There are several variables which impact the different reasons why your customers buy. To understand why your customers purchase from you, it is necessary that you understand these 10 factors that influence the way people acquire products or services:
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1. Convenience
You need to understand their demographics (age, sex, race, marital status, household size, occupation, income level, religion, education) individual consumers or companies (type), geographic (distance, urban/suburban, rural) psychographics (lifestyle choices, attitudes and behaviours that influence buying habits) and their quantity.
2. Relationship
Certain unique groups of your customers share similar characteristics (women shop differently than men, weekday shoppers buy differently that weekend shoppers, different ethnic group may have different product preference interests (Latinos choose different colors than Caucasians).
3. Solution
What is the specific problem they are trying to address and do they need one or more of your products to do so. Exactly what product mix they need and exactly how will your product or service make this pain disappear.
4. Image
Do they really need your product, is it optional, or even more so is it considered a luxury item? This also determines how much they will spend on the purchase.
5. Cost Value
What are the factors that influence their decision to buy: price, quality, warranty, service, color, size, weight? Are discounts and terms important to them?
6. Ability to Buy
Is the buyer the same as the user? Who makes the decision, how many level of approval does the purchase have to go through and how long will it take to get a decision.
7. Seasonality
Is their buying period tied to a season or a specific time of the month or week. How often will they buy the item? How often will they be using the goods/services they buy? This helps you to pick out repeat buyers and understand their buying frequency.
8. Payment
Do your customers pay in cash or by credit card. Will they want to pay in installments and will they want to put advances on a purchase and have you place the item on hold.
9. Constancy loyalty
You need to have employees responsible for regular customer contact because the customers need follow up servicing.
10. Profit
How do they compare your products to your competitors’? Do they consider your products unique and not available elsewhere. Do they fit the customers’ model for fitness and use.
