I am sure you have all heard that popular saying: “The customer is always right”; but, have you ever wondered if that is actually true? Do people ALWAYS know what they want?
Well, if you have not, I have. Not only because I am human and a “consumer” after all – yes, like every other person, I like to window shop on Amazon occasionally – and, as a consumer and a marketer, I am well aware of how factors like pricing and customer reviews can influence our decisions.
One of the most relatable examples of how decision-making works comes when we talk about food. I am a very particular eater and tend to judge food items more harshly than anything else. For example, the last place I would buy cupcakes from would be Amazon (yes, Amazon sells cupcakes). While they have a wide variety of colors, flavors, and decorations, I probably would rather stick with a place I trust or have eaten from before. And I am probably not the only one.
However, life can get pretty hectic and, sometimes, might take us out of our comfort zone: there was this one time when I had a family gathering where I was in charge of bringing the desserts. It was a very busy week full of meetings here and there – I barely made it alive – and, of course, I had ZERO time to go to the bakery.
Someone recommended, “Just buy them from Amazon”. I was a bit hesitant at first, but as time was running out, I gave in. I went to Amazon and looked for cupcakes.
Based on the recommendation I previously got, the fact that I know Whole Foods and Amazon Fresh products, and the reviews, I ended up ordering a dozen cupcakes. They turned out even better than I expected.
Is Amazon saving the day? I guess if you’re ever in a situation where you need to buy cupcakes and you don’t have time to go to your local bakery, Amazon can be a great option.
What does this whole story have to do with YOUR clients and the decision-making process? Well: even if you do not sell cupcakes, you might discover clients go through a similar process to choose YOU over others.
How do people make decisions?
Several factors can affect the decision-making process: according to the Inquiries Journal, decision-making can be influenced by including past experiences, cognitive biases, age, and individual differences, belief in personal relevance, and an escalation of commitment, amongst others.
Let’s go back to the little cupcake example: while I was completely biased on the fact that Amazon is not a bakery (despite the fact they own Whole Foods and Fresh), the sense of urgency and the convenience that ordering online gave me pushed harder than the bias. That does not mean that for example, my grandma would have approved.
Past Experiences: Reviews and Recommendations
Reviews are one of the most important factors that people consider when making purchase decisions. According to a recent study, 93% of consumers read online reviews before making a purchase.
Retaking the food example; reviews and recommendations take on an even greater significance when it comes to restaurants, food, and experiences: according to Touch Bistro, restaurant-goers take recommendations from friends seriously with 91% of them going to a new restaurant based solely on a friend’s recommendation. We’re all looking out for those glowing recommendations or potential cautionary tales. It’s like having a sneak peek into the experiences of others. And let’s face it, there’s nothing quite like hearing from real people who’ve “been there, done that”.
In this digital age, reviews are the currency of trust. They provide insights, experiences, and, sometimes, a dose of reality. No matter what your business does, chances are, people see your reviews as a guiding light. They’re the conversations happening among everyday people, and they’re invaluable when it comes to making choices for both, consumers and businesses alike.
Leveraging Negative Reviews
Positive and negative feedback plays an important role in decision-making for potential clients and consumers and you should ALWAYS keep an eye on your negative feedback. While glowing reviews are encouraging, the critical ones and the way you respond to them will offer unique insights to your clients and prospects about the way you do business.
When a lead reads negative reviews, that might raise red flags about you or your product and influence their decision-making process. Addressing your negative feedback by responding to all comments and providing alternatives as well as additional insight might show your potential clients that you are willing to improve.
Negative feedback offers a unique insight into your product or service. It often gives specific, practical insights into the challenges other people have faced. This information is crucial in understanding the potential downsides and benefits your clients are perceiving from you and your product and represents an opportunity for quality control and improvement and to show your best customer service skills to other potential clients.
Individual Differences: Price vs Convenience
Yes, the price of your product can and WILL affect the decision-making process. While some clients will rather get “the best bang for your buck”, others might be willing to pay a little bit more for the convenience of saving them some time and effort. The difference here lies in each individual: not everyone will see your pricing the same way.
People whose decisions are solely based on pricing will often do extensive research either manually or using Online Price Comparison Sites without considering if there are any additional benefits from paying one or two dollars more. On the other hand, those looking for convenience will focus their research on what will get them the best result with less effort.
Cognitive biases & Age: Brick and Mortar vs. Online
My mom does not make online purchases at all. She is over 60, I have shown her how to use Amazon, eBay, and other secure online shopping sites, but she does not trust the process. Funnily enough, it is not about her not trusting them with her cards (I actually have her cards on my Amazon account and sometimes she will ask me to buy something for her from there), it is just the fact that, for her, purchasing online is a weird concept.
Back when I was little, having to do shopping of any kind meant getting dressed and going to the supermarket or the mall. The first time I made an online purchase I was already in college (and my mom was already in her 50s) and while I know people her age (and older) who love online shopping, it just never stuck with her. The way she shopped for 50 years made her biased to other options and, no matter how rationally we explain to her the process, she will rather ask me or my sister to do it.
Of course, she is the PERFECT target for brick-and-mortar stores as well as radio and TV advertising, but if you are into the online realm, no matter how convincing you are: she won’t budge.
Other Factors: Emotional Appeal and Brand Loyalty
motional appeal is a powerful force in the decision-making process. While rational factors like price and convenience play a significant role, emotions can often be the tipping point that sways a potential customer towards one brand over another.
Companies like Apple and Coca-Cola are often priced higher than their competitors, based solely on the brand image they have created for themselves that resonates with customers on an emotional level.
Brand loyalty is another critical factor. If someone is loyal to a brand and has had positive experiences with them, they are more likely to choose that brand again in the future. Loyalty is not something that happens overnight: loyalty requires time and commitment with consistent quality and excellent customer service along with a brand personality that aligns with the values and preferences of the target audience.
Understanding your target audience’s emotional triggers and building a brand that connects with them on a personal level will have an impact on their decision-making process. Whether it’s a sense of nostalgia, the perception of luxury, or a commitment to sustainability, tapping into these emotions can create a lasting connection with your customers.
The Role of Belief in Personal Relevance and Escalation of Commitment
Let’s be real: sometimes, people only choose you and your brand due to their personal beliefs. If potential customer believes that your product or service is personally relevant to their needs and values, they are more likely to choose you over competitors. The unique value propositions of your product or service, and the way it solves specific problems or fulfills particular desires, contribute to the perception of personal relevance.
On a similar level, some prospects might proceed with the purchase just based on the fact that they made an initial commitment: maybe it was a meeting, a down payment, or just the “promise” they will get back to you, commitment is important for some. Once a decision is taken, people are more likely to continue with that decision despite the outcome or any external factors. Of course, commitment is not limited to that: if after the initial commitment is met the customer has a positive initial experience with your product or service, they may be more committed to choosing your brand repeatedly, even in the face of minor issues, turning that commitment into loyalty.
The decision-making process is complex. Understanding how it works will allow you and your businesses to tailor your messages and strategies to resonate with the beliefs and values of your target audience.
Remember: understanding how your target audience makes decisions can help you significantly to drive their choices and ultimately succeed. If you are unsure who is your audience or are looking for help with your current strategy, do not hesitate to reach out 😉
