Three
Reasons People Buy
Let’s face it…
when it comes to making
a decision on why to buy a product or service, we all have our
different reasons as to what motivates us to buy. Each person, whether
they are in a business situation or a personal situation, has their
own reasons for buying what they buy. For example, let’s take a
look at purchasing a car:
- Buyer One has
decided he wants to buy a new Ford F150 pick-up truck. He spends
a lot of time hauling lumber and equipment to a construction site
and needs a powerful truck with plenty of storage capacity.
- Buyer Two has
had her eye on an Audi TT for months. She loves the car’s sleek
design and can’t wait to go out on the town with her boyfriend.
Every time she looks at the car, she pictures herself driving
the car to an elegant event or to the hottest nightclub.
- Buyer Three has
his eye on a Honda Civic. She’s gradually working her way through
law school and needs every penny she can get. By buying an economical
car, she’ll be able to stretch her dollar and divert her funds
towards other expenses.
These three
buyers have chosen three types of cars for three completely different
reasons. Chances are that pointing out the economic
benefits of a Civic wouldn’t matter to Buyer Two as she wouldn’t
perceive the car as “prestigious” enough. At the same time, Buyer
Three could care less about the towing capacity of a Ford F150 because
all she would imagine are the hideous gas bills she would get.
So, when we look at these three buyers,
we can say that they are driven by one of three main buying categories
or what we call PPI:
In one way or
another, PPI comes into play with all types
of buyers, particularly in the corporate world. Executive
buyers are driven by PPI as are other buyers such as Technical
Buyers, Financial Buyers and User Buyers. The ability to gather
as much data as possible about a particular buyer’s reasons for
buying will enable you to sell
more effectively in the field.
Taking a closer
look at the Executive Buyer, one needs to understand how PPI affects
this person to realize what will cause them to choose your product
or service over someone else’s. Some of the areas of concern to
an Executive Buyer would include:
- How
will this affect our bottom line?
- What
will this do to help us
increase production over the next year?
- How
will this help me increase shareholder value?
- What
will the long-term effects of this be on our company’s ability
to compete?
- How
will this help protect and increase our existing market share?
Ultimately,
with the executive buyer, it boils down to money, long-term growth,
vision and the effect on the financial strength of the company.
By targeting your statements to meet the Executive Buyer’s needs,
you increase your chances of earning
the business.
What are some statements that would
“speak” to PPI for the Executive
Buyer?
“By rolling out our supply chain management process, you would
save 20% over the next five years in unnecessary expenses.”
“Our filtration process will enable you to improve your standing
with regulatory agencies by reducing particle matter and would enhance
your image in the community as a responsible corporate citizen.”
“Our team will enable you to automate this process ultimately
reducing operating expenses by 10% while increasing output by 15%.”
Other buyer
types are often motivated not by big picture/strategic concerns
or long-term profitability but more by individual and compartmentalized
needs. This can take place within a department, a regional office
or an entire division. These people think closer to home and look
for ways to cut costs, become more productive, increase margins
and contribute to the company’s bottom line. They tend to think
more in terms of their functional
needs rather than on a corporate scale.
What are statements that would “speak”
to PPI for these buyer types?
“By shifting to our database management tool, your employees
will be able to focus on other tasks knowing that the software will
alert them when certain thresholds have been exceeded.”
“The negotiated rates we have in place with our partners will
enable you to save up to 25% on your travel costs, enabling you
to stretch your department’s travel budget.”
“Our safety products are proven to decrease occupational accidents
in half and will enable your team to not only stay healthy but stand
out among other teams at the refinery.”
Ultimately,
you are speaking
your customer’s language by meeting their needs and the buying
forces that shape their decisions. By understanding what is most
important to your customer and appealing to Productivity,
Profitability or Image, you increase your chances
of success.
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