Of all the things we need to learn when we discover a new opportunity, here’s the most important: ‘Is there a goal, a problem, or an initiative that can drive a decision to buy?’ In What Customers Really Want we introduced the word disparity to describe the ‘gap’ between where our customer is now and where they would like to be. We called their current state point ‘A’ and their desired future state point ‘C.’ We also discussed the importance of Motive (a reason to leave ‘A’ and move toward ‘C’), as well as the other five Action Drivers: Urgency, Return, Consequence, Means, and Risk. To go one step further in understanding how our customers make buying decisions, we should also consider the conditions surrounding, or the situation that causes, the disparity in the first place.
There are at least four situations our customer could face that would cause a disparity and a motive to buy:
- A planned replacement of something they already have
- An unplanned replacement of something they already have
- A new purchase of something they need to ‘keep up’
- A new purchase of something they need to ‘get ahead’
It is helpful to understand the circumstances surrounding the disparity because it can tell us a lot about the nature of the associated Action Drivers. A planned replacement will probably be perceived as very low risk, but the consequence of not buying at the planned time could be a strong motive. An unplanned replacement (i.e., something’s broken) may carry a strong motive and a very strong urgency, so much so that the payback or return may not even be considered.
A new purchase to ‘keep up’ with their competition-or to stay on schedule with their plans-might bring the consequence of falling behind if they don’t take action. But if they’ve already fallen behind, they may not have the means to buy even if they did have a strong motive. A new purchase to ‘get ahead’ may present a very compelling motive, but could be light on urgency or consequence.
In addition to understanding the Action Drivers involved in any buying decision, it is critical to find out ‘Where are these Action Drivers being driven from?’ In the A Top-Down Initiative, we will explore the two types of buying initiatives we normally encounter: initiatives that originate and are driven from the bottom of your customer’s organization, and those that originate and are driven from the top.