“Likelihood to Purchase” — A Shortcut to Improving Your Customer Acquisition Rate
Taking a consumer’s “likelihood to purchase” into consideration is pivotal when improving your customer acquisition rate. Consider the two groups of equally qualified prospects: one group that has a relatively high likelihood to make purchases, the other a relatively low one. Within the low likelihood group, only a few prospects are going to pull the trigger and buy from you; within the high likelihood group, far more prospects are going to sign on the dotted line.
No matter how skillfully you probe for your prospect’s needs, what offers you make or the number of perks you add, these ratios are unlikely to change substantially. As a result, the largest and most important contributing variable toward customer acquisition rate boils down to a consumer’s likelihood to purchase. That’ s why it makes a considerable amount of sense to identify and focus your efforts on “high likelihood” consumers.
Of course, it’s not always as simple as separating consumer purchasing potential into high- and low-likelihoods. Here are some questions you can ask yourself to help you assess a consumer’s overall likelihood to purchase.
The consumer decision-making process
Purchase decisions are complex, containing both emotional and rational components. It’s rare that either one of these individual components will be large enough to drive a purchasing decision — particularly when it is a difficult, complex, important or large one. Your task is to understand the cognitive and personal biases of a consumer and identify when he is amenable to a product or if he is a lost cause.
Emotional and rational elements
The emotional component of a decision generally begins with a consumer’s desire to feel better, happier or more secure. The stronger this drive, the more likely a specific consumer will be to take action to achieve a desired goal.
The rational component of a decision generally conforms to Maslow’s 1943 “Hierarchy of Needs.” This theory describes how people direct their attention to achieving certain goals, such as self-esteem and “self-actualization,” according to whether they have already achieved more fundamental goals, such as the safety of their person, property and family.
By assessing these two components holistically, you can quickly construct a profile of a consumer’s likelihood to purchase. For instance, a purely rational shopper may immediately decide that a product does not fit her needs, just as a purely emotional shopper may enter into a scenario with predispositions that make her unlikely to purchase.
Methods of deduction
There need not be any secret about a consumer’s likelihood to purchase. You can directly address a consumer with such questions as, “Are you ready to make this decision today?” or, “How do you feel so far about my offering?” If a consumer still appears ambivalent about his potential to purchase, providing him with as much additional information as possible can assist in finalizing his decision.
You’ll find that taking a consumer’s likelihood to purchase into consideration helps you avoid wasting time with “lookie loos” and “window shoppers.” This will free up more of your time and energy to meet the business needs of higher quality prospects who are the most likely to buy from you.
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