Psychology Of Marketing And Persuasion For Personal Injury Lead Generation Companies
Psychology Of Marketing and Persuasion For Personal Injury Lead Generation Companies
Understanding human emotions and biases are important to personal injury lead generation companies.
Especially if you’re an attorney wanting to convert personal injury leads for sale..
If you apply what you learn in this article, it could lead to many more client conversions.
If you don’t apply them, you could lose significant sales to competitors…fast.
So, whether you’re a doctor, lawyer, accountant, or mechanic, you should design your sales and marketing strategies around emotions and biases that influence buying decisions.
Don’t believe me?
Then consider this: 80% of purchasing decisions are based upon emotions, 20% logic.
In this article we will discuss five different cognitive biases, which is a term defined as emotional limitations that causes lapses in judgment and decisions when interpreting a situation.
These are caused by mental shortcuts, called heuristics, that simplify the way we interpret our environment based upon our previous experiences.
The biases we will identify and apply include:
- Loss Aversion
- Anchoring
- Framing
- In Group Bias
- Bandwagon Effect
Ultimately, your takeaway should be two-fold.
First, you should be able identify the different types of emotional and subconscious drivers that impact how a prospect, or claimant in the case of a law firm, makes a buying decision.
Second, you should see how these different emotional drivers can be applied directly into your sales and marketing methods.
In fact, if you’re a practicing attorney, you should consider employing these tactics in pre-litigation and trial practice. After all, we’re dealing the art and science of persuasion, right?
For what it’s worth, using a person’s emotions is not a bad thing. Helping clients obtain their wants and desires achieves positive states of emotions; fulfilling a person’s needs often includes fulfilling an emotional element.
Not to mention, if you don’t capitalize on a person’s subconscious and emotional drivers then somebody else will. Namely, your competition.
Now let’s get into increasing your intake!
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Loss Aversion
Everyone hates losing. Especially attorneys!
And people will go to great lengths to prevent a loss.
To this point, many people hold such a distaste towards losing something that when faced with losing something they never even wanted, they will strongly pursue it.
For many, the mere thought of losing something – something that is not even a priority – will move to the very top. Especially if that means losing it forever.
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What is Loss Aversion?
This concept originates from a study by Daniel Kahneman and Amos Tversky. The two won the Nobel Prize in Economics from their groundbreaking work called Advances in Prospect Theory.
The result is that a person’s final decision, when presented with two options, was influenced when introduced in different ways.
Specifically, when a person stands to lose something it impacts their decision more than when a person is faced with gaining something.In short, the pain of losing something outweighs the pleasure of gaining something.
That’s because we as humans make decisions with an emphasis towards risk-aversion.
One famous example includes Richard Thaler’s experiment in which he proposed two choices. As an analogy, the first group were given the option of keeping $30 or flip a coin to win or lose $50. The second group were given the option of losing $20 or flipping a coin and winning or losing all $50.
The result was that when framed as a loss, the number of people who flipped the coin and gambled grew statistically higher.
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Applying Loss Aversion
Remember that people are averse to losing.
So, think about your target market’s opportunities and emphasize what they could lose.In fact, you can see one example by referring to the third sentence of this article – it’s an example of using loss aversion to prompt readers to continue reading.
For a plaintiff’s attorney, particularly one pursuing a prospective claimant who has been injured, he or she could consider the following negative situations that could occur if they don’t hire an attorney:
- Ruining a claim
- Running out of time (due to statute of limitations)
- Getting a lower award or settlement amount
by Lawrence M. Kahn (Author) can be purchased at https://www.amazon.com/Dont-Ruin-Personal-Injury-Claim/dp/1450704697Below is another example that attorneys can use to grab the attention of prospective claimants.
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We utilize these tactics through our personal injury lead generation companies with our proprietary lead distribution and automated marketing platform.
This is accomplished through our automated email drip campaigns that have the following subject lines with similar content.
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Anchoring Bias
Nothing is absolute. When making a decision, we compare everything. That includes a product, service, people, vacation destinations, restaurants, movies, you name it.
As an example, if you had a football team you followed that went to the Super Bowl, you might compare a football team within a town you’re visiting. In fact, you might even compare the success of other teams from other sports to your winning team.
Your team becomes the anchor. Other teams may be lesser or weaker, relatively speaking.
Another example might be a pair of jeans. If you are used to buying jeans for about $75, then you see a special offer for $150, you won’t feel it’s so great.
However, if you’re used to spending $200 for jeans, the anchor changes and the perception of the $150 makes you feel like you overspent. Buyer’s remorse could set in. All because of the anchor jean.
Naturally, there are exceptions. But when marketing to prospects and listing the options that are available, the first option carries the most weight. And that becomes the anchor.
Significantly, if you don’t provide the first option then the prospect will use one from his or her own experience. This is critical information. You see, we typically compare and contrast data the follows the anchor.
One important lesson here is not to let the prospect set the anchor. Rather, set the anchor for them!
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What is Anchoring?
Anchoring is another heuristic identified by psychologists Daniel Kahneman and Amos Tversky. Similar to the psychological doctrine of loss aversion, anchoring deals with how people make judgment decisions when incomplete facts were presented. In other words, managing risk and uncertainty.
The two scientists concluded that when a person is unsure about a decision, they reflect on their past to make a comparison.
And, the most recent option – or past experience – becomes the starting point. This is the case even when the anchor has little relevancy.
Remember, humans are looking for assistance with the judging the unknown, and inherently we compare…everything!
Below you will see how your business or law firm can use anchoring to increase conversions.
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Applying Anchoring
Anchoring is among many psychological tactics used in sales and marketing. But how can you apply it to your business, website, or legal practice? Well, ultimately people compare:
- Price
- Quality
- Other options
- Time to achieve a settlement
- Degrees of success and failure
If you have a website with different products and services, consider offering the most expensive one at the top. The lesser expansive ones will be a bargain in comparison. Switch this strategy around and the rest will appear overpriced.
And if you’re an attorney, you can bet prospective claimants compare other law firms.
Not to mention, when a person is deciding whether to use a law firm to help get a settlement from an insurance company, they compare what they could get on their own.
Below is an example that firms could use as an anchor.
Personal injury attorneys can increase conversions by using success stories as a comparison, which is an effective use of anchoring.
Examples of success can be included as an image within a client’s emails through our personal injury lead generation company. These are benchmarks for success, which can be a terrific anchor for comparison purposes.
Another example can be found when using trust symbols, which are a means to generate credibility.
Attorneys who advertise their awards and accomplishments can use these as an anchor of success in litigation and settlement discussions.
We encourage attorneys interested in increasing leads and conversions from accident injury claimants to utilize the anchor bias.
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Four Truisms About Anchoring
As a tool to help remember how to use anchoring in persuasion, sales, and marketing, think from about these points the following JeremySaid.com: - Anchoring is a cognitive bias. That means it is a means of making a decision that “can lead to perceptual distortion, inaccurate judgment or illogical interpretation.”
- Anchoring is rarely bypassed. In other words, we all engage in anchoring when comparing options that are new to us.
- Anchoring is a comparison tool that includes relevant and irrelevant information. If you are making a decision and have little experience with the offer, you likely will reflect on something that has little relevance.
Anchoring can be more effective when the difference is large. For example, if the first option is 10x more expensive than the second, the second will appear more of a bargain.
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Framing
How we perceive things is based upon the context they are presented. In fact, some psychologists believe framing is among the most powerful persuasive principles.
A simple example can be used when selling ice cream. You could sell it as being 80% fat free or having 20% fat. Which do you think would be more appealing?
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What is Framing?
People often make different choices when options are presented in a positive versus a negative, similar to when presented as a loss versus a gain. You can see the close relation to loss aversion, but there are some differences. Again, we can reflect upon the work by Kahneman and Tversky. To demonstrate how a frame of reference changes how we make decisions, they conducted another study.
In this study, they proposed a problem to participants who were give a fact pattern where an 600 people’s live in the United States were threatened by an Asian Disease Problem.
Significantly, the outcomes are the same, just presented in either positive and negative context.
When the hypothetical solution was framed such that many people could be saved with certainty (“positive frame”), participants more often than not avoided risk and chose saving with certainty.
However, when the solution was presented with the emphasis on people dying (“negative frame”), participants opted for the risky proposition.
The conflict was that the outcome was the same in both choices, but participants pursued the risky option when the context was losing and avoided risk when presented as a gain.
Wikipedia provides a table that helps:
Framing Treatment A Treatment B Positive “Saves 200 lives” “A 33% chance of saving all 600 people, 66% possibility of saving no one.” Negative “400 people will die” “A 33% chance that no people will die, 66% probability that all 600 will die.” As the scientists elaborated, “If Program A is adopted, 200 people will be saved. If Program B is adopted, there is a one-third probability that 600 people will be saved and a two-thirds probability that no people will be saved.”
The result: 72% of respondents chose Program A while 28% chose Program B, even though the outcome is the same.
The interpretation is simple: people generally risk averse when making a judgment call between two options. As humans we are more likely to avoid risk when an option is framed in a positive context and more prone to roll the dice when a hypothetical is framed in a negative manner.
As told by the Nobel Prize winners, “As expected, preferences are risk averse. A clear majority of respondents prefer saving 200 lives for sure over a gamble that offers a one-third chance of saving 600 lives.”
A simplified example is a study about framing in which two groups are told about a story of a man who takes a journey to Africa for a number of months after leaving his job. Prior to telling the story, participants are read three words. One group read positively charged words like “winner” and “success” while the other is read negative words such as “failure” and “disaster.”
The result was participants conveyed feelings about the character, John, in congruence based upon the positive and negative context given. Those who heard positively charged words considered John as courageous, and those who were read negative words thought him as reckless.
Again, the entire story was the same, including the outcome. However, the feelings people connected with the story and the character were influenced by the framing.
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Applying Framing
This is your opportunity to tell a story. And if you’re an accident injury litigator or plaintiff’s attorney, you already should be acutely aware of the power of letting evidence tell the story.
If you’re a business owner, consider framing your offer in a manner you want your prospect to envision perceiving your product or service when being used.
The last sentence is important, because that is the difference between how to utilize loss aversion versus framing.
Present loss aversion in the context of using other products and services, or not using it at all, and the negative outcome. Present the experience of a client that has used your product or service in a positive manner.
Get it?!
For example, if a person uses a large law firm (your competition), you may discuss how others have used large firms and were treated “like a number,” couldn’t get a hold of their lawyer, and were unsatisfied with the settlement offer.
In that situation, you are presenting a story where a prospect could use another company that may be risky, while yours is positive, safer, and caters to the risk averse.
Be careful about bashing others, however, since it could backfire. This example that may be best used as an In Group bias, another psychological technique that is discussed below.
Ultimately, you can start each story with positive or negative words, which will influence how they digest and determine how to proceed.
As for digital marketing, consider websites with soft and warm colors (pink, whites, light blues and greens) when portraying safety and comfort. And use strong colors like red when selling adventure and power).
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In Group Bias
“If you’re married, then I’m married. If you’ve got kids, then I’ve got kids.
And if you like golf, then by golly I like golf.”
That was the mantra I heard from a friend who was a sales super-star.
What was he doing? He generated rapport by finding common ground with his prospects who eventually became repeat buyers.
And he accomplished this by using what is called in group bias.
Now, I am not suggesting you be manipulative when persuading people. This simply serves as an example.
Honesty truly is the best policy, and honest sells. So please keep that in mind when applying these methods.
Ultimately, people buy from people they like. And people like people in the same groups, as they attach similar characteristics and traits to their own.
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What is In Group Bias?
In group bias is the disposition, connection, and favoritism humans have with groups or communities they are members. It is our tribal nature in action. The term often is referred to as ingroup favoritism.
When humans engage in group settings, we produce oxytocin. This chemical helps us bond with other members and is often referred to as the love hormone or cuddle hormone. It originates from the hypothalamus in our brains, and women produce more than men.
We see in group bias when individuals discuss politics and religion. In group bias can be powerful. Examples can be found in social media marketing and brand rivalry and can effectuate an “us vs. them” feeling .
It can bring people together while contemporaneously alienating outsiders.
People assume in-members are right, strong, courageous and outsiders are wrong, cowardly, and dangerous.
Among the best examples of in group bias exists with rivals between sports teams.
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Applying In Group Bias
Consider the example of my friend when applying in group bias. If your target market is a certain age, ethnicity, or associated with a particular community or group, then write copy that speaks to them.
Dove soap’s #BeautyBias marketing strategy presents one of the most famous examples of employing in group bias.
Rather than use supermodels to endorse their product, they used ordinary people. In other words, Dove got real people to give testimonials, which related to their target market.
Seeing their strategy in action, those that consider themselves a part of the group of ordinary women feel strongly positive towards the message. While others were fiercely critical against it, which caused a social media backlash.
As expected, this example shows a viral phenomenon where people were either widely in favor of the movement or strongly against it. And that’s precisely the effect.
Yet when employing digital marketing to prospects, such as sending emails to claimants who have suffered a personal injury and are considering hiring an attorney, attorneys can craft their content to appeal to people as victims. There, the out group is the insurance company.
For example, consider using a subject line like the following:
- “We Fight Insurance Companies”
- “Join Other Victims Of Insurance Company Scare Tactics…We Can Help”
- “We’ve Helped Thousands Of People Save Thousands of Dollars From Insurance Companies…Let’s Talk Today’
The proposition here is that insurance companies are bad, and attorneys are good.
Another way to place the success of joining others who have used law firms can be seen in the image below, which we use when helping personal injury attorneys increase lead generation and conversions.
So, the message is that if a claimant wants to succeed with their settlement claim, they should join your law firm like other auto accident claimants.
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Bandwagon Effect
Have you ever felt compelled to buy a product, go to a restaurant, or see a movie because friends and acquaintances did so? Well, you may have succumbed to the bandwagon effect.
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What is the Bandwagon Effect?
The bandwagon effect is another cognitive bias or psychological phenomenon that influences people to adopt a certain behavior, buy a product or service, or engage in a trend because others are doing the same. Remember, cognitive biases are mistakes in the way humans think, but are designed to help us make decisions. And this is the case even when logical reasoning would, if standing alone, tell us not to engage in the same.
And, it has grown into one of the most well-known and popular marketing methods proliferated by social media.
As you’ve probably already guessed, the term was coined from the use of a bandwagon. However, the bandwagon effect originally appeared in the book titled The Life of P.T. Barnum that was printed in 1855 by P.T. Barnum himself.
P.T. Barnum owned a circus that used a bandwagon in big parades throughout town prior to setting up the event. The purpose was to bring exposure and it was hugely successful in drawing crowds.
Subsequently, a clown named Dan Rice was the first to let a politician use the bandwagon to promote his campaign. Other politicians saw the success, copied the marketing tactic, and the literal meaning of “jump on the bandwagon” became the metaphor we use today. Many people credit Teddy Roosevelt for his use of the term in his 1951 book Letters.
The bandwagon effect is a type of groupthink or herd mentality. The more people adopt a product, service, or philosophy, the more likely others will join. The larger the number of adopters, the more pressure people feel the need to conform.
Humans often have a fear of exclusion, and that plays a part in the psychological trait. People have a need to belong and do not want to be left out. Joining the crowd allows us to be a part of the norm and gain approval and acceptance.
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Applying the Bandwagon Effect in Sales and Marketing
The most prominent example of the bandwagon effect can be found in social media. Members of social media platforms like and follow other members, and the more the merrier. In fact, it has a snow ball effect. The more people join the crowd the faster the base grows.
And, the bandwagon effect influences search engine optimization.
Ultimately, credibility is a huge factor in persuasion. The factors of ethos, pathos, and logos are well-documented means to persuade. And the bandwagon effect adds a degree of trust people seek when making decisions.
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Online Reviews and Testimonials
Testimonials adds credibility.And for first-time buyers, this in an incredibly effective tool.Think about the proliferation of Yelp and other review sites. Here are some stats that indicate online reviews and testimonials have a major impact:
- 77% of consumers consider online reviews before making a purchase
- 71% of people believe online testimonials are impactful when purchasing products
One journal from the Association for Psychological Science determined that even when a product had lower reviews compared to another, consumers favored the product with more reviews.
ur personal injury lead distribution and marketing platform incorporates testimonials provided by clients of law firms when sending remarketing messages aimed at converting clients.
Check out a simple example below.
Testimonials can be have a strong impact in marketing, persuasion, and converting personal injury leads.
If you haven’t taken advantage of them, consider using them to sway prospects your way.
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Awards and Accolades
Awards are a type of social proof.
Awards are a form of recognition and provide credibility and trust. Hence, they serve to influence buyers when making a decision.
People often make the inference that the accolade was based upon industry insiders who are innately experienced and most capable of making a comparative judgment.
Hence, their decision to give the company the proverbial thumbs-up becomes an influencing factor, and others should jump on the bandwagon.Another inference people make is that the award-winner was based upon popular vote from previous users.
Meanwhile, it could have been paid for or based upon criteria not associated with popularity or previous experience.This is a terrific opportunity to help push prospects to use your products and services.
We use this when law firms have awards, including the following:
- Likes and shares. When visitors like, follow, and share your Facebook and Instagram page, it is a form of endorsement. And the more you get the faster people are exposed and subsequently jump aboard. Make it easy for people to like and share by adding social media buttons on your web page.
- Influencer endorsements. What a better way to gain credibility than to have a person who members of your target market admire. It’s like having an expert recommend your product. People considering your service are more likely to use your services when someone trustworthy endorses it.
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Social Media
We’ve already touched on this topic, so here are two ways social media can help.
- Likes and shares. When visitors like, follow, and share your Facebook and Instagram page, it is a form of endorsement. And the more you get the faster people are exposed and subsequently jump aboard. Make it easy for people to like and share by adding social media buttons on your web page.
- Influencer endorsements. What a better way to gain credibility than to have a person who members of your target market admire. It’s like having an expert recommend your product. People considering your service are more likely to use your services when someone trustworthy endorses it.
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Applying Cognitive Biases In Lead Generation and Sales Can Increase Client Conversions
Every business can utilize human emotions and cognitive biases to increase sales.
Ignoring them could be detrimental.
Our proprietary lead distribution and automated marketing platform incorporates these sales methods to increase your intake in personal injury leads.
So, if you’re a law firm interested in personal injury leads for attorneys, let us help.
Additional References to Kahneman’s and Tversky’s work:
- Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 77,263-291.
- Tversky, A., & Kahneman, D. (1991). Loss aversion in riskless choice: A reference dependent model. Quarterly Journal of Economics, 106, 1039-1061.
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