Posts Tagged ‘buying’

Customers are talking: the complex consumer “buyer”

Tuesday, January 5th, 2010

B2B salespeople are familiar with the concept of the “buying center” – a group of people responsible for reviewing, analyzing and recommending purchases. The best salespeople cultivate relationships with lots of important folks at the client. They know that focusing on a single decisionmaker is a prescription for a lost sale. (Yet the “decisionmaker” myth persists. Salesperson: “Did a product demo with XYZ corp today.” Boss: “Great. Did you talk to the decisionmaker?”)

Consumer purchases don’t have a buying center, do they? Well, I did a project last year that involved trying to understand why people calling into a telesales center didn’t end up buying anything. The most frequent reason for them saying no? “I need to talk about it with my spouse/mother/sister.” They couldn’t make a decision without the concurrence of someone else.

This has implications for consumer sales of any significant size. Consumer sales channels – especially virtual channels like call centers and websites – are focused on individuals, not groups. They don’t have any easy way of involving that other person who needs to say yes. This was the puzzle my client faced.

Perhaps it’s too complex for consumer marketers to worry about. But by ignoring the buying center, they run the risk that their “buyer” loses his/her energy and commitment between the time they are ready to say yes and the time they get the go-ahead from that other person. That equals lost sales, and lost sales are expensive.

B2B Buyers’ Purchase Decisions Hinge on Emotion, Not Facts

Thursday, April 23rd, 2009

Jon Miller over at the Marketo blog summarized the results of a study Marketo conducted along with Enquiro Research to delve into how B2B buyers make decisions.

The results will not surprise readers of this blog. Rational B2B buyers are a “myth,” and negative emotions drive the buying decision:

The Enquiro research shows that B2B buying decisions are usually driven by one emotion: fear. As a result, B2B buying is all about minimizing fear by minimizing risk. There is organizational risk, which can often be dealt with rationally, and personal risk, which is usually unstated and hidden from the rational process. Yet personal risk is a huge factor in B2B buying.

This irrationality and desire to mitigate risk and complexity leads purchasers to return to an old-school tool for making decisions: the recommendation. The post suggests, among other things, that B2B marketers capitalize on what I would call the “fellow traveler” syndrome–generating positive references from people elsewhere in the buyer’s company and industry is a significant help for vendors seeking to overcome buyers’ fear instincts and win new business.

(Hat tip Futurelab blog.)

Related posts:
Complex sales: it’s all about the negatives
Another kind of value proposition