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Hello,
Welcome to this week's edition of Etips.
Understanding your customers and the steps they take during the "buying process"
of your products can increase your sales.
The buying process is a step by step thought process your customers will
follow when deciding whether or not to make a purchase.
By understanding this process and developing your selling process accordingly,
you can increase your sales considerably.
Karon Thackston's excellent article, Understanding the Buying Process
Can Increase Your Sales, explains the buying process as five basic
steps.
I hope you'll enjoy this week's edition of Etips.
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 Understanding the Buying Process Can Increase Your
Sales
By
Karon
Thackston
Most marketers don't give a lot of
thought to the buying processes of their customers. That's a shame. Lending
due attention to the buying process can have a dramatic effect on your
sales.
What is the buying process? Where does your customer fall within it? How
can you use it to help bring your customer to the point-of-purchase? Follow
me as we take a look at the decisions customers must make before deciding
to buy.
Each and every one of us goes through some sort of buying process when we
make a purchase. At times the process is long and labored - as when buying
a new computer. At other moments it happens almost without thought - when
buying a box of your favorite cereal, for instance. But make no mistake.
it does happen.
Generally speaking, the buying process consists of five steps. Those
products/services that are new to the market, are new to your customer, or
are very expensive will require a longer period of consideration in each
phase. Products/services that are familiar, that have market longevity, or
that cost very little will require a shorter (even instantaneous) process.
Step One - Need/Want Recognition
During this step, buyers realize they want or need something. They recognize
that they have a problem or a desire, and they choose to find a solution.
If this need or want is something along the lines of lunch, the buying decision
can be made relatively quickly, without much thought of the actual buying
process. Hunger is a quick problem to solve, most options are familiar to
buyers, and the cost is usually low.
If the need or want is a new car, however, the actual buying decision can
take weeks or months. There is a greater risk, new models and features come
out all the time, the cost is high, and the possibility of making a "mistake"
when buying is great.
Step Two - Information
Search
Once the choice has been made to fill a need or want, your customer begins
to search for information in order to make a quality decision that is in
his/her best interest. Web sites may be visited (in which case you should
offer some way for the customer to remember you, such as printable versions
of information, downloadable brochures and catalogs, a way to bookmark your
site, etc.). Brochures may be gathered (be sure to offer your contact
information). Phone calls might be placed (check to ensure you or your call
staff has the information they need to answer questions). Free samples, test
drives, and other means of "trial" work wonderfully to guide your customer
through the information search stage and onto the evaluation and purchase
stages.
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Step Three - Evaluation
After your customers have collected all the information they feel is necessary,
they begin to evaluate their options and narrow their choices until they
finally pick the one thing that they are comfortable with, and that they
can afford. This is the time to follow-up with your customers. Is there
additional information they need in order to choose? Did they have problems
with the free sample that can be corrected? Your "presence" during the evaluation
stage is important, so do your best to retain customer contact information
in order to "gently" offer any additional details the buyer might need. (Nobody
likes a hard sell, or to be pushed into buying.)
Step Four - Purchase
Once all the information has been evaluated, a purchase is made, and your
customer walks away happy. right? Well. not always.
Step Five - Cognitive Dissonance (Post Purchase Anxiety)
While customers may have thought they chose the best solution when they
purchased, many times customers later experience cognitive dissonance, a.k.a.
buyers' regret. They second guess their decision and begin to feel uncomfortable
about their decision. This is where trial periods, guarantees, and/or warranties
come into play.
Customers will have more confidence in their decision, even after it is made,
if they know they aren't "stuck" with their purchase. Having a guarantee
to fall back on gives them the comfort to know that - should something go
wrong - they won't be left stranded. Generally speaking, a guarantee is a
psychological support rather than a literal one. Most customers never take
advantage of guarantees. they don't think they need to. However, if a guarantee
wasn't offered, the anxiety of feeling "all alone" would overcome many buyers
and persuade them into asking for a refund.
Understanding each step in the buying process can help you structure your
selling process and your marketing materials to cater to the customer. Take
the time to consider what your customer goes through when making the choice
to buy, and alter your business accordingly. In doing so, you'll increase
your chances of making more sales, and landing more satisfied customers.
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