How do WE (sales folks) understand how YOU (the customer) select vendors?

My thoughts were first stimulated by an article I read from enquiroresearch.com, on Mapping the Buyersphere, the subject being B2B buying decisions.

Each decision by a buyer or the B2B customer focuses on one object from start to finish, minimizing fear through the elimination of inherent risks. So, what are the risks in making a corporate buy? There are risks to the organization and there are risks to the individual.

The risks to the organization are usually mitigated through various formalized stages in the buying process. We’ve all been through these: RFI’s, RFP’s, detailed demonstration, use case presentation, sand boxes, pilot tests, documentations and discussions across various silos. These steps are different for every company and for every type of purchase depending upon the complexity of the product or deliverable. Riskier purchases are more formalized and get pushed through a stronger vetting process. These become mechanical and most sellers, knowing what will come, are well prepared to block and tackle through these steps.

One buyer was quoted as saying “My job is to make sure that every vendor that makes it through to the final cut is a vendor that we can live with.” There should not be a bad first choice or second choice at that stage.

So, what’s so difficult about becoming a finalist? The secret sauce is in understanding the buyer’s or buyers’ personal risks and how they go about mitigating their perception of risk. Typically your buyer will have completed quite a few tasks prior to even having a conversation with you. Here’s the top five risk control tools in use:

1st-Personal experience – if you have been in the market long enough, you’ve probably touched one of the products within the category that you are going to buy, people already have their favorites and they have those they loathed.

2nd- Get some word of mouth data points from co-workers and industry peers. Everyone knows someone who has purchased something similar, so there is plenty of advice to be had.

3rd- Look for pre-approved vendors on the corporate buying list, these folks have already been vetted out and are probably supplying a product to another peer within the company, a great place to find out first-hand what their experience was.

4th- Determine vendor credibility and market position. Who are the leaders in the space and those with the most perceived expertise in delivering solutions. Typically, this is well-known or can be determined through research and analyst opinions (Do NOT base your decision upon how many ads you see). Choosing the top vendor is the space may indeed be the safest purchase but may not always be the most suitable.

Lastly- think about price!

Next up, what does the vendor do to mitigate the buyer’s perception of their RISK?