Addressing the customer’s perceived risk
We recently organised a Think Tank with Portsmouth University to conduct research into what customers gave most consideration to when making a buying decision. This was another plank into our research about what makes a compelling, persuasive proposal.
The Uni brought together a whole group of buyers to get their feedback, as part of the programme.
I was expecting Value to be the most prominent consideration. It was a prime factor in the buying decision, and ranked well above price. But what really surprised me was the Risk factor, and how prominent it is in buyers minds.
Are we at risk dealing with this supplier? Can they deliver? Will they be around to support us in future years? These were the big questions in the buyers’ minds when considering their companies’ needs.
A bigger surprise was personal risk. Am I at risk making this decision. I don’t want to be the target of criticism if something goes wrong and people start asking “who bought this then”.
Value came in second in buying priority. Risk was higher.
When writing a sales proposal, it’s vital that you address the risk of dealing with your company, especially if you are a smallish company versus a giant. There are many ways to do that. Highlighting your client list of existing users; presenting case histories; demonstrating your implementation plan; showcasing the people who will be delivering the service.
It may not be enough. The ‘no-one got fired buying IBM’ syndrome might apply. But address risk in your sales proposal, and you’ll increase your chances of winning the business.
Tags: Buying, Customers, Sales Process
