Short Term Gratification Wins 2 to 1. A study released on March 31, 2010 by the University of Texas at Austin showed that when given a choice between short–term gratifications versus longer-term benefits, that people chose 2 to 1 the instant pleasure over the longer benefits. Wow, 2 to 1 is a huge difference. It is also interesting to note that the subjects knew ahead of time what that longer-term positive benefit would be, and still chose to give it up for what they could get NOW. What is that old saying, “A bird in the hand is better than two in the bush?”
Research information like this is good to know for your business, because you can use it to your advantage. You now know that you can frame your sales pitch to take advantage of that 2 to 1 ratio. The other powerful point to note here; is that even with ALL the knowledge, the subjects still chose immediacy over the longer benefits. That tells you that you don’t need to give every bit and piece of information to your client. Don’t try to overload them with useless information that just seems to clutter their minds. What you need to do is frame your presentation in a way that shows them how buying your product or service will give them immediate pleasure and satisfaction.
That archaic method of selling and promoting “Return on Investment” over a long term is crap and is not doing anything to help you close a sale. Human behavior wants to know how buying your product or service is going to benefit them TODAY and TOMORROW versus the effects or savings it will have next month or two years down the road. Make sure your clients know how you plan on reducing their workloads, or streamlining their operation as soon as they get your product/service, not that it is going to save them money after 6 months of operation.
The full study can be read in the journal Judgment and Decision Making http://journal.sjdm.org/vol5.1.html