THE POWER OF SIGNALING
Marketing and sales are psychological warfare.
I have recently being over-indexing on the economics term “SIGNALING’’ And I found it really fascinating, so let us dig into it and unpack how we can apply it into our lives and sales.
SIGNALING: A message sent to a receiver containing information about the party or person sending it.” Or as the economist, Tyler Cowen puts it “ An action that reveals information”
When you walk into a doctor’s office and you see his or her certificate from Oxford university adorning the wall of his office, that’s a signal he is sending to you about his competence and education.
You hear of a new bank and discover that the chairman of the bank is Barack Obama that’s a signal of their credibility and managerial prowess.
Signals help your target or whoever you want to influence reduce their resistance and so they can give you attention.
When you want a new business from a company and you arrive there in a borrowed G-Wagon Jeep you’re sending a signal of wealth, in fact, the security will be more friendly with you hahaha.
SIGNALS HELP ALLEVIATE INFORMATION ASYMMETRY
In business, information asymmetry is when you know more about the goodness of your product than your customers.
To solve that you need signaling, this is the reason why some companies give you samples of their products to taste or use for a few days before you make up your mind to buy the full product. That is the alleviation of information asymmetry at work right there.
YOUR DRESSING AND PACKAGING IS A SIGNAL
By dressing well or packaging your store well, you send out a signal of competence and success and in the process, you will attract new leads and new sales.
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