Share what you know with millions of people

Focus is the best place to turn what you know into remarkable content
×
0

What's the difference b/t what customers say is important and what actually drives their behavior?

Actions speak louder than words: A good example of this is buyers always saying price is the most important factor in a purchase, and then purchasing on the basis of a great interaction with the sales rep. What's the best way to capture what *really* triggers customer behavior and differentiate that from more typical or rational claims?

Attachments

2
Jonathan Eunice
Principal IT Advisor, Illuminata, Inc.
Posted on Nov. 3, 2010

It's a great question! What customers say (or think) is important to their purchase and operational decisions is often so very, very different from what really drives those decisions and activities.

Unfortunately, there is no simple answer. You could boil it down to some glib umbrella terms, such as "human cognition and psychology, intermixed with organizational dynamics." But there isn't just one or two or even ten factors involved. You can become skilled in understanding many of the factors that drive buyer affinity and behavior, but it's a journey you take, not a neat checklist you memorize.

Off the top of my head, I'd recommend _How Pleasure Works_, _Predictably Irrational_, _The Design of Everyday Things_, _Getting to Yes_ (and its follow-ons) and _How the Mind Works_ as great starting points. Just keep in mind it's a skill or savvy you gain, not a thing you learn.

2
Scott Albro
Founder, CEO, Focus
Posted on Nov. 4, 2010

In a business to business context, there's a striking difference between what customers say is important and what actually motivates decisions and behaviors. Most business and technology professionals are conditioned to rationalize purchasing decisions in terms of either revenue growth or cost reductions. These are the two most common objectives that a business has and most buyers articulate their decisions in relation to the purchase's ability to impact revenue or costs.

While that's what B2B buyers talk about, most people don't really care about a company's objectives. They care about things like whether their boss is happy, how much money they are making, setting themselves up for a promotion or better job elsewhere. In other words, they behave and make decisions based on a set of deeply personal, primal motivations.

By the way, Jeffrey Summers' restaurant menu example is a great case of this on the consumer side.

1
Rebecca Christman
Freelance Writer & Business Builder, Freelancer
Posted on Nov. 3, 2010

I'm typically down to earth in my answers. Honestly, from experience, I think the answer is simple: emotions. It is advertising or solicitation that evokes a positive emotion that generates response for the greatest potential of sales. I walk in the Internet realm as a writer and marketer. I am not a traditional marketing expert because there simply isn't enough time in the day to move backwards rather than forwards. I say that with kindness, really. Traditional marketing has the foundation that all Internet marketers need, but marketing online is still a breed of its own. With that said, I think the answer "emotions" would fall well with both corporate and internet gurus.

PS: I do have 15 years working corporate and small business. I have moved to completely online as that is where I see the future unfolding before my eyes daily. It is the biggest influence since the introduction of manufacturing in the Industrial age.

1
Jeffrey Summers
President, Summers Hospitality Group
Posted on Nov. 4, 2010

This is such a loaded issue. Most of the time consumer's aren't saying what survey's or "reasearch" says they are simply because most are built to underscore someone's business agenda. The other thing I find disconcerting is that very few value options are offered when consumers are surveyed about price. The few honest and more scientific research on consumer's buying behavior show that price is less of a factor when increased value options are offered.

A great example of this is the media hype and buzz about the "clamor" for healthy foods in restaurants, which once put on the menu, do not sell. Even though consumer survey's and "research" say that people want them.

1
Robert Bacal
Ceo, Bacal & Associates
Posted on Nov. 11, 2010

Some great answers on a topic I keep hammering about, and that is that we know from social science research that what people say and what they do are often quite different. The spread gets bigger if you look at the REASONS people give for what the do, since survey questions of that type are impossible to validate.

Bottom line. We do NOT know as much as we are told we do about customer behavior. And, keep in mind that most customer type surveys are done by companies with vested interests in selling services and products based on this "research" It's not so much they intentionally cheat but they ask the wrong questions because of their biases.

For more on this, I've done some articles on research related to both social media and customer service at http://socialmediabust.com/bunklieshype/7-misinterpretationsofdata.html

I also have a book chapter available in Kindle format on this issue, but I'll refrain from posting the promotional link here.

0
Paul Korzeniowski
Blogger, Freelance Writer
Posted on Nov. 3, 2010
  • Recommended by:

A couple of factors drive new purchases. My take is bit different from yours. I think that customers are quite cost conscious and price is usually close to (often at) the top of the decision list. However, calculating the price is where some of the discrepancies come in. Often, vendors present “best case” cost scenarios to customers, so their products seem attractive. If one takes a close look at the different options, items, such as maintenance and customization charges, are glossed over – or ignored. That happens largely because technology and its associated costs have become so complex that it has become very easy for skilled sales representatives to talk their way around full pricing disclosures.

Also, the systems are seldom packaged and sold in an apples-to-apples manner. True pricing only becomes clear when systems are fully implemented, and IT is not like buying a car where companies can truly, Try before They Buy. Customers try a best effort to identify pricing differences but they aren’t going to spend every waking moment doing a cost evaluation – they have practical considerations, such as getting the CEO’s smartphone to work.

I also think that incumbent has an inherent advantage. The customer already has a relationship with that person and knows how to interact with the firm. Rather than develop a new set of business processes, it would seem easier to stay with what they have. They do that if the prices seem (at least on paper) comparable.

In sum, price is important, but sometimes, it seems like other factors cloud its relevance when firms make the final purchase decision.

0
Rebecca Christman
Freelance Writer & Business Builder, Freelancer
Posted on Nov. 3, 2010
  • Recommended by:

You mention Try Before You Buy. Every piece of software I have purchased has allowed a free trial. This is only possible via Internet means, as you can't send a CD and expect them to uninstall it. More importantly, I will never buy software without a trial period. I try more than one of a competitive circle before committing. I take the time to find the tools best for me. You are right, the price matters because budget is budget. But, if the price is too high then likely it is something that automates what I can learn to do myself. So, therefore I invest in information knowledge, which is cheaper to accumulate. (The key is to actually read it). I also join tons of mailing lists and watch what the marketing gurus are pushing. I compare prices, I compare features, I compare service. But, honestly I care less about the company than I do productivity and the impact on my bottom line. The Internet is fast-paced and I can't afford to waste a dime. I will neither buy nor sell what is not of good quality. So, with that said, how many times have buyers been convinced to buy without trying simply because an advert touched their emotions on an immediate and urgent level? Just some thoughts to toss around...

Appreciate your response, Paul.

0
John Kypriotakis
Sales/Marketing, Lysis International, Inc.
Posted on Nov. 3, 2010
  • Recommended by:

Actually a more likely scenario is for them to say that the price is not as important but then buy strictly on price. In any case, one effective way to find what drives the purchase is by engaging the buyer in a dialogue about "purchase criteria" and how they have made decisions in the past. Any inconsistencies are flags that need to be examined. What our research shows is that in addition to ROI, peace of mind and ease of doing business have been pretty consistent drivers to decision making.

Answer This Question