Rapid Obsolescence
The critical factor in selling today is the risk of buying. Because of Rapid Obsolescence along with continuous change, and today’s uncertain economy, the risk of buying the wrong product or service has become greater than ever.
One of our powerful needs is for security, and any buying decision that represents uncertainty triggers the feeling of risk that threatens that security.
There are four main factors that contribute to the perception of risk in the mind of the customer.
The first factor that contributes to risk is the size of the sale. The larger the sale, the more money involved, the greater the risk.
If a person is buying a package of Lifesavers, the risk of satisfaction is insignificant. But if a person is buying a computer system for their company, the risk factor is magnified by many times.
Whenever we are selling a product that has a high price, we must be aware risk enters into the buyer’s calculations immediately.
The second contributing factor to the perception of risk is the number of people who will be affected by the buying decision. Almost every complex buying decision involves several people.
There are people who must use the product or service. There are people who must pay for the product or service. There are people who are dependent of the results expected from the product or service. If a person is extremely sensitive to the opinions of others, this factor alone can cause them to put off a buying decision.
The third factor to the perception of risk is the length of life of the product. A product or service, once installed, that is meant to last for several years may generate the feeling of risk. The customer panics and thinks, “What if it doesn’t work and I’m stuck with it?”
The fourth major risk factor is the customer’s unfamiliarity with you, your company, and your product or service. A first time buyer, one who has not bought the product or service before, or who has not bought it from you, is often nervous and requires a lot of hand holding.
Anything new or different makes the average customer tense and uneasy. This is why a new product or service, or a new business relationship with your company, has to be presented as a natural extension of what the customer is already doing.
In every case, we must overcome the customer’s fear of risk if we are going to make the sale. Everything we do, from the first contact, through closing, the delivery and installation of the product or service, and the follow up to the sale, must be done with the customer’s perception of risk uppermost in our thinking.
Successful business leaders are those who position their products or services as the lowest risk product or service available to satisfy the particular need or achieve the particular goal of the customer.
“Remember, Success is always Within Reach”
#terry ogburn #entrepreneur #Business #Business Development #Business Sales #business coach #business coaching
One of our powerful needs is for security, and any buying decision that represents uncertainty triggers the feeling of risk that threatens that security.
There are four main factors that contribute to the perception of risk in the mind of the customer.
The first factor that contributes to risk is the size of the sale. The larger the sale, the more money involved, the greater the risk.
If a person is buying a package of Lifesavers, the risk of satisfaction is insignificant. But if a person is buying a computer system for their company, the risk factor is magnified by many times.
Whenever we are selling a product that has a high price, we must be aware risk enters into the buyer’s calculations immediately.
The second contributing factor to the perception of risk is the number of people who will be affected by the buying decision. Almost every complex buying decision involves several people.
There are people who must use the product or service. There are people who must pay for the product or service. There are people who are dependent of the results expected from the product or service. If a person is extremely sensitive to the opinions of others, this factor alone can cause them to put off a buying decision.
The third factor to the perception of risk is the length of life of the product. A product or service, once installed, that is meant to last for several years may generate the feeling of risk. The customer panics and thinks, “What if it doesn’t work and I’m stuck with it?”
The fourth major risk factor is the customer’s unfamiliarity with you, your company, and your product or service. A first time buyer, one who has not bought the product or service before, or who has not bought it from you, is often nervous and requires a lot of hand holding.
Anything new or different makes the average customer tense and uneasy. This is why a new product or service, or a new business relationship with your company, has to be presented as a natural extension of what the customer is already doing.
In every case, we must overcome the customer’s fear of risk if we are going to make the sale. Everything we do, from the first contact, through closing, the delivery and installation of the product or service, and the follow up to the sale, must be done with the customer’s perception of risk uppermost in our thinking.
Successful business leaders are those who position their products or services as the lowest risk product or service available to satisfy the particular need or achieve the particular goal of the customer.
“Remember, Success is always Within Reach”
#terry ogburn #entrepreneur #Business #Business Development #Business Sales #business coach #business coaching