A New Look at the Purchasing Decision
The consumer decision journey, published in McKinsey Quarterly, challenges the traditional metaphor of the decision funnel and suggests a more complex model powered by (you guessed it) the exponential rise of new interactive communication channels and nuances in customer loyalty uncovered in a study of “almost 20,000 consumers across five industries and three continents.” For those of us who work primarily in the B-to-B realm, the new framework offers gems of ideas that we should consider as we develop our communication plans.
One important proposition of The consumer decision journey is that the decision process is not necessarily represented by a funnel, whereby purchasers narrow down their choices as they get close to the buying decision. Rather, as they start from their initial-consideration set (which is, largely, the fruit of investments in brand building), they are very likely to expand the number of brands being considered in the next, active-evaluation phase. The takeaway is that (a) brands cannot take their position in the initial-consideration set for granted and (b) there is an opportunity to interrupt the decision-making process even if your brand has not made it in the first cut. Whichever category your brand may fall into, the key is to be communicating with your target audience as they enter this next phase, with information that is relevant to the current business context. New regulatory or policy guidelines, current socioeconomic forces and competitive dynamics are just some of the factors that can change the decision-making dynamics. The consumer decision journey cites Hyundai’s offer to allow buyers to return their cars if they lose their jobs as an example of a game-changing tactic to break into the active-evaluation phase.
A second point that I gleaned from this article is how we may have to rethink peer groups. Healthcare professionals and scientists have always placed a great deal of weight on peer review and recommendations in purchasing decisions. Just as in the consumer world, new media that accelerate the dissemination of user experiences and opinions, both favorable and unfavorable, are amplifying this reliance on friends and colleagues. What is also interesting is that new media have leveled the playing field to the extent that they have given voice to more people—you don’t have to wait to post an opinion—and therefore the bar is lower for aspiring influencers or “experts.” A brand that is actively engaged in this open dialogue—as a participant, facilitator or sponsor—will improve its chance of being in front of the prospective customer when buying decisions are being shaped and, better yet, have a proactive role in shaping those decisions. Hint: Your communication plan had better have a strong Internet component.
A third takeaway for me is the identification of two types of customer loyalists: the true loyalists (what the article calls “active loyalists”) who will keep buying and recommending your brand and the “passive loyalists” who are staying with you out of inertia (e.g., a long-term purchasing contract) but can be coaxed into moving away from your brand. Clearly, the two distinct groups call for very different communication strategies.