Speed, Value & Cognitive Bias

Speed increases value.

The faster you are in your sales process the more value your product is perceived to have.

Any customer or business person can verify this fact through experience.

And there are many studies out there from operations management theory to queueing theory that can back this up.

Again the longer you make a client wait the less perceived value your product has.

This Harvard study shows how operational transparency affects perceived wait time/value. And it actually has an interesting graph that shows value given different wait times.

Imagine if you received an email from a person who wants to do business with you that you have never met or spoken with before.

Now take this one step further and imagine you actually take the time to respond to the email, knowing full well it’s one of hundreds that you receive on a daily basis.

How would you feel if that person took 24 hours to respond back?

How would you feel if that person took 8 hours to respond back?

How would you feel if that person took 4 hours to respond back?

How would you feel if they responded to your email immediately?

And how would you feel if that person called you within a minute to five minutes of you responding to their email?

If you are like the majority of people you are going to feel very differently depending on the speed and quality of the response that you get.

I’ve used the strategy of rapid personal response time with anyone I am interacting with for the very first time.  If someone emails you and you immediately call them and speak with them personally you will be amazed by the results.

The strategy of rapid personal communication on the first interaction takes full advantage of value versus perceived wait time and full advantage of the primacy bias.

The primacy bias is a form of cognitive bias where people are more likely to remember the beginning of an experience.

The primacy bias is similar to the peak-end rule and the recency bias.  The peak end rule is the tendency to remember the peak of an experience and the recency bias is the tendency to remember the end of an experience.

More on these biases here

These are forms of cognitive bias that all sales people, persuaders, and influencers should be aware of.

What this means to you is if you reach out rapidly in the very first interaction you have with a new prospect, people are most likely to remember this very first interaction and associate massive value to your product or service.

What this really means to you is that the most important part of any client interaction or presentation is the beginning, the peak of the experience, and the end!  

Here is a full list of cognitive biases.

Read through these!!!

The one I see sales people fall victim to the most is the sunk cost fallacy, specifically when they don’t qualify people out of the process early on… more on this next time and thanks for reading!

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