The Customer Buying Decision



Sales & Marketing

Despite what many business owners think, price isn’t the no. 1 factor in customer decision making. Build a strong relationship, be accessible, be proactive, and price becomes less relevant. Need help with your sales process? Get in touch!It’s a common misconception that price is the most important factor when it comes to customers making a decision to buy. However, in the service industry at least, it’s simply not true.

These 5 things influence the customer’s buying decision.

1. Relationship.
The most important factor when selling a service to a customer is the relationship you have with them. The stronger your relationship, the more likely they are to buy from you. They’ll think of you first when they need the services you offer.

2. Accessibility.
Your accessibility will impact the likelihood of customers engaging with you. If your customers can’t easily get hold of you, or your response time is slow, they might assume you’re too busy or not the right person for the job. This doesn’t mean you need to be accessible 24/7 for your customers. Be visible and easy to find via your website and social channels, and ensure someone responds within a reasonable timeframe.

3. Proactivity.
The third factor is how proactive you are. Do you reach out to clients to check in? Do you offer exactly what your customers need? Are you keeping up with industry changes and ensuring your customers are also up to date? You can motivate your customers to act by being proactive.

4. Price.
Finally comes the price. If they know, like and trust you, and find you easy to deal with and proactive, they’ll likely trust that your price is fair. What’s more, they’ll see the value of working with you over someone else. The first three factors can help you minimise the price barrier.

5. Need.
The final factor is the customer’s need. They don’t know what they don’t know, and sometimes they don’t know that they need your services. It’s up to you to demonstrate the impact your services will have on their life. What’s in it for your customer?

So, to increase your customer retention rate, transaction rate, and transaction value, start from the top:

  • Build a strong relationship with your customers so you become the first person they reach out to
  • Ensure you’re accessible when they need you
  • Be proactive and have regular contact with customers (newsletter, social media posts, or a quick check-in phone call)

These three factors are all within your control. When you do this, you reduce the impact price has on your customer’s decision to buy. Your customers will remain loyal to your business, buy from you more often, and spend more when they do buy.

If you need help to integrate these factors into your sales process, get in touch!

“The reason it seems that price is all your customers care about is that you haven’t given them anything else to care about.” - Seth Godin



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