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If you want to win a pitch – understand how to signal.
You are pitching on a new airline account. You have the option of hiring a
Jumbo Jet to fly over your offices at an appointed time (in the presence of
the client) to show you enormous faith and commitment, or to make a TV ad you
really believe the client should be flighting. Which is the prudent choice?
The fly-past or the ad?
Although there are arguments for both sides, Game Theory provides an elegantly
simple and specific answer – and what gets me all hot and sweaty is that
I have seen it work.
Firstly, we need to understand a smidgen of Game Theory - beyond what Russel
Crowe managed to convey in the movie A Beautiful Mind . The concept
that we need to understand is the ‘signal';
Signals are actions that are costly to you, but get other people to infer
that your actions will cost you more if you are lying than if you are telling
the truth.
A simple example would be the 10-year guarantee – a signal that says
the seller expects the item to last for 10 years, or is prepared to forfeit
the repair cost if it conks out before then. We cannot know the quality of
the item (whether it is good for 10 years or not) – we only know that
the seller has the confidence to carry the risk for 10 years. From that we
infer the quality.
The game of love also finds application in Game Theory: the gift of a diamond
ring signals that the suitor has in mind a long-term relationship and not just
a one-night stand. An expensive ring is not a prerequisite for a healthy relationship
- on the contrary, the most cited reason for disagreement is financial stress
- something the HP payments on the ring don't help. But the ring signals your
desire to commit to a long-term relationship, thereby consummating the trade.
Signals need not carry any direct benefit in themselves. Wining and dining
a new prospect, or lavish promo material, are not directly related to the quality
of the product, but they tell the recipient something important: You have enough
faith in your offering that you are relying on an ongoing relationship to cover
the money you've spent.
So, do we go with the fly-past or the ad?
Although the fly-past is most enjoyable and impressive, it does not do what
the ad does: Position my risk in the future – I will only recoup it if
we move forward together, whereas the fly-past just shows how much I care on
the day.
However, both are pitch ‘actions', many of which combine to result in
the win, the latter going to the agency that delivers the highest degree of ‘pitch
clarity' (see: New
business pitching just got simple ).
