When it comes to change, logic often takes a backseat to emotion. Consider climate change—scientists can present an abundance of logical and factual evidence, yet it’s only when we experience extreme weather personally that the reality hits home.
The relationship between emotion and change exists in the business world too. Whilst we’re happy to utilize logic to make a decision, the trigger to consider that decision will always be emotional.
So, what does this mean for us as Sales Executives?
It means that understanding the emotional triggers for change is paramount.
The Psychology behind change triggers
- Loss aversion
Psychologists assert that an unconscious bias, known as the status quo bias, tends to keep us anchored to the familiar. The key driver of this, as Samuelson and Zeckhauser noted, is related to “loss aversion,” – we become anxious at the idea of losing our current reality.
- Fear
Fear emerges as a potent driver for decision-making. In the business world, the fear of missing out (FOMO) prompts companies to invest in trends like AI, CRM, and marketing automation. Fear, however, is not solely an individual response; it’s also fuelled by risk. For instance, the demand for electric vehicles isn’t solely driven by a desire for acceleration; it’s a response to impending regulations.
- Opportunity
While fear is a powerful motivator, opportunity, driven by the desire to gain, can also instigate change. However, research suggests that fear tends to be a stronger driver than the allure of opportunity.
Interestingly, we find losses to be twice as psychologically harmful as gains are beneficial, according to research by Kahneman and Tversky. So if you lose $50, you’ll feel that loss more acutely than you would feel the joy of finding $50.
This means that if we’re leveraging opportunity as a driver, it’s essential to overcome potential fear associated with loss aversion.
How? By ensuring the quantifiable benefit is truly compelling.
The compelling nature of fear or opportunity is based on how quantifiable you can make it. This is of course linked to what you want the buyer to discover and the “why change” and “change to what” phases of the buying process.
External and internal influencers, examined through the PESTEL framework, help identify drivers for change.
External influencers:
- Political
- Environmental
- Social
- Technical
- Economic
- Legal
Internal influencers include strategic imperatives, operational issues, and associated cost and efficiency considerations. Understanding these drivers alone isn’t enough; it’s the quantifiable impact that creates a compelling reason for change. You have to link a number to the driver. E.g.
- If you do not comply with the legislation you could face a fine of £x
- If you do not reduce your carbon emissions to zero you will not be allowed to sell your product which could cost you £Y in revenue
- If you fail to utilise this technology you will find your margins being squeezed by your competitors which could cost you £Z in profit.
The interplay between the status quo bias and loss aversion means that merely raising awareness of risk or opportunity may not suffice. Change is only considered when the quantifiable impact becomes sufficiently compelling.
To facilitate this, Sales Executives must conduct thorough research, identify potential risks and opportunities, and leverage their business acumen to translate awareness into relevant insights.
How can we speed up this process?
Using AI tools such as Copilot or Chat GPT will allow the Sales Executive to speed up this research. However, you still need to review and ensure it is accurate, validated, and relevant to the stakeholders you are talking to.
The time saved in initial research could be used to validate the outcomes with an internal champion, or your sales manager, to ensure you have created truly compelling insights.
But, leading your customers to acknowledge a need to change, or even desire to change, is not enough. How do we turn awareness into intent and intent into action? I will be discussing this next in the series.
If you’d like us to teach your team how to sell with a buyer’s perspective, please contact us via the form below and a member of our team will get back to you promptly.
