It would be ideal if you took the time to learn about the factors that drive your consumers' behavior.
It is critical to have a deep understanding of your consumers in order to develop high-quality products and advertise them successfully. Our grasp of what influences people's decisions to purchase or not to purchase our products needs to be extensive.
With that in mind, how do your products help improve someone's life?
This question sounds so lofty and magnanimous. But the truth is purchases do provide changes, and hands down, we want that change to be positive.
Another way of studying this puzzle is how your product diminishes pain or enhances pleasure.
Thinking about why customers buy products based on helping alleviate pain or increase happiness is the foundation of many other drivers. Buyers are triggered mainly by seven underlying factors when purchasing a new product.
Our motives include both necessity and convenience along with security, FOMO, identity and belonging, price, peer recommendations, obligation, fear, price, and happiness.
The reality is that each of these factors can fit into the pleasure or discomfort camps. Products either produce happiness or address our pain.
This article will talk about the various reasons people buy stuff and end with a real example of how one ecommerce startup enlisted the help of some clever influencers.
Top Reasons Why Customers Buy Products
Why customers buy particular things has never been more vital to business success. According to Salesforce,
"76% of consumers expect companies to understand their needs and expectations."
The following are the seven personal and sometimes subconscious motivations for making a purchase, as well as the underlying reasons for doing so.
#1 - People Buy Products Out of Necessity
We buy things because we require them, arguably the most evident rationale for making a purchasing decision.
Let's go back to that psychology class for a second. Remember Abraham Maslow and his hierarchy of needs? The hierarchy of needs established by Abraham Maslow describes human motivation. His theory states that people must first satisfy their fundamental needs to advance higher in the social, emotional, and self-actualization needs hierarchy.
How many times do students say, "Why do I need to learn this? Am I ever going to use it in real life?"
Well, in this case, the response is -- absolutely! This section in your science or psychology class is extremely useful. In fact, we would explanation that you need to learn it "because it will help you every day of your professional life!"
Asking what needs someone has can make every encounter with a prospect, a customer, a patient, a partnership, or anybody else far more relevant and productive.
Needs Are Strong Motivators (maybe the strongest)
Where do your products fit on the hierarchy of needs? Do you offer basic human needs such as food and shelter? Or are your offerings more connected to status or freedom?
Typically, necessities fit in the lower need levels. That being said, we require more than water, food, homes, and clothing. Thus, people can attach many products to a necessity.
Begin by identifying the fundamental requirements of your target audience. Next, determine how your product or service may meet those needs.
Another excellent starting point is to pick a common problem or pain point that your target audience is experiencing. Then match that with the benefits of products or services you offer.
Without a doubt, every product and service solves an issue that many of your target customers face.
Benefits of Understanding Needs
Asking what needs or pain points someone has can make every encounter with a prospect, a customer, a patient, a partnership, or anybody else far more relevant and productive.
The more closely you link products with needs, the more it will resonant with the right audiences.
Many other elements of the business, from marketing to customer service, become much more natural and relevant when you know exactly where each of your products and services fits.
Sales will occur from properly selling your items and matching them with the requirements of your target audience.
#2 - People Value Convenience
Another big reason customers buy stuff is to decrease their hassles and make their lives more comfortable.
Many buyers acquire new goods to help them do a task more quickly, easily, or affordably. They also do so to make their lives less unpleasant.
#3 - Security and Protection
Customers purchase products to protect themselves and to provide security. These motivators correlate with the second category on Maslow's hierarchy of needs, specifically the safety requirement.
Many of the things we buy protect us. All types of insurance such as health, car, homeowners, renters, life, pet, and more protect our health and belongings. Purchases calm future pain and shield us from the unknown.
Many of the products we buy are intended to keep us safe. All forms of insurance, including health, auto, homeowners, renters, life, pet, and others, are designed to safeguard our health and possessions. Purchases in this category help us cope with the pain of future misfortune and protect us from uncertainty.
#4 - FOMO (Fear Of Missing Out)
Feeling the need to have the latest and greatest thing around is a compelling motivator. The fact is, FOMO is real. The fear of missing out is unpleasant and somewhat scary.
Many people purchase goods to get the benefits, rewards, and prestige other buyers have experienced. If they don't follow, they miss out. And being left out is painful. Thus, FOMO is a remarkably potent motivator for consumers to buy.
Impulse buying may tie in, but FOMO focuses on current trends. During the time of a rapidly developing fad, customers tend to buy into the craze as a hedge against missing out. FOMO purchases give consumers a kind of immediate feeling of inclusion. Plus, they are able to showcase their new purchases and keep the FOMO going.
It's smart for brands to ride trends and develop some FOMO, especially for products catering to those born between 1981 and 1996.
You are probably well acquainted with FOMO if your brand targets this age group. Millennials experience FOMO more than any other consumer segment. Fear of missing out is a significant concern for 69% of millennials. Further, when millennials endure FOMO, they react quickly. Within 24 hours, 60% of millennials make a purchase to soothe their burden of missing out. (OptionMonster)
Fear of missing out is a concern for 69% of millennials, which causes 60% of these people to a reactionary purchase within 24 hours of experiencing FOMO.
#5 - Identity and Belonging
Recent studies show that consumers who buy items have elements of their identity that they don't feel good about linked to their purchase. Everybody is trying to conceal their weaknesses and compensate for them with money. As consumers work to better themselves, think about how your product and brand mission can serve them.
On the other hand, individuals who see themselves as part of a specific group are motivated to purchase items that distinguish them as brand community members. A virtually unlimited abundance of options exists for buying goods that are either unique or indicate a specific social standing.
When marketing and selling, Remember to consider what your product is actually accomplishing for your customers and what they want the items to say about them.
A variety of items support individuality on an emotional and social level. When brands utilize influencer marketing and ambassador marketing, they focus on the identity purchase motivator. These are advocates who have a well-established reputation. Influencers and ambassadors promote a company and its goods authentically while they identify themselves through endorsement and join their identities.
#6 - Getting A Good Deal or Price
Many experts say that price isn't one of the top reasons customers buy. But I personally regard this motivator as an essential driver of purchases.
Sometimes, the discount amount is enough to buy stuff that I don't even want or need. For example, I still have dozens of pumpkin carving kits in my storage closet because they were 90% off. How will I ever use these kits? Honestly, it doesn't matter because they were such a great deal .(haha)
Getting a good deal is the foundation of Black Friday and Cyber Monday. We can't resist getting up at 5 am to buy new AirPods or Legos for the lowest prices of the year.
Also, big-box stores like Costco and Sam's Club offer low prices for bulk purchases. We buy massive amounts of food and supplies because they are cheaper.
In fact, one of the features of a product might just be the discount you got. I, for one, love to brag about the great deal I managed to find.
The need is a sub-category of price. Employing the strategy of using influencers and ambassadors aligns well with getting a good deal. One of the customary perks for being a brand ambassador is product discounts.
Discounts are ideal for anyone passionate about a brand. In virtually all cases, companies give special discounts to their influencers and brand ambassadors. However, the size of the discount varies from company to company.
Advocates receive unique discount coupons to share with their networks in addition to personal benefits. A few other purchasing drivers come into play with sharable discount codes and links.
When you receive the exclusive discount from a colleague, friend, or influencer, you feel a sense of belonging. Using the discount develops your identity and builds social currency.
#7 - We Buy Things to Make Us Happy
Many of the products we buy give us pleasure. Actually, obtaining joy might be a super motivator.
It's hard to list the examples of products that generate satisfaction and happiness. But here are some obvious things we buy to deliver enjoyment:
- Eating out
- The latest smartphone
- A new car
- Recreational equipment
- Great water bottles
- Comfy running shoes
- New mattress
- Kitchen appliances
- Gym bag
- Road bikes
- Pet toys
- And on, and on, and on
Customers respond positively to brands that understand how to tap into their innate human need to be happy.
The reasons why a consumer likes something should serve as the beginning point for product development and marketing initiatives. Examine the requirements that it will fulfill. A multitude of things influence people's motivation. Your product may guard a family during hot summers or help a teenager feel hip.
Would someone purchase your items because they require them to live?
Is it making your life easier?
Do we get better sleep at night knowing that we are secure and shielded from harm?
Does the product have a certain cachet, and we can't bear the thought of losing out on it?
Will a customer feel like they belong after purchasing from your company?
Is the pricing too good to pass up?
And most importantly, will people be happier?
Regardless of which reason your products fill, brand ambassador programs help enlist real people who know why they bought from your company. They quickly and authentically share the reasons with their network of friends and followers.
As a brand, you can look to ambassadors to expand your reach and truly connect your offerings to needs.