Whether you are aware of it or not, you are being influenced by multiple people on a daily basis. In turn, you are also influencing many people with your words and actions. Influencing people is more than just getting them to do what you want them to do. Influence is a skill that involves guiding, directing, or encouraging behaviors, thoughts, or actions. When done right, and ethically, influencing is an art that can clearly be distinguished from manipulation. Let’s dive into the nature of influence, its ethical consideration, practical applications, and the principles that affect influence in both the professional and personal contexts.
Robert Cialdini’s Six Principles of Influence1
There are six generally accepted principles to mastering the art of influence as laid out by Robert Cialdini, an American psychologist, author, and the Regents’ Professor Emeritus of Psychology and Marketing at Arizona State University. These six principles are:
1) Reciprocity
Reciprocity is a social norm where receiving a gift or favour creates an obligation to return it. For example, a study has shown that when waitstaff offer an unexpected after-dinner treat, their tip increases. This illustrates how even small gestures can foster reciprocation.
2) Commitment and consistency
This principle involves securing initial commitments to encourage ongoing engagement. Take, for example, loyalty programs, such as coffee stamp cards. By influencing behaviour and rewarding commitment, customers will more likely remain loyal and develop a purchasing pattern that favours their consistent behaviour.
3) Social proof
Social proof is a form of social influence and helps individuals make decisions by looking to the behavior of others to influence their decision-making process. This type of influence can be seen when consumers choose products with many reviews over those with perfect but few reviews. This can also be demonstrated in the comfort people find in knowing other have made similar choices to them, such as purchasing an insurance plan to protect their family.
4) Authority
Authority influences through perceived credibility based on expertise or endorsements. We all have seen experts, both real (through experience and achievement) or perceived (by celebrity or status), influence a wide variety of behaviours in consumer purchasing behaviour and trend patterns.
5) Liking
People are more easily influenced by those they like. Building rapport through shared interests, authenticity, and mirroring the other person’s energy enhances likability and, in turn, influence.
6) Scarcity
Scarcity creates urgency by highlighting limited availability, prompting quicker decisions. This can be seen in the retail sector through such influence tools as Black Friday, and urgent messaging on hotel and airline websites telling you that there are only a few rooms or seats available at the price shown. Scarcity can create a real sense of urgency when it comes to insurance as a person’s health status can change, literally overnight, limiting their choices for protection and potentially increasing prices.
Nudge theory
Nudge theory involves subtly shaping environments to encourage desirable behaviors without restricting choice. For example, shopping on a site like Amazon will clearly demonstrate this theory. Purchasing is made easy with one very bright and visible button to click, and similar or complementary items purchased by others is shown before checkout (social proof). Often, the choice you make can be influenced through many small and deliberate nudges given throughout the purchasing journey.
Ethical considerations in influence
It is important that influence always be ethical, transparent, and aimed at positive outcomes, or it risks being identified as manipulation. As you know, the insurance industry has regulatory standards in place to ensure ethical influence like fair treatment of customers and product suitability. When using any of the theories and ideas mentioned above, it is imperative that these standards are followed and adhered to.
Be an influencer
As an influencer in your chosen career, you can help shape the future and help ensure that customers are provided with ethical influences when making their purchase decisions.
To learn more about the art of influence, listen to our podcast episode, The power of positive influence available at ivari.ca/podcast or wherever you get your podcasts.
1 Robert Cialdini, Influence: The Psychology of Persuasion (New York: Harper Collins, 2007)
Disclaimer
This article is intended for general information purposes only and should not be considered specific advice, nor is it a substitute for advice from a qualified professional. The article may contain information obtained from third-party sources. While reasonable efforts have been made at the time of publication to ensure that the contents of this article have been derived from reliable and accurate sources, including third party sources, ivari provides the information “as is” and ivari does not warrant the accuracy or completeness of the information contained herein.
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