– Transcript –
Would you like to convince more of your customers to buy more from you more often?
When you’re starting a business or looking to add a new product or service to what they already have the first and foremost question you must ask yourself is
– Why customers buy any product or service?
– What do people pay for?
– What’s the reason for anyone buying and not buying a product or service?
Today I’m gonna talk about the points of differentiation in terms of your offer, in terms of your focus.
We will talk about what do you need to focus on when selling your product? How do you stand out in the marketplace? How to cut through the noise, right?
How do you make sure that more people will buy from you?
In a book written by Harvard Business School professors called – Driven: How Human Nature Shapes Our Choices there’s a theory that our choices in life are related to core human drives.
- The drive to acquire
- The drive to bond
- The drive to learn
- The drive to defend
The drive to acquire – These people are driven to acquire goods that are either material (food, clothing and shelter etc.) or positional (for example social acknowledgement and recognition).
The drive to bond – It is the urge to connect and relate to our fellow human beings and animals and engage in relationships of mutual caring.
The drive to learn – is to satisfy curiosity and resolve conflicting information.
The drive to defend – is the desire to ensure that what is acquired is not lost. Threats can trigger the drive to defend and if dealt with properly it can be a source of motivation and energy.
So, we are nowhere near as complex and special as we imagined!
We all are driven to have belongings, to bond with others, to learn and to defend what we consider ours.
You see, people will buy your product or service to satisfy one of two main desires. Sometimes they will even buy to satisfy all their desires.
Does that make sense?
Great! Let’s move on…
Prospects buy products or services based on their emotional needs or want, and then justify their purchase logically.
Now we have understood the core reasons why people buy anything. Let’s now dive deep into some specific reasons.
There are main 7 reasons
1 – To save money.
One of the common reasons why people buy is because of the price. Yes, People love a good deal. If you somehow manage to convince your customers, that your product or service will save them money, then they will buy it.
Many customers choose price as their primary reason for buying from a specific business.
Who gives me a better deal?
Who offers the cheapest price?
That’s who I’m gonna buy from, right?
But remember businesses that attract customers based on lower prices are sustainable only if they do a HUGE volume in sales, like Supermarkets
2 – To save time.
What’s more valuable than money? That’s right TIME. At least, for some people I guess! The more time you can save for your customers with your product or service, the more valuable it becomes. Sounds right?
Nowadays as consumers, we want something and we want something now.
We don’t want to wait. So, convenience is a huge selling factor.
A good product makes it more convenient or less complex to give some time back and make things more effortless.
So, come up with a product or service that makes it more convenient or simpler to do something that the customer is already doing
Some of the examples could be food delivery service or Amazon, besides selection, they also offer convenience.
It’s simple. I don’t need to go somewhere. I don’t need to get into my car. I could just go to my phone or my computer and buy things.
3 – Status Symbol
Does Apple produce the best mobile phones? Or a Rolex watch tells you a better time?
No right? But the sole reason they could sell their products at such high prices because they signify wealth and status.
Because of their high prices and there’s a new iPhone every year. Having the latest iPhone means you are up-to-date with technology and obviously rich enough to afford it.
4 – Great value and quality
People buy stuff when the perceived value substantially exceeds the price of a product or service. Your product or service must help a buyer achieve whatever their end goal maybe?
In order for a prospect to find value in what you are attempting to sell them, you have to understand they have a problem they need some help with. Once you understand this, you can show them how your product or service can solve their problem.
We all want good quality products and services.
Think about in your own life that do you buy from? Don’t you want superior quality in terms of products or services that maybe you have to pay a little bit more,
But you’re like, you know what, it is worth it, right? The experience is worth it.
You’re willing to spend a little bit more money, but what’s very interesting is this.
As a buyer, as a consumer, we could be a price buyer in one category and we could be a buyer who prefers quality over price for a totally different category.
One thing I’ve learned, for example, like for shoes, I used to buy cheap shoes.
I thought it doesn’t make a difference, right?
But what I notice is when I buy cheap shoes they wouldn’t last as long and they would not be as comfortable. The quality is not as good.
Now if I spend more money on a pair of shoes, yes, they can be expensive, but they are more comfortable, they’re more durable, also, they feel better and last longer.
5- Fear of Missing Out
Impulse buying is a great example of this. When there is a wildly popular trend, people tend to buy from that trend because they don’t want to be left out. They’ll buy to prove that they’re part of the group and show off their purchase.
There’s nothing wrong with jumping on the trend train and marketing your products on social media.
6- To feel Secure
Modern life is full of uncertainty, insecurity, and anxiety. If your service could make customers the ‘one less thing to worry about’ offer and give them peace of mind they will buy your service.
Personal wellbeing is probably the most important thing to people. If a product or service guarantees that it will help people live longer and healthier, people will buy it. Preventative health measures or a service such as insurance are also great examples.
7 – To make even more money
Well, no surprises here. The prospect of making more money or saving money has been, and will always remain, one of the most popular reasons to buy anything. Some of the major examples include Stockbrokers, financial consultants, and business coaches.
Usually, prospects buying motives are highly influential on purchasing decisions.
And they are comprised of two scientifically validated triggers of human behavior:
1) The desire for gain, and
2) The fear of loss. What we also call FOMO.
Neuroscientists in several studies have proven that the fear of losing out or FOMO is a much, much bigger motivator on purchase decisions.
But you won’t be able to evoke the fear of loss unless you reveal how the buyer can escape that fear through the benefits they will receive from your business, product, or service.
So, you now know the major reasons why people buy.
You must be thinking so, out of those reasons, which one should you focus on?
Which one will be best suited for my business?
I suggest you focus on one or two instead of trying them all.
Because when you focus on quality, chances are you need to charge more in order to deliver that kind of quality.
So, focus on one of these. And then later you can add a new product or service and experiment with other reasons why people buy.
Alright, now that is all for today. I will talk to you in the next one.
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