The Importance Of Understanding Your Customers’ Buying Behaviour

Buying Behaviour

Naturally you want your business to be successful.

After all you work hard to achieve it.

Understanding your customers’ buying behaviour is one of the elements that helps to be successful

Without this understanding it makes gaining more customers difficult.

Especially in today’s competitive world.

It also helps when you want your customers to buy more from your business.

Their buying behaviour is one of the elements you need for a customer profile.

Customers base their buying decisions on both rational and emotional reasons.

They will look at a category on a rationale basis, eg wanting an accountants’ tax service. They then decide, especially for repeat customers on the brand, eg Apex Tax Accountants on an emotional basis.

Getting  your customers to have an emotional attachment to your brand is one of the keys to keeping them loyal. As well it is one of the key factors in gaining referrals and recommendations.

When you want more customers for your business  it makes it easier to select the best marketing strategy when you understand.

The understanding of your customers’ buying behaviour is based on the following:

What Are Their Reasons For Buying?

You need to have a clear understanding both the rational reasons and importantly the emotional reasons customers buy.

Taking the example above customers may have a tax problem and need advice. So their pain is pretty acute. They will look for a business to provide peace of mind and help them to stop worrying.

These emotional reasons will be a far bigger driver than price in their buyer decision process.

How Often Do they Buy?

Understanding this can help you with the timing of your marketing tactics.

For example if they buy every two months then if you use email marketing you can make sure those on your list get offers at this time.

Knowing how often they buy can also be used when deciding what type of product or service you offer.

Are They Buying For Others?

Sometimes customer buy on behalf of others. A classic example is mothers buying for their children.  The ones that use or consume your products or services can have a big influence on the buyer so you need to make sure you consider both in your marketing.

What Do They Buy?

If you have a range of products and services it is a good idea to understanding which particular products or services they buy on a regular basis.

Having this understanding helps you make strategic decisions. Such as whether you keep the whole range or focus on one or two key products or services only.

Where Do They Like To Buy?

Today there are many channels available for customers. Increasingly customers are buying directly from websites or online stores.

Understanding their preferences allows you to focus on the key channels to increase the opportunities for them to buy from you.

Where Do They Get Their Information?

Today there are so many sources of information.

It is helpful to understand where they get the information and who they listen to. These sources could be friends, websites, online reviews or influencers.

As many customers will visit your website as part of the decision making process it is so important to ensure your content is rich.

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7 Responses to The Importance Of Understanding Your Customers’ Buying Behaviour

  1. Dave Brock says:

    Susan, thanks for the question. The problem is they don’t. Typically, they approach things from the inside out. Inevitabliy, they don’t build the right channels and go through several fits and starts trying to get it.

    It’s so much easier and more effective to start with the customer. What do they buy? Who do they buy from, How do they buy, etc. All the points you raise are equally valid in building the most effective channels.

    If you start with the customer and look at the value delivery chain back to your company, you not only have the route to market, but you have defined your “complete product offering” in a very comprehensive way that customers really value.

    Whether you are designing a new product, designing marketing program, building a channel, all is easier and more effective when you start from the outside (the customer) and build inward.

    Thanks for the great post and for continuing the discussion.

  2. Gopal, that is a good point about pricing as often we look at this from a company’s point of view instead of a customers. Why do you think some companies continue to do this, especially these days? I will read your post.

    Thanks for your comment Kirin.

    Dave, in your experience do many companies go through a process like this? Like many things today there seems to be so many options including distribution channels to choose from.

  3. Dave Brock says:

    Great post. The same thought process is critical in helping companies establish their Routes To Market, setting up the most effective channels to distribute their products!

  4. kiran says:

    Good thoughts about Customers’ Buying Behaviour.Thanks.

  5. Excellent article Susan.

    One more thing I would like to add to this is to make it easy for customers to buy. I call this the “last mile problem”. Some companies have complex pricing structures that the customer who was about to hand the money over, decides not to buy.

    I had written a post about this on my blog

    Gopal

  6. Dave, I think your last sentence and especially the words “easier” and “effective” sums it up very well.

  7. Thanks for your comment Jake. What is interesting that people know the importance of really understanding your market but don’t always take the steps to put that knowledge into simple action to strengthen relationships.