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Customer Decision Making Process
The document outlines the customer decision-making process, emphasizing the five stages and psychological influences that affect purchasing decisions. It highlights the importance of customer advocacy and strategies for businesses to position themselves in consumers' minds effectively. Additionally, it offers actionable tips for driving growth through customer awareness, consideration, trial, purchase, repeat business, and advocacy.
Customer Decision Making Process
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- 2. Why should abusiness owner or marketer need to understand the customer evaluation process?
- 3. What we willcover today • The 5 step process in customer decision making • Psychological influences of customer decision making • 5 areas where you can position yourself in the consumer’s mind • 8 ways to build raving fans
- 4. How do customersbuy? • Research suggests that customers go through a five-stage decision-making process in any purchase.
- 5. General buying decisionmaking process Need Post- Recognition Information Evaluation of Purchase purchase & problem Search Alternatives evaluation awareness
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- 7. Customer information sources •A customer can obtain information from several sources: • Personal sources • Commercial sources • Public sources • Experiential sources • Customers value and respect personal sources more than commercial sources (the influence of “word of mouth”).
- 8. How does thecustomer use the information obtained? • High-involvement purchases • Low involvement purchases
- 9. General buying decisionmaking process Which of these stages can you influence? Need Post- Recognition Information Evaluation of Purchase purchase & problem Search Alternatives evaluation awareness
- 10. Post-purchase evaluation -Cognitive Dissonance • Common for customers to experience concerns after making a purchase decision -> cognitive dissonance • Services normally carry higher risks due to their intangibility. • Manage the post-purchase stage • Persuade the potential customer that the product will satisfy his or her needs. • Post purchase -> customer should be encouraged that he or she has made the right decision.
- 11. Perceived risks –how can you help buyers to alleviate high levels of risk during pre and post purchase stages? • Acquisition of information (mass media, WOM, personal selling) • Brand loyalty, rewards • Use of guarantees, third party endorsements • Money back offers, trial samples • Assurance • Product installation and usage instructions • After sales service and follow up
- 12. Psychological influences oncustomer decisions Motivation and personality Family Beliefs and influence Attitudes Customer decision influencers Personal Lifestyles influences Socio- cultural influences
- 13. General buying decisionmaking process Which of these stages can you influence? “Stop trying to sell, start helping them buy.” Need Post- Recognition Information Evaluation of Purchase purchase & problem Search Alternatives evaluation awareness
- 14. Pause for thought...... ARE YOU IN YOUR CUSTOMER’S MIND
- 15. Customers are buyinginto your product or service • Where are you placed in your customer’s mind? • Are you even in it? • How do you get in? • Which part of the brain are you in?
- 16. Positioning: The fightfor your consumer’s mind
- 17. • Attention • Liking • Recommendation • Knowledge • Attraction • Curiosity • Preference • Word of mouth • Comprehension • Conviction • Action • Raving fans • Understanding • Interest • Desire
- 18. Awareness Consideration Trial Repeat Purchase Advocacy Advocates
- 19. Customer advocacy –a key to business growth BONUS TIPS FOR YOUR BUSINESS SUCCESS
- 20. Advocacy drives growth Focus on customer success The main intent of organisations with a customer advocacy strategy is “customer success”. They aim to create more authentic customer relationships by providing expert levels of individual customer protection and support. As higher levels of trust, accountability and transparency build, customer advocacy is a means for organisations to resolve their customer’s problems, and help them make important decisions.
- 21. 8 Tools for Referral Driving Growth programs by Optimizing Innovation Tryvertising Customer Advocacy Advocacy Customer Empowered tracking research advocacy involvement Brand Influencer ambassador outreach programs Causal Campaigns Ref: Advocacy Drives Growth, London School of Economics
- 22. NOW, IT’S YOURTIME FOR CONSIDERATION AND ACTION
- 23. Awareness • What can I do to increase Awareness in my business? • ___________________ • ___________________ • ___________________ • ___________________
- 24. Consideration • What can I do to increase Consideration in my business? • ___________________ • ___________________ • ___________________ • ___________________
- 25. Trial • What can I do to increase Trial in my business? • ___________________ • ___________________ • ___________________ • ___________________
- 26. Purchase • What can I do to increase Purchases in my business? • ___________________ • ___________________ • ___________________ • ___________________
- 27. Repeat Purchase • What can I do to increase Repeat Purchases in my business? ___________________ • ___________________ • ___________________ • ___________________
- 28. Advocacy • What can I do to increase Advocacy in my business? ___________________ • ___________________ • ___________________ • ___________________
- 29. What we havecovered today • The 5 step process in customer decision making • Psychological influences of customer decision making • 5 areas where you can position yourself in the consumer’s mind • 8 ways to build raving fans
- 30. Another Bonus -Thanks for staying till this bit • Register your name and email at our website www.gameplancoaching.com • You will automatically get: • GAMEPLAN Life Bytes Welcome Newsletter • E-book GAMEPLAN Strategies to Happiness and Success
- 31. Before we conclude.... karyne@gameplancoaching.com • I will send you a template with the 5 key areas, for you to complete with your business action points. • All registrants today will receive our free e-report Recession Busters: 30+ Tips and resources You Can Use Immediately to Thrive in a Recession
- 32. Thank you! Email: karyne@gameplancoaching.com Website: www.gameplancoaching.com Tel: +61 (0) 422 475 225 P.O. Box 6317, North Ryde, 2113 NSW, Australia