Small Town Sales Training: Understanding Why Customers Buy
Customers Don’t Behave Logically When Making a Buying Decision
Image by Sophie Janotta from Pixabay
Several years ago, the Frito-Lay Company released some research findings that revealed some surprising facts.
Customers could detect differences in potato chip thickness of .008 inch. (That's one eight thousand of an inch) So why is that important?
Their customers rejected the chips if they weren't of the proper thickness.
They also know that customers prefer a chip that breaks under approximately four pounds of pressure per square inch.
The Psychology of The Buyer
"The human being is a wanting animal and rarely reaches a state of complete satisfaction except for a short time. As one desire is satisfied, another pops up to take its place. When this is satisfied, still another comes into the foreground, and so on. It is a characteristic of human beings throughout their lives that they practically always desire something."
Psychologist - Abraham H. Maslow, Motivation and Personality, 3rd.Ed., New York Harper & Row, 1970, pg 7
What Do Buyers Want?
Answer that one correctly, and you can step directly into the Elon Musk league.
Since the beginning of time, sellers have agonized over this question.
Here are a few of the most popular things buyers are looking for:
Security - Monetary gain, freedom from financial worry.
Self-Preservation - Safety and health for self and family.
Convenience - Comfort, more desirable use of time.
Avoidance of Worry - Ease of mind, confidence.
Recognition From Others - Social status, respectability, the wish to be admired.
Self-Improvement - Spiritual development, hunger for knowledge, intellectual stimulation.
If your product or service can provide a customer with one or more of the above, you will likely make a sale.
Notice anything about the above list?
How many of the six items listed are based on emotion, and how many are based on logic?
If you answered all six are based on emotion, you would be correct.
All of the above items, except for self-preservation, are not genuine needs but something to make us FEEL more comfortable.
The More Different We Are — the More We’re the Same
The most amazing thing about Tom’s Small-Town Newsletter is the amount of traffic I receive from countries around the world.
The newsletter has received visitors from 70 countries, and the list has steadily increased.
Each country has its religious beliefs, culture, and traditions, but when it comes down to commerce, the exchange of goods and services for something of value, it seems to be the same the world over.
A Bulgarian business owner that visits this newsletter for free articles says that he feels it helps his business.
I’m sorry to admit that I am ignorant of Bulgaria's culture, traditions, and history, but I am pleased to find that many business practices are the same regardless of country.
This means that increased commerce between countries could make wars unprofitable.
Many people would not want to shoot potential customers from the other army.
Self-Image: The Window to The Wallet
Each of us has three self-images.
1.) The real us - This is how we present ourselves to us. Almost no one sees this image in its full state,
2.) How we would like to be - "In an ideal world," I'd be thinner, taller, better looking, etc.
3.) How we believe others see us - Perhaps a correct way of saying this is, "It's only a matter of time until they find out I'm not qualified for this job."
Does it seem possible that our self-image might affect our buying decisions? Of course.
A large part of the world economy is based on image. Clothing, cosmetics, health, and fitness, just to name a few.
Many families in the United States work more than one job. Both husband and wife work.
Not because they must but because they don't want to give up two cars, vacations, nice clothes, and all the trappings of the American dream.
Buyers Don't Look at Reality When Making a Decision
Does that sound like a strange statement? We’re not driven by reality but rather by our own perception of reality. It's true, and let me try and prove it for you.
In the 1980s, Coke changed its formula to be sweeter to compete with Pepsi. Coke had changed the formula several times before.
The problem was they told us about it this time.
Coke received 60,000 calls per day from pleading customers to save the Classic Coke they've grown to love.
Did Coke give up the cause? No.
They did something even dumber than telling us they changed the formula. They decided they would prove to us WE were wrong. That the new Coke was better tasting.
They held taste tests around the country. Two hundred fifty thousand people took part.
And what did the taste tests show
1. New Coke
2. Pepsi
3. Old Coke
We loved New Coke. New Coke beat out both old Coke and Pepsi. No Contest! The management of Coke was ecstatic.
They had made the right decision after all. Then the sales figures came in.
And what did they show?
1. Old Coke
2. Pepsi
3. New Coke
Even though we knew it tasted better, we proved it to ourselves; we would not admit it was better.
New Coke was a dismal failure. You know the rest of the story.
They tried to keep both on the market briefly, and New Coke died naturally.
Killed, not by reality, but by the perception of reality.
Bury it next to the McDLT, The Arch Deluxe, and hot aerosol shaving cream.
The Decision-Making Process
So, how do customers make buying decisions?
CEOs of major Fortune 500 companies would like you to believe that customers identify their problems, seek product information, weigh the advantages and disadvantages, and select the best product that meets their needs for the requested price.
Ain't logic great?
Or they buy the box with bright colors.
As I write this article, Lynyrd Skynyrd's Greatest Hits are playing on the CD player.
Am I a big fan? Do I love this CD?
No. I bought it because it has two songs on it that I like. Two of 13 songs. Was that logical? Did I fit the CEO profile outlined above?
The Last Word on Buying Decisions
The point is no one really knows how the customer decides. Some may be logical. Some are emotional.
You have to ask the customer. Why did you purchase this product?
Communicate with customers and get feedback. Follow up after the purchase and sow the seeds for future sales.
I hope this article was a benefit to your small-town business. Taking advantage of a free subscription would help me. Give it a shot. You’ve got nothing to lose and everything to gain.