Question

Describe each of Cialdini's principles of persuasion. Discuss how companies might use them to improve their personal selling efforts.

Answer 1

The six principles of Cialdini’s principles of persuasion which help to persuade others are as follows:

1. Reciprocity: The first principle of persuasion is reciprocity; it means to give to others what you want to receive. This includes giving gifts to others, treating others with respect, and doing small favors to others will get you back the same response. Companies can use reciprocity by genuinely respecting customers and establishing a personal rapport with them. The companies can wish customers on their birthdays and anniversaries. They can also give small gifts or discounts to customers, for example, initiate a special discount for the customers on their birthday and/or anniversary month. This will make the customer feel recognized and special. The customers can be offered water and beverages when they visit your stores.
2. Consistency: The second principle is consistency which means commitment which is active, public and voluntarily. The company when it promises something to the customer they should deliver it. They should follow through their commitments. For example, If a discount offer is advertised it should apply to all outlets. Similarly, the loyalty programs and points should be honored and create value as promised to the customers. The company should publically acknowledge prime customers especially in the service industry like hostels, airlines, where regular travelers would be addressed by name and their special preferences, should already be recorded. Acknowledgment and special treatment will make customers feel important and result in repeat and continuous business.
3. Social proof: The third principle is social proof which means people rely on social cues from others to define how to feel, act and think in particular situations. So companies can use social proof by getting well known respected and liked people in social groups to use their products and services. This will encourage more customers to follow suit, for example, club membership is taken by an actor, sports personality will get many more people to also opt for the membership. As it will add to their status and increase their prestige.
4. Liking: The fourth principle is liking. The people like those who reciprocate their feeling and are their friends. The companies can use this in personal selling efforts by being extremely nice to the customers and compliment and praising their preferences. The customer service manager or relationship manager can build personal bonds with their customer especially in high valued premium services. For example, a special treatment meted out to customers in the hospitality services ensure they use your hotel chain when they are globetrotting as they like your team and prefer to stay with them.
5. Authority: The fifth principle is an authority. The authority comes from the perception where you are seen as an expert. For example, the company can hire experts in software services who are well known in software development systems. The company is known to be a leader in providing customized services. The relationship manager will have technical skillset and expertise to explain how any user can use their systems to simplify business and make daily business easy. This will help to persuade customers to opt for the services because of the expert knowledge and feeling comfortable that the company has the expertise.
6. Scarcity: The sixth principle is scarcity. People like scarce commodities. The company can create artificial scarcity and exclusivity by customizing the products. For example, customized suits made for specific occasions, special and unique jewelry designs can be used to promote personal selling. The high-end premium customers want to appear superior and exclusivity adds to their status. Made to order products carets scarcity an exclusivity.

To conclude Cialdini's principles of persuasion can be used to maximize personal selling by creating personalized products and services, make customers feel special by giving extra care and maximize sales and revenues for the companies.