You know this—human beings are a bundle of feelings and biases!
You can ignore these and put your plans for success at risk.
Or you can incorporate normal human behavior into your businesses and increase the chances for successful selling.
Buyers like choices.
- Feeling of control
- Allows them to make comparisons
- Reduces feelings of decision-making risk
- Choosing feels like exercising free will.
Buyers also are affected by anchoring bias
Anchoring bias means we rely heavily on the first piece of information we are given.
We interpret new information (other options) from the reference point of our anchor.
Choice + Anchoring=Increasing Revenue
The Choice Framework
The IMPACT Based Pricing Choice Framework combines choice and anchoring bias to the benefit of both the buyers and the provider.
Your buyer will anchor the very best possibility. That means they’ll compare it to what comes next.
Therefore, present your IMPACT PLUS offer first.
IMPACT PLUS promises to deliver the most significant IMPACTs the buyer desires for a fee proportional to that combination of IMPACT + Significance.
Due to your deep understanding of the buyer and your firm’s expertise, you’ve designed an IMPACT PLUS offer that delivers even more than the buyer was imagining.
The IMPACT PLUS offer causes the buyer to exclaim “I never would have thought of that!”
IMPACT is presented next. The IMPACT offer shows the buyer the IMPACTs they’ll enjoy when their needs, wants, and desires are met. Your firm demonstrates a highly personalized offer reflecting their Issue and its significance on the Continuum of IMPACT
The natural tendency of anchoring bias causes the buyer to compare the IMPACT offer to the IMPACT PLUS offer. The buyer may think they’d really love to get the IMPACTs of the PLUS offer and maybe spending the additional money will be well worth it.
Your firm knows it will be compensated proportionally with either choice.
Finally you present the IMPACT Light offer. This offer reflects your ability to deliver some IMPACTs for a proportional fee. The buyer should be able to feel this is a real possibility that would make a difference, although not as much of a difference as the IMPACT offer.
The buyer’s anchoring bias will cause the buyer to evaluate the Light offer in relationship to the IMPACT and the PLUS offers.
What happens if you don’t offer choices?
The alternative to choices is a take-it-or-leave-it offer.
First, the lack of choice puts the spotlight on what they are currently doing.
Buying behavior analysis showa that a buyer’s current solution is the biggest competitor to any new offer.
They know what they know, they’re making progress with it, there’s no headache or risk that comes with making a change. Why switch?
Second, the buyer compares it to offers from your competitors. Since buyers need to make comparisons, they’ll find something to compare your take-it-or-leave-it offer to.
When you use the Choice Framework and make 3 offers of your own, you show the buyer there are alternatives to what they’re currently doing and reduce their need to see what other providers are offering.
You capture their decision making thought processes nearly entirely.
What You Need to Know for the Choice Framework
There are 3 essential elements that make the Choice Framework work.
- The Issue Chart. Use this quad chart to ask the prospect about the significance of their issue and whether they are making progress or are stuck.
- The Continuum of IMPACT. Ask the prospect to tell you on continuum of 1-10, where the IMPACT will fall once they get it.
- Know that they have money to spend to get the desired IMPACT. You will have asked about money in the 6 Questions. Never send offers to prospects who do not have money or won’t tell you if they have money.
The Virtual Coffee is a time to get to know each other just as we would over coffee IRL. It’s a friendly conversation. Schedule yours here.
Need to know more before you book? My LinkedIn profile tells my story.