Customers buy solutions to problems or solutions for outcomes they need to make their business or lives better. While pricing is important it usually ranks 3 or 4 on buyer’s criteria. Too many businesses rely on the assumption in the era of digital self-education that the most important thing to a customer is price. But buyers and consumers are moving away from the traditional purchasing funnel to a more enlightened decision journey that uses the Internet to change the way they research, value and buy products. If sales and marketing plans have not changed in response to the new buyer-driven decision journey, it better start soon.
So why do customers buy?
Before we answer that, the first thing to understand is that every customer has a “decision journey”. This journey has pre-purchase and post-purchase steps. The pre-purchase journey can be described as Awareness Consider Evaluate Buy. The post-purchase journey is Reflect Feel Decide.
In this article we will discuss the pre-purchase customer decision journey. Understanding the customer journey and its steps as to why customers buy can speed up the sales cycle improve conversation rates and drive revenue.
They say the goal of marketing is to reach potential customers within a specific market and influence their buying choices by making them aware of their brand or products. Today, buyers are so well informed and knowledgably thanks to the explosion of social media and digital channels, they can create a buyer “consider list” without the company ever having a sales conversation or contact. Marketing has to align itself to the awareness part of the decision journey. To raise awareness companies need to focus on buyer-driven marketing of which the internet is at the core. Pushing out brochures, advertisements or media buying as part of a company-driven marketing plan is still relevant but buyer-driven marketing is about creating digital properties that pull buyers towards the company, digital properties like whitepapers, product specific informational web sites, content marketing, customisable content, free product interactions, social selling, tools to engage people on social conversations about your industry and products, comment posting and world of mouth interactions, context marketing, etc. So buyer-driven marketing is about raising awareness to buyers who are already most likely engaged on the internet for your products and services.
This is the part of the decision journey where consumers and buyers narrow down their buying funnel and start to consider what companies, brands or products they would contemplate purchasing from or not. Has the buyer-driven marketing plan got the business into the consideration phase of the journey? This can be measured by trigger events like web traffic, sales leads, inbound enquires, white paper downloads and via social media channels like twitter and Facebook. This is where marketing, sales, customer service have the tools to cover all the buyer touch points to make it easier for the buyer to move to the Evaluate step.
This part of the decision journey is where buyers add and remove companies or brands as they further narrow (and qualify) their buying funnel. General evaluation leads on to active evaluation where information gathering, sales conversations, meetings, presentations, proposals come into the mix. Research shows during the evaluation phase buyers look for ease of use, ease of implementation, product offering and ease of connection to company (multiple touch points). This is also where buyer-driven marketing pays off as buyers now start to “pull” information from the internet, information like product reviews, white papers, and previous buyer ratings while also pulling insights into the company and product via free trials, proof of concept, face-to-face, phone or web interactions, customer references and company policies.
Commitment to buy. Where the buyer selects a brand to do business with and makes the decision to purchase. This is where the company ensures all steps are kept to a minimum, whether its clicks, paperwork, compliance, set-up, downloads, configuration and payment.
Smarketing – integrate all customer-facing activities
The shift in buyer-supplier selling process and the buyer decision journey means that marketers and sales leadership must adopt and view this change as an opportunity to be in the right place at the right time, giving buyers the information and support they need to make the decisions. Sales and marketing have to be one where every touch point from customer facing activities, web sites, PR, leads generation, customer awareness and sales is everyone’s responsibility.
Consider and Evaluate – connect the dots for the buyer
What the buyer is looking for during these steps is Value. If a buyer cannot see the difference between two products, then price wins. If sales and marketing do not address the customer question “How will I benefit from this product or service?” in their buyer-driven and connect the dots for the buyer then the buyer will remove the company from the decision journey or go for lowest price solution.
Remember, people buy because they have needs, a problem needing solving, a goal that needs fulfilling, a situation that needs to be remedied, something that affects their life or business, and needs solutions. In the Consider and Evaluate steps buyer preferences usually fit into three main categories, known as PPI:
Productivity – efficiency, ease of use, outputs
Profitability – ROI, making money, increase revenue, improve profit margin
Image – brand, style, reputation, approval, desirability (this is mainly consumers)
Buyer-driven marketing is focused on the buyer priorities with messaging on Productivity, Profitability or Image. Buyer-driven marketing also answers the question “WWFM or what is in it for me?” So why do customers buy?, most likely because a company and its people understand the customer decision journey, created an awareness link to the buyer and then sales, marketing, customer service and product working in unison took the buyer through the Consider and Evaluate steps with a systematic approach based on insights and relevant information