Does everyone buy on price? The RET factor

In some circumstances people just buy on price because the difference between the options is either invisible to them or they just don’t care. In other situations they may buy based on features and perceived benefits.

In most buying decisions, business or personal, neither of these are the first hurdle that has to be crossed. The first step is what I call the RET factor. It stands for Relationship, Expertise and Trust. Many buying decisions are made using a mix of these factors before price is even mentioned. For example I might buy my Life Insurance from Jerry because I’ve known him for years, he’s demonstrated his expertise on many occasions and I trust him. Another vendor is not going to get my business just by offering a lower price.

It’s therefore important to do as much as you can to improve your RET factor rather than just trying to sell features and benefits or just focusing on price. Consider if any sales/marketing activity or business process improves or damages your RET factor with customers.

Knowing what your customer cares about is obviously important. However customers care about far more than just features and benefits and the only way to find out what those things are is to ask them. I’d suggest using surveys and any customer touch point to collect information. What’s important to customer can be illogical, irrational and impossible to work out without asking them but it may be the crucial factor in a buying decision.

 

Blog: home              Contact: Malcolm.wicks@3sc.co.uk

 

 

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