As a marketer or seller, one of your greatest challenges is encouraging prospects to change their behavior and take action. This reluctance to change, even when the current situation is less than optimal, is known as “status quo bias.” To overcome this inherent yet irrational desire to keep things the same, you need to understand the various biases that contribute to status quo bias and refocus your playbook with new strategies and tactics.
Understanding the Key Biases
Status quo bias is the collective manifestation of several biases, each with its own implications for purchase decisions. Let’s examine three of these key biases:
- Prospect Theory: People are more averse to losing what they have than benefitting from something new. A decision maker may think, “I might get a promotion if this project goes well, but if it fails, my peers will no longer think I’m fiscally responsible.”
- Sunk Cost Fallacy: People continue to invest resources into an undertaking solely because they previously invested resources into it. A manager may not consider a third-party solution that will improve workflow performance because of the time and money already invested in a homegrown solution.
- Mere Exposure Effect: Also known as “familiarity bias,” this reinforces a preference for something people are familiar with vs. something new. A decision maker might make peace with an underperforming homegrown solution rather than invest in a new technology because of the risk that it could perform even worse.
Other biases that can contribute to status quo bias include anchoring bias, cognitive dissonance, confirmation bias, endowment effect, home country bias, optimism/pessimism bias, and representative bias.
The Impact of Status Quo Bias on Decision Making
Status quo bias can have a significant impact on decision making, particularly in a business context. When faced with a decision to invest in a new solution or stick with the current approach, decision makers may default to the status quo, even if it’s not the most effective or efficient option.
This bias can lead to missed opportunities for growth, innovation, and cost savings. It can also perpetuate inefficiencies and hinder an organization’s ability to adapt to changing market conditions or customer needs.
As a marketer or seller, it’s crucial to recognize the presence of status quo bias in your prospects and develop strategies to overcome it. This requires a deep understanding of your prospect’s pain points, goals, and decision-making process, as well as the ability to articulate the value of your solution in a compelling way.
Overcoming Bias with Value Selling
To overcome status quo bias, you need to reposition your marketing messaging and sales strategy. Your buyers may think that the least risky thing to do is to do nothing. Your job is to convince them that despite the risk of making a change, not making a change has its own risks and consequences.
Value selling tools can help you identify and quantify the problems your solution solves:
- Assessment tools: Uncover performance gaps relative to a desired state or industry benchmarks.
- Value calculators and ROI tools: Show the costs associated with maintaining the status quo, such as operational inefficiency, lost revenue, and adverse events like data breaches, unplanned downtime, and fraud.
- Case studies and testimonials: Provide real-world examples of how your solution has helped other organizations overcome similar challenges and achieve tangible results.
Value selling is also effective with buying committees, where disagreements and different agendas often lead to a default no-decision outcome. Instead of creating a personalized resolution for each committee member, which can lead to more disagreement, create a shared framework illustrating that the status quo is the greatest risk of all.
Building Trust and Credibility
In addition to using value selling tools, it’s essential to build trust and credibility with your prospects. This involves demonstrating a deep understanding of their industry, challenges, and goals, as well as providing valuable insights and expertise throughout the sales process.
Some ways to build trust and credibility include:
- Thought leadership: Share relevant content, such as blog posts, whitepapers, and webinars, that showcase your expertise and provide valuable insights to your prospects.
- Personalized outreach: Tailor your messaging and approach to each prospect’s unique needs and challenges, demonstrating that you’ve done your research and understand their situation.
- Transparent communication: Be open and honest about your solution’s capabilities, limitations, and pricing, and be responsive to your prospect’s questions and concerns.
By building trust and credibility, you can create a stronger foundation for overcoming status quo bias and driving meaningful change for your prospects and customers.
Conclusion
Status quo bias, rooted in loss avoidance, influences buyers in various forms. As a marketer or seller, you can use value selling tools to demonstrate to decision makers that sticking with the status quo is the riskiest decision they can make. By understanding the biases that contribute to status quo bias, refocusing your strategies and tactics, and building trust and credibility with your prospects, you can overcome buyer inaction and drive meaningful change for your prospects and customers.
Remember, overcoming status quo bias is not a one-time event, but an ongoing process that requires persistence, patience, and a deep commitment to your prospect’s success. By consistently delivering value and demonstrating the benefits of change, you can help your prospects break free from the grip of status quo bias and achieve their goals.