The Six Costs of Signaling: Elevating Believability Through Your Actions

By Tom Wanek, Wizard Partner & Wizard Academy Adjunct Professor

(Join Tom and Wizard Partner, Mike Dandridge at the 2-day academy, "Fight the Big Boys and Win," May 13-14, 2008.)

Little white lies never hurt a soul.

Hmmm. Sounds like the justification of a charlatan, doesn’t it?

In business, ad-speak is the kissing cousin of little white lies.  Seemingly harmless.  Swarming all around us.

“We’ve got the lowest prices and best selection. Guaranteed.”
“Service with a smile. Service you can count on.”
“Trust us. We’ve got an honest mechanic on duty.

Boasting and happy-talk sounds like a ringing cash register to the ears of the business owner.  But talk is cheap. And all the customer really hears is, “WHa-WHA-wHa-Wha-Wha-whA…”  

Skepticism shields customers from the onslaught of hollow promises.  Their advice to the business owner: Stop telling us what you’re good.  Show us what you’re good at.

Customers are looking for proof your business is as advertised.  And the nonverbal signals your business sends provide them with this proof.

Are you consciously planning your signals, or are you simply leaving them up to chance?

Reinforcing your words with action takes hard work and courage.  Gaining the trust of your customers isn’t free.  It comes at a price.

What are you willing to spend to gain credibility and trust?

After years of study, I’ve determined there are just six things your business can risk or spend to elevate believability of your marketing message.  

The Six Costs of Signaling:

1. Material Wealth - In most instances this involves risking or spending money,  But material wealth can also appear in the form of knowledge (e.g. patents, systems and processes, etc.), equipment and manpower.

2. Time & Energy - Providing customers with a pleasant experience takes effort.  Are you putting in the work or are you simply hoping customers will be happy?

3. Opportunity - Traveling down one path requires you turn your back on another.  What opportunities will you choose to lose?

4. Power & Control - Your customers want authenticity and transparency.  Do you have the courage to drop the plastic-coated smiles and self-congratulatory happy-talk?

5. Reputation & Prestige - Face it.  You can’t please everyone. Will you risk your company’s good name to make an unpopular decision?  

6. Safety & Well Being - Are you willing to bet the farm?  No, I’m not necessarily suggesting wagering your business is a good idea.  I’m only suggesting it’s an option.

The Six Costs are powerful.  But beware.  Not all signals are created equal.  The size of the cost dictates the signal’s strength.  The more you risk or spend, the more believable your message becomes.

Signaling: Actions and decisions that are in agreement with your words and the publics expectations of your business.

And the bad…

Counter-signaling: Actions and decisions that are in conflict with your words and the publics expectations of your business.

 

From the Editor: Tom is now available to help business owners in Australia.