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Why Consumers Buy What They Buy By Laura Lake Vice President Client and Interactive Services at EAG / Author of Consumer Behavior for Dummies

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Page 1: I thinkbigger   why they buy what they buy - final

Why Consumers Buy What They Buy

By Laura LakeVice President Client and Interactive Services at EAG / Author of Consumer Behavior for Dummies

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The Big QuestionsWhy Do Consumers Buy What They Buy and How Can You Get Them to Buy From You?

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Consumer Behavior is Important

Consumer behavior is more than a guessing game – it’s crucial to your marketing.

Clear understanding of your targeted customer =

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Winning Business!

It’s important to understand two things as your customer moves through the decision process:

Customer Needs + Customer Concerns =Winning their Business

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Getting Into the Mind of a Consumer

Understanding “why” consumers buy what they buy gives you the “know-how” in getting them to buy from YOU!

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The Keys to Understanding

There are 5 steps in the decision making process of a consumer.

Need Awareness

Information Search

Evaluation of Choices Purchase Purchase

Evaluation

The Same Process is Used for B2C and B2B Purchases

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How Understanding the Process Helps

In each step you have a role to play if you want to capture the “buy.”

By knowing your role in the decision making process turn more consumers into customers!

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Phase 1: Need Awareness

Consumer recognizes and becomes aware they have a need.

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How Do You Influence Phase 1?

A need will be triggered in a consumer in 1 of 3 different ways. Two you can influence because they are external, one you cannot.

• Advertisement or Conversation with friend that causes an awareness of a need.

• Consultative Selling – Sellers ability to uncover a need.

• Consumer Evaluation of current situation – causes consumer to detect area of dissatisfaction. (This is internal – you can’t influence it)

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Phase 2: Information Search

Consumer begins the information search – looking for what will fulfill the need they identified in Phase 1.

Important Note: Anxious buyers may skip this phase – we call this impulsive buying.

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How Do You Influence Phase 2?

Identify the information sources that are most important and influential to your potential buyer and then make sure your information is available there.

Example: If your potential buyer is aninternet users, will they find you when they search for your product or service?

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Phase 3: Evaluate the Alternatives

Consumer processes the information and makes a decision. Their decision comes from evaluating, identifying and assessing the value of you and your competitors.

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Two Types of Purchase – Which Are You?

• High Involvement Purchase• Low Involvement Purchase

Knowing which one your product or service represents will help you assist consumers in making a decision.

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What Is a High Involvement Purchase?

High-Involvement Purchase – Typically high expenditure or a purchase that involves a great deal of personal risk.

Consumer Process – In-depth evaluation process. Lots of attention goes into Phase 2 – the research phase. Decision will be based on value and they will weigh several equivalent products and make their decision based on their individual criteria.

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What Is a Low Involvement Purchase?

Low Involvement Purchase – This type of purchase includes products or services that often involve a lower expenditure and less personal risk – such as buying a soda, choosing a hair shampoo or deciding whether to have beef or chicken for dinner.

Consumer is concerned less with value and more interested in convenience – this purchase requires a simple evaluation process.

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How Do You Influence Phase 3?

High Involvement Purchase

• Provide your consumer with information that reaffirms the positive consequences of buying.

• Stress important features of your product and the advantages compared to your competitors.

Your consumer must see VALUE!

Low Involvement Purchase You can generally provide LESS information and still move the consumer past evaluation.

These purchases are often made on IMPULSE!

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Phase 4: Purchase

We love this phase - consumer is ready to purchase.

The two questions they ask themselves:

• Who will I buy from?• When will I buy?

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Who Will I Buy From?

Consumer considers 3 things that determine WHO:

Term of the sale Past experience from the seller Return policy

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Where Will I Buy?

Consumer evaluates the following to determine WHERE:

Store atmosphere / service experience Presence of time pressure Specials or sales on products or services Pleasantness of the overall shopping

experience

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How Do You Influence Phase 4?

Who and When is vital when it comes to the purchasing decision. The more you help the consumer, the better off you are.

A consumer must be satisfied with your service, experience and shopping atmosphere – this is true for both B2B and B2C.

If not they are not satisfied they can and often will delay the purchase.

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Put Yourself in Check – Phase 4 Checklist

Make sure the store atmosphere and/or the shopping experience is what your customer is looking for.

Save the customer time – be clear upfront with term of sales and return policy.

Have a sale – sales promotions and specials are effective when trying tokeep an existing customer and gainnew customers.

Pay attention to customer service – there is no excuse for bad service.

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Phase 5: Post Purchase Evaluation

The purchase is complete, but your job is not. The end of the sales isn’t always the end of the buying process – in fact it could be the beginning of another sale if you follow the process through to completion and satisfaction.

Post purchase evaluations fall into one of the following 3 categories:

• Outcome 1: Purchase is below expectation• Outcome 2: Purchase matches expectation• Outcome 3: Purchase exceeds expectation

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How Do You Influence Phase 5?

• Satisfied customers can become unpaid ambassadors for your business – so customer satisfaction should be first on your priority list.

• Avoid dissatisfaction before and during the sale. Be sure to follow up after the sale and handle any dissatisfaction.

• Consider conducting a post purchase evaluation by– Using customer satisfaction

surveys– Making follow-up phone calls– Mailing cards or letters– Sending email follow-ups

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Top 5 Reasons Consumers Don’t Buy

There are 5 reasons that consumers don’t buy.

Are you having difficulty in selling your product or service?

Consider each reason and evaluate how you can do better at marketing your products or services in a way that convert consumers into your customers.

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Reason 1 – Why They Don’t Buy

They are not aware of your product or your service.

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Reason 2 – Why They Don’t Buy

They don’t understand the benefits that your product or service offers.

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Reason 3 – Why They Don’t Buy

They don’t feel your product or service has perceived value.

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Reason 4 – Why They Don’t Buy

They don’t see how your product or service fulfills their needs.

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Reason 5 – Why They Don’t Buy

Your product or service is not accessible to them.

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Practices That Will Turn Consumers Into Customers

You turn consumers into customers by creating relationships with them.

You can create a relationship by incorporating 5 practices into your business and using them with each consumer that you come in contact with.

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No. 1 – Turn Consumers Into Customers

Take the time to listen to them and identify their needs.

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No. 2 – Turn Consumers Into Customers

Present your products or services in a way that genuinely fulfills their needs.

Cut out the hype - sell what works and you'll never have to hunt down new customers again.

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No. 3 – Turn Consumers Into Customers

Stand behind your products and services.

If you don't you'll not only lose the customers you have, but you'll deplete the chances of acquiring new customers.

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No. 4 – Turn Consumers Into Customers

Say what you mean and mean what you say.

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No. 5 – Turn Consumers Into Customers

Create that emotional connection with your customers, the kind that creates customer loyalty not just repeat-buying.

If you don't touch them emotionally why should they return and why should they be loyal to you?

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