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Benefits of psychology for growth - clutchplayadvisors.com

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Evolutionary Psychology has evolved and conditions human psychology. It can be used to benefit founders and entrepreneurs to convert customers, attract investors, acquire sponsors

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Benefits of psychology for growth - clutchplayadvisors.com

  1. 1. Benefitting Psychology for Growth www.clutchplayadvisors.com CLUTCH PLAY ADVISORS “Build relationships, add value and move the needle”
  2. 2. “Build relationships, add value and move the needle” Evolutionary Psychology Can be used to your benefit: ● to convert customers ● to attract investors ● to acquire sponsors
  3. 3. “Build relationships, add value and move the needle” Evolutionary Psychology ● 10,000 years of evolution have conditioned the human brain
  4. 4. “Build relationships, add value and move the needle” Evolutionary Psychology Applied to growth and fundraising
  5. 5. “Build relationships, add value and move the needle” Reciprocity Use case #1 ● Begin a negotiation with an exaggerated initial petition - but not ridiculously exaggerated ● Subsequently dilute initial petition based on concession as proposed by other party. ○ This not only makes him feel better, but the tendency to comply with the agreement increases because they feel part of the decision taken. Application: valuation or deal terms discussion Use case #2 ● Offer a freebie, gift or discount ● Make it personalised and UNEXPECTED (seemingly spontaneous) Application: offer 10% discount because they seem like a great fit Case Study: restaurant waiters who offer a 2nd mint for free to their “favourite clients of the day” received a 14% increase in tips
  6. 6. “Build relationships, add value and move the needle” Scarcity Use case ● scarcity frequently connotes also that it is something very desired by others, from which we infer that it must be terribly useful. ● Consequence: we love the scarce. Our reaction to a prohibition of information is a greater desire to receive it and a more favorable attitude towards it than before its prohibition. Frequently, the feeling of losing something at the hands of a competitor will transform a doubtful buyer into a jealous lover. Applications: ● Offering a 10% discount for first 2 investors ● Informing that offer is available to one player per industry/region. Implying that if they don´t take it up, their competitors may Case Study:
  7. 7. “Build relationships, add value and move the needle” Authority Use case ● Show the signs of your authority in a subject before asking them for something related to that subject. ● Have another person explain your credentials for seemingly increased authority Application: always critical to be introduced to a potential investor by an individual who holds social capital with said investor Case Study: have a secretary or personal assistant introduce clients to “star” salespeople, and have them explain to clients how “lucky they are that [sales person] happens to be available to them at this time” ● Imbued sense of authority + scarcity effect ● Led this tactic to lead to a 15% in signed contracts
  8. 8. “Build relationships, add value and move the needle” Consistency Use case ● It's about starting with something small and building from there. ● Focus on building a relationship, instead of only pitching your ideas ● Voluntary, active and public commitments ○ ideally in writing Application: ● freemium models in SaaS, pilot programs with strategic clients Case Study: The CEO who promises a 20% increase in sales and delivers a 30% increase is rewarded, while the same CEO who promises a 40% increase and delivers 35% is punished.
  9. 9. “Build relationships, add value and move the needle” Liking Use case ● We are also more inclined to follow the behaviors of those we believe are more similar to us. ● The most influential leaders are those who make us believe that all who belong to "our tribe" are behaving in a way that even we do not behave. ● A strong social bond is twice as effective in generating a sale than the qualities of the product itself. Application: be a strategic or tactical fit. Search for mutual goals, identify similarities you share in common before negotiation. Case Study: the “Brew Factor” - who would you rather have a beer with? - indicator shows how likeable a presidential candidate is as an indication on who wins the election
  10. 10. “Build relationships, add value and move the needle” Consensus Use case ● People look to the actions and behaviours of others to determine their own ● Identify the similarities between your target audience, as greatest effect is through persons we identify with or like ● Use metrics that matter in demonstrating you value proposition Application: ● Instead of trying to persuade behaviours onto others - Show (don't tell!) how clients acquire, retain and recommend your products Case Study: ● 35% of hotel guests comply with a sign informing them of the environment benefits of reusing towels ● 75% of hotel guests that stay 4 or more days at some point reuse their towels ● Hotels that put up a sign showing how 75% of guests in that particular room reuse towels, increased re-usage by 26-33%
  11. 11. “Build relationships, add value and move the needle” About Us "Human connections that build relationships, add value and move the needle" 👨💼 12 years finance professional with significant startup experience at your service - helped more than 100 startups across Europe and the US raise +25Mln We help you organize your critical business functions. Follow-up with key sales, fundraising contacts and networking efforts. Research markets and upcoming trends. 🎯 #getintouch for more details 👍 - adriangalea@clutchplayadvisors.com
  12. 12. “Build relationships, add value and move the needle” Advisory Services For Startups: ● Value proposition analysis (see image) ● Preparation of due diligence room for fundraising ● Interim financial planning, control and strategy ● fund-raising campaign administration and support
  13. 13. “Build relationships, add value and move the needle” Advisory Services For Investors: ● value proposition analysis of target startup ● review of due diligence deal room ● Review of financial documents and strategy ● Investment closing process administration and support, including term sheet review ● Monitoring and ongoing support of portfolio companies Strategic investment portfolio approach Due diligence review process Effective monitoring and exit assessment Investment terms review & closing
  14. 14. adriangalea@clutchplayadvisors.com CLUTCH PLAY ADVISORS www.clutchplayadvisors.com Early Stage Investing & Fundraising

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