5 November, 2024
7 Cognitive Biases to be aware of when Building Client Relationships
Building strong client relationships is paramount to the success of any business. However, our brains often play tricks on us, leading to decisions and actions that can unintentionally hinder these relationships. This is where understanding cognitive biases comes into play.
Cognitive biases are mental shortcuts our brains take to make decisions quickly. They can be helpful in many situations. However, they can also cause mistakes in judgment, especially in complex areas like client relationships. By recognising these biases, we can proactively mitigate their impact and build stronger, more enduring partnerships.
In this document, we will look at seven cognitive biases that affect client relationships. We will also share practical strategies to counter them.
By understanding these biases, we can improve our communication and negotiation skills. This will help us manage clients better. As a result, both clients and the organisation will be more satisfied.
Cognitive biases are systematic errors in thinking that can affect how we perceive, interpret, and respond to information. They often come from our brains taking shortcuts when processing information. This can lead to mistakes in judgment and decision-making.
Can you think of an example when you have used cognitive bias with a client?
Here are some common types of cognitive biases:
The Primacy Effect
First impressions matter. Ensure the initial communication leaves a lasting positive impression. Make an impact. This is how you we starting building relationships.
The Confirmation Bias
Be aware of preconceptions and encourage the team to seek disconfirming evidence during discovery meetings.
Anchoring
Ensure initial proposals are realistic but leave room for negotiation without anchoring too high or too low.
The Planning Fallacy
Encourage setting realistic timelines and preparing for potential delays by adding buffers.
The Negativity Bias
Encourage focusing on constructive feedback rather than dwelling on negative comments.
The Reciprocity Principle
Build a culture of giving and value sharing to foster reciprocal behaviour from clients.
The Status Quo Principle
Leaders often stay with familiar ways of doing things. They believe it is safer to use known methods instead of trying new strategies. This bias can hinder growth and innovation.
If this makes you or your colleagues better at client servicing, then that’s the outcome we’re looking for. Good luck.
Daniel Kahneman and Amos Tversky did important work on cognitive biases. Psychology Today has a great article explaining that we are not always rational.
