8 Compelling Studies Every Entrepreneur Should Know About

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Here is an excerpt from an article by Nathan Chan for Entrepreneur magazine that originally appeared in the KISSmetrics blog. To read the complete article, check out other, and obtain subscription information, please click here.

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There’s one thing that every entrepreneur must understand to truly grow a successful business. That one thing is human behavior. Understanding human behavior will help you become more effective at marketing, sales, productivity, copywriting, and even product development. And there’s no better way to develop an understanding of human behavior than through research.

Researchers have been conducting studies to understand why we behave the way we do for decades, which is great news for entrepreneurs. Research studies can help us understand our markets to better position and price our products, increase our sales, and communicate to consumers.

Here are three of eight studies every entrepreneur should know to become far more effective in your business.

1. The Illogical Reasoning Study

You know that saying “it’s not what you say, it’s how you say it?”

It turns out that this isn’t just an over-used quote; it’s actually true. A study done by Ellen Langer from Harvard University had subjects ask people lined up at a photocopier whether they could cut in front of them in a line to make their own copies.

That’s where the “how you say it” part comes in: the message with all three test groups was the same. The subject wanted to cut ahead of them.

However, in one group, the subject asked to cut ahead without a reason, simply asking if they could make copies by saying “may I use the Xerox machine?” They were only given permission to cut ahead in 60% of these cases.

In the second group, the subject said: “May I use the Xerox machine, because I’m in a rush?” This was far more successful than the first group with 94% allowance.

The third group, however, also gave a “reason”, although the reason made no sense. They said, “may I use the Xerox machine, because I have to make copies?” Even though everybody standing in line also had to make copies, 93% of people let the researcher jump ahead.

This demonstrates that people are far more likely to follow through with a request if there seems to be a reason for the requester to make it – even if the reason makes no sense. This study proved that we have blind spots when somebody uses the word “because” to make a case for something they want us to do.

Lessons for Entrepreneurs

As an entrepreneur, the results of this study will help you craft more effective sales copy, marketing content and messaging around your brand. Don’t underestimate the power of a simple word!

2. The Reciprocity Study

Over the past couple of years “content marketing” has become a buzzword.

That’s because content marketing works so well in today’s information era, where advertisements are being replaced with giving away valuable information for free.

But have you ever wondered why content marketing is so effective?

It’s because content marketing – or adding real value to people’s lives, even for free, through publishing audio, visual, video, or written content – activates our reciprocity gene.

As humans, we are strongly driven to reciproate favors or gifts. This is demonstrated in Robert Cialdini’s book Influence: The Psychology of Persuasion.

Cialdini describes a study done by Phillip Kunz from Brigham Young University. Kunz sent out 600 handwritten Christmas cards to complete strangers to see what would happen, and over the next few weeks received over 200 back.

This is astonishing, considering Kunz was a stranger to the recipients of his cards; they were acting upon the societal norm of reciprocating when somebody gives us something – even somebody we don’t know giving us something as small as a Christmas card.

Lessons for Entrepreneurs

As an entrepreneur, you may be wondering how this study will help you. But maybe you should be wondering how you can help your target market. After all, if you give them something, they’re likely to reciprocate – and sometimes, they’ll do so by buying from you.

3. The Mimicry Study

Have you ever heard the advice to use the exact words that your market uses in your sales copy?

That’s because when we hear words we use (or think), it resonates with us. If we can create sales messages in the language our target market uses, they assume we know the problem better than they do.

Jay Abraham said: “If you can define the problem better than your target customer, they will automatically assume you have the solution.”

A study done by Rick Van Baaren in the Netherlands demonstrates this in action. He had servers in a restaurant take two approaches to confirming an order.

Some servers would indicate that they’d heard the customer’s orders with a simple acknowledgement, and some would repeat the order in the customer’s exact words back to them. Those who mimicked the exact words of the customer saw a 20+% increase in those who tipped, from 52% to 78%.

Lessons for Entrepreneurs

As an entrepreneur, you should be aware of this study because it will help you resonate with their target market. If you can use the exact words and phrasing that your market is thinking or using in your copy, the odds will be tipped in your favor.

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Here is a direct link to the complete article.

Nathan Chan is a native of and publisher of @FoundrMag. Entrepreneur & Dreamer. Check out the magazine here. Twitter: @FoundrMag

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