I ran across a couple of notes today on how people make purchasing decisions, both suggesting that we are pretty irrational – which could be a blessing or a curse for us marketers depending on how you look at it. Joe Cooper writes about how people decide on emotion and justify with logic in their buying process. In other words, the quantifiable features of a product or service don’t count as much as the feeling we have about purchase we are making (you didn’t really think that Nike shoes were somehow better than the store-brands did you?). The implications of this are pretty profound, for example it means the features and benefits statements that fill our endless supply of incredibly boring PowerPoint presentations contribute only in a backhanded way to selling our product (Hooray, can we outlaw PowerPoint now?).
In some categories, more than 40% of the auctions went for more than the Buy it Now price.
This says a lot about the psychology of auctions I suppose (Mark Tillison writes a succinct analysis of this phenomenon in his blog).
If I put these two items together, is says that buyers don’t tend to care (at least as much as we think) about either price or features. Wow.
This opens one to a fascinating area of thought regarding what purchasers do care about. I won’t fully explore here other than to posit what this means to outsourced call centres. What I see in our industry is a lot of us trying to sell our product based on one thing, price. This I contend is a dead end street for any call centre business that has genuine aspirations to become the next Wipro or Infosys. Why? First, because I think the era of cost arbitrage is ending, the world is just as flat for us here in India as it is in the West. And second, because a price-dominated strategy will consistently attract customers who focus solely on price to the exclusion of customer experience and business process. You can afford to have some customers who don’t care about their customers and who are loyal to you only as long as you are the cheapest provider they can find, but if that is your niche, you’re going to have a hell of a time maintaining your base.
So if we don’t sell on price and features, what do we sell on? I think to find the answer to this, one must put himself in the shoes of his customers. If you were going to trust your sales, your customer service, your future revenue stream and/or your current revenue stream to an outside organisation, what would you be looking for? What springs to my mind are things like trust, confidence, consistency, fit, culture, synergy, harmony, all very squishy, intangible right-brained criteria. I believe that if both we and our customers are looking for these things in our business relationships, we’ll have many more successful, more profitable programs.