Persuasion

Beyond the Illusion: The Barnum Effect and Personality Tests

November 30, 2023 By Nagesh Belludi Leave a Comment

Beyond the Illusion: The Barnum Effect and Personality Tests In 1948, the American psychologist Bertram Forer conducted a personality test with his students, after which he provided what he claimed were personalized personality descriptions based on their test scores. In reality, Forer handed out the same generic newspaper astrology column to all students; therefore his personality descriptions were applicable to the majority of people.

Surprisingly, Forer’s students found these vague descriptions to be incredibly personal and highly accurate. Forer compared this psychological phenomenon to the captivating showmanship of P.T. Barnum, whose acts and deceptions enthralled audiences by making them believe they were witnessing something truly extraordinary. This phenomenon became known as the “Barnum Effect.”

The Barnum Effect, also referred to as the Forer Effect, involves subjective personality validation. This effect helps explain why individuals readily embrace horoscopes, personality tests, and fortune-telling, even when these sources provide generalized, positive statements that appear tailored to them but, in reality, apply to a wide range of people.

Idea for Impact: Be wary of the innate human inclination to seek personal validation and meaning in the information you encounter

In the realm of personality tests, it’s crucial to exercise caution. Many widely used tests have notable limitations and lack substantial validation. Without being employed scientifically and within the appropriate context, along with a healthy dose of skepticism, personality tests may simply serve as enjoyable group activities. They are particularly good at initiating conversations, injecting a playful and light-hearted aspect into social interactions.

In a broader sense, it’s wise to be wary of anyone who promises swift psychological diagnoses. Watch out for charlatans, self-proclaimed psychics, dubious psychotherapists, and faith healers who assert they can unveil the depths of your psyche in a matter of minutes. Stay inquisitive, but discerning.

Shrinkflation: It’s All About How We Conceive the Changes We Perceive

October 27, 2023 By Nagesh Belludi Leave a Comment

Shrinkflation: It's All About How We Conceive the Changes We Perceive Shrinkflation is a pricing tactic where manufacturers covertly reduce the size or quantity of familiar products while keeping the package price the same, or even slyly increasing it. Shrinkflation is a subtle means for consumer goods producers to conceal a rise in unit prices by giving customers less product at the same cost. This strategy is frequently deployed during periods of inflation and impending economic downturns.

But why not simply raise the prices outright? Consumers are generally understanding of price hikes if they perceive them as reasonable. However, when it comes to products like food and shampoo, they might not fully comprehend the reasons behind these pricing adjustments. As they feel the economic pressure mounting, consumers tend to find shrinkflation and the preservation of familiar package prices more palatable than a direct price increase.

Why Good Founding Stories Sell: Stories That Appeal, Stories That Relate

October 16, 2023 By Nagesh Belludi Leave a Comment

It’s the most famous “founding” story ever told. Isaac Newton often told it himself. William Stukeley first published it. Voltaire popularized it.

In 1666, Newton was strolling in a garden in Lincolnshire when he saw an apple drop from a tree. The fruit fell straight to the earth as if tugged by an invisible force. (Subsequent versions of this story had the apple striking Newton on the head.)

That mundane observation seemingly led Newton to conceive the notion of universal gravitation, which explained everything from the falling apple to the moon’s orbit. Whether it was true or not, the apple episode probably motivated Newton. But, indeed, he did not arrive at his theory of gravity at that single moment, as is commonly believed.

Most Origin Stories Make a Good Yarn

Fast-forward three and a half centuries, from England to California. Today, the “Eureka Moment” narrative is a Silicon Valley staple.

Most founding stories would rather you believe that brilliant entrepreneurs came about the outstanding idea for their startups in an almost Moses-like manner. In reality, though, that’s not the real story of how some of our iconic companies began.

When eBay launched, it gained loads of fanfare by proclaiming that Pierre Omidyar and his fiancée built the “Auction Web” to buy and collect Pez candy dispensers on the nascent internet. According to Adam Cohen’s The Perfect Store: Inside eBay (2002,) eBay’s public relations manager Mary Lou Song fabricated that founding story in 1997 to interest the media.

Netflix supposedly stemmed when co-founder Reed Hastings racked up a $40 fine with a Blockbuster store for his overdue copy of the movie Apolo 13. Netflix co-founder Marc Randolph’s That Will Never Work: The Birth of Netflix and the Amazing Life of an Idea (2019) debunks that origin myth. Although Hastings’s $40 fine inspired the process, it wasn’t the single “spark of imagination” that cooked up Netflix.

YouTube supposedly began when founders Chad Hurley and Steve Chen could not share videos of a 2005 dinner party in Chen’s San Francisco apartment. Everybody accepted the story until it was refuted by the third co-founder, Jawed Karim (who had been sidelined by Hurley and Chen.) Karim produced a prototype of YouTube inspired by HOTorNOT, a dating site that nudged users to upload photos and others to rate the looks of potential companions. Karim was particularly inspired by the concept of user-generated content versus website owners supplying the content. He set out to make a version of HOTorNOT with video. Chen later admitted that he embellished the dinner party story, which was “probably very strengthened by marketing ideas around creating a story that was very digestible.”

Facebook, first called FaceMash, was also inspired by HOTorNOT. Mark Zuckerberg and his dorm buddies created a website to post pairs of pictures from Harvard’s student community, asking users to rate the “hotter” individual.

Many Good Founding Stories are Just That—They’re Good Stories.

No company is ever founded in a single moment. Ideas evolve after assimilation and experimentation over several months, even years. It’s less interesting to say that things just develop, one idea building upon another. You won’t get as much publicity for rendering a normal-but-boring founding story.

If these mythic creation stories prove anything, it’s that people prefer a good story. People like a storyteller who’s more articulate than one who is accurate. Good stories move. Good stories lead audiences on a journey of the imagination.

Telling a Good Story is a Rehearsed Performance

Human beings are not transformed as much by statistics and facts as we are by stories. In All Marketers are Liars—The Power of Telling Authentic Stories in a Low-trust World (2005,) marketing guru Seth Godin says successful marketers don’t discuss features or benefits. They tell stories. Stories that readers want to read. And believe.

If humans were rational, we’d make judgments based on facts and statistics. But we’re not rational; we’re more convinced to act on stories, especially with emotional content. So the ability to tell a story well is a beneficial tool to add to your toolkit.

Idea for Impact: Those who can create and tell entertaining and exciting stories will have a marked advantage over others regarding persuasion. Learn to tell clear, commanding stories that make a good metaphor. Stories that appeal to emotion. Stories that relate. Stories that hold people’s attention. Stories that travel fast.

The Problem with People Who Don’t Think They Can Change

October 12, 2023 By Nagesh Belludi Leave a Comment

One expression I dislike is “You can’t teach an old dog new tricks.” It’s a defeatist attitude that limits the realm of possibilities. By saying, “That’s just the way I am,” we are closing ourselves off to change and cultivating a stubborn exterior that rejects suggestions to improve. It’s as if we’re saying, “I don’t want to learn anymore. Life is perfect for me as it is, and I refuse to change. The world should bend to my will.”

Many become so comfortable with what works for them that they resist change, even when presented with new information that contradicts their beliefs. These beliefs become intertwined with their identity, and challenging them requires self-examination and a willingness to see the world in a new light. Unfortunately, most people hesitate to do so, as it is an attitudinal rather than intellectual handicap.

In reality, life should transform us. Learning and growing means keeping an open mind and seeking new experiences that challenge our assumptions.

Think Before You Commit: Say ‘Yes’ Slowly

August 25, 2023 By Nagesh Belludi Leave a Comment

When presented with a request, avoid hastily agreeing and later regretting it. Instead, use this simple hack to prevent impulsive commitments: slow the conversation by posing questions.

Seek clarification regarding the specifics, time frame, and whether others have been approached. If you can only manage a portion of the task, inquire where your involvement would be most beneficial.

These questions allow you to gather more information and organize your thoughts. They will compel you to reconsider before biting off more than you can chew.

Undoing a default ‘yes’ is considerably more challenging than refraining from giving one initially. Revoking your commitment may result in even greater disappointment for the other person.

Idea for Impact: It’s tempting to say ‘yes’ to every demand imposed upon us by others. However, it is essential to reserve your ‘yes’for the right things. Respond with a deliberate and thoughtful ‘yes.’ Remember, every ‘no’ signifies a ‘yes’to something significant.

Don’t Overemphasize Hitting Financial Targets

August 24, 2023 By Nagesh Belludi Leave a Comment

Research shows placing too much focus on hitting financial targets can have negative effects on employee morale. It can even lead to unethical behavior, such as cutting corners or falsifying data, which can ultimately harm the company’s reputation and financial performance.

When conversations constantly revolve around financial metrics, employees may feel like they’re reduced to mere cogs in the company machine, solely responsible for driving up profits to satisfy shareholders. Instead, foster a connection between employees and the organization’s purpose. Emphasize the intrinsic value of their work and remind them that it’s not just about monetary rewards. Personal growth, meaningful experiences, and recognition are equally important.

Let one message resonate throughout the organization: Your work holds significance beyond financial targets.

How to … Strengthen The ‘Asking Muscle’

August 23, 2023 By Nagesh Belludi Leave a Comment

Many people are afraid to ask—even negotiate—for what they want. Just because you ask for something doesn’t mean you’ll get it, but you must keep trying. In the same way that your body’s muscles need regular exercise to stay strong and flexible, the voices in your head do too. The more you practice asking (rehearse with a friend if needed,) the more comfortable it becomes.

Idea for Impact: Don’t wait for good things, as you may have been taught. Ask for what you want. With each triumph, you’ll gain confidence; with each disappointment, you’ll learn something. You’ll overcome the dread of asking for too much. You’ll conquer the fear of rejection or reprisal. Besides, you’ll be less deprived of what you’re reasonably entitled to.

Expanding the Narrative: Servant Leadership beyond Christianity

August 21, 2023 By Nagesh Belludi Leave a Comment

During the 1970s, Robert Greenleaf, an executive at AT&T, began popularizing a concept that challenged the idea of a heroic leader. He advocated for leaders who embraced humility and empowered their followers to lead.

According to Greenleaf, great leaders see themselves as servants first, and this fundamental understanding sets them apart. He taught, “Servant leadership begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions.”

Interestingly, this notion of “leader as a servant” aligns closely with the principles and teachings found in Christian scriptures, where Jesus Christ is often regarded as the ultimate example of a servant leader. Jesus exemplified humility, compassion, and selflessness in his interactions with others. In the Gospel of Mark, he declared, “For even the Son of Man did not come to be served, but to serve, and to give his life as a ransom for many” (Mark 10:45, NIV.)

While Christianity inspires its leaders to emulate the servant leadership model by prioritizing people, valuing service, and fulfilling their role as stewards, it is essential to note that servant leadership is not exclusive to Christianity. The concept can be found in other religious traditions as well. For instance, even the Śvētāmbara Jain Jñātādharmakathāḥ Sūtra (“Stories of Knowledge and Righteousness”) monastic texts contain elements of servant leadership.

In a past life, the monk Megha was an elephant. Frightened by a forest fire, he created a clearing to provide refuge when the fire next hit. He rushed to the clearing with all the other animals during a future fire. At one stage, he lifted his foot to scratch himself, and when he came to put it down again, he saw that a hare had squeezed into the space. So he stood on three legs for the entire duration of the fire — several days — and as a result, he fell over and died. This exceptionally compassionate act resulted in a human rebirth.

The Mahākapi Jātaka relates Buddha-to-be on his Bodhisattva path:

The story runs that the Bodhisattva was born as a monkey, ruler of over 80,000 monkeys. They lived near the Ganges and ate the fruit of a great mango tree. King Brahmadatta of Benares, desiring to possess the mangoes, surrounded the tree with his soldiers to kill the animals, but the Bodhisattva formed a bridge over the stream with his own body and, by this means, enabled the whole tribe to escape into safety.

Devadatta, the jealous and wicked cousin of the Buddha, was one of the monkeys in that life and, thinking it was a good chance to destroy his enemy, jumped on the Bodhisattva’s back and broke his heart.

The king, seeing the good deed of the Bodhisattva and repenting of his own attempt to kill him, tended to him with great care when he was dying and afterward gave him royal obsequies.

Servant leadership goes beyond any specific faith and encompasses a broader philosophy of putting others and organizations before oneself. It emphasizes the importance of valuing and prioritizing the interests and well-being of others. As the apostle Paul wrote in his letter to the Philippians, “Do nothing out of selfish ambition or vain conceit. Rather, in humility value others above yourselves, not looking to your own interests but each of you to the interests of the others” (Philippians 2:3-4, NIV.)

Thirteen Phrases Your Customers Don’t Want to Hear

August 14, 2023 By Nagesh Belludi Leave a Comment

When spoken with a particular tone, specific phrases can instantly infuriate and frustrate customers. Here are some alternatives to consider:

Avoid: “I don’t know.” Instead, try “That’s a good question. Let me check and find out.”
Avoid: “Just a second.” Instead, try “It could take me a few minutes to get that information. Could you hold while I check, or should I call you back in ten minutes?”
Avoid: “Wait.” Instead, try “I haven’t gotten to that yet.”
Avoid: “We can’t do that for you.” Instead, try “That’s a tough one. Let me see what I can do.”
Avoid: “You’ll have to…” Instead, try “Here’s how we can help you.”
Avoid: “That’s not my job.” Instead, try “I usually don’t handle that area, but I know who can help you. Let me see if he’s available.”
Avoid: “It’s your fault.” Instead, try “The way this process works is…
Avoid: “Why didn’t you do…?” Instead, try “Our process expects you to…”
Avoid: “How’s that my concern?” Instead, try, “I understand how upset you are.”
Avoid: “I know!” Instead, try “Yes, you’re right.”
Avoid: “As I explained earlier… Instead, try “Let’s review the steps again.”
Avoid: “Don’t you understand?” Instead, try, “Am I understandable thus far?”
Avoid: “Are you done?” Instead, try, “Will there be anything else?”

Master the art of words and deliver customer service messages with a confident, sympathetic tone. Create a personalized list of “Do Say” and “Don’t Say” phrases, drawing from your own experiences.

Reflect on the pain points and communication barriers that specifically frustrated you as a customer during customer service calls, as well as the instances where representatives provided positive interactions. Identify effective approaches and avoid pitfalls when engaging with customers.

From the Inside Out: How Empowering Your Employees Builds Customer Loyalty

August 7, 2023 By Nagesh Belludi Leave a Comment

At a time when apathy and distrust are so endemic in many organizations, some companies have nurtured employee loyalty to create customer loyalty flourish. The following case studies will substantiate the cultivation of a positive work environment that prioritizes employee recognition and support invariably results in exceptional customer service.

The Nordstrom Way: Enabling Employees to Have the Freedom and Vision to Become Self-Directing

Nordstrom’s founders created a culture that prioritized a “worshipful relationship” with its luxury department store customers and empowered employees to do everything they could to please them. The Nordstrom Handbook emphasizes outstanding customer service and encourages employees to set high personal and professional goals, expressing confidence in their abilities. The company’s Rule 1 reads: “Use good judgment in all situations. There will be no additional rules. Please feel free to ask your department manager, store manager, or division manager any question at any time.” Nordstrom’s success is a testament to empowering employees and supporting policies prioritizing exceptional customer service.

Flying the Fun Skies at Southwest Airlines: Giving Employees the Freedom to Deliver a Great Brand Experience

Southwest Airlines achieved great success early on due to its committed and motivated workforce. Founder Herb Kelleher recognized the importance of prioritizing employee satisfaction to create a culture of caring for one another and providing excellent customer service. Kelleher famously said, “The business of business is people—yesterday, today, and forever. If the employees aren’t satisfied, they won’t provide the product we need.”

To create a positive work environment, Southwest Airlines encouraged fun among its employees, setting it apart from other airlines that were considered dull and unappealing. Celebrating employees and their families is deeply ingrained in Southwest Airlines’ culture, and it is evident in the prominent display of pictures capturing these special moments throughout their office spaces. This people-centric culture helped the company attract and retain talented workers passionate about their jobs and provide top-notch customer service, which made flying with the airline a fun experience. Despite the potential cost savings, Kelleher remained committed to celebrating employees with parties, banquets, gifts, birthday cards, and outings, citing the value of having the fewest customer complaints in the industry.

Beyond the Call of Duty: Ladies and Gentlemen Serving Ladies and Gentlemen at Ritz-Carlton

The Ritz Carlton is renowned for its exceptional customer service, with the empowerment of employees being a critical factor in their approach. The company’s philosophy of “Ladies and Gentlemen Taking Care of Ladies and Gentlemen” highlights the importance of treating customers and employees with respect and dignity. Regardless of their rank and title, employees can spend up to $2,000 per day per guest without seeking supervisor approval to solve problems and deliver personalized and unforgettable guest experiences. This approach may seem costly, but it empowers employees to use their judgment to create memorable and personal experiences for guests. One of my friends enjoyed staying at a Ritz-Carlton hotel a few months ago, where he ordered a burger and a milkshake. Unfortunately, the hotel did not offer milkshakes, so he settled for a glass of water. However, to his amazement, the waitress surprised him with a milkshake to accompany his burger. She went the extra mile without being prompted by scouring the kitchen for milk, ice cream, and cold milk to create the shake.

Idea for Impact: Empowering Employees is a Strategic Approach That Yields Significant Benefits

Empowering employees goes beyond providing the necessary tools and training; it fosters a culture of trust, autonomy, and ownership.

How you treat your employees directly impacts how they treat your customers. When you prioritize making your staff feel appreciated and supported, they are more likely to provide exceptional customer service. A positive work environment can foster innovation and creativity within your organization while attracting and retaining top talent.

Persuasion

Idea for Impact: Be wary of the innate human inclination to seek personal validation and meaning in the information you encounter

Wondering what to read next?

Wondering what to read next?

Most Origin Stories Make a Good Yarn

Many Good Founding Stories are Just That—They’re Good Stories.

Telling a Good Story is a Rehearsed Performance

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

The Nordstrom Way: Enabling Employees to Have the Freedom and Vision to Become Self-Directing

Flying the Fun Skies at Southwest Airlines: Giving Employees the Freedom to Deliver a Great Brand Experience

Beyond the Call of Duty: Ladies and Gentlemen Serving Ladies and Gentlemen at Ritz-Carlton

Idea for Impact: Empowering Employees is a Strategic Approach That Yields Significant Benefits

Wondering what to read next?