Never ignore the role of emotion in the buying process
We live in a time where data and information are at everyone’s fingertips.
This is a very positive thing for the most part, but it can lead us to forget that every purchase decision — whether it’s buying a new vehicle or deciding on service requirements — has a very strong emotional component.
About fifteen years ago, Harvard Business School Professor, Gerald Zaltman, presented compelling evidence that “95 per cent of our purchase decision making takes place in the subconscious mind”.
A lot has changed since 2003, so let’s take a look and see how that plays out in the current retail environment, including the new car dealership.
“Consumers aren’t as savvy as they might like to believe”
More recently (March 2018), the small business / entrepreneurial magazine Inc. cited Zaltman’s work and made some important comments regarding the role of emotions in the purchase decision.
The one that really struck me was that “consumers aren’t as savvy as they might like to believe.”
It struck me, because we hear so often about tech-savvy consumers and how they’ve all done their homework and know more than the salesperson or service advisor they’re dealing with.
The article notes that it is still true that “what they (consumers) really think or feel often contradicts what they say.”
The reason is that consumers are driven by subconscious forces and the biggest of those is emotion.
Often, according to Zaltman, consumers are not even aware of these forces. They may feel good that they have all the data, but that’s not what’s driving the decision.
Is this still true, given the exponential increase in access to data over the past decade? I believe it is and it’s probably even more true, given the evolution of the automotive product and the easy access to data.
If you look at manufacturer websites and use features such as vehicle configuration, comparisons, available deals, inventory checks, reviews etc., you’re usually hard pressed to find anything that stands out.
It’s what drew you to that website in the first place that’s important. Why are you considering the brand? What is it about the brand and the dealership (if you take the next step) that gets you closer to purchasing? While manufacturers would likely disagree, we live in a world of “brand equality.”
This is where emotions kick in.
While many prospective buyers come armed with reams of data, there’s likely little that differentiates products on the surface. What is operating behind the scenes is how consumers process that data and they’re probably not aware or are not paying attention to that aspect of the situation. Whether it’s in a sales context or a service context, emotions will play a significant role in the final decision.
When you lose a customer, is it your process or is it failure to connect?
I’ve done many studies that look at the reasons why customers “walk” from what looks like a done deal.
In most situations when a customer walked for reasons other than pure price or truly different product, the reason was put down to “customer handling” or the customer experience.
The focus then shifted to process — what went wrong? How could we have changed the process to save the sale?
We always fell back on very rational explanations for the “escaped shopper.” In today’s environment, this scenario is even more pertinent, given that any customer walking in to your showroom is likely to be at least 50 per cent committed to a purchase decision (in their own mind).
And there’s the problem.
We are so fixated on data, availability of information, transparency of information and smooth process (slick process?), that we forget that 95 per cent of the decision is going to be based on subconscious factors (mostly emotional).
Studies suggest that when tablets are used in the sales or service write-up processes, customers are more satisfied. Is it the data that drives this, or is it the fact that the technology allows the sales consultant or service advisor to more easily and quickly connect with the customer by being transparent and precise, both of which will increase level of trust laying the foundation for connection?
The key is that all the fundamental building blocks must be in place for the emotional connection to be made. Rather like the familiar Maslow hierarchy of needs, there won’t be an emotional connection unless all the necessary components are there. People are the foundation.
I believe the need to connect with the customer in the service context is as important, if not more so, than in the sales context.
Service customers are your front-line customers that keep the business humming and provide the basis for future sales volume.
The problem is that the world doesn’t always work in a logical and rational way. Emotions get in the way.
Apart from the “hard” reasons (the customer moves), they may just want a different vehicle or they may have spoken to someone who got them excited about another vehicle.
Establishing a strong (emotional) connection with the customer is the best way to build your customer base. Many studies have shown that to be true. It’s going to be more challenging to do that in the future and that’s where establishing a strong connection will be critical.
Holding on to customers
A recent global study (2018) by Nielsen (the world’s largest research company) identified willingness to try new products and new stores / outlets as two of the key trends across markets.
While Nielsen did not address the auto sector specifically, the company also found that “consumers don’t segregate shopping experiences nearly as much any more.” This means that what they do and expect in other areas of retail, they will look for when it comes to buying or servicing their cars.
Making that emotional connection is much more than treating a customer well or “engaging” with a customer. It’s also much more than sending communications by email or text or sending service reminders and service information. Those are just part of the answer.
Connecting is getting on the same page as the customer and showing that you recognize their situation and needs.
We all have the ability to do that in us. Sometimes blind adherence to process and, yes, worshipping data, get in the way!
