Paradigm Shift: What’s Changed in the Way Consumers Make Decisions
What are the Marketing Implications of a More Educated Consumer?
I recently attended the Salesforce Essentials event in Tel Aviv. One of the topics covered was a paradigm shift in the way consumers and businesses buy products and services. According to the research presented, buyers are taking more time to understand products and services before making a decision to purchase. They are less interested in engaging with salespeople right away, preferring to self-educate as a first priority.
We see the same trends and the implications are significant. For Natural Intelligence (and for many other companies) the role of marketing now extends from top of funnel activities all the way down to near the conclusion of the sales process.
Numerous data points support this shift in buying behavior — Example: More than 85% of customers now conduct online research before making a decision to purchase. And over 45% of customers compare key decision factors (KDFs) like price and product features between multiple vendors.
Effectively, customers are now ‘selling’ to themselves. They can go ¾ of the way through their buying process before ever engaging with a salesperson. In fact, many claim to be less interested in communicating directly with brand reps until reaching a preliminary conclusion about what’s in their best interest.
The feedback we’re getting from customers at Natural Intelligence indicates they prioritize their own research into products and services. In general, our customers:
1) Want to understand most or all the options available to them (list of products, brands, suppliers) when buying a product.
2) Don’t mind investing time in the process.
3) Want to reach a conclusion on their own terms.
Interestingly, our customers don’t draw conclusions by researching one product at a time. Rather they make decisions by comparing a handful of leading products side by side.
I believe access to information and customer self-empowerment are two powerful factors behind the phenomenal growth of online sales. The challenge for brands seeking to maximize sales is to align their practices with customer behavior and benefit from the way they make decisions. Businesses must adjust to the paradigm shift by giving their consumers the necessary tools to educate themselves and make purchasing decisions on their own terms.
Adi Orzel is COO at Natural Intelligence — a leader in the comparison field, which aids consumers in the decision-making process. As an Internet entrepreneur, he has honed his expertise in digital marketing, AdTech and online media.
