upon certain conversion metrics.

At the same time, I’m doing phone calls as well as taking advantage of snail mail. By the time I complete the process, if no one answers, then something isn’t right. It probably isn’t a good fit, so I move on.

If I’ve exhausted everything I could humanly do but they aren’t raising their hands to say they are interested, I’ll push them aside to make room for others who might be interested.

The world doesn’t end.

If those people do eventually come around, they know how to reach me because I’ve contacted them by every way possible.  In the meantime, I’ll put them on a drip campaign.

Now think of how many I would lose if I kept focusing on these customers instead of looking for new ones.

One of my sales trainers told me you can never lose something you never had, and I’ve never forgotten that.

“Scary Cat” episode resources

This episode is brought to you in part by prospect.io, a powerful sales automation platform that allows you to build highly personalized, cold email campaigns. To learn more, go to prospect.io/tse. It will help you with your outbound to expand your outreach and it allows you to set it and forget it. Your prospecting will never ever be the same.

We’ll use prospect.io in the upcoming semester of TSE Hustler’s League to focus on prospecting. We’ll give you insights and tools that will help you gain new customers. In addition, we’ll provide training and strategies that you can implement today to ensure constant flow in your pipeline.

Check out TSE Hustler’s League and apply to see if it’s a good fit.

This episode is also brought to you in part by Maximizer CRM, personalized CRM that gives you the confidence to improve your business and increase profits. To get a demonstration of maximizer, go to the sales evangelists.com/maximizer.

Click on the link to get a free demo of what Maximizer CRM can do for you. It integrates your marketing campaign as well as your CRM, and it works whether you’re a small organization or a large one.

Leave us a review on Apple Podcast, Google Podcast, Stitcher, or wherever you consume this content, and share it with someone else who might benefit from our message. It helps others find our message and improves our visibility.

If you haven’t already done so, subscribe to the podcast so you won’t miss a single episode.

Audio provided by Free SFX and Bensound.

Prospect.io, Maximizer CRM, Donald Kelly, Closing Skills

TSE 940: TSE Hustler’s League-“We Can’t Sell It Right Now”

 

Prospect.io, Maximizer CRM, Donald Kelly, Closing SkillsMost sales reps believe they are good closers, but the truth is that many struggle. It’s difficult to persuade someone to spend thousands of dollars, or even hundreds of thousands of dollars, on what you’re offering. Until you build value, you can’t sell.

On today’s episode of The Hustler’s League, we’ll talk about why tricking people into saying yes will never work and the reasons why you can’t sell.

Early closing

My philosophy about closing is that it begins early in the sales process, but there are things you can do to help bring the client across the finish line.

Scarcity won’t help you convince the buyer to buy; you have to give the buyer a reason. You must bring value.

The buyer will determine whether something is valuable or not. Even if you push it as the most amazing product or service ever, if the buyer doesn’t recognize it as such, the buyer won’t invest.

You’ve heard this before because we’ve talked about it in previous episodes.

Build value

When you’ve built enough value or excitement, naturally the buyer will want to continue. Your buyer will want what you have.

Sometimes, however, you have to push buyers across the finish line, or simply guide them across.

When your prospect has had a particular software for many years, she may not see an obvious reason to change. If it’s not immediately obvious why she should change, and you can’t bring her across, then she probably won’t buy.

Walking her across the finish line is what closing is all about.

Change of heart

We had a client who found us online and who was interested in our services. She was really excited, and we built a tremendous amount of value in what we were offering.

When it was time to sign up, she initially wanted to sign up for our low-end package. But throughout the conversation, she decided she wanted to buy our higher end package.

That’s likely because I emphasized to her that I wasn’t able to work with her at that time because I was already working with other clients. I didn’t have the time to invest at that exact moment, but when my schedule freed up, I would be able to.

When she realized that other people were trying to work with me and that my time was valuable, she changed her tune.

Scarcity was her motivation. I didn’t try to trick her or lie to her. I was simply letting her know that, even if I wanted to work with her at that moment, I didn’t have time.

Scarcity

Sometimes the scarcity effect will serve you well in the sales process. It’s similar to loss aversion.

We’ve talked about loss aversion before, but it simply refers to the fear we have of losing something.

The customer I was working with didn’t want to miss out on her chance to work with us. She wanted to sign up immediately for the higher-end package. She saw so much value in working with me that she didn’t want to miss out.

How do you create scarcity without coming across as cheesy?

Do it by being time sensitive and emphasize your finite time. If you only have a certain amount of time to devote to coaching, use that fact to your advantage.

Amy Porterfield only offers her course twice a year. As a result, there’s a small window which creates scarcity. The window won’t open back up until the next go-round, so people feel compelled to jump in.

Window of opportunity

If you’re selling software every day, scarcity doesn’t really exist. But can you offer certain things at certain times? Can you create time-sensitive deals.

Maybe you offer a proposal that expires within a certain time period.

If you can uncover that they are losing a certain amount of money every month, use that against them. Remind them how their failure to act is costing them money.

Or create scarcity by reminding them that if you’re going to get the new system in place by a certain date, you’ll have to close the deal by a certain date.

Missing out

When I was selling security systems, people would ask me to come back the next day so they would have time to think about it. I was able to tell them that we wouldn’t be in that same neighborhood tomorrow, which created a sense of scarcity.

Cell phone companies effectively use this concept when they release new phones. They use preorders to create a sense that you will be among the first to get them.

No one wants to be the loser, so after you’ve built enough value, use scarcity to coax your prospect across the finish line.

Use time sensitivity to close more deals, and then let us know how it works for you. Drop me an email at Donald@thesalesevangelist.com, or post a question on our Facebook page The Sales Evangelizers.

“We Can’t Sell It Right Now” episode resources

Use time sensitivity to close more deals, and then let us know how it works for you. Drop me an email at Donald@thesalesevangelist.com, or post a question on our Facebook page The Sales Evangelizers.

Learn more about the TSE Hustler’s League in preparation for our new semester that begins in January. We’d love to have you check it out and join us.

This episode is brought to you in part by Maximizer CRM, personalized CRM that gives you the confidence to improve your business and increase profits. To get a demonstration of maximizer, go to the sales evangelists.com/maximizer.

Click on the link to get a free demo of what Maximizer CRM can do for you. It integrates your marketing campaign as well as your CRM, and it works whether you’re a small organization or a large one.

This episode is also brought to you in part by prospect.io, a powerful sales automation platform that allows you to build highly personalized, cold email campaigns. To learn more, go to prospect.io/tse. It will help you with your outbound to expand your outreach and it allows you to set it and forget it. Your prospecting will never ever be the same.

Leave us a review on Apple Podcast, Google Podcast, Stitcher, or wherever you consume this content, and share it with someone else who might benefit from our message. It helps others find our message and improves our visibility.

If you haven’t already done so, subscribe to the podcast so you won’t miss a single episode.

Audio provided by Free SFX and Bensound.