Wednesday, January 23, 2013

What are the drivers for buyers in determining who to do business with?

Great News! Price is NOT the driver in fact nearly 75% of the purchase decision is based on something other than price. Selling is a skill mixed with a little art but the facts tell us that all the elements of the Value Proposition are the most critical when it comes to meeting the customer’s needs…finding their hot button!

Things like Trust, Experience and Assortment all speak to an ease and comfort of doing business that hopefully becomes Loyalty and a repeat customer!

1. Price: 24% (Budget mentality)
    * Consistently offers better prices compared to competitors

2. Delivery cost: 4% (Secondary Budget)
    * Has reasonable delivery costs

3. Trust: 17% (No headaches)
    * I know and trust this supplier – they consistently do what they say they are going to do

    * The items they sell are always good quality
4. Experience: 17% (Convenience)
     * I know they have it and they know how to do it

5. Information: 11% (Information)
    * They make it easy to get information

6. Assortment: 12% (Selection)
    * Has good range of prices, quality and products

7. Return policy: 12% (Insurance)
    * Their warranty and return policy and process are reasonable

8. Loyalty: 3%
    * They have been good to me

Based on research from McKinsey & Company

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