It’s important to have a basic understanding of what motivates your potential customers if you want your business to succeed.
Many small business owners don’t have a strong understanding of the motivations of their customers and what causes them to make purchases. This can be due to either not having worked in sales before or because they simply lack the confidence and training.
Why Understanding Buyer Motivations Matters for Small Business Owners
Selling is an essential part of running a business. Whether you’re selling your products or services to customers, understanding what has brought them to the conversation is crucial for success.
Having a clear view of buyer motivations will help you:
- Be able to identify customer needs
- Learn how to overcome objections
- Be able to close the deal
- Have strong negotiation skills
- Build relationships with customers
The Psychology of Buyers
One of the most important aspects of selling is understanding the psychology of why people buy things.
If you don’t understand what motivates people to make a purchase, it will be very difficult to sell them anything.
There are two basic types of motivation that drive people to make a purchase: extrinsic and intrinsic.
Extrinsic Motivation
This is when the buyer is motivated by external factors such as getting a discount or securing preferential terms.
It comes from outside factors that influence an individual’s behaviour. In the context of selling, these external factors could be anything from a discount to a freebie.
The key is to identify what would incentivise your target customer and then find a way to offer it. For example, if you’re selling eco-friendly products, you could offer a discount to customers who bring their own reusable bags.
Intrinsic Motivation
When people are motivated by internal factors such as wanting to feel happy or wanting to improve their health.
Intrinsic motivation comes from within the individual and is often driven by personal interests or values. For example, someone may be motivated to buy an organic food product because they care about the environment.
To tap into intrinsic motivation, you need to understand what your target customer is passionate about and make sure your product or service aligns with those values.
Intrinsic motivators can be more powerful than extrinsic if you can find them.
Your Role in All This
As a business owner, it is your job to identify the motivators of your buyer and then leverage those motivators to close the sale.
Once you have a good understanding of the two types of motivators, you can then start to identify which type of motivation is driving your buyer.
Identifying Customer Motivations
One way is to ask them directly what their motivations are. Sounds obvious, right? But it’s amazing how often this is overlooked.
It’s okay to ask someone outright what’s more important – savings or service? Free extras or ethical products? You get the idea.
Another way is to observe their behaviour and look for clues that will reveal their motivations. For example, if a buyer is constantly asking questions about the product, they may be motivated by a desire to learn more about it.
If a buyer is always talking about price, they may be motivated by a desire to save money.
Leveraging Motivations
Once you have identified the motivations of your buyer, you can then start to leverage those motivations in order to close the sale.
If your buyer is extrinsically motivated, you can use techniques such as offering discounts or combo deals. If your buyer is intrinsically motivated, you can use techniques such as highlighting the benefits of the value your product / service will deliver to them.
Drivers For Buyers
Each potential customer you have will be driven by a different motivator. If you can quickly understand what’s pushing them towards doing business with you, then you can tailor your pitch appropriately.
If your buyer is motivated by the lowest cost offering they can achieve, then there’s not much point in positioning yourself as the highest service out there with a price tag to match.
So what are the typical drivers for a buyer?
The Need for the Product/Service
One of the most basic motivators for a buyer is the need for the product.
If the buyer is in need of the product, they are more likely to be motivated to buy it. This need can be either a physical need or a psychological need. For example, a buyer may need a new car because their old one is no longer running properly.
Flat tyres, insurance etc – we have a need to resolve these.
A Desire for Your Service
In addition to needing a product or service, the buyer may also simply desire the product.
Even if the buyer does not have a specific need for the product, they may still be motivated to buy it because they want it. This desire can be driven by a variety of factors, such as wanting to keep up with the latest trends or wanting to own a particular brand.
The Perceived Value
Another factor that can motivate a buyer to purchase a product is the perceived value of the product. The perceived value is based on the buyer’s perception of how useful or beneficial the product will be.
For example, a buyer may perceive that a new car will be more reliable than their old car, and thus be willing to pay more for it.
Or, they may already have an accountant, but the service has not been great. Thus the buyer can relate to the cost to their business of poor communication on this front and the perceived value of a better provider becomes easier for them to understand.
The Price
Of course, one of the most important factors that motivate buyers is price. In general, buyers are more likely to purchase products that are priced fairly and reasonably.
However, there are some cases where buyers are willing to pay more for a product if they perceive it to be of high quality or if they have a strong desire for it.
If you can show the buyer your perceived value as being higher than they are now, then price becomes less of an issue as you won’t be comparing apples with apples.
The Availability of the Product
Another factor that can influence a buyer’s motivation is availability. If a product is difficult to find or only available in limited quantities, buyers may be more motivated to purchase it while they still have the chance.
This is especially true if the product is in high demand or if it is considered to be rare or collectible.
This is known as scarcity. If you can limit the supply of your product – there’s only 1 left, or ration the availability of the service – we’re only taking on one more customer before we start a waiting list, then you’re more likely to motivate your buyer.
The Importance of Understanding Buyer Behaviour
It is important to understand the factors that influence your customers’ buying decisions.
When you understand what motivates your customers, you can develop marketing and sales strategies that are more likely to be successful.
Understanding buyer behaviour can help you to identify potential new markets for your products or services.
Factors That Influence Behaviour
There are three main factors that influence buyer behaviour: psychological factors, social factors, and cultural factors.
Psychological factors include things like a customer’s needs and wants, their perceived risks and benefits, and their level of brand loyalty.
Social factors include things like a customer’s family, friends, and peers.
Cultural factors include a customer’s religion, ethnicity, and national culture.
Research on Buyer Behaviour
There are several ways that you can conduct research on buyer behaviour. One way is to survey your customers directly and ask them about their buying habits.
Another way is to use data from your sales records to track patterns in customer behaviour.
You can use online tools such as Google Analytics to track how customers interact with your website.
Use Your Research
Once you have conducted research on buyer behaviour, you can use this information to develop marketing and sales strategies that are tailored to your target market.
For example, if you know that your target market is price-sensitive, you can develop strategies to offer discounts or coupons. If you know that your target market is concerned about environmental issues, you can develop green marketing initiatives.
The Limitations of Research
It is important to keep in mind that research on buyer behaviour is not an exact science. There are many variables that can influence a customer’s buying decisions, and it is often difficult to isolate these variables when conducting research.
Remember, customer behaviour can change over time, so it is important to regularly update your research in order to stay ahead of the curve.
Behaviour - Takeaways
Understanding buyer behaviour is important for small business owners who want to develop effective marketing and sales strategies.
There are three main factors that influence buyer behaviour: psychological factors, social factors, and cultural factors.
You can conduct research on buyer behaviour by surveying your customers or using data from your sales records. Once you have conducted research on buyer behaviour, you can use this information to develop marketing initiatives that are tailored to your target market.
Psychological Factors of Buyer Behaviour
Psychological factors influence buyer behaviour. Understand these and you’ll be well on your way to a better marketing strategy to convert more leads into customers.
The top 3 psychological factors that have been shown to influence buyer behaviour are: perceived risks, perceived benefits, and trust.
Read on for more about each of these factors and how you can use them to your advantage.
Perceived Risks
When it comes to perceived risks, customers will take into consideration both the financial risks and the psychological risks of making a purchase.
Financial risks include things like the price of the product or service and whether or not they feel like they’re getting their money’s worth.
Psychological risks include things like whether or not they’re comfortable with the company or if they’re worried about being scammed.
Try to reduce both the financial and psychological risks for your customers as much as possible.
You can do this by offering free trials or money-back guarantees.
Also try to build rapport with your customers by being transparent and honest about your prices and what they can expect from your products or services.
Put yourself in the buyer’s shoes – when you’re thinking about making a purchase, you likely want to avoid making a mistake. You want to avoid losing money and you want to see the best return from your purchase.
Think through how you can reassure potential buyers as you engage them.
Perceived Benefits
This includes things like whether they think the product or service will solve their problem, how much value they think it will add to their life, and if they believe it’s worth the price.
As a business owner, you need to make sure that you’re clearly communicating the benefits of your products or services to your customers.
You can do this by using testimonials, case studies, and social proof. You can also highlight the unique selling points of your products or services on your website and in your marketing materials.
Trust
This is a huge factor when it comes to influencing buyer behaviour.
Customers need to trust that you’re a credible source before they’ll make a purchase from you. They need to feel confident that you won’t scam them, that your products or services are high-quality, and that you’re an expert in your field.
There are a few ways that you can build trust with your customers. One way is by ensuring that your website is up-to-date and looks professional.
Another way is by being active on social media and engaging with your audience regularly. You can also build trust by providing helpful content (like blog posts, eBooks, etc.) that’s relevant to your industry.
Psychological Factors - Analysis
By understanding the psychological factors that influence buyer behaviour, you’ll be able to better tailor your marketing strategy to convert more leads into customers.
Try to reduce the perceived risks for your customers as much as possible.
You should also focus on clearly communicating the perceived benefits of your products or services.
Free Advice
The Art of Changing Buyer Behaviour
If you really think about it, sales is really about getting a change of buyer behaviour.
They’re currently not buying from you, and you want them to buy something. Or they are buying a bit and you want them to buy more.
So, once you understand why buyers behave in the way they do, the next logical step is to have some tools in the box to gently encourage some changes.
The Art of Persuasion
The ability to persuade someone to do something that they may not have otherwise considered is a valuable skill. In the business world, this skill is often used in the form of sales. Salespeople are often tasked with convincing potential customers to buy a product or service. While this may seem like a difficult task, there are a few techniques that can be used to increase the chances of success.
The Power of Positive Reinforcement
One of the most effective techniques for persuading someone to do something is positive reinforcement.
This involves rewarding someone for completing the desired action. For example, if a salesperson offers a discount to a customer for buying a product, the customer is likely to be more inclined to make the purchase.
This technique can be used in a variety of situations and can be tailored to each individual.
The Art of Negotiation
Another effective technique for persuading someone to do something is negotiation.
This involves coming to an agreement on terms that are beneficial for both parties involved. For example, if a customer is looking for a lower price on a product, the salesperson may be willing to negotiate in order to make the sale. This technique requires both parties to be willing to compromise in order to reach an agreement.
Peer Pressure
Peer pressure is another powerful tool that can be used to persuade someone to do something. This involves using the influence of others to convince someone to take action. This can be achieved by talking about how many others customers you have, or through case studies that show the results after someone makes a purchase from you.
The Power of Emotion
When buyers feel an emotional connection to a product or service, they are much more likely to make a purchase.
As a salesperson, you can create an emotional connection with buyers by telling them stories about how your product or service has helped others. You can also use emotional language to describe the benefits of your product or service.
For example, instead of saying that your product is “effective,” you could say that it is “life-changing.”
Like this life-changing guide you’re reading right now. 😉
Scarcity
Another powerful motivator for buyers is scarcity. When buyers believe that a product or service is in limited supply, they are much more likely to make a purchase. As a salesperson, you can create a sense of scarcity by emphasising the limited availability of your product or service. You can also highlight the unique features of your product or service that make it scarce. For example, if you are selling a limited-edition item, you can emphasise its rarity to motivate buyers.
The Power of Authority
Another common motivator for buyers is authority. When buyers believe that a product or service has been endorsed by an expert or authority figure, they are much more likely to make a purchase. As a salesperson, you can create a sense of authority by highlighting the credentials of your company or the experts who have endorsed your product or service. You can also use testimonials from satisfied customers to create a sense of authority.
Social Proof
Social proof is another powerful motivator for buyers. When buyers see that other people have purchased and been happy with a product or service, they are much more likely to make a purchase themselves. As a salesperson, you can create social proof by highlighting the popularity of your product or service. You can also use customer testimonials and case studies to show that other people have been happy with your product or service
The 8 Buyer Motivations
There are many different buyer motives – we’re going to focus on the most important ones.
By understanding these key motivators, you’ll be in a better position to sell your products and services. Let’s take a closer look at each one.
Needs
One of the most basic motivators is the need for a product or service. This is often driven by a problem that the buyer is trying to solve.
Once you know what they’re looking for, you can position your products or services as the perfect solution. This can be a powerful selling point that helps you close more deals.
Pleasure
We often buy things that make us feel good, even if we don’t need them. For example, we might buy an expensive coffee even though there’s a cheaper alternative available because it makes us feel good at the moment.
As a business owner, you can tap into this motive by making sure your marketing efforts highlight how your product or service will make the buyer feel.
Acceptance
Another common motivator is the desire to be accepted by others. This often manifests itself as a desire for status or prestige. For example, someone may be motivated to buy a luxury car because they want to be seen as successful or wealthy.
As a business owner, you can tap into this motivator by positioning your products or services as status symbols.
If you can convince your buyers that your product will make them look good in the eyes of others, you’re more likely to close the sale.
Shame is the opposite of this – if they don’t have it, could it be they are missing out? Which leads on nicely to…
Fear
Fear is another common motivator that can drive people to make purchases. This could be fear of missing out (FOMO), fear of losing something valuable, or even fear of physical harm.
Someone may buy travel insurance because they’re afraid of getting sick while on vacation and being stuck with a huge medical bill. Or, someone might buy fire insurance because they’re afraid of losing their home in a fire.
You can use fear to your advantage by highlighting the risks associated with not using your product or service.
If you sell accountancy services, you can reference the implication of getting the wrong advice and the costs this can create for a business.
Book a Free Consultation
Aspiration
Aspiration is defined as a desire to achieve something that is outside of one’s current reality.
In other words, it’s the gap between where someone is now and where they want to be. When it comes to aspiration, it’s important to understand that people are motivated by different things. For some, it might be a desire for more money or success. For others, it might be a desire for more knowledge or power. And still for others, it might be a desire for more happiness or love.
The key for businesses is to tap into what their customers aspire to and show them how their products or services can help them close that gap. This can be done through marketing campaigns that tell aspirational stories or through advertising that highlights how your product or service can help people achieve their goals.
Impulse
Many purchases are made on impulse, especially smaller items.
Have you ever gone into a store intending to buy one thing, but ended up buying several other things as well?
That’s because retailers are experts at appealing to our impulsive nature. They do this by placing items in strategic locations (e.g. the checkout aisle), using persuasive language (e.g. “limited time only”), and offering discounts (e.g. “buy one, get one half off”).
As a business owner, even selling services – you can go for quick upsells at the point a purchasing decision has been made!
Financial Gain
This doesn’t just mean people looking to save money; it also includes people looking to make money.
For example, someone might purchase a stock-trading course because they hope to make a profit from investing in the stock market.
As a business owner, you can appeal to this motive by highlighting how your product or service can save or make the buyer money. An accountant that can save you a fortune in tax is almost certainly going to be worth paying more for etc.
As a small business owner, it’s important to understand what motivates your buyers. After all, if you can identify what’s driving someone to make a purchase, you can better tailor your products and marketing campaigns to appeal to them.
There are many different buyer motives, but in this blog post, we’ll focus on two of the most common: aspiration and emotional versus rational buying choices.
Emotional VS Rational Buying Choices
As the name suggests, emotional buying decisions are driven by feelings like fear, happiness, or anger. Rational buying decisions, on the other hand, are driven by logic and reason.
Most people like to think that they make rational buying decisions 100% of the time. But the truth is that we’re all influenced by our emotions far more than we realise. In fact, studies have shown that up to 95% of our buying decisions are made based on emotion with the remaining 5% being based on logic and reason.
This means that if you want to influence your customer’s buying decisions, you need to appeal to their emotions.
One way to do this is by using fear-based marketing tactics. For example, if you’re selling home security systems, you could highlight the dangers of not having one in place.
Buyer Behaviour - Final Thoughts
As you can see, there’s a lot going on in the mind of a buyer when they are considering making a purchase from you.
It’s your job to ask questions and seek to understand what is driving your buyer’s behaviour.
If you can identify if the buyer is motivated by price and aspiration, then you can adjust your sales pitch appropriately.
Whilst there’s a lot of information in this guide, you don’t need to become an expert overnight. It’s more important to have in your mind the general principle that the more you understand where your buyer is coming from, the higher the probability will be that you can close a deal with them.
Now go get ’em!