The importance of understanding the customer buying process

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The importance of understanding the customer buying process

By :Ashraf Osman
Almost 99.9% of sellers focus entirely on their selling process and ignore their customers’ buying process. What many sales professionals do not know is that studies have shown that by the time a buyer approaches a seller, he is already passed 57% of the buying process!
By that time, customers have already:
Set their business goals & objectives
Identified the obstacles that stand in the way of success
Identified strategies and initiatives to remove the obstacles
Performed a good portion of investigation about the available solutions from a product perspective.
When the seller walks in after he is invited through an RFP or even a limited invitation, he is already past the stage of influencing or shaping the opportunity.
Understanding the buying process, the buyer’s business problems, and desired outcome makes a huge difference in providing a value add solution. Let us check the following steps
Stage 1, 2: Pain is felt, need is realized
In stage 1 buyers recognize an obstacle (e.g., management, competitors, operations, products, market, financial) that is blocking them from achieving their goals and objectives. They evaluate how important each obstacle is to identify the priorities. Some of the problems are longstanding, and others catch them by surprise, but they focus on the priorities that require immediate attention.
Stage 3: Rationalization
In stage 3, buyers work on themselves and their management to rationalize the upcoming decision to buy/purchase/acquire. Spending money has to be supported by a logical reason that justifies the purchase
Stage 4,5,6: Seeking info, shopping around
Buyers identify possible internal and external sellers, they ask their peers, they check LinkedIn and other professional networks. They compare approaches and define their decision criteria.
Stage 7: Evaluate alternatives In this stage, buyers evaluate different alternatives and manage the risks associated with each. Following this step, they further consider the importance and cost of staying with the status quo, or purchase a solution. They begin to build a case for change.
Stage 8: buyer has a clear picture of his specs The buyer is clear on what he needs, the requirements are refined and agreed upon, and the bidding process will begin. Decision criteria is in place.
Stage 9, 10, 11: Vendors are invited, winner is selected, and negotiated with
customers narrow down the shortlist of sellers they will contact and consider. They issue a request for proposals (RFPs), or directly contact and meet with sellers to assess capabilities, resolve concerns, assess fit, and continue to evaluate the bids they have received. Negotiations with the prospect winner(s) take place and a winner is announced.
Stage 12: PO & contract issued
This is the time when the rubber touches the road. Both parties are committed. Contracts and scope of work are prepared and agreed upon in what could be considered a second round of negotiation.
Stage 13: Buyer’s remorse
When any significant purchase takes place, the buyer usually feels what is called “Buyer’s remorse”. He feels lack of control since the contract is already signed. This is the time where the seller should be nearer to the buyer than ever, assuring him that he has taken the right decision and preparing him for a pleasant journey from his current situation to a better one.

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