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Psychological Selling

The Science of Selling the Way People Buy

Andy Ng MBA CA

Business Coach & Trainerwww.asiatraines.com

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Psychological Psychological SellingSelling

1.1. Psychology and its importancePsychology and its importance2.2. Role of Rapport and TrustRole of Rapport and Trust3.3. 3-Steps in PS: Excite, Eustress & 3-Steps in PS: Excite, Eustress &

ExchangeExchange4.4. Role of Heuristics in SalesRole of Heuristics in Sales5.5. Central Route: Logic and 5 WhysCentral Route: Logic and 5 Whys6.6. How to Make Your Offer IrresistibleHow to Make Your Offer Irresistible

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Are You Still Chasing After

Sales?

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The Tao of BusinessThe Tao of Business

Achieve Maximum with Achieve Maximum with Minimum Effort: EffortlessMinimum Effort: Effortless

Go with the natural flow of things, Go with the natural flow of things, oneness and respect for natureoneness and respect for nature

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Selling by Definition Selling by Definition

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Don’t Reinvent

the Wheel…Follow

Success

System!

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Psychological Selling is Selling that Psychological Selling is Selling that is Based on Human Psychology, i.e. is Based on Human Psychology, i.e.

how the mind works how the mind works

Problem with most salespeople:Sell on how sellers sell,

not how buyers buy

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3 E Steps in Psychological SellingExcite with your body language, voice and words what they can gain from you

People procrastinate, so must apply positive stress

Give value and ask for commitment objective

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Why did the Chicken Cross the Road?Why did the Chicken Cross the Road?

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Everyone do things byEveryone do things bytheir own reasons, not ourstheir own reasons, not ours

Find a Way to Communicate with

their Hearts and You’ll Know What They Want

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Test: Are You Selling based on How Test: Are You Selling based on How Sellers Sell or How Buyers Buy?Sellers Sell or How Buyers Buy?

1.1. Do you start your conversation with Do you start your conversation with ““Feel-checkFeel-check” or go straight to agenda?” or go straight to agenda?

2.2. Do you sell the benefits of your products Do you sell the benefits of your products & services OR focus on the prospect’s & services OR focus on the prospect’s MPP (most pressing problem)?MPP (most pressing problem)?

3.3. Is closing the sale considered the most Is closing the sale considered the most vital part of your sales process?vital part of your sales process?

4.4. Do you follow this sequence: Do you follow this sequence: • Scenario-Needs-Answer-Payoff or Scenario-Needs-Answer-Payoff or • Scenario-Pain-Answer-Backing-Payoff-Scenario-Pain-Answer-Backing-Payoff-

Evidence-Action Now?Evidence-Action Now?

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11stst thing 1 thing 1stst: : Build Rapport and TrustBuild Rapport and Trust

In Sync or on the same wavelengthIn Sync or on the same wavelengthNo Rapport = No TrustNo Rapport = No Trust

We Like People Who Are Like UsAll things being equal, people like to deal with people they know and trust

All things being unequal, people still like to deal with people they know and trust

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Neuro Linguistic Programming

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Match and Mirror EverythingMatch and Mirror Everything

Never Match and Mirror Pain and AngerHandshake

Terminology

Pace, Tone, Pitch

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3 Things in Selling3 Things in Selling

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Do buyers buy based on rationale or emotions?

Answer: Buyers buy based on how their brain works

1717Which cow do you remember?

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What Comes to Your Mind?What Comes to Your Mind?

25% Discount

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How the Brain works: HeuristicsHow the Brain works: Heuristics

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Seems that people buy based on Seems that people buy based on peripheral routesperipheral routes

But if you sell without a central route But if you sell without a central route (message), you’ll get buyer’s (message), you’ll get buyer’s

remorse!remorse!

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How the Brain works: How the Brain works: Peripheral and Central RoutesPeripheral and Central Routes

Guide the buyer to commit to your message (the central route)

while using Heuristics (the peripheral route) to effectively

convey that message

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4 Heuristics in Sales 4 Heuristics in Sales 1.1. Single option aversionSingle option aversion WhenWhen faced with 2 or more different faced with 2 or more different

choices, need to introduce another choices, need to introduce another option that is similar but inferior to option that is similar but inferior to one of the selections one of the selections

2.2. Likeability biasLikeability bias

3.3. Social proofSocial proof

4.4. Scarce means valueScarce means value

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The Central Route is the The Central Route is the Logic: 5 WhysLogic: 5 Whys

1.1. Why Change? Why Change? 2.2. Why Now?Why Now?3.3. Why You and Your Company?Why You and Your Company?4.4. Why Your Product or Service?Why Your Product or Service?5.5. Why spend the money? Why spend the money?

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5 Whys5 Whys1.1. Why Change?Why Change? • Dig out problems by challenging status Dig out problems by challenging status

quoquo Understand problems and identify root Understand problems and identify root

causecause2.2. Why Now?Why Now? Make problems hurt Make problems hurt Ask deeper questions that help buyer Ask deeper questions that help buyer

feels painful outcomes of allowing those feels painful outcomes of allowing those problems to continueproblems to continue

Show him implications of problems and Show him implications of problems and create urgencycreate urgency

Taxi

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5 Whys5 Whys3.3. Why you and your company?Why you and your company? Demonstrate track record, expertise, Demonstrate track record, expertise,

confidenceconfidence 4.4. Why your product or service?Why your product or service? Cost leadership and or DifferentiationCost leadership and or Differentiation5.5. Why spend the money?Why spend the money? Desire for gain or fear of lossDesire for gain or fear of loss

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Why Change?Why Change?

Ask questions to dig out the problems

and the desire for change

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7 Questions to Uncover 7 Questions to Uncover ProblemsProblems

1.1. What are your 3 biggest challenges? Which is the What are your 3 biggest challenges? Which is the most pressing? most pressing?

2.2. How long have you been experiencing this problem?How long have you been experiencing this problem?3.3. Think back to when you originally implemented this Think back to when you originally implemented this

process. What were your expectations? What results process. What were your expectations? What results are you currently getting? What results would like to are you currently getting? What results would like to get in future?get in future?

4.4. What’s working? What’s not working? Why?What’s working? What’s not working? Why?5.5. Everyone has to deal with change. What’s the one Everyone has to deal with change. What’s the one

change you are encountering. What challenge is this change you are encountering. What challenge is this change presenting?change presenting?

6.6. What do you see as your biggest hurdle you face in What do you see as your biggest hurdle you face in order to meet your goals? order to meet your goals?

7.7. What are the biggest areas or opportunities for What are the biggest areas or opportunities for improvement?improvement? Shopaholic

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Allan Pease Dig Deep QuestionsAllan Pease Dig Deep Questions1. What is your no. 1 challenge in your work

now?2. What made you choose that?3. Is that important?4. What are the consequences to you?5. Does that worry you?6. What would it mean to your work and

career if we resolve this?7. What does it mean to you personally?

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Needs and WantsNeed = Basic & Essential for Survival

Want = Good-to-have (without it will not die)

Do People Buy Do People Buy Base on Needs or Wants?Base on Needs or Wants?

Turn their Wants into Needs!Turn their Wants into Needs!

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The 10 Types of Customers The 10 Types of Customers and What They Need Mostand What They Need Most

1.1. PurchaserPurchaser2.2. AdministratorAdministrator3.3. AccountantAccountant4.4. Dept ManagerDept Manager5.5. Top Decision-MakerTop Decision-Maker6.6. UserUser

7.7. Maintenance Maintenance 8.8. MessengerMessenger9.9. ControllerController10.10. Change LeaderChange Leader

1.1. Lowest Price, meet specsLowest Price, meet specs2.2. Easy procedures that meet Easy procedures that meet

specs, boss happyspecs, boss happy3.3. Lowest cost (above all else)Lowest cost (above all else)4.4. Achieve Results FastAchieve Results Fast5.5. Bigger things eg market Bigger things eg market

share, branding, nameshare, branding, name6.6. User-friendly, specs, quality, User-friendly, specs, quality,

procedures, service supportprocedures, service support7.7. Low MaintenanceLow Maintenance, ease of use , ease of use 8.8. Meet the requirementsMeet the requirements9.9. Better ControlBetter Control10.10. Create Change that lastsCreate Change that lasts

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Employee LevelEmployee Level1.1. Job Security, Followed by More PayJob Security, Followed by More Pay2.2. Less work for same or more resultsLess work for same or more results3.3. No mistakes or unhappiness from boss & customers No mistakes or unhappiness from boss & customers

Management LevelManagement Level1.1. More Money: Sales, Profits, Lower costs, cashflowMore Money: Sales, Profits, Lower costs, cashflow2.2. Better Control, teamwork and less Fire fightingBetter Control, teamwork and less Fire fighting3.3. Go back earlyGo back early

Top Leader LevelTop Leader Level1.1. Increase in Market Share - DominanceIncrease in Market Share - Dominance2.2. Increase in Market Size - GiantIncrease in Market Size - Giant3.3. Leapfrog in Visibility, Credibility, Branding, Leapfrog in Visibility, Credibility, Branding,

ReputationReputation

What People Need What People Need

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Create the Need with Need QuestionsCreate the Need with Need Questions

1.1. Questions that turn all ‘Wants’ into Questions that turn all ‘Wants’ into ‘Needs’‘Needs’

• What you can do with the product/serviceWhat you can do with the product/service• What you will lose if you don’t have the What you will lose if you don’t have the

product/serviceproduct/service

2.2. Needs can be Explicit or ImplicitNeeds can be Explicit or Implicit• Ask questions to turn implicit into explicit Ask questions to turn implicit into explicit

needsneeds• ““Have you ever thought of before…?”Have you ever thought of before…?”

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Questions to Uncover NeedsQuestions to Uncover Needs1.1. How much storage space do you use now? How much storage space do you use now?

How soon will you need more?How soon will you need more?2.2. Do you ever run into problems because a Do you ever run into problems because a

file is lost?file is lost?3.3. How much do you think it cost your How much do you think it cost your

company to retrieve lost files?company to retrieve lost files?4.4. Are there any other costs? Like you have Are there any other costs? Like you have

to engage contractors to retrieve lost filesto engage contractors to retrieve lost files5.5. How would the costs of a new system be How would the costs of a new system be

offset by current costs?offset by current costs?

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Questions that Expand Questions that Expand NeedsNeedsQuestions that develop your need-finding questions Questions that develop your need-finding questions

into probing questions that elicits more into probing questions that elicits more information. Allows customer do the talkinginformation. Allows customer do the talkingAre you satisfied with your current system?Are you satisfied with your current system?

Share with me your level of satisfaction with your current system What do you like about your current vendor?

Describe for me the qualities you look for when choosing a vendorIs price important to you?

Explain to me the criteria you use to make a decision

Tell me what other factors you consider important

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5 Whys5 Whys1.1. Why Change?Why Change? • Dig out problems by challenging status quoDig out problems by challenging status quo Understand problems and identify root causeUnderstand problems and identify root cause2.2. Why Now?Why Now? Make problems hurt Make problems hurt Ask deeper questions that help buyer feels painful Ask deeper questions that help buyer feels painful

outcomes of allowing those problems to continueoutcomes of allowing those problems to continue Show him implications of problems and create Show him implications of problems and create

urgencyurgency3.3. Why you and your company?Why you and your company? Demonstrate track record, expertise, confidence Demonstrate track record, expertise, confidence 4.4. Why your product or service?Why your product or service? Cost leadership and or DifferentiationCost leadership and or Differentiation5.5. Why spend the money?Why spend the money? Desire for gain or fear of lossDesire for gain or fear of loss

Taxi

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1.1. + - X /+ - X /2.2. Money has no value: money Money has no value: money

spent now can beat inflationspent now can beat inflation3.3. Credibility comes before Credibility comes before

PayoffPayoff4.4. Investment, not costInvestment, not cost5.5. Make Limitless MoneyMake Limitless Money

5. Why Spend the Money?5. Why Spend the Money?

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Make Limitless MoneyMake Limitless Money

1. What they can Gain: Lower cost, Up Sales, Higher Profits, Lower Risk, Better Cash Flow, Higher Productivity

2. What they will Lose if they don’t come in3. Opportunities to Make More in Future4. Head-start over Competitors5. Less Stress and Happier Life for All

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The Biggest Payoff in the WorldThe Biggest Payoff in the World

What you can do with the Extra Money to Bring Happiness to Yourself and Your Love Ones

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9 Ways to Make Your Offer Irresistible9 Ways to Make Your Offer Irresistible1.1. Relief (state Relief (state

higher prices for higher prices for other products other products /services)/services)

2.2. Apple-to-Orange Apple-to-Orange ComparisonComparison

3.3. Spread out Spread out payments over payments over timetime

4.4. State in smallest State in smallest termsterms

Compare your Compare your product/service product/service to DIY or start to DIY or start from scratchfrom scratch

Other products or Other products or services that serve the services that serve the same benefit but are same benefit but are priced much higherpriced much higher

Pay in Pay in installments installments

Per unit, user or Per unit, user or timetime

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9 Ways to Make Your Offer Irresistible9 Ways to Make Your Offer Irresistible5.5. Sum up the Sum up the

component partscomponent parts6.6. Add an element Add an element

that cannot easily that cannot easily be priced by the be priced by the buyer buyer

7.7. Demonstrate value Demonstrate value or ROIor ROI

8.8. Multiply the returns Multiply the returns over timeover time

9.9. Pre-empt the price Pre-empt the price objectionobjection

Sum > your priceSum > your price A Key Benefit that A Key Benefit that

Removes User’s Removes User’s Frustration (peace of Frustration (peace of mind, status, timing)mind, status, timing)

Benefits/cost gives Benefits/cost gives double digit ROIdouble digit ROI

Benefits X years > your Benefits X years > your priceprice

Frighten them first, Take Frighten them first, Take away approach, Not for away approach, Not for everyoneeveryone

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Psychological Psychological SellingSelling

1.1. Psychology and its importancePsychology and its importance2.2. Role of Rapport and TrustRole of Rapport and Trust3.3. 3-Steps in PS: Excite, Eustress & 3-Steps in PS: Excite, Eustress &

ExchangeExchange4.4. Role of Heuristics in SalesRole of Heuristics in Sales5.5. Central Route: Logic and 5 WhysCentral Route: Logic and 5 Whys6.6. How to Make Your Offer IrresistibleHow to Make Your Offer Irresistible

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Contact Andy Ng 24/7Contact Andy Ng 24/7

www.AndyNgTrainer.blogspot.sg

andy@asiacoachingtraining.com

www.asiatrainers.com

www.youtube.com/AndyNgCoach

www.facebook.com/AndyTheCoach

www.slideshare.net/AndyTheCoach1

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Psychological Selling

The Science of Selling the Way People Buy

Andy Ng MBA CA

Business Coach & Trainerwww.asiatraines.com