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SUPPLIER 
INFLUENCE 
2014 
CUSTOM 
COMPLIANCE 
SOLUTIONS
TABLE OF CONTENTS 
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 
How an ounce of social proof can be worth a pound of compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 
When a supplier reference can kickstart compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 
When less is more in the compliance space. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 
How can your old compliance program influence your new one. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 
Do compliance threats persuade or paralyse?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 
Minty fresh supply chains?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 
Small Requests--Large Gains. What do test drives, lawn signs and compliance have in common?. . . . . . . 10 
How to use Jedi Persuasion in the Supply Chain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 
Do you think you'll succeed? Compliant companies say yes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 
When asking for a little can go a long way in compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 
Why compliance outsourcing might be the most effective option. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 
Supplier Mind Control | Case Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 
Citations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 2
INTRODUCTION 
In an average week Assent has the opportunity to interact with hundreds of 
compliance managers at a multitude of different firms in almost every vertical. 
Through years of interaction with supply chains -ranging from electronics, to 
retail, pharmaceutical, defence and medical - Assent has authored this ebook 
as a culmination of supply chain best practises as a means to help gain 
compliance data from suppliers. 
Each section of the ebook is supported by academic research and real word 
Assent supply chain experience. While supply chains are as diverse as the 
tactics we cover in this ebook, not every tactic is suited for every compliance 
program or firm. However, many of the tactics can be used in almost any supply 
chain interaction. 
--------------------------------------------- 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 3
1 How an ounce of social 
proof can be worth a pound 
of compliance 
In a classic psychology experiment Stanley Milgram and colleagues had research assistants walk into a busy 
New York sidewalk, stop and look skyward. The vast majority of passerby’s simply walked around the assistant 
and continued on with their day. When researchers added assistants to the group of skyward gazers to make 
the total four, the rate at which those passing by stopped and mimicked the action increased dramatically 
(more than quadrupled). 
We’ve all also seen the famous McDonalds reference “Billions and Billions served”. Social proof is a very strong 
motivator and one that is very widely recognized. In the compliance space, when communicating to suppliers 
that compliance data is required, we can see positive increases in compliance when messages include a social 
proof. For example, next time you’re sending out communications to your supply chain try a message like: 
“All of our valued suppliers are asked to complete our compliance survey. Many have already 
submitted the completed document, so please help < your firm name> in our ongoing 
compliance efforts. “ 
Assent has found that referencing that other suppliers are in the same position and some have already 
complied will, generally speaking, increase response time/rates when compared to control messages. 
Have you updated your copy recently? 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 4
2 When a supplier reference can 
kickstart compliance 
No matter how you’ve structured your compliance program, you’ll need to have your suppliers “buy in”. 
What are some of the more effective ways to do this? To start making the process as easy and painless as 
possible is obvious. An example of this is Assent’s “2 Click to Compliance” automated data procurement 
portal. Yet regardless of the data collection mechanism, the first step of the compliance journey is “buy in”. 
In a study on influence, researchers wanted to 
see if they could increase the rate at which 
hotel visitors participated in a towel recycling 
program. They first tried to promote the 
initiative by placing a sign in the hotel 
washrooms. By adding to the copy of the 
message “Guests in the same room as you are 
staying have opted generally opted in” 
researchers found that compliance rates 
increased on average 33%. 
33% 
When communicating the nature of your compliance program to your suppliers it can be beneficial to 
obtain a supplier reference: 
The simple message, such as, “The compliance department at “Acme corp” found that our compliance 
program was simple and easy,” has in, many instances, increased buy-in rates for data submission and 
speed. Do you have supplier references at your company? It might be worthwhile to reach out to some 
suppliers that you have fostered a strong relationship with, and see if your compliance rates increase. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 5
3 When less is more in the 
compliance space 
When making decisions fewer options can actually be more in terms of compliance. In 2 separate studies 
where participants were presented with more options rather than less, compliance tends to decrease. This 
is known as the paradox of choice. We all like to think that having more options is best, but in many cases 
this paralyses the decision makers. 
Sheena Iyengar, a behavioral scientist, looked at company-sponsored retirement programs and associated 
participation rates. Note that this is peoples retirement, not submitting compliance data (one would think 
this is a lot more important). When participants were offered more choices the participation rate dropped. 
For every 10 choices offered participation decreased by 2%. When only 2 funds were offered the 
participation rate was 75%, yet when 59 funds were offered the rate dropped to 60%. The study was 
replicated with consumer products using jam. Consumers who had a choice of a variety of jams purchased 
in only 3% of cases, contrasted with 30 percent who were offered only a very limited range of options. 
When developing your compliance program, the data suggests that the means by which suppliers can 
submit data should be limited to 1 or 2 options at most. 
Don’t: 
Do: 
» Suppliers please submit your 
REACH/RoHS/Conflict Mineral data 
via: portal, email, fax, corporate level 
declaration, division level declaration, 
our custom survey, EICC form, test 
reports, IPC 1752A and or other. 
» Suppliers please follow our 
automated wizard to guide you 
through the data submission process. 
Or 
» Please fill out our custom survey 
which covers all compliance related 
matters. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 6
4 How can your old compliance 
program influence your 
new one? 
Anchoring is technique that has been used in sales and marketing for years, but can it be applied to the 
compliance space? We think so. Anchoring takes place when there are prices or options that are expensive 
or intensive. According to research by Itamar Simonson, a decision researcher, people tend to choose 
compromise choices, meaning if there is a high-end or intensive option, a middle option and a lower 
option, the natural tendency is for people to choose the middle option. While this research is clearly in the 
consumer domain, it can easily be transferred to the compliance domain. 
Let’s say you’re in the process of adopting a new automated approach to data collection by using the 
Assent compliance platform. Communicating to suppliers that the old manual, labor-intensive approach is 
being swapped out (anchor high by noting this process took much more time and effort) for a solution that 
is much quicker and easier will influence suppliers to adopt the new process. It is important, however, that 
in the long run this process is easier and quicker or else the supplier might feel duped. In general, 
referencing that the new compliance program will save time on both ends of the equation opposed to the 
old process, will be helpful when persuading your suppliers to buy in. 
-------------------------------------------------------- 
Example: “By using ‘new solution’ we are replacing ‘anchor high program’ to save you time and effort. 
The new program achieves this by ‘ x’”. 
Assent Example: “By using the Assent data collection portal we are replacing lengthy email exchanges 
and the redundancy that goes along with them. This will automate collecting data for restricted substance 
lists and also give you, our supplier, free tools to build IPC and EICC forms which can be used in the future”. 
-------------------------------------------------------- 
By anchoring your communication and letting your suppliers know you’re saving them time by 
implementing automated solutions you can increase your take rate very quickly. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 7
5 Do compliance threats 
persuade or paralyse? 
Research has demonstrated that fear arousing messages generally stimulate action, with one important 
exception: when the fear producing message describes danger, but does not describe a clear means of 
reducing, escaping or stopping the danger from occurring. In a study conducted by Howard Leventhal and 
colleagues, the researchers tested a communication about the dangers of not getting a tetanus shot. The 
message that was most effective versus the control was the message that induced fear but also outlined the 
specific steps and process readers could take to obtain a vaccine while assuring them that this was a simple 
option. 
In the compliance world, threats are very real. Some compliance programs call for suppliers to be 
disqualified from RFP’s, contacts /PO’s to be pulled or corrective action to be taken. While the threat of 
corrective action for the supplier will help influence them, it is of the upmost importance to clearly 
communicate the steps your suppliers need to take to avoid these penalties. 
Research indicates that your compliance program should include outlining what the corrective actions steps 
are, but to also be crystal clear in outlining the data needed and the means to submit it. 
-------------------------------------------------------- 
Example: “ <Your Company> is committed to having compliant products. As our supplier we need your 
help. Please submit <compliance data required> through the Assent supplier portal and this will keep you 
in good standing and avoid any business disruptions, breach of contract or corrective action” 
-------------------------------------------------------- 
Throw in some social proof: “suppliers just like you have already submitted using this process” and a 
reference: “It was quick and easy” - Supplier X, and you might have one of the most persuasive supplier 
communication strategies in the world! 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 8
6 Minty fresh supply chains? 
Think back to the last time you were out for dinner. When the waiter or waitress 
brought the cheque at the end of the evening did they leave a little something extra? 
Behavioural scientist David Strohmetz conducted a study to determine what, if any effect leaving candy 
at the end of a meal had on the tips that patrons left for their respective servers. In the first trial tips 
increased 3.3 percent when servers left 1 candy opposed to no candies. In the second trial tips increased 
14 percent when 2 candies were left for each patron. In the third group when the server pointed out that 
they were leaving something special tips increased 23%. 
While these findings may be well and good for wait staff, how does this relate to 
compliance managers? 
Fostering relationships with your suppliers is one of the most important facets of business. Your supplier 
are essentially the life blood of your company. It’s a fine balancing act, but getting the right price, 
agreeing on terms, gathering data, and happily rewarding the compliance department that successfully 
completed your compliance program could pay future dividends. At Assent we offer turnkey services, 
meaning that we collect all required data from your supply chain. 
Do we have some tricks up our sleeves? Absolutely. Your high-value suppliers will, on occasion, get 
bottles of wine through wine.com, personalized thank you cards and java on us. Our data suggests a little 
love can go a long way, and this can increase the speed and accuracy of future compliance requests. Don’t 
have time to share the love? No problem, that’s what the Assent turnkey program is for. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 9
7 Small Requests -- Large Gains. 
What do test drives, lawn signs 
and compliance have in common? 
Imagine you get a knock on your door and a city official asks to install a large, permanent sign on your lawn 
that reads “Drive Carefully”. There will be no cost, and the pouring of the cement and digging up of your 
lawn will be taken care of by the city. This is to promote the city’s new “drive safe strategy”. How likely do 
you think you or your neighbors would be to comply? 
In a study conducted by Jonathan Freedman and Scott Frazer the answer was 17% of people. That’s 
surprising enough. How were the researchers able to get that figure up to an astonishing 76%? Prior to the 
initial test, researchers went to a sample set and asked if they could place a small sticker in the residences 
window that displayed the same message. Weeks later when they asked the same sample set for the larger 
more permanent commitment their rate was wildly higher than the control group where no initial small 
ask took place. This is whey car salesmen are so adamant about taking a test drive. 
This is what’s called the “foot in the door” effect. 
Depending on the complexity of your compliance program you can use the foot in the door effect to your 
advantage. One of the best ways of achieving this is in the initial contract phase. Adding in a simple section 
or clause that states that the firm is willing to adhere to the compliance policy and process is often all it 
takes to get a buy in. The foot in the door effect for compliance is also directly connected to finding the 
right contact. Chances are that your firm only has a sales contact at your suppliers firm. Once you locate the 
compliance manager and have your “foot in the door,” so to speak, it’s easy to ask for other restricted 
substance list information or any compliance requests for that matter. 
One of the benefits of using Assent is that we currently have 1000’s of pre-existing relationships or “feet 
in many compliance department doors” so it’s easy for us to obtain this data. When we bring on new 
customers to our platform its not uncommon to have high percentages of contacts pre-existing which 
accelerates the speed of the program and the data collection process. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 10
8 How to use Jedi Persuasion in 
the Supply Chain 
In the movie Star Wars – Return of the Jedi, Luke Skywalker proclaims to Darth Vader “There is still good in. I can 
sense it” Is it possible that these simple words could have influence both on persuading the cinematic super villain 
and your stubborn suppliers? The research points to yes. What Skywalker is doing in a technique known as 
“labeling”. When he tells Vader he senses good in him he is transporting that trait onto him. This can be done with 
traits, beliefs or attitudes. In research conducted by Alice Tybout, by simply labeling the indented traits on potential 
voters they were able to increase suffrage rates by 15%. Airlines routinely use this technique when they state at 
the end of the flight: 
“We know you have lots of choices when selecting an airline. Thank you for selecting ours.” 
They are using the implication that since there are so many choices you must have chosen ours for good reason. 
In the supply chain the labeling technique can be used to help with difficult suppliers. 
-------------------------------------------------------- 
“We know you always want to help us stay in compliance which will help us continue to be a 
valued customer to you” 
“We know compliance is important to you at ACME corp, so can you please fill out our 
compliance survey through our automated portal” 
-------------------------------------------------------- 
Using a little labeling can help you become a compliance Jedi and get full supplier buy in, in record time. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 11
9 Do you think you’ll succeed? 
Compliant companies say yes 
When potential voters are asked prior to an election if they think that they will vote (making a prediction) 
researchers Anthony Greenwald found that the likelihood of the respondents voting increased 25%. There are 
two factors at play here. When people are asked to predict if they will take part in a socially desirable activity 
they are compelled to say yes. Secondly, after making that declaration of agreeing to conduct the socially 
desirable activity, people will feel more compelled to actually undertake it. In one study a restaurant owner was 
able to decrease the number of no shows by changing the reception message from “Please call if you will be 
unable to make the reservation” to “Will you please call if you will be unable to make the reservation”. The no 
show rate went from 30% to 10% overnight. 
In the compliance space, asking for suppliers to make compliance commitments will increase the programs 
success. 
“Can you submit data X,Y by Date Z through our automated portal?” 
“Can you complete our compliance survey by X Date?” 
Assuming the respondent answers “yes” then asking if they need any assistance or asking why they think that 
they will be able to meet those dates will add reinforcement to the idea and expedite the compliance rate. At 
Assent, through our turnkey program we work with your suppliers and do our best to get set hard dates so that 
data collection is completed at set milestones. This technique has proven to be very effective. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 12
10 When asking for a little can go 
a long way in compliance 
Charities need donations. This is how they fund their philanthropic activities. In a research study conducted for 
the American Cancer Society, several different messages were tested. The theory was that letting potential 
donors know that “even a penny” would help increase the overall average donation rate. When the messages 
were tested: 
“ Would you be willing to help by giving a donation” Vs “Would you be willing to help by 
giving a donation? Even a penny would help” 
The donation rate increased from 28% to 50% in the “even a penny would help” condition. Now we don’t expect 
you to only accept limited data over the long term but often times even having a supplier login once to your 
custom survey or supplier portal is all you need to get them on board with your compliance program. Are you 
collecting a wide range of testing data? Perhaps asking for that they have right away, even if the reports are 
for a previous restricted substance list will help your overall compliance program in the future. 
-------------------------------------------------------- 
“Can you complete our compliance survey? Even logging in to check it out right away 
would help” 
“Can you upload your test reports for product X through our portal? Even the reports for 
the previous REACH candidate would be a good start” 
-------------------------------------------------------- 
Your job as a compliance manager is to get from point A (where you are at right now) to point C (compliant) as 
quickly as possible. Sometimes a small start, small ask or just a little compliance can go a long way. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 13
11 Why compliance outsourcing 
might be the most eective 
option 
Outsourcing data collection and compliance related activities has many advantages. While we have entire 
case studies to support this claim some of the reasons are: 
» Cost savings 
» Leveraging economies of scale in experience, contacts and infrastructure 
» Automation through software 
» HR time/cost savings 
Another principle of influence is also at play. Like most companies you want to claim that you are the best to 
your customers, authorities and the public in general. Though boasting about your compliance program won’t 
be as influential as having someone else boast on your behalf. How do you show off without showing off? 
Have an expert do it for you. Stating on your website that you take compliance seriously and have invested 
in a complaint management platform sends a strong message to customers and to clients that you take 
compliance seriously. 
While there is no REACH compliant or Conflict Mineral Compliant logo, associating yourself with your 
compliance service provider gives a reference similar to that which personal care companies use when they 
have a doctor in their advertisements. Publishing a case study, whitepaper or video with your compliance 
vendor can be used as a sales tool, creative for your site and proof of your program and compliance 
commitments. 
At Assent we host regular webinars with our clients informing suppliers of regulatory challenges, we work 
with our clients to answer RFP’s, we deal with enforcement officials, we work with accounting and audit firms. 
Having a compliance ace up your sleeve can be a cornerstone of a complete compliance program. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 14
SUPPLIER MIND CONTROL 
--------------------------------------------- 
CASE STUDY 
Please, please… don’t think of a pink elephant. 
You did, didn’t you? Assent mind control division success! 
Before we examine some jedi techniques to best procure data from your supply chain 
let’s give some background. 
The Assent Compliance software platform comes with bi-directional supply chain 
communication, task management, analytics and data exchange features. Clients use 
this feature set to gather compliance data from their supply chains for a variety of 
regulations like REACH, RoHS, Conflict Minerals and dozens of other regulations that 
Assent supports. Within this dashboard users can also manage and send email and 
information requests to their respective supply chains. 
We recently had 2 electronics manufactures with roughly the same market cap, size of 
supply chain and products launch with Assent. This was the perfect opportunity to do an 
analysis of what techniques were working best and what weren’t. While there were 
some small differences in firms sample sizes this review does give some very relevant 
best practises. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 15
COMPANY PROFILES: 
» Firm Size: ~1B Market Capitalization 
» Suppliers: ~ 1500 (this was not the entire supply chain for either firm but one business unit) 
» Sector/Industry: Electronics 
METHOD: 
Using the Assent Compliance dashboard, each firm would contact their respective supply chains for conflict 
mineral information as well as REACH declarations of conformity. Suppliers could use the Assent IECC form 
through a supplier wizard or upload their own. (Create or Upload) as well as use the Assent system to make 
declarations for their respective parts and or upload corporate level declarations for REACH. This process was 
managed entirely on part of the firm’s compliance department. (This is relevant because Assent does offer on 
demand and ongoing support services for some clients. These firms had no outside support from Assent beyond 
the software set up and training) 
TIMELINE: 
For purposes of this case study we used a 1month sample from send out to analysis. It is also important to note 
that Assent is unique in that, because of its strong footprint in the compliance space we help all our clients cross 
reference their supplier contacts with our compliance contact database. This allows clients to access the most 
up to date listing of compliance managers and key compliance personnel at 1000’s of companies. Response rates 
differ dramatically based on the quality of contacts a firm has. 
CONTROLS: 
» Similar Company Size 
» Similar Supply Chain Size 
» Supply Chain Data Validation performed by 
Assent 
» 1 Month Time Period 
» Identical System (Assent does offer customizations 
for enterprise clients in some cases) 
» Analyzing of 1-1 supplier response rates regardless 
of parts supplied ( If a supplier has parts in every 
product a firm uses one supplier could be 
representative of a huge part of overall product 
compliance. In this case, for analysis of 
supplier response rates we treated all suppliers 
equally) 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 16
RESULTS 
» Firm 1: 99% of suppliers responded within 1month time frame 
» Firm 2: 74% of suppliers responded within 1 month time frame. 
INTERPRETATION 
It was surprising to see that very similar firms with various controls would see a 25% variance in supplier 
response rates. Why was there a difference? After examining controls Assent dug a little deeper. Firm 2 used 
the following copy when doing send outs from the system: 
-------------------------------------------------------- 
Firm2 
Dear Supplier, 
Firm2 is requesting that all suppliers of firm 2 compete or submit EICC Conflict Mineral forms and 
REACH declarations for the products that you supply to us. Using the wizard below please follow the steps 
outlined and upload your documentation. If you need assistance feel free to contact our compliance 
representative at email@firm2.com or call number 
Thank you for your cooperation. 
-------------------------------------------------------- 
-------------------------------------------------------- 
Firm1 
Greetings Valued Supplier, 
As we’re sure you’ve probably heard, companies are now required under the Dodd Frank Act to procure 
compliance information with regards to conflict minerals, and in order to sell our products into the EU we 
must comply with the REACH regulation. If you put yourself in our compliance departments shoes you can 
see that this is no small challenge. We’re asking that all our suppliers please use the Assent compliance 
wizard to upload their compliance information because that will allow us to maintain our upstanding 
relationship with your firm as one of our valued suppliers. 
Here is background on both REACH and Conflict Minerals links that firm provided 
If you need any help at all please contact Reps Fist Name and Last Name, Phone, Email 
-------------------------------------------------------- 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 17
From our analysis and controls it seems that it’s all in the copy. Firm 1, while maybe not even knowing it, 
employed some very subtle copy writing tricks that might have had a 25% responses rate improvement to firm 
2. Let’s examine: 
» Firm 1 was more informal in the copy. While Assent hasn’t formally researched tone and formality in 
response rates using the platform it does appear that the more informal tone was more effective with this 
sample 
» Firm 1 employed some subtle influence tactics. In a well-known study researchers found that when asking 
for something using an (Can you do X because of Y) technique was much more effective than simply (Can you 
do X). The word “because” seems to result in compliance with the request even if the reason mirrors the request 
or simply states the obvious. “Can I use the copier because I need to make some copies” results in higher 
compliance than “Can I use the copier”. 
Langer, E., Blank, A.,  Chanowitz, B. (1978). The mindlessness of Ostensibly Thoughtful Action: The Role of 
“Placebic” Information in Interpersonal Interaction. Journal of Personality and Social Psychology, 36(6), 
635-642. 
Firm 1 built in this influence trick into their copy as well as informed the reader. 
» Finally firm 1 made the copy much more personal. They asked readers to put themselves in their shoes, 
talked about maintaining their relationship and provided personal contact information. To the reader this copy 
was much more compelling. Firm 1 and 2 actually had a supplier in common out of the 25% variance. We 
reached out: 
-------------------------------------------------------- 
Question Assent: Why was it that you responded to firm 1 but not to firm 2 when asked about compliance 
info ? 
Supplier: “It wasn’t my intent to not reply to firm 2. When I got the request I read it and kind of just forgot to 
get around to it. When I read the message from firm 1 the line about maintaining our relationship really made 
me feel that I needed to get right to it. The last thing I want is a PO getting pulled or a customer calling my 
boss. I think that email just got me moving. I would have gotten around to firm 2 though.” 
-------------------------------------------------------- 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 18
FINAL THOUGHTS 
--------------------------------------------- 
When crafting copy to send out to the supply chain perhaps run it by the marketing 
department or give your Assent account manager a quick call to proof read it for you. 
Strong copy can activate a sense of urgency with your suppliers so it’s a variable that 
shouldn’t be overlooked. While the results of this case study don’t control for every 
imaginable variable it appears on the surface that copy can provide as much as a 25% 
swing in response rates. That means 25% less time and effort following up, potential 
testing and delays in compliance. Try and exercise a bit of supplier mind control and 
you might have some great progress in your compliance efforts. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 19
CITATIONS 
1. Milgram, S., Bickman, L., and Berkowitz, L. (1969). Note on the drawing power of crowds of 
different size. Journal of Personality  Social Psychology, 13: 79– 82. Goldstein, Noah J.; Martin, Steve J.; 
Robert B. Cialdini (2008-09-03). 
2. Goldstein, N. J., Cialdini, R. B., and Griskevicius, V. (forthcoming). A room with a viewpoint: Using 
social norms to motivate environmental conservation in hotels. Journal of Cosnumr Research. Goldstein, 
Noah J.; Martin, Steve J.; Robert B. Cialdini (2008-09-03). 
3. Gerber, A. S., and Rogers, T. (forthcoming). The effect of descriptive social norms on voter turnout: 
The importance of accentuating the positive. The Journal of Politics. Goldstein, Noah J.; Martin, Steve J.; 
Robert B. Cialdini (2008-09-03). 
4. Schultz, P. W., Nolan, J. M., Cialdini, R. B., Goldstein, N. J., and Griskevicius, V. (2007). The constructive, 
destructive, and reconstructive power of social norms. Psychological Science, 18: 429– 34. Goldstein, 
Noah J.; Martin, Steve J.; Robert B. Cialdini (2008-09-03). 
5. Iyengar, S. S., Huberman, G., and Jiang, W. (2004). How much choice is too much?: Contributions to 
401( k) retirement plans. In Mitchell, O., and Utkus, S. (eds.), Pension Design and Structure: New Lessons 
from Behavioral Finance (83– 96). Oxford University Press. Goldstein, Noah J.; Martin, Steve J.; Robert B. 
Cialdini (2008-09-03). 
6. Iyengar, S. S., and Lepper, M. R. (2000). When choice is demotivating: Can one desire too much of 
a good thing? Journal of Personality and Social Psychology, 79: 995– 1006. Goldstein, Noah J.; Martin, 
Steve J.; Robert B. Cialdini (2008-09-03). 
7. Schwartz, B. (2004). The Paradox of Choice. New York: Ecco. 
8. Leventhal, H., Singer, R., and Jones, S. (1965). Effects of fear and specificity of recommendation 
upon attitudes and behavior. Journal of Personality and Social Psychology, 2: 20– 29. 
9. Garner, R. (2005). Post-It ® Note persuasion: a sticky influence. Journal of Consumer Psychology, 
15: 230– 37. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 20
CITATIONS 
10. Strohmetz, D. B., Rind, B., Fisher, R., and Lynn, M. (2002). Sweetening the till: the use of candy to 
increase restaurant tipping. Journal of Applied Social Psychology, 32: 300– 309. 
11. Goldstein, N. J., Cialdini, R. B., and Griskevicius, V. (2008). Maximizing motivation to cooperate 
toward the fulfillment of a shared goal: Initiation is everything. 
12. Freedman, J. L., and Fraser, S. C. (1966). Compliance without pressure: The foot-in-the-door 
technique. Journal of Personality and Social Psychology, 4: 195– 203. 
13. Tybout, A. M., and Yalch, R. F. (1980). The effect of experience: A matter of salience? Journal of 
Consumer Research, 6: 406– 13. 
14. Greenwald, A. G., Carnot, C. G., Beach, R., and Young, B. (1987). Increasing voting behavior by asking 
people if they expect to vote. Journal of Applied Psychology, 72: 315– 18. 
15. Cialdini, R. B., and Schroeder, D. A. (1976). Increasing compliance by legitimizing paltry 
contributions: when even a penny helps. Journal of Personality and Social Psychology, 34: 599– 604. 
16. Pfeffer, J., Fong, C. T., Cialdini, R. B., and Portnoy, R. R. (2006). Overcoming the self-promotion 
dilemma: Interpersonal attraction and extra help as a consequence of who sings one’s praises. Personality 
and Social Psychology Bulletin, 32: 1362– 74. 
ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 21

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Product Compliance Supplier Influence

  • 1. SUPPLIER INFLUENCE 2014 CUSTOM COMPLIANCE SOLUTIONS
  • 2. TABLE OF CONTENTS Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 How an ounce of social proof can be worth a pound of compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 When a supplier reference can kickstart compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 When less is more in the compliance space. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 How can your old compliance program influence your new one. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Do compliance threats persuade or paralyse?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Minty fresh supply chains?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Small Requests--Large Gains. What do test drives, lawn signs and compliance have in common?. . . . . . . 10 How to use Jedi Persuasion in the Supply Chain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Do you think you'll succeed? Compliant companies say yes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 When asking for a little can go a long way in compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Why compliance outsourcing might be the most effective option. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Supplier Mind Control | Case Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Citations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 2
  • 3. INTRODUCTION In an average week Assent has the opportunity to interact with hundreds of compliance managers at a multitude of different firms in almost every vertical. Through years of interaction with supply chains -ranging from electronics, to retail, pharmaceutical, defence and medical - Assent has authored this ebook as a culmination of supply chain best practises as a means to help gain compliance data from suppliers. Each section of the ebook is supported by academic research and real word Assent supply chain experience. While supply chains are as diverse as the tactics we cover in this ebook, not every tactic is suited for every compliance program or firm. However, many of the tactics can be used in almost any supply chain interaction. --------------------------------------------- ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 3
  • 4. 1 How an ounce of social proof can be worth a pound of compliance In a classic psychology experiment Stanley Milgram and colleagues had research assistants walk into a busy New York sidewalk, stop and look skyward. The vast majority of passerby’s simply walked around the assistant and continued on with their day. When researchers added assistants to the group of skyward gazers to make the total four, the rate at which those passing by stopped and mimicked the action increased dramatically (more than quadrupled). We’ve all also seen the famous McDonalds reference “Billions and Billions served”. Social proof is a very strong motivator and one that is very widely recognized. In the compliance space, when communicating to suppliers that compliance data is required, we can see positive increases in compliance when messages include a social proof. For example, next time you’re sending out communications to your supply chain try a message like: “All of our valued suppliers are asked to complete our compliance survey. Many have already submitted the completed document, so please help < your firm name> in our ongoing compliance efforts. “ Assent has found that referencing that other suppliers are in the same position and some have already complied will, generally speaking, increase response time/rates when compared to control messages. Have you updated your copy recently? ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 4
  • 5. 2 When a supplier reference can kickstart compliance No matter how you’ve structured your compliance program, you’ll need to have your suppliers “buy in”. What are some of the more effective ways to do this? To start making the process as easy and painless as possible is obvious. An example of this is Assent’s “2 Click to Compliance” automated data procurement portal. Yet regardless of the data collection mechanism, the first step of the compliance journey is “buy in”. In a study on influence, researchers wanted to see if they could increase the rate at which hotel visitors participated in a towel recycling program. They first tried to promote the initiative by placing a sign in the hotel washrooms. By adding to the copy of the message “Guests in the same room as you are staying have opted generally opted in” researchers found that compliance rates increased on average 33%. 33% When communicating the nature of your compliance program to your suppliers it can be beneficial to obtain a supplier reference: The simple message, such as, “The compliance department at “Acme corp” found that our compliance program was simple and easy,” has in, many instances, increased buy-in rates for data submission and speed. Do you have supplier references at your company? It might be worthwhile to reach out to some suppliers that you have fostered a strong relationship with, and see if your compliance rates increase. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 5
  • 6. 3 When less is more in the compliance space When making decisions fewer options can actually be more in terms of compliance. In 2 separate studies where participants were presented with more options rather than less, compliance tends to decrease. This is known as the paradox of choice. We all like to think that having more options is best, but in many cases this paralyses the decision makers. Sheena Iyengar, a behavioral scientist, looked at company-sponsored retirement programs and associated participation rates. Note that this is peoples retirement, not submitting compliance data (one would think this is a lot more important). When participants were offered more choices the participation rate dropped. For every 10 choices offered participation decreased by 2%. When only 2 funds were offered the participation rate was 75%, yet when 59 funds were offered the rate dropped to 60%. The study was replicated with consumer products using jam. Consumers who had a choice of a variety of jams purchased in only 3% of cases, contrasted with 30 percent who were offered only a very limited range of options. When developing your compliance program, the data suggests that the means by which suppliers can submit data should be limited to 1 or 2 options at most. Don’t: Do: » Suppliers please submit your REACH/RoHS/Conflict Mineral data via: portal, email, fax, corporate level declaration, division level declaration, our custom survey, EICC form, test reports, IPC 1752A and or other. » Suppliers please follow our automated wizard to guide you through the data submission process. Or » Please fill out our custom survey which covers all compliance related matters. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 6
  • 7. 4 How can your old compliance program influence your new one? Anchoring is technique that has been used in sales and marketing for years, but can it be applied to the compliance space? We think so. Anchoring takes place when there are prices or options that are expensive or intensive. According to research by Itamar Simonson, a decision researcher, people tend to choose compromise choices, meaning if there is a high-end or intensive option, a middle option and a lower option, the natural tendency is for people to choose the middle option. While this research is clearly in the consumer domain, it can easily be transferred to the compliance domain. Let’s say you’re in the process of adopting a new automated approach to data collection by using the Assent compliance platform. Communicating to suppliers that the old manual, labor-intensive approach is being swapped out (anchor high by noting this process took much more time and effort) for a solution that is much quicker and easier will influence suppliers to adopt the new process. It is important, however, that in the long run this process is easier and quicker or else the supplier might feel duped. In general, referencing that the new compliance program will save time on both ends of the equation opposed to the old process, will be helpful when persuading your suppliers to buy in. -------------------------------------------------------- Example: “By using ‘new solution’ we are replacing ‘anchor high program’ to save you time and effort. The new program achieves this by ‘ x’”. Assent Example: “By using the Assent data collection portal we are replacing lengthy email exchanges and the redundancy that goes along with them. This will automate collecting data for restricted substance lists and also give you, our supplier, free tools to build IPC and EICC forms which can be used in the future”. -------------------------------------------------------- By anchoring your communication and letting your suppliers know you’re saving them time by implementing automated solutions you can increase your take rate very quickly. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 7
  • 8. 5 Do compliance threats persuade or paralyse? Research has demonstrated that fear arousing messages generally stimulate action, with one important exception: when the fear producing message describes danger, but does not describe a clear means of reducing, escaping or stopping the danger from occurring. In a study conducted by Howard Leventhal and colleagues, the researchers tested a communication about the dangers of not getting a tetanus shot. The message that was most effective versus the control was the message that induced fear but also outlined the specific steps and process readers could take to obtain a vaccine while assuring them that this was a simple option. In the compliance world, threats are very real. Some compliance programs call for suppliers to be disqualified from RFP’s, contacts /PO’s to be pulled or corrective action to be taken. While the threat of corrective action for the supplier will help influence them, it is of the upmost importance to clearly communicate the steps your suppliers need to take to avoid these penalties. Research indicates that your compliance program should include outlining what the corrective actions steps are, but to also be crystal clear in outlining the data needed and the means to submit it. -------------------------------------------------------- Example: “ <Your Company> is committed to having compliant products. As our supplier we need your help. Please submit <compliance data required> through the Assent supplier portal and this will keep you in good standing and avoid any business disruptions, breach of contract or corrective action” -------------------------------------------------------- Throw in some social proof: “suppliers just like you have already submitted using this process” and a reference: “It was quick and easy” - Supplier X, and you might have one of the most persuasive supplier communication strategies in the world! ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 8
  • 9. 6 Minty fresh supply chains? Think back to the last time you were out for dinner. When the waiter or waitress brought the cheque at the end of the evening did they leave a little something extra? Behavioural scientist David Strohmetz conducted a study to determine what, if any effect leaving candy at the end of a meal had on the tips that patrons left for their respective servers. In the first trial tips increased 3.3 percent when servers left 1 candy opposed to no candies. In the second trial tips increased 14 percent when 2 candies were left for each patron. In the third group when the server pointed out that they were leaving something special tips increased 23%. While these findings may be well and good for wait staff, how does this relate to compliance managers? Fostering relationships with your suppliers is one of the most important facets of business. Your supplier are essentially the life blood of your company. It’s a fine balancing act, but getting the right price, agreeing on terms, gathering data, and happily rewarding the compliance department that successfully completed your compliance program could pay future dividends. At Assent we offer turnkey services, meaning that we collect all required data from your supply chain. Do we have some tricks up our sleeves? Absolutely. Your high-value suppliers will, on occasion, get bottles of wine through wine.com, personalized thank you cards and java on us. Our data suggests a little love can go a long way, and this can increase the speed and accuracy of future compliance requests. Don’t have time to share the love? No problem, that’s what the Assent turnkey program is for. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 9
  • 10. 7 Small Requests -- Large Gains. What do test drives, lawn signs and compliance have in common? Imagine you get a knock on your door and a city official asks to install a large, permanent sign on your lawn that reads “Drive Carefully”. There will be no cost, and the pouring of the cement and digging up of your lawn will be taken care of by the city. This is to promote the city’s new “drive safe strategy”. How likely do you think you or your neighbors would be to comply? In a study conducted by Jonathan Freedman and Scott Frazer the answer was 17% of people. That’s surprising enough. How were the researchers able to get that figure up to an astonishing 76%? Prior to the initial test, researchers went to a sample set and asked if they could place a small sticker in the residences window that displayed the same message. Weeks later when they asked the same sample set for the larger more permanent commitment their rate was wildly higher than the control group where no initial small ask took place. This is whey car salesmen are so adamant about taking a test drive. This is what’s called the “foot in the door” effect. Depending on the complexity of your compliance program you can use the foot in the door effect to your advantage. One of the best ways of achieving this is in the initial contract phase. Adding in a simple section or clause that states that the firm is willing to adhere to the compliance policy and process is often all it takes to get a buy in. The foot in the door effect for compliance is also directly connected to finding the right contact. Chances are that your firm only has a sales contact at your suppliers firm. Once you locate the compliance manager and have your “foot in the door,” so to speak, it’s easy to ask for other restricted substance list information or any compliance requests for that matter. One of the benefits of using Assent is that we currently have 1000’s of pre-existing relationships or “feet in many compliance department doors” so it’s easy for us to obtain this data. When we bring on new customers to our platform its not uncommon to have high percentages of contacts pre-existing which accelerates the speed of the program and the data collection process. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 10
  • 11. 8 How to use Jedi Persuasion in the Supply Chain In the movie Star Wars – Return of the Jedi, Luke Skywalker proclaims to Darth Vader “There is still good in. I can sense it” Is it possible that these simple words could have influence both on persuading the cinematic super villain and your stubborn suppliers? The research points to yes. What Skywalker is doing in a technique known as “labeling”. When he tells Vader he senses good in him he is transporting that trait onto him. This can be done with traits, beliefs or attitudes. In research conducted by Alice Tybout, by simply labeling the indented traits on potential voters they were able to increase suffrage rates by 15%. Airlines routinely use this technique when they state at the end of the flight: “We know you have lots of choices when selecting an airline. Thank you for selecting ours.” They are using the implication that since there are so many choices you must have chosen ours for good reason. In the supply chain the labeling technique can be used to help with difficult suppliers. -------------------------------------------------------- “We know you always want to help us stay in compliance which will help us continue to be a valued customer to you” “We know compliance is important to you at ACME corp, so can you please fill out our compliance survey through our automated portal” -------------------------------------------------------- Using a little labeling can help you become a compliance Jedi and get full supplier buy in, in record time. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 11
  • 12. 9 Do you think you’ll succeed? Compliant companies say yes When potential voters are asked prior to an election if they think that they will vote (making a prediction) researchers Anthony Greenwald found that the likelihood of the respondents voting increased 25%. There are two factors at play here. When people are asked to predict if they will take part in a socially desirable activity they are compelled to say yes. Secondly, after making that declaration of agreeing to conduct the socially desirable activity, people will feel more compelled to actually undertake it. In one study a restaurant owner was able to decrease the number of no shows by changing the reception message from “Please call if you will be unable to make the reservation” to “Will you please call if you will be unable to make the reservation”. The no show rate went from 30% to 10% overnight. In the compliance space, asking for suppliers to make compliance commitments will increase the programs success. “Can you submit data X,Y by Date Z through our automated portal?” “Can you complete our compliance survey by X Date?” Assuming the respondent answers “yes” then asking if they need any assistance or asking why they think that they will be able to meet those dates will add reinforcement to the idea and expedite the compliance rate. At Assent, through our turnkey program we work with your suppliers and do our best to get set hard dates so that data collection is completed at set milestones. This technique has proven to be very effective. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 12
  • 13. 10 When asking for a little can go a long way in compliance Charities need donations. This is how they fund their philanthropic activities. In a research study conducted for the American Cancer Society, several different messages were tested. The theory was that letting potential donors know that “even a penny” would help increase the overall average donation rate. When the messages were tested: “ Would you be willing to help by giving a donation” Vs “Would you be willing to help by giving a donation? Even a penny would help” The donation rate increased from 28% to 50% in the “even a penny would help” condition. Now we don’t expect you to only accept limited data over the long term but often times even having a supplier login once to your custom survey or supplier portal is all you need to get them on board with your compliance program. Are you collecting a wide range of testing data? Perhaps asking for that they have right away, even if the reports are for a previous restricted substance list will help your overall compliance program in the future. -------------------------------------------------------- “Can you complete our compliance survey? Even logging in to check it out right away would help” “Can you upload your test reports for product X through our portal? Even the reports for the previous REACH candidate would be a good start” -------------------------------------------------------- Your job as a compliance manager is to get from point A (where you are at right now) to point C (compliant) as quickly as possible. Sometimes a small start, small ask or just a little compliance can go a long way. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 13
  • 14. 11 Why compliance outsourcing might be the most eective option Outsourcing data collection and compliance related activities has many advantages. While we have entire case studies to support this claim some of the reasons are: » Cost savings » Leveraging economies of scale in experience, contacts and infrastructure » Automation through software » HR time/cost savings Another principle of influence is also at play. Like most companies you want to claim that you are the best to your customers, authorities and the public in general. Though boasting about your compliance program won’t be as influential as having someone else boast on your behalf. How do you show off without showing off? Have an expert do it for you. Stating on your website that you take compliance seriously and have invested in a complaint management platform sends a strong message to customers and to clients that you take compliance seriously. While there is no REACH compliant or Conflict Mineral Compliant logo, associating yourself with your compliance service provider gives a reference similar to that which personal care companies use when they have a doctor in their advertisements. Publishing a case study, whitepaper or video with your compliance vendor can be used as a sales tool, creative for your site and proof of your program and compliance commitments. At Assent we host regular webinars with our clients informing suppliers of regulatory challenges, we work with our clients to answer RFP’s, we deal with enforcement officials, we work with accounting and audit firms. Having a compliance ace up your sleeve can be a cornerstone of a complete compliance program. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 14
  • 15. SUPPLIER MIND CONTROL --------------------------------------------- CASE STUDY Please, please… don’t think of a pink elephant. You did, didn’t you? Assent mind control division success! Before we examine some jedi techniques to best procure data from your supply chain let’s give some background. The Assent Compliance software platform comes with bi-directional supply chain communication, task management, analytics and data exchange features. Clients use this feature set to gather compliance data from their supply chains for a variety of regulations like REACH, RoHS, Conflict Minerals and dozens of other regulations that Assent supports. Within this dashboard users can also manage and send email and information requests to their respective supply chains. We recently had 2 electronics manufactures with roughly the same market cap, size of supply chain and products launch with Assent. This was the perfect opportunity to do an analysis of what techniques were working best and what weren’t. While there were some small differences in firms sample sizes this review does give some very relevant best practises. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 15
  • 16. COMPANY PROFILES: » Firm Size: ~1B Market Capitalization » Suppliers: ~ 1500 (this was not the entire supply chain for either firm but one business unit) » Sector/Industry: Electronics METHOD: Using the Assent Compliance dashboard, each firm would contact their respective supply chains for conflict mineral information as well as REACH declarations of conformity. Suppliers could use the Assent IECC form through a supplier wizard or upload their own. (Create or Upload) as well as use the Assent system to make declarations for their respective parts and or upload corporate level declarations for REACH. This process was managed entirely on part of the firm’s compliance department. (This is relevant because Assent does offer on demand and ongoing support services for some clients. These firms had no outside support from Assent beyond the software set up and training) TIMELINE: For purposes of this case study we used a 1month sample from send out to analysis. It is also important to note that Assent is unique in that, because of its strong footprint in the compliance space we help all our clients cross reference their supplier contacts with our compliance contact database. This allows clients to access the most up to date listing of compliance managers and key compliance personnel at 1000’s of companies. Response rates differ dramatically based on the quality of contacts a firm has. CONTROLS: » Similar Company Size » Similar Supply Chain Size » Supply Chain Data Validation performed by Assent » 1 Month Time Period » Identical System (Assent does offer customizations for enterprise clients in some cases) » Analyzing of 1-1 supplier response rates regardless of parts supplied ( If a supplier has parts in every product a firm uses one supplier could be representative of a huge part of overall product compliance. In this case, for analysis of supplier response rates we treated all suppliers equally) ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 16
  • 17. RESULTS » Firm 1: 99% of suppliers responded within 1month time frame » Firm 2: 74% of suppliers responded within 1 month time frame. INTERPRETATION It was surprising to see that very similar firms with various controls would see a 25% variance in supplier response rates. Why was there a difference? After examining controls Assent dug a little deeper. Firm 2 used the following copy when doing send outs from the system: -------------------------------------------------------- Firm2 Dear Supplier, Firm2 is requesting that all suppliers of firm 2 compete or submit EICC Conflict Mineral forms and REACH declarations for the products that you supply to us. Using the wizard below please follow the steps outlined and upload your documentation. If you need assistance feel free to contact our compliance representative at email@firm2.com or call number Thank you for your cooperation. -------------------------------------------------------- -------------------------------------------------------- Firm1 Greetings Valued Supplier, As we’re sure you’ve probably heard, companies are now required under the Dodd Frank Act to procure compliance information with regards to conflict minerals, and in order to sell our products into the EU we must comply with the REACH regulation. If you put yourself in our compliance departments shoes you can see that this is no small challenge. We’re asking that all our suppliers please use the Assent compliance wizard to upload their compliance information because that will allow us to maintain our upstanding relationship with your firm as one of our valued suppliers. Here is background on both REACH and Conflict Minerals links that firm provided If you need any help at all please contact Reps Fist Name and Last Name, Phone, Email -------------------------------------------------------- ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 17
  • 18. From our analysis and controls it seems that it’s all in the copy. Firm 1, while maybe not even knowing it, employed some very subtle copy writing tricks that might have had a 25% responses rate improvement to firm 2. Let’s examine: » Firm 1 was more informal in the copy. While Assent hasn’t formally researched tone and formality in response rates using the platform it does appear that the more informal tone was more effective with this sample » Firm 1 employed some subtle influence tactics. In a well-known study researchers found that when asking for something using an (Can you do X because of Y) technique was much more effective than simply (Can you do X). The word “because” seems to result in compliance with the request even if the reason mirrors the request or simply states the obvious. “Can I use the copier because I need to make some copies” results in higher compliance than “Can I use the copier”. Langer, E., Blank, A., Chanowitz, B. (1978). The mindlessness of Ostensibly Thoughtful Action: The Role of “Placebic” Information in Interpersonal Interaction. Journal of Personality and Social Psychology, 36(6), 635-642. Firm 1 built in this influence trick into their copy as well as informed the reader. » Finally firm 1 made the copy much more personal. They asked readers to put themselves in their shoes, talked about maintaining their relationship and provided personal contact information. To the reader this copy was much more compelling. Firm 1 and 2 actually had a supplier in common out of the 25% variance. We reached out: -------------------------------------------------------- Question Assent: Why was it that you responded to firm 1 but not to firm 2 when asked about compliance info ? Supplier: “It wasn’t my intent to not reply to firm 2. When I got the request I read it and kind of just forgot to get around to it. When I read the message from firm 1 the line about maintaining our relationship really made me feel that I needed to get right to it. The last thing I want is a PO getting pulled or a customer calling my boss. I think that email just got me moving. I would have gotten around to firm 2 though.” -------------------------------------------------------- ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 18
  • 19. FINAL THOUGHTS --------------------------------------------- When crafting copy to send out to the supply chain perhaps run it by the marketing department or give your Assent account manager a quick call to proof read it for you. Strong copy can activate a sense of urgency with your suppliers so it’s a variable that shouldn’t be overlooked. While the results of this case study don’t control for every imaginable variable it appears on the surface that copy can provide as much as a 25% swing in response rates. That means 25% less time and effort following up, potential testing and delays in compliance. Try and exercise a bit of supplier mind control and you might have some great progress in your compliance efforts. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 19
  • 20. CITATIONS 1. Milgram, S., Bickman, L., and Berkowitz, L. (1969). Note on the drawing power of crowds of different size. Journal of Personality Social Psychology, 13: 79– 82. Goldstein, Noah J.; Martin, Steve J.; Robert B. Cialdini (2008-09-03). 2. Goldstein, N. J., Cialdini, R. B., and Griskevicius, V. (forthcoming). A room with a viewpoint: Using social norms to motivate environmental conservation in hotels. Journal of Cosnumr Research. Goldstein, Noah J.; Martin, Steve J.; Robert B. Cialdini (2008-09-03). 3. Gerber, A. S., and Rogers, T. (forthcoming). The effect of descriptive social norms on voter turnout: The importance of accentuating the positive. The Journal of Politics. Goldstein, Noah J.; Martin, Steve J.; Robert B. Cialdini (2008-09-03). 4. Schultz, P. W., Nolan, J. M., Cialdini, R. B., Goldstein, N. J., and Griskevicius, V. (2007). The constructive, destructive, and reconstructive power of social norms. Psychological Science, 18: 429– 34. Goldstein, Noah J.; Martin, Steve J.; Robert B. Cialdini (2008-09-03). 5. Iyengar, S. S., Huberman, G., and Jiang, W. (2004). How much choice is too much?: Contributions to 401( k) retirement plans. In Mitchell, O., and Utkus, S. (eds.), Pension Design and Structure: New Lessons from Behavioral Finance (83– 96). Oxford University Press. Goldstein, Noah J.; Martin, Steve J.; Robert B. Cialdini (2008-09-03). 6. Iyengar, S. S., and Lepper, M. R. (2000). When choice is demotivating: Can one desire too much of a good thing? Journal of Personality and Social Psychology, 79: 995– 1006. Goldstein, Noah J.; Martin, Steve J.; Robert B. Cialdini (2008-09-03). 7. Schwartz, B. (2004). The Paradox of Choice. New York: Ecco. 8. Leventhal, H., Singer, R., and Jones, S. (1965). Effects of fear and specificity of recommendation upon attitudes and behavior. Journal of Personality and Social Psychology, 2: 20– 29. 9. Garner, R. (2005). Post-It ® Note persuasion: a sticky influence. Journal of Consumer Psychology, 15: 230– 37. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 20
  • 21. CITATIONS 10. Strohmetz, D. B., Rind, B., Fisher, R., and Lynn, M. (2002). Sweetening the till: the use of candy to increase restaurant tipping. Journal of Applied Social Psychology, 32: 300– 309. 11. Goldstein, N. J., Cialdini, R. B., and Griskevicius, V. (2008). Maximizing motivation to cooperate toward the fulfillment of a shared goal: Initiation is everything. 12. Freedman, J. L., and Fraser, S. C. (1966). Compliance without pressure: The foot-in-the-door technique. Journal of Personality and Social Psychology, 4: 195– 203. 13. Tybout, A. M., and Yalch, R. F. (1980). The effect of experience: A matter of salience? Journal of Consumer Research, 6: 406– 13. 14. Greenwald, A. G., Carnot, C. G., Beach, R., and Young, B. (1987). Increasing voting behavior by asking people if they expect to vote. Journal of Applied Psychology, 72: 315– 18. 15. Cialdini, R. B., and Schroeder, D. A. (1976). Increasing compliance by legitimizing paltry contributions: when even a penny helps. Journal of Personality and Social Psychology, 34: 599– 604. 16. Pfeffer, J., Fong, C. T., Cialdini, R. B., and Portnoy, R. R. (2006). Overcoming the self-promotion dilemma: Interpersonal attraction and extra help as a consequence of who sings one’s praises. Personality and Social Psychology Bulletin, 32: 1362– 74. ASSENT COMPLIANCE SUPPLIER INFLUENCE ----- --------------------------------------------- ------ 21