#77- Influence by Robert Cialdini
Learnings from the book on the psychology of persuasion
Yesterday, I finally set up my home library after reclaiming some furniture from the ongoing renovation at my parents’ house. Going through the list of books, I came across Influence by Robert Cialdini and re-read it, this time making notes because I not only wanted content for my newsletter but also wanted to share relevant examples with founders who may be dousing fires and not have time to read it.
What is the book about?
Influence by Robert Cialdini provides valuable insights into the psychological principles of persuasion and how they can be effectively applied in various situations. As a founder, understanding and utilizing these principles can help in effectively convincing investors, partners, and customers, ultimately leading to the success of the company. Additionally, recognizing and avoiding manipulative tactics can protect founders from making unethical or ineffective decisions.
Overall, reading this book can benefit everyone in both their personal and professional endeavours.
So, who is this book for?
A founder looking to convince investors, partners, and customers
An investor looking to attract funding, win competitive deals
An employee to better understand and navigate workplace dynamics and effectively persuade others
A parent to protect their children from manipulative tactics
Six key principles of persuasion
Reciprocity
Scarcity
Authority
Commitment & Consistency
Liking
Social proof
Reciprocity
The principle of reciprocity states that people feel obligated to give back to those who have given to them. This can be seen in the concept of “free samples” in marketing, where a company gives away a small amount of their product for free in order to entice the customer to make a purchase.
How can founders use the principle of reciprocity?
By offering potential investors a free consultation or valuable information about their industry. This initial gesture of goodwill can create a sense of obligation for the investors to return the favour by showing interest in the founder's business venture.
A founder can also use the principle of reciprocity by providing exceptional customer service to their clients. By going above and beyond to solve their clients' problems and meet their needs, the founder can create a sense of indebtedness in the clients, leading them to reciprocate with loyalty and positive word-of-mouth referrals.
Scarcity
The principle of scarcity states that people are more likely to want something if they believe it is rare or in limited supply to create a sense of urgency.
How can founders use the principle of scarcity?
As a founder, you can leverage the principle of scarcity by offering limited-time discounts or promotions on your products or services. This can create a sense of urgency among potential customers and drive them to make a purchase before the offer expires. For example, you can announce a 24-hour flash sale on your website or social media channels and offer a discount of 20% on all products. This can create a sense of urgency among potential customers and increase the likelihood of them making a purchase.
Another way to leverage the principle of scarcity is by limiting the availability of your products or services. For example, if you are launching a new product, you can announce that there will only be a limited number of units available for purchase. This can create a sense of exclusivity and make your product more desirable among potential customers. You can also use this strategy for limited-edition products or special collections. By creating a sense of scarcity around your products or services, you can increase the perceived value and drive more sales.
Authority
The principle of authority states that people are more likely to be influenced by those who are perceived as experts or authorities in their field. This can be seen in the use of endorsements by celebrities or experts in advertising, where the credibility of the endorser is used to persuade the customer to make a purchase.
How can founders use the principle of authority?
As a founder, it is important to establish your authority in the industry or market you are operating in. One actionable example is to regularly share your expertise and knowledge through public speaking engagements, writing articles or blog posts, and participating in industry events and conferences. By positioning yourself as an authority in your field, you can gain the trust and respect of your audience, which can lead to increased credibility and influence.
Another actionable example is to surround yourself with experts and thought leaders in your industry. By building relationships and partnering with these individuals, you can tap into their expertise and credibility, which can help enhance your own authority and influence. This can be done through collaborations, joint ventures, or even simply sharing their content and ideas on your own platforms. By leveraging the authority of others, you can add even more credibility and influence to your own brand. [P.S.- This is exactly what I’m doing by reviewing & summarizing this book]
Commitment & Consistency
The principle of consistency refers to the human tendency to align our actions and beliefs with our commitments and promises. This principle is rooted in the idea that people want to appear consistent and reliable to others and avoid appearing inconsistent or untrustworthy.
Overall, the principle of consistency is an important principle for founders to consider, as it can help them stay focused and committed to their vision, even when faced with challenges and obstacles. By remaining consistent in their actions and beliefs, founders can achieve their goals and create successful companies.
As a founder, this principle can be useful in securing investment by asking the investors to make a small commitment upfront, such as opting into receiving monthly updates 3-6 months before you raise a round in order to increase the likelihood of further discussions or providing some feedback when you actually raise a round in the future.
How can founders use the principles of commitment & consistency?
A founder can consistently send out newsletters to their email subscribers on a weekly basis to keep them updated on the latest news and developments of the company. This helps to build trust and credibility with the subscribers and increases their likelihood of making a purchase or recommending the company to others.
A founder can consistently provide high-quality customer service by responding to customer inquiries promptly and solving any issues they may have in a timely and effective manner. This helps to build a positive reputation for the company and encourages customers to continue doing business with them.
Liking
The principle of liking states that people are more likely to be influenced by those they like or have something in common with. This can be seen in the use of personalization in marketing, where the company tailors their message to the individual customer based on its customers’ interests and preferences. As an investor, I find this principle useful in building relationships with potential partners or clients by finding common ground and creating a sense of connection.
How can founders use the principle of liking?
As a founder, it is important to build strong relationships with your customers. One way to do this is by actively engaging with them on social media and responding to their comments and messages in a timely and positive manner. This will show them that you value their feedback and opinions, and they will be more likely to like and trust you as a result.
Use the principle of liking to foster positive relationships with your team. This can be done by expressing genuine interest in their lives, showing appreciation for their contributions, and being supportive and approachable leaders. For example, if a team member is dealing with a personal issue, make an effort to offer support and show empathy. This will create a sense of trust and positivity within the team.
Social Proof
The principle of social proof states that people are more likely to be influenced by the actions of others, especially if those others are similar to them. This can be seen in the use of customer reviews and testimonials in advertising, where the company highlights the experiences of satisfied customers in order to persuade potential customers to make a purchase.
How can founders use the principle of social proof?
As a founder of a startup, you can leverage the principle of social proof by showcasing testimonials and reviews from satisfied customers on your website and social media channels. This can help potential customers see that others have had positive experiences with your product or service and may encourage them to make a purchase.
Another way to apply the principle of social proof as a founder is to partner with influencers or industry leaders who can endorse your product or service. This can provide credibility and trust for potential customers, as well as increase brand awareness and reach through the influencer's followers.
Maybe legal, but is it ethical?
Cialdini also discusses the potential ethical implications of using persuasion techniques and emphasizes the importance of obtaining consent and being transparent in one’s intentions.
One potential ethical implication of using persuasion techniques is the potential to manipulate or deceive individuals. In the principle of social proof, Cialdini explains individuals are more likely to take action if they see others doing the same. This principle can be used ethically, such as in advertising campaigns that show real people using a product to demonstrate its effectiveness. However, it can also be used unethically, such as when companies use fake online reviews or paid actors to create the illusion of widespread support for a product.
Another potential ethical implication of using persuasion techniques is the potential to exploit vulnerable individuals or groups. Cialdini discusses the principle of authority, where individuals are more likely to comply with requests from individuals in positions of power or expertise. This principle can be used ethically, such as when doctors provide medical advice to patients. However, it can also be used unethically, such as when scam artists or predatory salespeople use their perceived authority to pressure individuals into making decisions that are not in their best interest.
Final thoughts
Overall, Influence is an important book that provides valuable insight into the psychological principles that govern our decisions and how they are used in marketing and advertising to persuade us. It is a must-read for anyone interested in psychology, marketing, or advertising.