2The Hierarchy of Buying
We surveyed more than a thousand business owners to ask, “Why do you buy?” See Figure 2.1 for the results.
Figure 2.1 Hierarchy of Buying: Service-Based Business
When the need arises, customers buy first from people they know, trust, and like. The higher on the pyramid you are with your market, the less competition you have. We take it from the top down:
- Current satisfied customer. Obviously, people are going to buy from you if they already do and are satisfied. The key term here is satisfied. Even though customers are current, this doesn't mean they are happy.
- Referral by a trusted source. The first thing we do when we need something we don't already have is to ask people we know and trust if they know of a provider, which is easy with sites like Facebook and Twitter. We can get a pile of recommendations in minutes. Are you on the tip of the tongue when someone asks for recommendations within your industry?
- Current relationship but have yet to purchase. Potential customers know you, trust you, but have yet to buy from you. And that's okay. The key here is that when they have the need for your product or service, you are in the front of their minds.
- Recognized expert in the field. You've built a platform and are consistently in front of potential customers with helpful advice and tips that relate to your industry. You want your market to say, “This ...
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