Yikes!! There are very few situations that are more terrifying to a salesperson than the thought of their customer being in control of the sale. Knowing that the inmates are running the prison or that the animals are now in charge of the zoo might exceed that but, neither of these groups tend to buy a lot of my stuff.
Well, you had better get used to, and accept, the fact that you are no longer the only one who is behind the wheel. Acceptance is the first step along the road to recovery. Your customer is now driving this bus and that’s not all bad. It’s just different. Our challenge lies in how we will respond to this new world order and much of this begins with a single premise … even the bus driver could use the help of a co-pilot and navigator.
We have all spent a lot of time discussing the benefits of social intelligence. These new tools provide us with an unparalleled ability to really see into the minds of our customers, identify their needs and pain points, and to predict their behaviors. Guess what? Our customers are now using these same techniques to learn more about us, our companies, and our products or services. We might not know that they are even doing this research let alone what their results and conclusions might be. The shoe has now been firmly placed on the other foot.
What has changed?
How about … everything.
- Buyer behaviors have changed – Instead of waiting for our pitch, they are turning off the TV and radio ads and are instead taking charge of their own research and this is being done on the internet and without your participation. Our customers used to rely on salespeople and/or their companies for most, if not all, of their product education. This is no longer the case.
- They are asking for referrals, getting them, and acting on them – When I needed new glasses, I asked my friends on Facebook for their recommendations. We’ve always sought advice regarding potential purchases from those we trust and respect. Today, it’s just that much easier to do.
- They may have made up their minds before they call you, assuming that they even do – They are going online and/or visiting businesses generally for the purpose of buying instead of fact-finding and shopping. Will you be on their short list of places to visit?
- Based on their research, they now have a budget – I have long argued that everybody has a budget. They may not want to share that with you but, they still have a budget. Even if they may not have an actual dollar amount in mind, they do at least have a “spending threshold”. For example, I might be willing to spend up to $40,000 for a new car. Furthermore, in most cases, people will exceed their spending limit providing they can associate enough benefits with that upgraded investment. I might have a budget of $40,000 for a new car but, that $50,000 beauty would sure make for a sweet ride!
I know nothing about carpeting or wood floors. Recently we replaced our carpet upstairs and we are also considering replacing our carpet downstairs with wood flooring. On the internet, I was able to easily determine an expected cost for carpeting installed on a square foot basis. I received a recommendation for a store from a friend (he also told me to stay away from some specific local businesses). The estimate I received was well within the expected parameters of my budget and so … I bought. Research = Budget. Recommendation = Sale.
Googling “wood flooring Boise” introduced me to three different types of materials (hardwood, engineered wood, and laminate flooring), the pros and cons for each, customer reviews, ballpark pricing, and local vendors. I now have a budget as well as a preliminary choice of product. I will, once again, seek recommendations from my friends and trusted associates regarding who I should buy from.
What’s good and what’s bad about this shift?
- Good – They are calling you because they have already qualified you.
- Bad – You may never get a shot at their business because they can’t find you.
- Good – They are more knowledgeable and prepared than in previous years.
- Bad- They may have preconceived ideas and those may or may not be accurate.
- Good – At least they have a budget!
- Bad – Their budget is too low.
- Good – They have heard of you.
- Very Bad – They have heard of you but, what they have heard is not good.
What can we do about this?
Work your base! If your existing customers are already important, their stock value just soared! How much more business can you generate from your current accounts? Do they invest in a small number of your products when there is no reason that they should not be using more? How about referrals? Have you even asked them for any? Has their customer experience been so outstanding that they would willingly provide you with testimonials and perhaps assume the role of vocal brand ambassadors? Would they provide you with a good review on Yelp or Google? Your satisfied customers are always going to be your “low-hanging fruit”.
Now, be highly visible and attract buyers to you!
- Google is the new phone book. A nice display ad or being named AAA Widgets in your local yellow pages is not going to cut it. Take that money and invest in a killer website and some good SEO services instead.
- Educate more than you sell. This holds true for your web presence as well as your sales and marketing teams and your customer support. Educate both your customers and your prospective customers via social media.
- Folks are talking to each other on the social networks and they are talking about potential needs for your products and services. Are you searching for, monitoring, and engaging in these conversations? If not, why?
- Exceed customer, and prospect, expectations … always! Customers now expect us to be remarkable. Good news really does travel fast and we need to be able to take this good will and then amplify it.
Your customer might be driving the bus but, as their co-pilot and their navigator, you can help to plan their route. While much of their activity may appear to be outside of our control, as you can see there are many things that we can do to assist and direct them with their journey. How are you and your company responding to these changes in buyer behaviors?
This post was written as part of the IBM for Midsize Business program, which provides midsize businesses with the tools, expertise and solutions they need to become engines of a smarter planet. I’ve been compensated to contribute to this program, but the opinions expressed in this post are my own and don’t necessarily represent IBM’s positions, strategies or opinions.