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Purchase Decision: Why People Buy?
There are many reasons why people buy. It may follow a logical path, but sometimes it can be an act of impulse. In this article, we explore the different factors affecting a decision to purchase, and how we as a business can satisfy the need of a customer.
People like to feel in charge and responsible for the decisions they make. No one likes to be forced into a purchase, because when that happens, it is usually associated with negative emotions and feelings. This is the same in sales! People like to feel empowered in their purchase decision and not the feeling of being sold a product or a service.
Therefore, to improve sales, we first need to understand why people B.U.Y.?
Factors Affecting a Purchase Decision (B.U.Y)
B – Barriers
First and foremost, it is important to remove, if not reduce, the inherent barriers of purchase from the buyer.
How much more likely are you to buy a product or service if you are informed of what it is and what it does? Information gives confidence, especially in today’s technology-driven marketplace. We look through websites, forums and reviews before deciding. The more readily you can gain information on a product or service, the more likely you will buy the product or service.
How much more likely are you to buy a product or service if you can try it first? Many companies tackle this by offering free samples or free trials, making it extremely easy for people to access their products or services. Once you consume the free versions (especially with no strings attached), you are more likely to pay for the product or service.
How much more likely are you to buy a product or service if it changes your life for the better? We all want to change for the better but change itself is often difficult. We know we have to do it, but we also want the easiest way to do it. A good way to do this is to outline the seamless transition from what is known as ‘status quo’ to where a customer wants to be when they pay for the product or service.
U – You
Everyone in business plays a vital role in the success of a buyer’s journey. That is why “YOU” matter in helping a buyer buy.
- Product Developers and Marketing Experts
The product developers and the marketing experts work to design and create unique branding and association for the products or services. They are the brains behind the company, and they build a sense of identity for the company and its customers. Customers look for brands which they can relate to and feel an attachment for. A great brand not just captures the eye, but also captures the heart.
The salespeople are at the front line and need to understand their customers in order to close the deal. There’s a saying, the heart should always come before the head. People buy based on emotions and justify their decisions with logic after. Show and tell customers how good they will feel when they use your products or services and they will come up with their own reasons to buy from you.
- Service and Support Team
The service and support team are the key to maintaining a healthy long-term relationship with the customer. Communication with the customer is important and it should be consistent, speaking the “same language” as the product developers, the marketing experts and the salespeople. With consistency, trust is built, and these are the customers that will come back again and again in the future.
Y – Why
Now, put yourself in the shoes of your buyer. Why should they buy your product or services?
The fear of missing out (F.O.M.O.) is a social anxiety developed when a person feels left out. Everyone desires to stay included with what others are doing. For instance, when there is a queue or a good deal that many people have gone for, others would also join in and make the same purchase.
Greed is the desire for something that one does not really need. Think about it, how many times have we made impulse purchases which have been left unused or untouched ever since? Often, our subconscious mind places value on things that we see or use and if the price tag falls well below the value of the product or service, we would not want to miss a good deal! Apart from discounts and deals, limited edition product branding also picks up attention and demand.
- Sense of Purpose
Most people lack a strong sense of purpose and they want to be part of something bigger than themselves. This motivation drives them to do or join movements and trends which are in line with their personal beliefs and values. You will see successful socially responsible companies do this particularly well. Buyers feel that they are participating in something bigger than themselves, and bigger than the purchase they made.
How can we use this?
By understanding why people buy, we can then use these factors to affect a purchase decision. We can focus on the different areas of the buying journey. For example, does your business have enough information for your potential buyers to make a decision? How does your marketing or brand positioning use emotional narrative to make people FEEL? And are your employees singing the same tune?
These are all questions to dig deeper into.