Whether customers make impulsive or thoughtful decisions, it is highly dependent on the perceived value. When they make a decision about any product or service, they’re thinking about solving a need. Customers look for trustworthy, knowledgeable individuals to educate them on a solution which is highly personalized and solves their problems.

Understanding customer psychology is very important in influencing decision-making. Be it impulsive or well-thought-out choices, customers look for solutions that deal with their individual needs from a person whom they can trust and who has the expertise to effectively diagnose and address their needs. The customer of today is well informed and wants a consultative approach that builds trust, credibility, and loyalty. The scientific and artistic approaches can be combined by the sales professional in adopting a strategy that will most resonate with each individual customer’s preference for the customer satisfaction and relationship-building processes.

The Informed and Aware Customer, needs personalisation

Today’s customers are well informed and savvy, they need sales professionals to help them diagnose their needs and identify solutions. Every banking customer’s need is different and requires customised solutioning. Customers need to be involved in the decision-making journey.

Role and Benefits of the Consultative Pitch in the situation

The consultative pitch equips sales professionals with the skills to understand customer needs better & faster. The consultative approach to solutioning adds a lot of value to the customer and it builds credibility and trust which creates loyalty and lifetime customer value.

Did you know?

Value Perception Guides Choices: There is perceived value in customers’ choices more than in cost. So, the communication of benefits has a very important role to play.

The factors which influence customer decision making is illustrated below: –

The Science and Art of Customer Psychology

Customer Psychology is a science as well as an art. It uses both theories borrowed from social sciences to understand customer behavior, and quantitative and qualitative tools and techniques to predict customer behavior.

(Source: Vrogue)

Steps in understanding customer psychology and influencing decision making process

Building trust & rapport

Creating a conducive environment by setting the right context and building trust through a consulting and problem solving approach

Understanding different personality types

There are different personality types having specific characteristics which drive and motivate customers. Comprehending the right type and channelizing the discussions accordingly is very important to generate interest and getting buy-in

Did you know?

Tailor-made solutions as per individual needs and preferences are expected by the modern customer.

Empathize

Imagining and thinking from the customer point of view and acting according to those beliefs opens up the customer. This comfort level motivates the customer to discuss the feelings and issues faced by them.

Effective probing for uncovering needs

Once the customer is comfortable and willing to discuss feelings and issues it is very important to probe deeper to understand the latent needs. The crux lies in the skillful probing technique to ask the right questions at the right time to extract the real issues.

Demonstration of capability of product or service

Nothing is more convincing than the demo of product and service in any form or method. It has been experienced and researched that most of the customers’ objections and queries are taken care of by facilitating a good demo.

Focus on perceived benefits

Customers are not interested in all the features of the product or service but the ones which suit their customised needs. Every feature which suits the need adds to the perceived value and personalization which drives the propensity to decide in favor.

Decision making Journey

It has been seen that customers tend to postpone or forgo their decisions if they have doubts about the product or service. To take the entire process to a logical conclusion it is very critical to eliminate the remaining doubts and help the customer to arrive at a decision.

(Source: Pinterest)

Expertise of Amity Institute of Training & Development

At AITD we have a pool of experts in psychology in conjunction with industry experts and consultants who are continuously involved in research projects involving customer decision making and the buying behaviors.

The researchers have developed several data analytics tools to understand consumer behavior in the backdrop of evolving lifestyle changes, consumer preferences owing to digital transformation. The cutting-edge sales training programs are based on research, experience and design thinking which are contemporary as well as futuristic.

Did you know?

Adopting a consultative approach empowers the sales professional to understand the needs of the customer, thereby establishing long-lasting trust and loyalty.

Steps in the Process of Consumer Decision Making 

1. Problem Recognition

This is the initiation stage where the consumer actually identifies that they need something or have a problem they want to solve. It may be activated internally through hunger or thirst or through external sources like advertising and word-of-mouth.

2. Information Search

Information search: Having identified the problem, the consumer seeks information to solve it. This can be in the form of internal search, such as memory of past experiences, and external search, which includes friends, family, internet reviews, or even advertisements.

3. Alternative Evaluation

The consumer, at this stage, will evaluate a number of products or services in order to determine which one best meets his needs. The comparison may involve features, benefits, price, brand reputation, and so on and so forth.

4. Purchase Decision

The consumer, having put into consideration all the final alternatives, this is where the decision on which product or service to buy is made. The decision to buy might have reasons such as the availability of the product, promotional offers, or additional inducements.

5. Purchase

Here is where the customer acquires the product. This can be in-store or online and involves transacting the purchase.

6. Post-Purchase Evaluation

After making the purchase and consuming the product, the consumer evaluates their purchase decision. They evaluate whether the product meets their expectations and whether they are satisfied with their purchase. If all goes well with the consumption experience, this can result in repeat purchases, brand loyalty, or, if unsatisfied, returns and negative word-of-mouth.

Examples of each step in the Process of Consumer Decision Making 

Problem Recognition

Example: Sarah notices her phone battery drains quickly and decides she needs a new phone.

Information Search

Example: Sarah has been going through the Internet reviews, asking the friends for recommendations and visiting electronic shops to gather information on the latest smartphones .

Evaluation of Alternatives

Example: After the comparison of various models in terms of battery life, camera features, price, and reputation, Sarah selects the particular model she was going to purchase.

Purchase Decision

Example: Finally, considering the best battery life and camera features available in her budget, she buys the smartphone from Brand A.

Purchase

Example: Sarah walks into an electronics store and buys a Brand A smartphone.

Post-Purchase Behavior:

 Example: One month of using the phone, she is convinced that it does the job like she expected it to. Consequently, I wrote a positive review online.

Interested in Learning more about the topics, here are a few links to relevant researches and studies conducted:

Marketing analytics: The bridge between customer psychology and marketing decision‐making

Understanding Customer’s Behavior

Theory and Models of Consumer Buying Behaviour: A Descriptive Study

(Source: Zendesk)

Conclusion

Understanding customer psychology and influencing decision-making journeys are critical for sales professionals aiming to provide personalized solutions and build lasting customer relationships. As customers become more informed and discerning, the need for customised and consultative approaches becomes paramount. By building trust, empathizing with customers, and effectively probing to uncover their needs, sales professionals can better demonstrate the value of their products and services.