One of the underlying factors why people don't buy from you is that they perceive a risk.
Perhaps they are unsure of the brand, the new product, your service offering.
They want to know that what they buy for their company or their family will leave them in good standing.
If you can figure out what the risk is and offset that risk by communicating value, offering the best warranty. Domino's built a brand on 30 minutes or it's free pizza.
Typically customers have four types of risk perceptions: financial, social, functional and safety. By building a relationship with your customers and asking the right questions you can figure out what type of risk they perceive and allay these fears.
Financial risk - They are worried about the cost of the product or service not being equal to the value. You can reduce this risk by having payment plans, guarantees and creating a perception of value in the product.
Social risk - No one wants to be humiliated or embarrassed and if the thought of buying your product has the potential of causing a social risk your customers will steer away. You can reduce this risk by positioning your product to the right market and engaging with your customers in a way that reinforces their ego and suggests that they might be the leaders in the buying experience.
Functional risk - Your product needs to do what it says. Warranties and guarantees can reduce this risk to your customer of buying something that does not work as promised.
Safety Risk - If your product has the potential to hurt someone, you need to be aware of that risk and have plans and strategies in place to ensure and reduce the risk to your buying customer. This may include government inspections, and certifications, and both visual and invisible safety standards that give your customer the satisfaction that you have done everything necessary to reduce the risk of harm to them and those around them.
By figuring out how you can reduce the risk for your customers you are increasing the likelihood that they will buy from you.
If you have an online business you might notice that you get many hits to your website but few buyers. This is because they don't know you. People buy from people they like and trust.
In order to build that trust you need to develop a relationship, you need to develop credibility. The same goes for brick and mortar businesses.
If, for example, you put an ad in The Citizen newspaper but fail to follow up when that very customer walks into your establishment, chances are you will never get that customer back in.
A key factor in building trust is consistency. Your customers buy the first time and expect the same level of service each and every time after that. If you as the owner are giving great service but your vision of that service level hasn't cascaded down to your front line employees, you have a problem that you need to fix. Building trust and consistency can improve your sales and increase your profits.
Start today looking at your business with new eyes and make notes on how you can reduce your customers' risk
Dave Fuller is a certified professional business coach who helps business owners become profitable. He can be reached at 250-617-7467 or [email protected].
