It’s a common misconception that price is the most important factor when it comes to customers making a decision to buy.
If you're a business owner in the service industry at least - it’s simply not true.
We've compiled 5 things which influence the customer’s buying decision.
The most important factor when selling a service to a customer is the relationship you have with them. The stronger your relationship, the more likely they are to buy from you. They’ll think of you first when they need the services you offer.
Your accessibility will impact the likelihood of customers engaging with you. If your customers can’t easily get hold of you, or your response time is slow, they might assume you’re too busy or not the right person for the job.
This doesn’t mean you need to be accessible 24/7 for your customers. Be visible and easy to find via your website and social channels, and ensure someone responds within a reasonable timeframe.
How proactive are you? Do you reach out to clients to check in? Do you offer exactly what your customers need? Are you keeping up with industry changes and ensuring your customers are also up to date? You can motivate your customers to act by being proactive.
If people know, like and trust you, and find you easy to deal with and proactive, they’ll likely trust that your price is fair. What’s more, they’ll see the value of working with you over someone else. The first three factors can help you minimise the price barrier.
The final factor is the customer’s need. They don’t know what they don’t know, and sometimes they don’t know that they need your services. It’s up to you to demonstrate the impact your services will have on their life. What’s in it for your customer?
So here's the summary. To increase your customer retention rate, transaction rate, and transaction value, start from the top:
- Build a strong relationship with your customers so you become the first person they reach out to
- Ensure you’re accessible when they need you
- Be proactive and have regular contact via newsletter, social media posts, or a quick check-in phone call.
These three factors are all within your control.
When follow these rules, you reduce the impact price has on your customer’s decision to buy. Your customers will remain loyal to your business, buy from you more often, and spend more when they do buy.