I thinkbigger why they buy what they buy - final


Published on

Published in: Business, Self Improvement
  • Be the first to comment

  • Be the first to like this

I thinkbigger why they buy what they buy - final

  1. 1. Why Consumers Buy What They Buy<br />By Laura Lake<br />Vice President Client and Interactive Services at EAG / Author of Consumer Behavior for Dummies<br />
  2. 2. The Big Questions<br />Why Do Consumers Buy What They Buy and How Can You Get Them to Buy From You?<br />
  3. 3. Consumer Behavior is Important<br />Consumer behavior is more than a guessing game – it’s crucial to your marketing.<br />Clear understanding of your targeted customer =<br />
  4. 4. Winning Business!<br />It’s important to understand two things as your customer moves through the decision process:<br /> Customer Needs + Customer Concerns =Winning their Business<br />
  5. 5. Getting Into the Mind of a Consumer<br />Understanding “why” consumers buy what they buy gives you the “know-how” in getting them to buy from YOU! <br />
  6. 6. The Keys to Understanding <br />There are 5 steps in the decision making process of a consumer. <br />The Same Process is Used for B2C and B2B Purchases<br />
  7. 7. How Understanding the Process Helps <br />In each step you have a role to play if you want to capture the “buy.”<br />By knowing your role in the decision making process turn more consumers into customers!<br />
  8. 8. Phase 1: Need Awareness <br />Consumer recognizes and becomes aware they have a need. <br />
  9. 9. How Do You Influence Phase 1?<br />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. <br />Advertisement or Conversation with friend that causes an awareness of a need.<br />Consultative Selling – Sellers ability to uncover a need.<br />Consumer Evaluation of current situation – causes consumer to detect area of dissatisfaction. (This is internal – you can’t influence it)<br />
  10. 10. Phase 2: Information Search <br />Consumer begins the information search – looking for what will fulfill the need they identified in Phase 1. <br />Important Note: Anxious buyers may skip this phase – we call this impulsive buying. <br />
  11. 11. How Do You Influence Phase 2?<br />Identify the information sources that are most important and influential to your potential buyer and then make sure your information is available there. <br />Example: If your potential buyer is aninternet users, will they find you when they search for your product or service?<br />
  12. 12. Phase 3: Evaluate the Alternatives<br />Consumer processes the information and makes a decision. Their decision comes from evaluating, identifying and assessing the value of you and your competitors. <br />
  13. 13. Two Types of Purchase – Which Are You?<br /><ul><li>High Involvement Purchase
  14. 14. Low Involvement Purchase</li></ul>Knowing which one your product or service represents will help you assist consumers in making a decision.<br />
  15. 15. What Is a High Involvement Purchase?<br />High-Involvement Purchase – Typically high expenditure or a purchase that involves a great deal of personal risk. <br />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. <br />
  16. 16. What Is a Low Involvement Purchase?<br />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.<br />
  17. 17. How Do You Influence Phase 3?<br />High Involvement Purchase <br />Provide your consumer with information that reaffirms the positive consequences of buying.<br />Stress important features of your product and the advantages compared to your competitors. <br />Your consumer must see VALUE!<br />Low Involvement Purchase<br />You can generally provide LESS information and still move the consumer past evaluation. <br />These purchases are often made on IMPULSE!<br />
  18. 18. Phase 4: Purchase<br />We love this phase - consumer is ready to purchase. <br />The two questions they ask themselves:<br />Who will I buy from?<br />When will I buy?<br />
  19. 19. Who Will I Buy From?<br />Consumer considers 3 things that determine WHO:<br /><ul><li>Term of the sale
  20. 20. Past experience from the seller
  21. 21. Return policy</li></li></ul><li>Where Will I Buy?<br />Consumer evaluates the following to determine WHERE:<br /><ul><li>Store atmosphere / service experience
  22. 22. Presence of time pressure
  23. 23. Specials or sales on products or services
  24. 24. Pleasantness of the overall shopping experience</li></li></ul><li>How Do You Influence Phase 4?<br />Who and When is vital when it comes to the purchasing decision. The more you help the consumer, the better off you are. <br />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. <br />
  25. 25. Put Yourself in Check – Phase 4 Checklist<br /><ul><li>Make sure the store atmosphere and/or the shopping experience is what your customer is looking for.
  26. 26. Save the customer time – be clear upfront with term of sales and return policy.
  27. 27. Have a sale – sales promotions and specials are effective when trying tokeep an existing customer and gainnew customers.
  28. 28. Pay attention to customer service – there is no excuse for bad service. </li></li></ul><li>Phase 5: Post Purchase Evaluation<br />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. <br />Post purchase evaluations fall into one of the following 3 categories:<br />Outcome 1: Purchase is below expectation<br />Outcome 2: Purchase matches expectation<br />Outcome 3: Purchase exceeds expectation<br />
  29. 29. How Do You Influence Phase 5?<br />Satisfied customers can become unpaid ambassadors for your business – so customer satisfaction should be first on your priority list.<br />Avoid dissatisfaction before and during the sale. Be sure to follow up after the sale and handle any dissatisfaction. <br />Consider conducting a post purchase evaluation by<br />Using customer satisfaction surveys<br />Making follow-up phone calls<br />Mailing cards or letters<br />Sending email follow-ups<br />
  30. 30. Top 5 Reasons Consumers Don’t Buy<br />There are 5 reasons that consumers don’t buy. <br />Are you having difficulty in selling your product or service? <br />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. <br />
  31. 31. Reason 1 – Why They Don’t Buy<br />They are not aware of your product or your service.<br />
  32. 32. Reason 2 – Why They Don’t Buy<br />They don’t understand the benefits that your product or service offers.<br />
  33. 33. Reason 3 – Why They Don’t Buy<br />They don’t feel your product or service has perceived value.<br />
  34. 34. Reason 4 – Why They Don’t Buy<br />They don’t see how your product or service fulfills their needs.<br />
  35. 35. Reason 5 – Why They Don’t Buy<br />Your product or service is not accessible to them. <br />
  36. 36. Practices That Will Turn Consumers Into Customers<br />You turn consumers into customers by creating relationships with them. <br />You can create a relationship by incorporating 5 practices into your business and using them with each consumer that you come in contact with.<br />
  37. 37. No. 1 – Turn Consumers Into Customers<br />Take the time to listen to them and identify their needs. <br />
  38. 38. No. 2 – Turn Consumers Into Customers<br />Present your products or services in a way that genuinely fulfills their needs. <br />Cut out the hype - sell what works and you'll never have to hunt down new customers again. <br />
  39. 39. No. 3 – Turn Consumers Into Customers<br />Stand behind your products and services.<br />If you don't you'll not only lose the customers you have, but you'll deplete the chances of acquiring new customers.<br />
  40. 40. No. 4 – Turn Consumers Into Customers<br />Say what you mean and mean what you say.<br />
  41. 41. No. 5 – Turn Consumers Into Customers<br />Create that emotional connection with your customers, the kind that creates customer loyalty not just repeat-buying. <br />If you don't touch them emotionally why should they return and why should they be loyal to you? <br />
  42. 42. Get Your Copy of This Presentation<br />Want a copy of this presentation? You can download at: <br />Insert URL<br />