Buying Process Analysis

Thursday, August 28, 2003

The JS Group, http://www.thejsgroup.com

Your solutions, products and name are great door-openers and great relationship-starters, but how do you differentiate yourself from all the other messages out there in the marketplace?

It is important to realize at this point that everything begins with your clients. If your clients want to buy, your business becomes profitable, but if they choose not to buy, your business loses money. Therefore most of your planning will be based on your ability to appeal to your clients. To gain further insight into your business, it is necessary to complete an analysis of your clients’ and prospective clients’ buying behavior.

To accurately determine how to make your company stand out from the crowd, take a look at the relationship from the client’s or prospect’s viewpoint. Take a look at your organization from the other side of the table. Think through the process of buying your services from the buyer’s point of view. Consider the impression you make at each of the buying stages.

Analyze the following stages of the buying process using the Buying Process Analysis worksheet attached to examine your approach to each of the elements. It may be useful to use separate sheets for each of your client types to modify the type of approach you use with each one.

There are eight buying stages you should examine:

1. The first call made to the client about your organization and solutions
2. Initial learning about the product, service, solution, or resources
3. Building on the initial contact
4. Deciding which services to use and which solutions to adopt
5. Deciding how resources will be accessed
6. Choosing options, drawing up contracts, and smoothing out details
7. What happens when something goes wrong
8. Account support once “online”

Let’s look at each step in detail:

1. The first call made to the client about your organization and solutions: What does that phone call say about your company?
Do you give the correct impression to your prospect? How?
What do you do to establish your company’s value to the prospective client?
Consider what impact your first impression may be having on your future sales success.

2. Initial learning about the product, service, solution, or resources: How do you educate your clients about your company’s products, services, and solutions?
What materials do you require to educate your clients in a manner that will make them comfortable purchasing your solutions?
Since education is one of the key elements of sales success, how is your organization helping you educate your clients? Remember, this is not about vendor “slicks” or technical specifications, but about educating your prospective clients on the business advantages of your communications solutions.

3. Building on the initial contact: How do you use your first contact with a prospective client to build a successful relationship?
How do you determine from the initial contact if the prospect will be high-value? Do you determine value at all?
What action items do you plan with your prospect to ensure that you are building a relationship and not just a database?
Hot Tip: There will be client problems; explain to your clients when you close the sale that there may be problems that you cause or that they cause. Give both yourself and your client a “get out of jail free” card, and explain to the client that you each get a chance to get out of jail free one time in the relationship.

4. Deciding which services to use and which solutions to adopt: How do you determine the services/solutions that the client should adopt?
Are you positioning solutions that will build your value to the client and the client’s value to you?
What can you do to make sure that you build high-value solutions for your clients to adopt? Consider the impact the solutions you sell have on the profitability of your organization.

5. Deciding how resources will be accessed: How do your clients access your company’s resources?
Do all clients have equal access? If all clients have equal access, what is the benefit to your high-value clients? How can you differentiate with your resources?
Consider providing high-value contacts with special contact information, such as beeper numbers. Remember that your high-value client will pay for and use these services, while your low-level clients will just use them.

6. Choosing options, drawing up contracts, and smoothing out details: How do you build value in your organization and with your client by using options and service contracts?
Do you offer some type of “Consultant” package to your client that establishes value based on your experience?
If you do not offer that type of contract, are you giving your advice away for free? If so, how do you ever determine the value of your advice for the client?
Consider offering annual support contracts that cover more than fixes and repairs.
Hot Tip #1: Contracts should be secured with a corporate credit card or a direct payment from a business checking account. This way, you can simply “renew” the contract by charging a monthly installment to the credit card and put the burden of canceling the contract on the client. This differs from the current way most companies sell, which requires you to get the client to sign up for a renewed contract.
Hot Tip #2: Contracts should be “Evergreen,” with no end date.

7. What happens when something goes wrong?: How do you guarantee that your clients understand the “error element” that is inherent in the industry?
What programs do you have in process to ensure that clients who experience problems are not lost?
Are there formal complaint procedures in your company?
What resources do you have at your disposal to fix client problems?
Hot Tip: There will be client problems; explain to your clients when you close the sale that there may be problems that you cause or that they cause. Give both yourself and your client a “get out of jail free” card, and explain to the client that you each get a chance to get out of jail free one time in the relationship.

8. Account follow-up: How do you follow up with your accounts to ensure maximum profitability and client services?
What programs can you implement to be sure of effective account building? Consider establishing routine account development campaigns that are delivered each month to your high-value clients. Remember that existing clients are proven buyers; look for problems they have in their business, and use your solutions to these problems to develop the account.

Combining this information with the business-related information you develop as part of an on-going business review process will enable you to focus your attention on areas that need development. Does the client see the correct picture of you and your company?

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