Understanding Buyer Perceptions

Perceptions are formed relative to the buyer’s assessment of sometimes seemingly unrelated things. Your buyer gets to choose who they want to compare you to.

Let’s consider an example:

I took my new Lexus back to the dealership last month for its first routine oil change. What an experience. The Lexus reps treated me like royalty. They offered me a loaner car for the whole day if I didn’t want to wait for the thirty minutes it would take for them to finish my car. I decided to stick around, so they invited me to have a seat in their waiting room. This was not the typical auto mechanic’s waiting area. It was clean and it smelled nice. It had leather sofas and a big TV turned to a news channel. Also, there were fresh croissants and hot coffee ... it was good coffee too! When my car was returned to me, I saw that the mechanics had laid paper mats on the floor to keep it clean, and a wrap on the steering wheel so they didn't get grease on it. What a terrific experience for a $29 oil change.

A few days later, I stayed at a Marriott hotel, where I paid $400 for the night. I went downstairs the first morning and discovered that they charge eight dollars for a cup of coffee. I thought, how is it that I can get amazing service and an excellent free cup of coffee with my $29 oil change at Lexus, yet I can spend $400 a night at the Marriott and have to pay eight dollars for my morning coffee?

My perception of the Marriott brand value took an abrupt nosedive because of an unrelated experience with a different company (Lexus) in an entirely different industry (vehicle service and maintenance). Marriott may think that’s not fair and that I should only compare them to other hotels. I hate to break it to Marriott, but no, I don’t have to compare them to a Hilton, Hampton, or Holiday Inn.

As the buyer, I get to compare them to whomever I want!

PERCEPTIONS AREN’T STATIC: THE RELATIONSHIP BANK

Imagine that your relationship with each client is like a bank account. As you go through life with your buyer, the “sales equity” account balance is always fluctuating. When you do something they appreciate – better than they think they can get from the pack, you earn sales equity and you’re essentially making a deposit into your relationship bank. But when you screw up, there is a withdrawal. The goal is to earn significant sales equity in your relationship bank; the challenge however is twofold.

First, the notion is what have you done for me lately? People tend to remember recent events better than they remember those from the past, so whenever there is a withdrawal from the relationship bank account, that’s what the client will recall with the most clarity.

The second challenge is that if you try to influence your buyer’s decision when the balance is low (or in the negative), you’re going to have a much harder time than if you’re selling them something when the balance is positive.

If you’ve been earning sales equity and building your relationship bank balance all along, the odds of keeping them around are in your favor. If you haven’t, you’re likely to get an overdraft notice.