ENGR 134 / 234 Selling High Tech Products

Social Obligations & Reciprocity

Todays Roadmap
Yes Readings Guerrilla Selling Making Enchantment Endure InfoChachkie Readings

Guest Speaker tonight: Rich Block, CEO SB Zoo Buchanan 1930 5:00 Quiz scores posted to Central Desktop https://ucsb.centraldesktop.com/engr134/ Click Files and Discussions

ENGR134 is user name and password

Email UCSBENGR134@gmail.com if you have access issues
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Job Opportunity
Sales Engineer (the presales, technical type that supports our sales effort) Support Engineer (entry level tech support type with good technical skills) Inside Sales Representative (handles inbound leads, follows sales process, good communication skills necessary) Downtown Santa Barbara location Desirable skills include: Windows, Mac, Linux, Internet, Salesforce.com, Technical interest/skills a plus Salary plus performance based compensation Contact: Chuck Massanari chuck@logicmonitor.com IF you are graduating this Spring
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Internship Opportunity - BioIQ

BioIQ is an exciting young healthcare IT company located in downtown Santa Barbara. We are currently looking for an individual to play a key role in the growth of the company and make major contributions as a member of the BioIQ team.

Roles and Responsibilities Include, but are Not Limited to:

Research, analyze, and provide reports on the healthcare channels and opportunities Communicate with clients and users (in person, phone, and email) Support relationships with current clients and prospects Assist with ongoing operational tasks Assist in product development and usability studies Take initiative to pursue new projects as they arise

Start Date: March 2012 Hours: 15-20 hrs/week Compensation: This is a paid intern position. We understand your time is valuable.

Deadline: Please submit resumes by Monday February 6th to Jorge Solis at jsolis@bioiq.com with the subject Internship 2012 and your name.

RingRevenue Current Open Jobs:

Software Engineer

Support / QA Software Engineer

Software Engineer Intern

Administrative & Accounting Intern

Were always hiring great people!

To learn more about joining our team visit: http://www.ringrevenue.com/corporate/about/jobs

www.ringrevenue.com

Copyright 2012 - Proprietary and Confidential

ENGR 134 / 234 Quiz #3

No quiz if you are late

Entrepreneurial Challenge: Moores Crossing the Chasm

ENGR185B/285B 6 Sales and Marketing

Where Do They Fall?

STP = Segment, Target, Position

John

Larry

The Smiths

Elise Arthurs

Market Development Model

Establish a niche beachhead Early Market Chasm Bowling Alley

Mohr, Sengupta, Slater 2005

Computer Motion Falling Into the Chasm

Note: I share in all the credit and blame I was part of the team First generation product: NASA robotic arm revised to hold laparoscope

ENGR185B/285B 6 Sales and Marketing

Computer Motion Falling Into the Chasm

Note: I share in all the credit and blame I was part of the team First Generation NASA robotic arm revised to hold laparoscope Task previously done by a skilled surgical nurse / tech Innovators loved the idea of a robot in the OR

ENGR185B/285B 6 Sales and Marketing

Computer Motion Falling Into the Chasm

Second Generation Foot pedal replaced with voice recognition
Voice-controlled robot in OR is very sexy More buzz and a few Early Adopter sales

ENGR185B/285B 6 Sales and Marketing

Computer Motion Falling Into the Chasm

Second Generation Foot pedal replaced with voice recognition
Voice-controlled robot in OR is very sexy More buzz and a few Early Adopter sales

Took focus away from Pragmatists:

MOST surgeons were happy with a human holding the laparoscope Nurses HATED the robot; used the hand-controller Most robots were used by one Surgeon per hospital collected a lot of dust

The baby was ugly

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Computer Motion Falling Into the Chasm

Third Generation Brilliant case of doing the best with what we had Three robotic arms and bicycle brakes Focused on wrong early adopters
MIS cardiac robotic Life and death, high-profile procedures

FDA said No way so we took off for Europe

Some early adopter sales but difficult to repeat

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Computer Motion Falling Into the Chasm

Third Generation Interface was difficult to use not Intuitive
Forced to work within the constraints of NASA robot

A few Early Adopter surgeons mastered the interface

Most would not invest the required time

DOS vs. Windows

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Computer Motion Falling Into the Chasm

Lessons Learned Pulled out a victory - $148M exit
Intellectual Property saved the stakeholders equity

Intuitive Surgical focused on Pragmatic, highvolume procedures

Fast FDA clearance, broad market acceptance

Honestly assess degree you are locked-into an inferior technology See your value proposition through the eyes of Pragmatists

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Entrepreneurial Challenge: Moores Crossing the Chasm

Intuitive Surgicals Customers

Computer Motions Customers

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Guerilla Selling
Gs are principled salespeople Plan carefully Systematic Courteous, direct, businesslike
Must be comfortable with lower status JG: keeping his ego in check

Care about prospects business and personal lives Assume prospects are experts, rely on them for advice Determine: Need, Budget and Commitment level
ENGR185B/285B 6 Sales and Marketing

Guerilla Selling
Selling Stages NaB and CaPTuRe Need
Must do up-front If not match, ask for referrals and head out of Dodge

Budget Commitment
Objections are buying signs Feel, felt, found Invert the objection, Your windows are hard to open and close

ENGR185B/285B 6 Sales and Marketing

Guerilla Selling
NaB and CaPTuRe Presentation
Do I ask questions that show I care? Do I really listen to the answers? Do I give my prospect control over sales meetings? Do I act professionally? Do I relate to my prospect on their terms?

Transaction
Let customer close you; difficult to pull off

Reward
Let customers hit the jackpot Reward customers with something extra - recency
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Guerilla Selling
Nine Word Credo 1. Commitment Gs are deadly serious 2. Investment Gs invest time, energy and money 3. Consistent Poor selling done consistently beats great selling done sporadically 4. Confident Gs know they are selling quality 5. Patient Needs eventually arise
Oracle

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Guerilla Selling
Nine Word Credo 7. Assortment Offer variety 8. Subsequent 60% of time focused on existing customers 9. Convenient Gs make themselves buyer friendly
Take care of all paperwork do all the heavy lifting

10. Excitement Gs are enthusiastic; militantly optimistic Doing something differently w/ less
ENGR185B/285B 6 Sales and Marketing

Cussing Quickly
Is fast talking effective persuasion technique? Depends on the audience Counter-attitudinal fast talk more effective; less time to dispute If people agree with you slow down Bottom line should you cuss quickly with disagreeable people?
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Science of Persuasion
Weapons of Influence Instant understanding = sustained survival Tribal shortcuts that bind societies together

Judgmental Heuristics:
expensive = quality popular = good

expert = valued opinion

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Science of Persuasion
Weapons of Influence Not Machiavellian Inoculation from manipulation

Insights into selling process

Who was William Thompson? "Have you confidence in me to trust me with your watch until tomorrow?" Understood the power of reciprocity Christmas cards from strangers Much obliged = Thank you
The Original Con Man
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Combining Persuasion Techniques

Why were so many smart people duped by Madoff?

The combination for four techniques:

Scarcity The fund is closedbut maybe we can get you in

Authority Former Chairmen of NASDAQ

Social Proof Lots of other smart people were doing it

Liking Bernie was likeable, he was liked his clients

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Source: Kevin Bebak, student

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Yes! Creating Social Obligations - Reciprocity

Reciprocity Quid pro quo = sustained survival Starbucks - pay it forward
490 customers in a row Many paid more than next persons tab Pool of money collected and donated to charity

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Yes! Creating Social Obligations - Reciprocity

Reciprocity Our gift to you
Return address labels 35% vs. 18% Reciprocity overwhelms Liking 1st give something OF WORTH

Flowers you dont want

Applicability to selling?

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Object Lesson Social Obligation

Did creating a social obligation work? What happened?

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Yes! Creating Social Obligations - Reciprocity

Remind recipients of the gifts value Receive a $250 security program at no cost to you 100% - twice as many tickets purchased Cover letter and survey = 36% completion Cover letter, survey & handwritten message = 48% completion

Raffle tickets + unsolicited gift of a coke: % increase?

Why are handwritten notes effective? Are Post-It notes effective?

Cover letter, survey & handwritten Post-It note = 75% completion

Even blank Post-It Note = 69% completion

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Yes! Creating Social Obligations - Reciprocity

What are the characteristics of effective gifts? Significant, unexpected & personalized

One mint = 3.3% tip increase

Two mints = 14.1% tip increase One mintwait for itsecond mint = 23% tip increase

What is the Rejection and Retreat method of influence? Boy Scout - $10 circus ticket followed by $5 candy bar One concession deserves another & Perceptual Contrasts
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Heads I win, tails you lose

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Yes! Creating Social Obligations - Reciprocity

Reciprocity vs. incentives hotel towels Well donate $ if you reuse = 0% increase in compliance Cite donation first, then ask for cooperation - 45% higher reuse First offer unconditional help, then appeal to reciprocity

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Yes! Creating Social Obligations - Reciprocity

Are favors like Bread or Wine? Both bread to recipient, wine to giver Recipient values favor more than giver, immediately after receipt Recipient values favor less, over time Giver values favor more over time

Restate value of prior favor How is your job (that I helped you get) going?
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ENGR191 1

Enchantment: Making It Endure

What is the story with the ice axe?

Recreational Equipment Cooperative (REI) 3.5M active members > 100 stores Travel services Customers internalized REIs values
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Stages of Internalization
Anyone? Bueller? Bueller? Bueller? Conformity Not enchantment Wont last without force, unless Identification Common, shared interests Seek Enchanters approval Internalization Enchantment Beliefs = feelings

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Making Enchantment Endure

Goal of enchantment is a long-lasting change

Separate believers to avoid pluralistic ignorance

Set up satellite office mile from headquarters Tell others about a persons commitment

Catalyze Commitment

Invoke reciprocity

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ENGR191 1 - Introduction

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Reciprocity Helps Enchantment Endure

Give: With joy Early Often & generously

Unexpectedly
Ask for reciprocation I know youd do the same for me

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Community / Ecosystem Participants

Entice people to share in your success

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Diverse Teams
Various points of view keep cause fresh and relevant

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Promote Spreadability
What does this mean?

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Assignments
Next Class Required Reading Enchantment Chapter 8: How To Use Push Technology p. 112 Yes! Chapters 14 through 19, 49, Appendix p. 225 227 PsyBlog Email of Face-to-Face Communications? infoChachkie Reader Maximize Your Exit & Headlines Are Written By The Hopeless Next Class Object Lesson Labeling Technique or Inconvenience a Rival you choose Next Class Recommended Reading 4/2/2012 ENGR191 I Influence, Chapter 3

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