Is your EQ up to your IQ?
Emotional Intelligence and how it affects your business
The following is a quote from a research paper by two researchers:
Lăcramioara Mocanu and Crina Elena Clima
“The term “intelligence” comes from the Latin “intelligence”, which means to connect, organize or from “understanding”, and which involves establishing relationships between people. Intelligence goes beyond thinking that is limited to establishing relationships between the essential characteristics of objectives and phenomena and not relationships between people. How complex this side of personality is apparent from the module of approach in the history of philosophy and psychology.”
No, I can’t pronounce their names either, but their research on
emotion is interesting.
What we normally consider as intelligence is the measurable “Intelligence Quotient”, or I.Q. that can be statistically tested and scored.
We all know people who we consider to be smart.
We also know those who we imagine will score low on an IQ test.
This paper essentially separates the two types of intelligence.
The standard IQ is the part of intellect that most people associate with being “Smart”, or the ability to assimilate information quickly, and use it correctly.
The emotional intelligence is the ability to intellectually internalize the things that we think, feel, see, hear, etc., and to be able to effectively use this new knowledge.
This research makes a distinction between emotional and the mechanical act of mentally tabulating information placed in front of you in such a way that you understand, and are able to effectively use that information.
So, how does emotional intelligence affect your business?
I believe that most researchers (from what I have read) understand that there is a distinction between intellect and emotion.
In my opinion, these two mental facilities cannot be separated, and ultimatelymjoin together when there is a decision to be made.
Each one affects the other. Ethics and morality, or the emotional side of right v.s. wrong, comes into play when a business person sets an arbitrary price when selling a product, or especially a service.
I live in a rural area with a lot of trees. Everyone around here with a chainsaw seems to think that they should be able to make a living cutting down trees.
I had estimates for the same tree that range from $300 to $3,000. The more reputable companies check in at $800 to $1,000, and are fairly consistent in their pricing.
Cutting down a tree does sometimes offer challenges, but when it is in the woods with no homes, utility lines, and nothing to get in the way, and the price is $3,000, it seems to boil down to “Hmmm, he has a nice house. I’ll bet I can get $X000.00 dollars out of him.
Oh, and get this…
I live on a hill and the tree was going to be dropped into the forest area – lots
of trees. The 3K estimate guy did not want to bother getting the tree out of the woods.
He told us he would cut it up and we could have a fire (in the middle of the woods) and roast hot dogs and marshmallows.
To me it brings to mind (as I mentioned above) that guy who would undoubtedly score pretty low on an IQ test. So much for chain saws.
The point is, if your emotions are not directed and controlled, then your business decisions, and therefore your business itself will be affected by your emotions.
The various ways that emotional intelligence affects your business are many.
everyone who begins and runs a business is affected by emotional subjectivity when making difficult business and/or personal decisions.
Your emotions can cause you to:
=> Lose self-confidence
=> Harbor unrealistic fears
=> Experience self-doubt
=> Lower your expectations
Another study showed that the more experience and knowledge you have in
a business, that there is a considerable difference in how you make your decisions.
The more knowledgeable a business person is, the more likely he/she is to rely on existing information directly related to what is going on within the business parameters at the time the decision arises.
The more novice the manager (for example) is, the more likely he/she will be inclined to ask others, and get information from more external sources.
Your Emotional Intellect can have you running your business effectively, or it can have you run it into the ground.
To stay on top of your emotions, you have to be aware of what they are doing to you, and understand how they are affecting you.
Business is full of stressors. Correct handling of your stressors can help you
stay in business, or create further stress within your business.
Everyone has heard the phrase “Time is Money”.
Wasting time is also
wasting part of your precious life.
If you are young this means little to you, but
if you are getting older,
then you are certainly aware of how quickly time passes.
Even if you are a younger person
who is working hard to get ahead. Continue reading
We have all received emails telling us of new cash in internet strategies, and so have found
ourselves clicking on links that take us to websites that tell us that we can make a “Gazillion”
dollars in only a few hours IF we would only buy this person’s, or company’s, latest and
greatest product. Continue reading
Are you achieving your goals?
Are you setting goals for yourself or your organization?
Way back in the 1960’s two psychologists studied the effect of goal setting.
Locke and Latham found that goal setting can increase performance
in 90% of those who set goals. Continue reading
Every time that I turn around I am coming across another unique innovation that someone has
put out there on the market. What is really neat is that many of these are free, or of very low cost to use. Continue reading
It’s your money, are you just going to leave it on the table?
Anyone who is selling anything wants to make more sales, and more money. Continue reading
blog platforms (content management systems), but the end result is to create
and design a web page.
A couple of the most common CMS are Drupal, Joombla, and WordPress.
The decision on which type to use is determined by ease of use, security,
and a few other points that are becoming less and less an issue. Continue reading
Many ideas just seem to “Come” to you. They usually happen when you are
driving, working, walking the dog, or doing almost anything. Continue reading
Most people worry about their financial health. Work, make more money.
Get more stressed – make more money. I have just one question? If your health gets so bad
that you can’t enjoy living, then what good is all of that money going to do you? Not much. Continue reading
To buy or not to buy, that is the question.
Inside The Buyers Brain
Have you ever wondered why people buy, or why they don’t buy? Also, what causes,
or stops you from reaching for your wallet or credit card when you see an
ad or product that grabs your interest?
In many of my past emails and posts I have mentioned many of the reasons why you
might buy on impulse. More importantly, in this writing I will to delve into more of
the Psychological detail that your mind works through when your “Interest” in
something is sparked.
The following could be one of a million scenarios.
You walk through a store and something catches your eye. It’s a clock that
reminds you of your sister, who you haven’t seen in over 6 years.
It seems like she lives on the other side of the universe.
You say to yourself “My sister had a clock just like this in her bedroom
when we were both growing up. For some reason it was very special to her,
and here is one just like it. Hers got knocked on the floor and was found in pieces.
This would make a wonderful gift for her.”
“Well, let’s see how much it will cost.
$369 + tax. WOW! It seems a bit high,
but my sister would really like it.”
“I will remember this place, and come back
in a few days to get it. I get paid again
tomorrow so that will work out just fine.”
(Excuses not to buy)
“Oh my, I just noticed this is a closeout sale,
and this is the very last one that they have.”
(Sense of urgency)
“Well, no one will be buying it in the next couple
of days. Although, it is the last one, so it must
be somewhat popular.”
“Maybe I should get it now?”
“Ooohhhh, what should I do? I’m going to get it. My sister will love it.”
This first example illustrates a “Knock em’ dead, must have” example, and deals with
the similar emotional struggles that many of us have when we buy.
In the following examples, you will see the “No questions asked” emotional buy.
“Oh, my god!” “Look at that”. “I’ve been searching for that necklace for 3 years,
and here it is. I’ve got to have it!”
Or the “Clueless” marketer
“Oh, wow”. “This says that I can use this software for 180 days for free.”
“Let’s see, what it does”
“This is crazy. This program will find customers for me, drive them to my
sales offers, show them my Youtube videos, create on-the-spot sales copy
as it interprets the reader’s mood, and it even collects the money.”
“How can I go wrong!”
“I’ve GOT to have this s#it”
And that’s probably exactly what it is!
Well, I never was very good at making up stories, however that is one illustration
of why you, as a Marketer/Buyer, may be very disappointed as some purchases.
Nothing works like that – yet.
re-visiting the clock example, what mades this person buy was that the enjoyment was
not only personal, but the enjoyment was also directed toward someone else.
However, what if the sister who had the broken clock was hated?
Do you think the outcome would have been the same?
Chances are the sister would probably have bought the clock
just so she could take a hammer to it and smash it,
all the while imagining that face on the clock was her sisters.
Your feelings as a buyer
Why do you do things for someone else for a “Just Because” reason?
Yes, you know it will make them feel good, but what else?
You also know that it will reflect favorably on you. Giving makes most of us
feel good – about what WE have done. We made someone happy. I’m not
suggesting that there is anything wrong with that, but the there is that element
of “Me” that creeps in, and is used in marketing. Think about the ads during
At an unconscious level, you may even be using this “Kind Gesture” as a
bribe for something, and not even realize it.
There is very little that we do that is not somehow directed back at ourselves.
Do you do nice things for someone that you don’t like? Only if you want something
from them, or don’t want them to think they are disliked.
In this second example, (180 day free software) you can see how good
a copywriter can be. This person is convinced about this product. I’m not.
In order to have established this strong of an emotion response, you must
already have a desire to do something, and also want very badly
to find something that will fulfill that desire.
Why people buy is not always the issue. More importantly, your question should be
“What feelings do people use when they buy something”. Your answer may
be different depending on the product (and person) in question.
As a marketer, it is essential to realize that most (if not all) people cannot
separate their brain from their heart (emotion) when they are
considering a purchase.
Secondly, you also must be willing to ignore logic. Emotionally you want
that “Something to make things better” so much that even a grain of hope (for a positive outcome) will do.
This is usually the trap into which the novice internet marketer falls.
As a new marketer you may get a website, set up a blog and landing page,
find or create something to sell, attempt to drive traffic, and yet still get no
traction at all. This makes you really want, even a tiny bit of success all the more.
“I want”. “Nothing happens”.
“I now want it more”. “Still nothing happening”
“Now, I really want it”. “Nothing!”
“God, even an 8 year-old can do it – now I’m desperate”.
So you buy, buy, buy until your pockets are empty, or until you realize
that either everything is a scam, you never have all the pieces, or you
are running out of the money.
Of course, not everything is a scam, but you sometimes realize that there
is something missing in what you are doing, or how you are thinking.
One the other hand, you may blame the product, not realizing that you
have more learning to do, and that you are not putting in enough effort
and time to make things work.
The “Must Haves”
Your car gets totaled , you have to get another car. You know it’s expensive, yet
it’s a “Must Have”. This is a no choice buy, like a broken window that must be fixed, or
our heating unit goes down in the middle of zero degrees outside.
What about clothes? You are fortunate enough to have more clothing items just
sitting in our closet than you ever use. Yet, you see something you like, and you
buy (or order these days) your newest fashion statement.
The selling process is simple if you, the buyer, MUST have the item, like that totaled car.
Or, if you absolutely love what you see such as that “Fashion Statement”.
With rare exceptions, why people buy is not just black or white, but falls somewhere
in between. Therefore, understanding your readers (prospective buyers) wants,
needs, and desires becomes important.
Knowing the basic emotion stirring words that most people respond to is one of the
major keys to the selling process. Putting words together correctly can increase
your sales, or drastically lower them.
When you write your sales copy be sure to convey precisely what you mean. It’s easy to make
writing mistakes that leaves the reader confused, wanting to club you over the head,
or has lost interest and stops reading.
And so, your brain may be telling you one thing, while your emotions may be saying something else regarding your purchase.
For your buying insight, don’t just ask “Why do people buy”,
but more importantly, ask “What makes ME buy”?
You may surprise yourself.