Buying into a new buzzword
THE SALES AND MARKETING industry is taking on a new shape as marketers move into laboratories to obtain insight into how consumers make buying decisions. Tim Keys, MD of The Sales Institute, says “Neuroeconomics” is the new buzzword in the industry, especially in developed countries such as the United States and Britain. Building on the latest findings on neuroscience (which studies brain activity) – which reveal we’re more instinctively driven in taking decisions – Neuroeconomics combines neuroscience with psychology and economics to study how people make economic decisions.
“Chief among these findings is that purchasing decisions are intensely emotionally motivated – not based on logic, as salespeople might like to believe,” writes Keys in a University of Cape Town Graduate School of Business newsletter.
“According to MRI (Functional Magnetic Resonance Imaging) scans, the strongest motivator in purchasing decisions is fear of loss. This reveals why people are often so resistant to making large purchases.”
What does this mean for salespeople? “Forming a relationship is the one sure way for salespeople to work around this instinctive fear – and turn it to their advantage. Rapping off the benefits of your product or service before building trust with a client is, on the other hand, a method doomed to failure… The pressure sales managers place on immediately closing a deal, for example, can actually exacerbate the fear of loss and create mistrust in many buyers.”