Whether shopping online, strolling through stores or browsing social media, it’s fair to say that the path to purchase is not what it used to be. So, what shapes customer buying decisions? And more importantly, how can merchants better understand a customer’s path to purchase so they can boost store sales?
The Buying Decision Process
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The customer buying decision process is an experience that customers go through to identify what transactions they will make. The process begins when the customer recognizes they have a need/want and ends after the customer makes the purchase and considers if the purchase truly meets their needs/wants.
Also viewed as an analysis of products and services, the path to purchase includes the consideration of numerous variables such as available product iterations, where to purchase from, and how to purchase. At its core, this process analyzes the cost of goods, the convenience of the buying experience, as well as satisfaction in the entire shopping journey.
As you reflect on your own preferences concerning what and where to buy, what stands out the most? Where have you shopped that has been most memorable? And why do you return to one retailer versus another again and again and again?
The path to purchase is not a straight road that steers all customers in one direction. Retailers need to know and understand the various retail realities that impact customer buying decisions. Here are the top five.
1. Convenience
Convenience means different things to different customers including what they want, where they want to buy it, how they want it delivered to them, and how they plan to pay for it. What is most important for retailers to understand is that convenience is becoming increasingly important for consumers.
Retailers need to narrow in on their unique consumer habits and expectations to identify what their customer’s preferred choices of convenience are, and then appeal to those preferences throughout the buying process.
So what does “convenience” mean to your customers? Is it incorporating BOPIS into your store strategy, integrating technology-based payments into your payment options, or creating a customer service strategy that stands out among your competition? Whatever it is, be sure to make convenience a priority when strategizing your customer communication, customer marketing, and customer service programs.
2. Engagement
Let’s face it – customers shop for both purpose and entertainment. Whether it’s because they need a new pair of jeans or because they want a new pair of jeans, the reality is that customers appreciate being entertained along the way.
This can come in the form of delivering insightful product information, interactive in-store experiences, humorous social media content, supportive in-store customer service, loyalty programs, helpful online chat-bots and even through personalized email and text message marketing.
Ultimately, the goal here is simple… connect with your customers. Yet make no mistake, it’s not easy to accomplish. Keep your customer’s attention by supporting them at each step of their buying process.
3. Options
Customers like options at each step of their path to purchase. From where they discover products – such as through websites, social media, email marketing, and advertising – to how products are featured, and even the range of payment options available.
By offering different shipping options such as free, and same-day delivery, you can attract customers to your online store. In fact, 93% of consumers buy additional items to meet the minimum requirement for free shipping. When engaging customers through their buying journey, it’s important to offer a variety of options to appeal to each customer’s needs and wants.
4. Trust
Customers have more access to brands than ever before, and, ultimately, more access to what others think about a brand. From gaining peer feedback via review sites such as Yelp, Google, or even a retailer’s own website that offers testimonials to commenting with strangers on social media about a product or brand. Today, more consumers can seek product and retailer insight from external voices to help navigate their purchase decisions.
Because of this, it’s critical retailers confidently deliver exceptional service so that their reputation follows them positively wherever their customers interact with them.
Additionally, retailers should ensure accurate and easily accessible contact details along with direct links on any platform that their business is reviewed or mentioned. By allowing potential customers to easily connect with your brand both online and in-store, you can improve customer engagement and trust.
Last, if something goes amiss, make sure your customers know how to get in contact with you for help (and other questions).
5. Price
Surprise. Surprise. Or not.
Yes, price matters. But it’s not only the cost of products that drive customer attention but rather, a combination of the cost of products and the experience of buying them that collectively impact customer attention.
Keeping this in mind, consider how the price points of the products you sell align with the buying process that customers experience in your store. Additionally, compare these experiences with your competitors and the same products being sold. When you look at these details from these perspectives, does the price fit both the experience and product?
Final thoughts…
As retailers, it’s essential to have a critical eye on each step of the customer journey. From where their search for a product begins, to the product options, the interactions they have with the staff at your store, and so much more, every detail matters. While this isn’t new, the way you interpret and respond to each detail can be the deciding factor in where customers choose to spend.
About the author:
Nicole Leinbach Reyhle is the Founder of RetailMinded and the author of Retail 101. She is a frequent contributor to The Today Show, Forbes and is the Spokesperson for American Express’s Small Business Saturday. Reyhle is recognized as a Top 10 retail thought leader from Vend and a retail “futurist” for IBM.
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