It is every marketer’s goal to get inside the head of a consumer.
You want to figure out how the consumer makes decisions and how you can get them to make a decision to purchase your product or service.
So how does a consumer know whether a purchase may be a good deal?
In this guide, we will explore the 5 steps of decision making process, more specifically:
- Problem recognition;
- Search process;
- Comparison;
- Product or service selection;
- Evaluation of decision.
Without further ado, let’s dive right into the consumer decision-making process!
What Is the Consumer Decision-making Process?
The consumer decision-making process is a psychological journey that individuals undergo when purchasing a product or service. It involves five key steps:
- Problem Recognition: Identifying a need or problem that requires a solution.
- Information Search: Looking for information about products or services that can solve the need.
- Evaluation of Alternatives: Comparing different products or services to find the best fit.
- Purchase Decision: Deciding on a product or service and making the purchase.
- Post-Purchase Behavior: Reflecting on the purchase decision and the satisfaction or dissatisfaction with the outcome.
In this process, consumers go through a mental and sometimes emotional journey, starting from recognizing a need or desire, to researching and evaluating different options, making a purchase, and finally reflecting on their choice.
This process is influenced by various personal, psychological, and social factors, and understanding it can help businesses in targeting their marketing efforts more effectively, ensuring customer satisfaction, and building long-term customer relationships.
The 5 Steps in the Consumer Decision Process Explained
In general, making a good purchasing decision requires the following 5 steps:
Step 1. Problem Recognition
The consumer buying process begins when the potential buyers have some sort of problem.
The consumer develops a need or a want that they want to be satisfied. The consumer feel like something is missing and needs to address it to get back to feeling normal.
If you can determine when your target demographic develops these needs or wants, it would be an ideal time to advertise to them. For example, they ran out of toothpaste and now they need to go to the store and get more.
Step 2. Search Process
Most of us are not experts on everything around us.
In the searching phase we research for products or services that can satisfy our needs or wants. Search Engines have become our primary research tool for answers. It is an instant and easy way to find out what you are looking for.
Also don’t forget about actual human beings.
Our friends and families all have had many different experiences and can offer us recommendations.
In most cases recommendations from actual people instead of a search engines are preferred. You have more of a trust factor with people close to you then a computer program.
You also may have had past experiences that assist you in solving your problem.
You may have had a life experience in the past that helps you make the correct purchase decision. You could also just know what decision to make just by picking up things over the years and knowing how to solve them.
In this stage you are also beginning your risk management.
You might make a pro’s vs. con’s diagram to help make your decision. People often don’t want to regret making a decision so extra time being put into managing risk may be worth it.
People also remember bad experiences over good ones, take that into account.
Step 3. Evaluating Alternatives
Once the consumer has determined what will satisfy their want or need they will begin to begin to seek out the best deal. This may be based on price, quality, or other factors that are important for them.
Customers read many reviews and compare prices, ultimately choosing the one that satisfies most of their parameters.
Step 4. Selection Stage
After tallying up all the criteria for the decision the customers now decide on what they will purchase and where.
They have already taking risk into account and are definite on what they want to purchase.
They may have had prior experience with this exact decision or maybe they succumbed to advertising about this product or service and want to give it a try.
Step 5. Evaluation of Decision
Once the purchase has been made, does it satisfy the need or want?
Is it above or below your expectations?
The goal for every marketer is not for a one-time customer but a repeating lifetime customer. One bad experience of buyer’s remorse and your brand perception could be tarnished forever.
On the other hand, one superb experience can lead to a brand loyal customer who may even become a brand evangelist for you.
Effective Tools to Understand Your Customer Better
To better understand customers and improve their experience with a product or service, several tools can be utilized. Here are a few key ones:
1. Customer Journey Map
This is a visual representation of the customer’s experience with your product or service from initial contact, through the process of engagement, to a long-term relationship.
It helps in identifying key interactions that the customer has with the organization and the customer’s feelings, motivations, and questions for each of these touchpoints.
2. Empathy Map
An empathy map is a tool used to gain a deeper insight into customers.
It helps in understanding what the customers are thinking, feeling, seeing, and doing. It captures the attitude and emotions of a user regarding a product, service, or system and helps in understanding their needs and expectations.
3. User Personas
These are detailed profiles of fictional characters who represent key segments of your target audience.
Personas help in understanding and predicting the behavior of your customers, making it easier to tailor products and marketing strategies to meet their needs and expectations.
In addition to these, there are other tools and methodologies that can be used:
- Feedback and Surveys: Regular customer feedback, through surveys or other means, provides direct insight into what customers think about your product or service.
- Social Media Listening: Monitoring social media channels for mentions of your brand, competitors, or industry can provide real-time insights into customer opinions and trends.
- Net Promoter Score (NPS): This tool measures customer loyalty and is used to gauge the likelihood of customers to recommend a company, product, or service to others.
- SWOT Analysis: Analyzing strengths, weaknesses, opportunities, and threats can provide a broader understanding of where your product or service stands in the market relative to customer needs and expectations.
- Data Analytics: Utilizing data from various sources like website traffic, purchase history, and customer demographics can help in making informed decisions about product development and marketing strategies.
Each of these tools offers unique insights into customer behavior and preferences, and using a combination of them can greatly enhance a company’s understanding of its customer base.
Conclusion
In summary, the consumer decision-making process, with its 5 steps of decision-making, offers vital insights into how consumers choose products and services.
By utilizing tools like Customer Journey Maps, Empathy Maps, and User Personas, businesses can better understand and respond to customer needs. This deeper understanding is key to crafting effective marketing strategies and building lasting customer relationships.
Ultimately, mastering the nuances of the consumer decision-making process is essential for fostering brand loyalty and success.