MARKETING
have reduced their premium by at least 10 %, and some who ’ ve signed up have cut their insurance by 50 %! What that tells me is this : if you ’ re like MOST DRIVERS ( social proof ), YOU ’ RE PAYING 10 % to 50 % MORE ( scarcity ) than you should for your car insurance . I ’ ve been doing this for 10 YEARS ( authority ). My advice to ALL MY CUSTOMERS ( social proof ) is to try the technology because you ’ ll see a 10 % reduction in your premium immediately and possibly a lot more down the road . Do you want to give it a try ?”
THE PSYCHOLOGY There ’ s a lot of psychology in that paragraph , so let ’ s look at some of it . First , social proof describes the reality that humans feel more comfortable following the crowd . If more and more people are starting to try telematics and saving money , then that ’ s a clear signal to others that they should try it .
Scarcity is the psychological phenomenon that shows that humans will work harder to avoid a loss than they ’ ll work to gain the same amount . The simple reframe from gain ( savings ) to loss ( overpaying ) will cause more people to make the switch .
Authority tells us people feel more confident following the lead of an expert . Simple reminders about expertise , such as years in business , will make it easier for customers to go along with whatever an agent is proposing .
CONCLUSION Understanding the psychology of persuasion isn ’ t a magic wand that will get everyone to do what you want . However , decades of research show that tapping into certain psychology can make it easier for people to say yes to you . The suggested approach isn ’ t a guarantee you ’ ll make the sale whenever it comes to telematics . Still , I guarantee you ’ ll make it more sales than you might have in the past if you ’ ve been talking about tracking driving , big brother , and saving money .
Brian Ahearn is an author , TEDx speaker , and consultant , who spent more than three decades in the insurance industry . He ’ s one of only 20 people in the world certified to teach the psychology of persuasion on behalf of Robert Cialdini , Ph . D ., the most cited living social scientist . Brian ’ s goal is to help you achieve more professional success and personal happiness . He does this by teaching you how to ethically move people to action through scientifically proven ways to influence people .
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