New for 2020: Behavioral Economics and Demo Psychology
Happy New Year! I don’t know about you, but I was hoping that 2020 would be more of the future than it is. Where’s my flying car/jetpack/robot butler?
Big things are happening at Demo Solutions
So much new stuff! New URL (we are now on DemosWinDeals.com), new look and feel for the site, new clients, new partners, a powerful client portal and more.
To keep adding to the new stuff, we now have a new blog section that we’ll be building out over the year – Behavioral Economics and Demoing.
Behavioral economics? What does that have to do with demoing?
Behavioral economics studies the various factors, such as psychological, social or cultural, that make up why we make the decisions that we do.
Humans are irrational creatures. We make decisions that aren’t always “optimal.” We do everything we can to avoid cognitive dissonance, which is that feeling when two ideas clash with each other (“I always eat healthy food” while eating a giant cookie). We are easily influenced (even if we think we aren’t). And we’ll go to great lengths to justify our decisions, both to ourselves and to our coworkers. Even if those decisions are wrong.
We are all influenced by bias
Decisions require thinking, and thinking is hard. And we make tons of decisions every day – like, 35,000 of them. So we have mental shortcuts to help, called “heuristics.” For example, if you’re in a new city and are hungry, you will likely seek out places that “look like” a restaurant, because you have an image in your head of what a restaurant is (representativeness heuristic).
Heuristics can help us make decisions faster, but the way we make decisions is full of bias. There are lots of cognitive biases, and we all have them. Ever decide to buy a product and seek out reviews that support the one you want, while ignoring negative reviews? That’s confirmation bias. Do you worry about plane crashes but have no issue getting in your car every day? Plane crashes are big news when they happen, so we can easily recall them – even though, statistically speaking, cars are far more dangerous than airplanes. That’s the availability heuristic.
Sales is about persuading someone to make a decision. Demos are a key factor in a sale. Therefore, demos are about persuading someone to make a decision.
If we’re going to drive a decision, we must first understand how someone makes a decision. What biases are at play? How do those biases impact how they view us and our product? What biases do we bring to the table, and how to those impact our deals?
Throughout the year, we’ll be discussing the “why” of decision making, and how it impacts your demos, presentations and sales. So stay tuned – lots of great stuff is on the way.
Got a topic you want us to explore? Or just want to nerd out about psychology? Click the button below and let’s chat!