Some Risk Is Inevitable
Every business sales training expert knows that just about every purchase involves some level of risk — products may not function as advertised, software may not be fully adopted, and services may not fully deliver on their promise. That’s why “buyer beware” is such a familiar phrase. As consumers, we have learned to accept a certain degree of risk. But as sellers, we must recognize the implication of risk to buyers that sellers should know.
Reaction to Buyer Disappointment
Think of difficult sales situations where you have been disappointed by an important purchase. Did you know ahead of time what might go wrong or were you unpleasantly surprised by the missed expectations? It would seem that, from a buyer’s perspective, by understanding and accepting the risk beforehand, the purchase would leave you less upset with the seller.
But is that theory true?
An Experiment
Our microlearning experts shared an experiment conducted by psychology professors from three schools including NYU to investigate how buyers handle information about risk. The product? Cigarettes. And even though cigarettes are highly addictive, we still think that the results have merit for all sellers.
The smokers were divided into four groups. Three were warned about various different health risks; the fourth was given no health warnings. Then all were asked if they wanted to place an order.
Then came the twist.
Some were advised that they would receive their order right away while others were told they’d have to wait three months for delivery. In other words, the setup put some in the test groups expecting “near-future” product delivery while those in the second category would not see their order until the “distant-future.”
The results showed that the near-future group ordered 75% fewer cigarettes while the distant-future buyers ordered almost 500% more packs than even those who’d seen no health warnings.
What did the psychologists conclude?
Decisions made in the near-term were dominated by a sense of fear of the negative implications. But when those negative outcomes were pushed into the future, the fear faded.
During the Sales Process
What does this mean for solution selling training experts? The experiment implies that you should share risks early on in the sales process. Not only will the news of any downside have time to dissipate, but the buyer will also accept the news as a signal of your trustworthiness by putting your buyer’s needs first.
Top sellers do not try to hide anything.
The Bottom Line
The most important factor that contributes to a long-term customer relationship is trust. Are you so eager for a sale that you postpone presenting any risk factors until the buyer is already sold on the benefits of your offering? Don’t make this mistake. Not only does it lack integrity, but you may lose the sale due to the buyer’s sudden fear of negative consequences and lose their trust over the last-minute disclosure.
To learn more about how to handle difficult sales scenarios like the implication of risk to buyers that sellers should know, download The Top 30 Most Effective Sales Questions when Selling Complex Solutions