Let’s consider for a minute the mind of the general public in our search for how emotions effect buying decisions. Take the car buying public. Can we really say why we switched from that practical estate to a 4X4 off-roader to take the kids to school? For sure the question gets rationalised – “we have a steep drive and it can be difficult to get out of in the snow” (yes, on the one day a year that it does snow!); or “I feel safe in it with the kids” (yes, even though the stability is less than for most conventional saloons). In general we recognize more readily these emotional pulls and tugs in other people than we do in our rational selves.
Now you may argue that the rational b2b buying community does not get side-tracked by this mumbo jumbo. Somebody buying for a company is expected to use their professional skills to make the decision and most of this will be influenced by the facts.
Maybe so, but company buyers and specifiers do not leave their emotions at home when they set out for work. Figure 3 gives a stylized indication of how the emotional factors change in importance between consumer goods and industrial goods – but even in the most mundane of industrial products, emotions are known to play their part, often accounting for 10% or more of the buying decision.
Figure 3 The Influence Of Emotional & Rational Factors On Buying Decisions
One further issue we should consider before we move on is the difference in views of buyers compared to specifiers and technical people. In general the former put more emphasis on price and the latter more on quality and technical service. There could be differences in views between small companies and large companies. Companies at an early stage in their life cycle may think very differently to those in a more mature phase. Companies in developing countries sometimes think differently to those in developed countries.
This discussion is leading us to a point where we can build a check list of factors that prompt switching:
Switching more readily takes place when:
- The product is a commodity supported by very few services
- There is no strong relationship between the buying company and the seller
- Products and services are easily interchangeable with little or no testing/prequalification
- The product or service is not supported by a strong brand
- A market is awakened by a new supplier or an energetic supplier who runs a campaign that talks about the benefits of buying a different product or service
- The buying company has switched a number of times and has no fears of the difficulties of switching again
- The product or service is not of strategic relevance to the buying company
- The financial benefits of switching to a different product or service are considerable.
Once we have won a new account, our aim should be to make sure that from now on there is as little switching as possible. We conclude the white paper with three important ways to generate loyalty – in other words, stopping switching:
Build a strong brand
A definition of a strong brand is one that people insist on to the exclusion of all others. A strong corporate or product brand is a great means of creating loyalty and stopping switching. A key to strong branding is to build on and emphasise values that have a strong relevance to the market and which are not the high ground of competitors.
Build interlocking relationships
Strong corporate brands involve far more than the promotion of company names, logos and value statements. They are strengthened enormously by the relationships built up between the selling company’s sales and technical teams and the buying company’s purchasing and specifying staff. It will be hard to dislodge the sales person handing out doughnuts and coffee to a customer’s production staff, as they arrive at 6.30am. If that same person then works his or her way through the company checking that everything is hunky dory with supplies and quality they will find it very, very hard to switch.
Segment your customers by needs
We conclude this white paper where we came in. At the end of the day, all marketing is about segmentation; namely understanding and responding to the different needs of customers. With this understanding it will be possible to create different customer value propositions that meet those needs more closely and so resonate with customers better than a vanilla offer for everyone.
To view the other parts of this white paper click the links below:
Getting People To Switch – Part 1 of 3
Getting People To Switch – Part 2 of 3
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on Tuesday, August 29th, 2006 at 9:46 am and is filed under Articles, Customer Satisfaction, Market Assesment, White Papers.
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