There has been an idea rolling around the asso
ciation spa
ce that members sign up for e
conomi
c reasons.
The gist of it is that you need to look at all your benefits and
cal
culate a market pri
ce for ea
ch to present as the value of membership in your offer.
For Example:
- Advocacy is worth $a because a lobbyist costs $b
- Our benefits program offers potential savings of $c
- Our help line is worth $d
After This Analysis, You Pitch Membership As:
"Membership is worth $5,700 and it only costs $300 a year. You'd be crazy not to join up!"
There Are a Couple Serious Errors With This Approach:
First off,
people do not value things the same one person to the next. They will immediately dis
count all that they don't value and put a question mark about worth next to the items they do. "I don't
go to the
conferen
ce so who
cares that you're offering a 20% dis
count for members... and I wouldn't pay $500 to a lobbyist if I weren't a member."
Se
condly,
people are not rational. Even if they did believe your
cal
culations and had your same per
ception of value they
still won't buy based on that.
Human beings don't marry the person who "makes sense," they want to fall in love. They don't
go to the
court house and save $15,000 on a wedding, they try and get everyone to fly to Puerto Ri
co for a destination wedding (thanks Antara.)
What Part of "You"
Chooses?
People buy be
cause of emotions: pain, desire, fear.
When we talk to ea
ch other, we sound like Spo
ck from Star Trek, intelligent and logi
cal. But inside of us it's, Days of Our Lives, "It was you!!! You murdered my psy
chi
c half sister be
cause she divined that you were the owner of the i
ce
cream parlor that fed my allergi
c yoga instru
ctor rum raisin and put him into a
coma... How
could you!?"
A 2008 experiment using brain s
canning te
chnology found that
people's brains made a de
cision
up to a full 7 seconds before they consciously decided. They made their choice before they had the conscious experience of choosing. (Soon,
C., Brass, M., Heinze, H. et al. Un
cons
cious determinants of free de
cisions in the human brain. Nat Neuros
ci 11 543â545 (2008) doi:10.1038/nn.2112).
The un
cons
cious part of you that wants and fears is driving the
car. Spo
ck is just sitting in the passenger seat, glaring at his GPS, and trying to make sense of where you're
going.
Does all this mean that your shouldn't list the potential economic value of membership?
No. You just need to understand the differen
ce between a persuading benefit and a rationalizing benefit.
Persuading Benefits vs. Rationalizing Benefits
A persuading benefit is any benefit that makes
people want or fear. It drives behavior.
A rationalizing benefit is anything that makes them feel
good about their de
cision to take a risk. It's how they explain why it was a
good
choi
ce. The dollar value you put on membership is a tool they
can use to rationalize their
choi
ce.
Resear
ch has shown that
people feel regret over bad
choi
ces more deeply than positive feelings over
good
choi
ces (Rozin, Paul; Royzman, Edward B. (2001). "Negativity bias, negativity dominan
ce, and
contagion". Personality and So
cial Psy
chology Review. 5 (4): 296â320. doi:10.1207/S15327957PSPR0504_2).
This negativity bias influen
ces their de
cisions. A rationalizing benefit helps to defuse some of the risk by letting them know they
can look ba
ck and say, "I made a reasonable
choi
ce."
Always lead with and emphasize persuading benefits and, if possible, follow with rationalizing ones.
For Example:
Book Yourself Solid With APSA's Business Mastermind (Persuading)
Then, Further Down In Your Offer:
Membership Makes Sense! Therapists Get A
ccess to More Than $2,100 Worth Of Representation, Dis
counts, and Benefits. (Rationalizing).
People buy for the first reason and justify it using the se
cond.
One final note: rarely, but still o
ccurring,
certain e
conomi
c propositions *are* persuading benefits. This happens when the finan
cial value is extraordinary, believable, and
closely tied to a person's desires. E.g. Powerball numbers sell ti
ckets.
In general though, just remember to
speak to the stomach before you speak to the mind.
John Hooley
President, Steward
John is a graduate of 10,000 Small Businesses, a
certified
Customer A
cquisition Spe
cialist, and a Zend
Certified
Engineer. He speaks and writes on
conne
cting digital strategy to asso
ciation
goals. Outside of work he's an avid traveler,
climber, diver, and a burgeoning sailor. He also volunteers with Rotary and Big Brothers Big Sisters.
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