The Psychology of Decision Making: How We Choose

Every day, we make thousands of decisions that outline our lives-from smaller ones, such as what to eat for breakfast, to major life-changing ones, involving careers and relationships. But how often have you wondered about the psychological processes behind these choices? Let’s delve into this intriguing world of decision-making psychology and discuss a few key insights that may lead us to the best choice.

1. The Seven Steps of Effective Decision-Making

First, it helps to realize that there is a methodical process for decision-making. There are seven steps to effective decision-making according to SNHU:

1. Identify the Decision
2. Gather Information
3. Identify Prospective Alternatives
4. Weigh the Evidence
5. Choose an Alternative
6. Take Action
7. Review

This framework therefore gives an orderly course to follow through on all important decisions. Considering these steps in approaching a decision focuses attention on being more systematic and thoughtful in reaching a decision.

2. The Power of Intuition

While logical thinking is needed, intuition should not be scorned either. Research has proved that gut feelings can be a strong helper in many situations, particularly when fast judgments about people or situations are involved. Indeed, it was proved by research that people who listened to their gut feelings could predict more precisely and make more veracious judgments in conditions of poor information.

That doesn’t mean that we must always follow our intuition. It does mean we should at least attempt to balance our gut feelings against our more critical thinking and analysis. Combining intuitive and analytical skills allows us to make better decisions.

3. Overcoming Choice Overload

The abundance of choice we are faced with in today’s world will often lead to what can only be described as choice overload. What this entails is having too many options; this reaps anxiety, self-doubt, and dissatisfaction. What is even more interesting is that studies have been able to show that fewer options can lead to superior satisfaction and decision-making outcomes.

But to balance that choice overload, try to narrow choices or adopt strategies that make complex decisions simpler. This would prevent decision paralysis and thus help in feeling more satisfied with one’s choices.

4. Avoiding Pitfalls in Decision Making

A number of psychological biases influence the way we make choices. Understanding these can better our choices:

a) Fallacy of Sunk Costs: The tendency to invest time or other resources into something because so much has already been invested, even when continuing no longer benefits us. That is, one should feel free to change course whenever a decision no longer serves.

b) We have a decision where we look at the plus side and overlook the potential downside. Be sure to weigh both pros and cons when considering an option.
c) At times we make decisions based on our immediate, emotional state or mood. Even if just for a week, distance yourself from your decision; consider going back in your journal for the big picture.

5. Understanding Prospect Theory

Prospect Theory, developed by Nobel Prize winner Daniel Kahneman, helps explain various strategies in making human decisions between alternatives that involve gains versus losses. The three major messages of prospect theory are as follows:

We feel worse about a loss than an equivalent gain.
The pain of larger losses and the pleasure from greater gains are less than one would normally expect.
Individuals will take more risks to avoid a loss than to make a gain.

Such knowledge of tendencies should allow for more balanced decisions, whether it be financial choices or risk-related judgments.

6. Context and Environment Matter

Decision-making is less an affair of personal conscience but rather is tied to environment and context. Organizations can promote high-quality decision-making by creating settings in which individuals feel safe to offer diverse perspectives and challenge ineffective practices.

7. Continuous Improvement

Finally, don’t forget decision-making is an ever-evolving skill. We develop our skill in decision-making by reflecting on past decisions, learning from successes and failures, and keeping ourselves open to new information and perspectives.

Psychology about our choices, in the final analysis, imparts in us the skill to decide more effectively. Integrating structured approaches, intuition, awareness of biases, and a context for our decisions will give us added confidence in ourselves and effectiveness at navigating life’s choices. Keep in mind that every decision is an opportunity to learn and grow, so enjoy the process and trust yourself that whatever you choose will be wise.

Writing business emails can be challenging to some people and there are a few common business email mistakes that can make one fail to communicate effectively.

From what I have analyzed, the three biggest mistakes people make while writing business emails are:

1. Unclear and Wordy: Most business emails tend to have ambiguous or vague expressions. This leaves the recipient wondering what such an email intends to achieve or say. This easily leads to misunderstanding, confusion, or being utterly ignored. This calls for greater care to ensure that the purpose of the email is communicated. This applies to both the subject line and the introduction. While the body has the main message succinctly written.

2. Poor Tone and Language: Most business emails use a tone and language that is informal. This tends to give the impression of being unprofessional or even offensive. In such cases, this can lead to compromising your reputation. Indeed, poor email etiquette can also damage relationships that you could have fostered with a client, colleague, or partner. One has to be formal and respectful in communications, avoiding jargon, slang, and especially technical terms that one is not fully sure of.

3. Poor Proofreading and Editing: Most business emails are prone to grammatical errors, typos, and formatting issues that create a negative impression on the recipient’s mind. This can critically undermine your credibility and professionalism, making it less likely for the recipient to take your email seriously. Before sending an email, it is crucial that you thoroughly proofread and edit it using grammar and spell checkers to ensure its accuracy and clarity.

By avoiding these common business email mistakes, your business communication will become effective, professional, and clear to your audience.

This is why we added our Voyager AI Assistant to the Pipeliner CRM platform. Not only does this assistant write emails for you, but it also allows you to select the tone, and many other parameters to make sure your email resonates with its intended recipient.

To learn more about Pipeliner CRM Voyager AI click here.

I grew up in selling at Xerox in an incredibly sales-focused environment. One of our sacred operational mantras was the well-known “plan your work, work your plan”. In selling to and serving major Xerox clients, we were trained not only to go deep and wide in our accounts but to do the same across our multi-faceted product line. Major accounts, of course, had needs for all sizes of copiers and for the different types of capabilities that our equipment offered. Satisfying clients, therefore, involved understanding their needs comprehensively and managing many different types of business transactions and deal sizes. As such, we referred to deals as breakfast, lunch or dinner. Our clients needed them all. And as a result, for our nourishment, quota achievement and commissions, we really needed them as well. We couldn’t hit our numbers by ignoring breakfast and lunch by gorging at dinner. But most importantly, our clients needed the value that we and our products delivered regardless of deal size. For deal size, like meal size, did not dictate value. Value, of course, was determined by the client. What may be a relatively small revenue opportunity may actually deliver tremendous value to the customer. Ah, yes. There it is. A reminder of the four most important words in selling – “It’s not about you”.

Of course, sales human nature drives us all to be excited about winning “big deals”. And at this point in the 2024 selling year, many of us seek to make up for earlier disappointments and lost commissions by making a big splash while there’s still time. Makes sense, of course. But as you dream of propelling your quota performance into triple digits, check out the overhead sign as you speed towards that big deal – “Seller Beware”.

Shifting your focus in what remains of 2024 to large deals carries big opportunity costs as other things will certainly be neglected. Like your clients and their actual needs. Especially at this point in the year, you must make pragmatic decisions about which opportunities to pursue. The “It’s a really big deal” reason preys on your emotions and often violates those four most important words in selling. As we head down the back stretch of 2024, effective opportunity decision-making is huge. It’s the very definition of competitive advantage – being smart in taking actions to maximize your chances of success. Success in winning deals, of course, but also success in serving your client’s needs. And success in that area will serve you far beyond Dec. 31 and your end-of-year quota performance.

Obsession with pursuing big opportunities also often causes you to neglect deals where you already have an advantage and where you’ve identified a very high probability of winning – in the 80 or 90% range. Consider an opportunity with a current major account where you have valuable relationships and high confidence. Your optimism is so compelling that you populate your pipeline with a lofty probability, assured of a successful outcome. “It’s a done deal”, you think. But if your focus, time and effort are diverted away to fishing for that whale, you’re betting that it won’t affect your chances of winning. Losing “done deals” would be highly unlikely. Or would it? Don’t ever forget that The Titanic was unsinkable.

Your major accounts depend on you to meet their needs at any time of the year. And they have no concern about your quota or your commissions. Your hard-earned goodwill with them can be easily lost if you divert your attention to other interests. If they sense that they don’t have your focus or that you’re taking their business for granted, you are vulnerable. If you’re not giving them your best, it’ll be evident. And you have competitors who are more than happy to fill the void.

So, how do you strike a balance to maximize your selling effectiveness? First, follow your Go/No-Go qualification process to be certain you’re pursuing the right deals. Without such a framework, you’re flying blind. And win probability is only one of the important qualification considerations. Regarding those high probability deals, many effective selling organizations closely track their three highest percentage opportunities, regardless of size. For each, they build customized four-step value propositions – the solution proposed, what it does, how it benefits and how the benefit will be measured. Then they identify and execute the critical actions to maximize the chances of winning each deal, utilizing RACI to insure accountability. And the three opportunities are continuously refreshed. Win one and replace it with the next highest probability deal, continually working a trio of opportunities. Rinse, lather, repeat. Focus, focus, focus……even for the highest probability deals.

Breakfast, lunch and dinner. They matter to your clients and, of course, they should matter to you. Follow your Go/No-Go decision process and treat your opportunities with the highest probabilities as special, never neglecting them. Achieving those high probabilities took time, tending and effort. Don’t do your organization, your client or yourself a disservice by taking your eye off the ball. It’s about caring, really. If you care, your client will know it and your reward will be long-term.

A new career or business requires adapting to varying thoughts and ideas that seem insurmountable at first. Next, hesitation to proceed enters our hearts and minds, raising the question, ‘What was I thinking?’ Sadly, the next typical thought is, ‘I’m not going to proceed.’ Finally, quitting soon follows, leaving the idea of achieving our fondest dreams in the rearview mirror.

My unspoken motto is, ‘Give FEAR a chance!’ Even errors can be our gifts in disguise because they provide learning points for moving forward on a more solid footing. It is critical to embrace the mindset of ‘Yes, I Can!’ and then commit to learning the lessons arising from new approaches to business and life.

Examine ‘Why Am I Scared?’

Consider all the factors leading up to what scares you and the ‘why?’ behind all of it to circumvent and create a plan forward.

Like selling prospects, we are to similarly sell ourselves, with the question, ‘Why do you believe that?’ Discussing all the pros and cons of doing business with a prospect is critical. Similarly, when fear strikes, we must sell ourselves on the better outcome of moving forward. The better way to begin is to ask oneself the following questions and list out all the pros and cons:

1. ‘If I don’t try, what might I lose?’
2. ‘If I attempt the goal, what can I gain?’

One of the main factors is the time commitment, which involves learning, testing, and retrying. So, the next question might be, will the effort be worthwhile?

Goal(s)

Typically, achieving one goal is the precursor to achieving many more. Notice if a smile returns upon thinking about the initial potential outcome. Typically, the answer is, ‘Yes!’ Thus, it is the right time to set near-term goals that will eventually lead to your desired long-term goal.

Excuses or Resource-driven

Typically, many people begin attempting their desire, but upon realizing the necessary learning plus trial and error, they will quit. But those who move beyond the excuse phase are the ones who are rewarded for their efforts.

After realizing the time spent initially with little to show, internal debate sets in. The conflicting question is, ‘Am I wasting my time, or might I be onto something better?’ Self-pep-talks help considerably to move past the doubt. This is typically the point of no return by becoming resource-driven to find a better way forward. Resources exist everywhere, including the errors in front of us, as they point us in a better direction.

Expanding Networks

Some of the best resources are among the people we know and admire and the groups we may join. An excellent approach is to seek out those with vastly different experiences to gain a broader spectrum for more ideas to follow.

Everyone has experience, and those willing to share their best can empower us to do our best. Moreover, as we enjoy the forward momentum, we mentally prepare ourselves to try new techniques and strategies and reach out to people of higher ranking than ourselves.

The Buy-In – Sold!

It’s extremely motivating when others admire our work, confirming that we have always been on the right path and that our ideas were not ‘crazy.’ We become our clients as we feel we have bought into a better idea for moving forward. Now, what once made us feel fearful becomes easier and resource-driven!

One example of reaping the rewards of collaborative efforts for community benefit is growing an admiral network and receiving publicity.

Conclusion: Equate Fear with Fairly Easy and Resource-driven

Whether or not to proceed lies within us and our ultimate desire for accomplishment. We must also consider our intuitive feelings and believe that our vision can become reality with effort. One extra ingredient almost ensures success: working collaboratively and on behalf of a community spirit.

For more Insights, Visit Elinor’s Amazon Author Page

I am your host, and today I am thrilled to share with you the insights from a recent podcast episode where I had the honor of interviewing Karl Becker, the founder of Improving Sales Performance and author of several insightful books on sales and marketing alignment. Our conversation centered around his new book, “Iceberg Selling,” and the critical importance of understanding customers on a deeper level.

The Iceberg Selling Concept

Karl Becker introduced me to the concept of “Iceberg Selling,”. A sales approach that goes beyond the surface-level understanding of customers. He emphasized that for success in sales. We must dive deeper into the customer’s world, understanding their needs and connecting with them on a more profound level. This approach, Karl believes, can distinguish us from our competitors. Lead to better results.

Karl and I agreed that people have a deep desire to be seen, heard, and understood. This simple yet powerful concept is the cornerstone of effective sales. Drawing from his extensive experience as a consultant, Karl observed that salespeople often concentrate solely on closing deals without truly understanding the customer. He stressed the importance of investing time in understanding the customer’s unique situation and building a connection with them.

Strengths Over Weaknesses

Our conversation then shifted to the idea of focusing on people’s strengths rather than their weaknesses. Karl highlighted the importance of recognizing and leveraging each individual’s strengths. He shared a conversation he had with a peer group of marketing agency owners, discussing the role of account managers and their level of ownership in client success. Karl suggested changing the title from account manager to account leader to emphasize the need for them to take ownership and lead their accounts to success. This idea resonated with the group, as it shifted their perspective on the role and highlighted the importance of driving outcomes and creating value for clients.

I found myself in agreement with Karl’s point about the distinction between management and leadership. I emphasized the psychological and executional differences between the two and the importance of understanding what leadership means in the context of sales. The concept of an account leader signifies taking responsibility for the transfer of value and the success of the client.

Building Authentic Relationships

Karl pointed out that account managers in sales and marketing often have a natural inclination towards building relationships and understanding people. He suggested that they should apply this mindset to understanding their clients’ success and needs. By aligning with clients and bringing value, account managers can create successful outcomes. He encourages account managers to immerse themselves in their clients’ world, building strong relationships and rapport.

Karl also emphasized the importance of authenticity and being true to oneself in sales. He believes that when salespeople show their genuine selves, amazing things happen, and clients are more likely to open up and reveal their needs and challenges. This leads to co-creating solutions and a deeper understanding between the salesperson and the client.

I concurred with Karl’s point and added that in today’s world, people’s defenses are often up when they encounter salespeople. Therefore, being authentic from the start is one of the fastest ways to break down that initial distrust. Karl further explained that salespeople sometimes carry baggage or “head trash” that affects their approach to sales. He shared a story about a founder who had hang-ups about sales due to negative experiences and perceptions. Through coaching, the founder realized that sales is about genuinely showing up, caring, and offering solutions to help others.

The Pride in Sales

Both Karl and I expressed our passion for sales and the pivotal role it plays in society. We believe that salespeople should be proud of their profession and the value they bring to their clients. After all, sales is not just about closing deals; it’s about understanding, connecting, and creating value for others.

In conclusion, my conversation with Karl Becker was a deep dive into the world of customer-centric sales. It highlighted the importance of understanding customers beyond the surface level, focusing on strengths, building authentic relationships, and taking pride in the sales profession. I hope you find these insights as valuable as I did, and I encourage you to delve into the concept of “Iceberg Selling” further.

Are you grappling with the challenge of finding the right prospects for your business? Do you often find yourself overwhelmed by the task of prioritizing and selecting accounts that truly merit pursuit? In this insightful blog post, we will delve into the world of prospecting, account selection, and the transformative impact of data-driven strategies. Our guide on this journey is none other than Jamie Shanks, the Founder and CEO of Pipeline Signals.

The Labyrinth of Prospecting Challenges

Jamie Shanks opens our discussion by shedding light on the pervasive challenges that plague the world of prospecting. From the selection of target accounts to the often subjective and arbitrary prioritization models, businesses frequently encounter hurdles that impede their growth. The absence of a clear, data-driven approach can render prospecting efforts less effective and less efficient. In response to these challenges, Jamie presents a comprehensive three-step process to tackle this critical issue.

Defining the Ideal Customer Profile (ICP)

The first step in this transformative journey involves defining the Ideal Customer Profile (ICP). Here, companies are encouraged to create a clear and comprehensive profile that represents the customers and prospects that align with their business objectives. This foundational step sets the stage for all subsequent prospecting efforts and guides businesses towards their most promising opportunities.

Harnessing the Power of Technology

At Pipeline Signals, the second step takes the prospecting process to a new level. By employing cutting-edge technology, the company tracks all LinkedIn profiles, uncovering changes in human capital migration. The result is a valuable stream of sales intelligence that enables businesses to stay attuned to the evolving landscape of their prospects and competitors. This data-driven approach empowers businesses to make informed decisions and engage with prospects with a deeper understanding of their evolving needs.

The Art of Social Selling and Spear Selling

Jamie Shanks emphasizes that data alone is not enough. To truly capitalize on the insights gained, businesses must invest in training and enablement. This leads us to the third and final step: social selling and spear selling training. By providing sales teams with the tools, skills, and strategies needed to navigate the prospecting landscape, companies can foster a culture of accountability and unlock the potential to create a scalable pipeline.

Targeting the Window of Change

In the quest for effective prospecting, Jamie introduces the concept of targeting the “window of change.” This intriguing idea centers on the period between day 31 and day 100, a time frame in which executives are particularly receptive to exploring new ideas. To leverage this window of opportunity. Businesses are encouraged to employ strategic storyboarding and tactical messaging. This approach allows companies to engage with prospects at a crucial juncture in their decision-making journey. Securing valuable time and breaking through the noise.

Objective Focus and the Sales Pipeline

Jamie’s insights extend to the realm of objective focus within the sales pipeline. At Pipeline Signals, they adopt a structured approach that revolves around 90-day chunks. By prioritizing deals that are most likely to close within this timeframe. A businesses can maintain a laser focus on high-probability opportunities. This method of objective focus not only enhances efficiency but also guards against the wastage of precious time and resources on deals that may not materialize.

Embracing Change and Staying Agile

In closing, Jamie Shanks reminds us of the essential quality that successful sales teams must embody—adaptability. In a dynamic and ever-changing market, the ability to pivot, evolve, and embrace change is indispensable. As Jamie aptly puts it, “The only thing that’s constant is change.” Therefore, businesses looking to expand their pipeline at scale must remain strategic, accountable, and responsive.  The evolving needs of their prospects and the market.

Exploring the Path to Growth

For a deeper exploration of these transformative prospecting strategies and the insights shared by Jamie Shanks. We invite you to dive into this enlightening episode. Discover how a data-driven approach, strategic engagement. A focus on the “window of change” can propel your business towards greater growth and success.

In the world of business, referrals are often hailed as the golden ticket to growth and success. However, many individuals and companies find themselves wrestling with the challenge of generating referrals. It can be a perplexing endeavor, leaving you wondering why your efforts aren’t yielding the expected results. In this blog post, we’re going to delve into the art of generating referrals without resorting to traditional tactics and asking for them. The wisdom of Stacy Brown Randall, an award-winning author and the host of the podcast “Roadmap to Referrals,” will serve as our guide.

The Traditional Tactics and Their Flaws

For years, we’ve been taught that asking for referrals is the path to expanding our network and reaping the benefits of referrals. However, as Stacy Brown Randall explains, these traditional tactics are fundamentally flawed. They place the focus on the person asking for referrals, rather than on the person being referred. Moreover, asking for referrals or offering incentives can result in artificial referrals that lack authenticity.

The Power of Relationships in the Referral Ecosystem

Stacy Brown Randall emphasizes that referrals are not mere transactions; they are a product of genuine relationships. In the quest to master the art of generating referrals, it’s crucial to acknowledge the existence of a referral ecosystem within your business. This ecosystem consists of existing referral sources, potential referral sources, and those who are already referring your business. Each element plays a vital role in the process.

Cultivating New Referral Sources

Cultivating new referral sources is a deliberate and strategic process. Stacy suggests identifying individuals who have the potential to refer clients to your business. The key is ensuring that these potential sources regularly encounter your ideal clients. Building these relationships requires time, effort, and a profound understanding of the other person’s needs and interests.

Stacy’s approach to generating referrals is what she calls the “backwards approach.” It revolves around establishing professional relationships with potential referral sources before ever asking for a referral. This means making the conversation about them, not about your need for referrals. The core principle is that people are unlikely to provide referrals to individuals they barely know or haven’t invested time in.

Professional Services vs. Technology-Based Companies

Stacy highlights a critical distinction between professional services and technology-based companies when it comes to referrals. While technology companies often focus on scalability and customer acquisition, professional services demand a more personal touch and a deeper commitment to building and nurturing relationships.

Tips for Enhancing Your Referral Strategy

Stacy offers valuable advice for companies seeking to enhance their referral strategy. Decide whether you want a sales team-led strategy or one that is company-directed as the first step. The second involves identifying those who have referred your business in the past and recognizing those you may have unintentionally overlooked. Cultivating these relationships can lead to a wealth of referrals.

The Currency of Relationships

In conclusion, referrals remain a challenge for many companies, but the secret lies in understanding the science behind them. Stacy’s approach may require more upfront effort, but it ultimately yields superior results and a more gratifying experience. As Stacy herself aptly puts it, “Referrals are the currency of relationships.”

Exploring Stacy’s Resources and Coaching Programs

If you’re eager to delve deeper into the art of generating referrals without asking, Stacy offers a treasure trove of resources and coaching programs. Consider exploring these valuable tools to refine your referral strategy and elevate your business to new heights.

Thank you for joining us in this exploration of the world of referrals. As you continue on your journey, remember that authentic relationships are the cornerstone of successful referrals. Subscribe to our podcast for more enlightening content, and keep Stacy’s words in mind as you navigate the intricate world of referrals.