Written by Sean McPheat |
A friend of mine recently had the need to change his company car. There was a massive choice for him in the price range that he had been given, so he had to narrow the choice down using a series of questions. Based on his chosen criteria, he judged which would be the best car for him to go for.
Having made the choice of car, he then had to decide which leasing agency he would go to. The internet threw up around nine sites that enticed him towards their special deals. He thought the choice would be easy; it proved to be anything but!
In discussions with me, my friend said he wished he knew which agency would be the best for him to go with. Prices were more or less equal for the car he had chosen, but the actual agency choice was proving far more difficult.
I asked him what would make him decide in the end. He said it would be the one that made him feel most confident. How would he know? By the quality of the website, the ease of contacting the company, the amount of information available and the trust that he felt in their back-up services.
I then asked him to sum up in one sentence what would make him choose a specific agency. He said ‘the one that offers the least risk!”
This got me thinking. When buyers make decisions to buy, they have obviously covered a lot of ground before they make that choice. The word decision comes from the Latin word meaning “to cut off from”. In other words, when a decision is made, you ‘cut off from’ any other alternative. Your choice is final. You have decided.
(By the way, if you make a decision and then regret it, or have buyer’s remorse, you haven’t really made the decision, because you haven’t cut off from all other alternatives…you still are un-decided.)
So, one of the factors that influence decision-making in most buyers’ minds is the aspect of risk-reduction.
In many ways this is more important than the costs of solutions. For example, would you always buy the cheapest product available? Most of you would say no. Why? Because you appreciate that along with cheap price comes a sacrifice of quality.
Cheap doesn’t always equate to good value. There comes a point where the price line on the graph and the quality line cross over; the lowering of price always has a detrimental affect on how you perceive the product or service.
A lower price for most people may mean a saving in some respects. But it also opens the door to questions that would cause concern or anxiety in the buyer’s mind. Questions like;
‘Will this product really do what it says it will do? What happens if it breaks down? Have I got confidence that it will perform in the way the brochure said it would?’
These legitimate questions are the result of the risk you are taking by buying cheap. Most people would rather pay a little bit more to negate the risks they would be taking by buying too cheaply.
My friend decided to go with the agency that gave him the most confidence and the least risk. By making that choice, it made him feel less anxious about the whole buying experience. He chose on the basis of what would make him feel good in the long-term. I called him before writing this piece and he said the car had been delivered on time, in perfect condition and with the minimum of fuss. He feels he made the right decision.
Think of your customers and how they make decisions. How could you minimise or eliminate the risks involved in making buying-decisions? If you can answer that question, you open up many more opportunities to help customers achieve the results they want and need.
Originally published: 2 April, 2014