Do you think you know what sells? Think again!
Did you know that there are only 5 reasons why people buy something? Basic Needs, Convenience, Tranquility, Ego and Fun. That’s all. Understanding these motivators is the key to successful marketing. Big marketing companies know this and make millions leveraging their knowledge. For any business to be truly successful, the people in it must understand why people want their products and services.
In my youth I did a bit of backpacking around Australia. One day I traveled to Brisbane Australia arriving at midnight on a bus from Sydney. I was alone, had nowhere to stay and very little money. I needed a place to live for the next 6-8 hours. I was looking to meet my basic needs. Without any real knowledge of the city, I started looking for a bridge to sleep under. As it turned out, I ended up meeting a taxi driver who took me to a nearby hostel where I slept on the couch for the night. If he had tried to sell me a trip to the Grand Hyatt, I would have had to turn him down. He wasn’t looking for comfort; I was looking for a basic shelter. He had backpacked in his youth and understood where he came from. He correctly assessed my situation and offered me a solution that worked for me. The taxi driver understood not only what he was looking for, but also why he was looking for it. I needed shelter, but I only wanted to meet my basic needs, nothing more. If he ever found it again, I’d thank him and buy two of whatever he sold.
Understanding why people buy is just as important as understanding what they buy. Just knowing that I am looking for a place to live is not enough information to solve my problem. Do I want basic accommodation for a short time (basic need)? Do I want to be closer to work (comfort)? Do I want to feel safe letting my children play outside (Quiet)? Do I want a home I am proud to host (Image or Ego)? Do I want a pool table and a big screen TV (Fun)? Understanding why I want a new place to live is critical to solving my problem. This applies to all purchasing decisions.
1. Basic needs
The basic needs are easy to understand. These are the things we need to survive. On a personal level this includes food, housing and the like. On a business level, these are basic items needed to do business, such as materials and labor. If you’re addressing a basic need, you can expect price to be an important factor. People don’t want to pay extra for their basic needs; they want to save that for more interesting things. When I was sleeping on the sofa in the Brisbane hostel, I felt lucky to have done business with that taxi driver. The taxi driver had exactly met my needs.
2. Convenience: saving time and effort
We all like to save time and money. Anything convenient that saves us time and effort is a big plus. On a personal level, we often make purchasing decisions based on convenience. Why do people buy dishwashers? Could we really not wash the dishes by hand? Sure we could, but we don’t want to be bothered. If we are looking for a place to live, we would like a dishwasher or a housekeeper. It is not a basic need. It’s a convenience that saves time and effort. Paying for convenience is common. We want to dedicate our time and effort to doing the things we like.
In a business environment, time and effort savings are money in the bank. I don’t know about you, but I sure as hell wouldn’t want to pay someone $20 an hour to cut wood by hand if I could pay them $20 an hour to cut it with a chainsaw. If I need a lot of wood, buying a chainsaw makes business sense.
3. Tranquility
Tranquility is something we all want. It’s about buying security. Motivation is very similar for personal and business situations. We want to know we’re safe, so we buy smoke detectors and fire extinguishers, maybe even a sprinkler system. We want to know that our families, our employees, and our homes and businesses will be safe if the unexpected happens, so we buy insurance. Everyone has some level of fear of the unknown and the uncontrollable. Peace of mind is a powerful motivator.
4. Appeals to the image or the ego
Never underestimate the power of the ego. People are vain. We all love to look good in the eyes of others. We like it when people are a little jealous when they look at our lives. We certainly don’t want them to look down on us or pity us. We make and buy many things because we like them (our own image of ourselves) or because we think others will like them. Decisions based on image and ego are decisions based on emotion. Logic has no place here, it’s about how something makes us feel. Tell your parents or friends that you just bought a house in the right neighborhood, and you’re sure to get that hearty “Wow, good for you.”
So image and ego definitely drive personal buying decisions, but do they also impact business decisions? Absolutely! At all levels, business is personal. A business owner wants his business to look its best. A department manager wants her department to be the envy of the other managers. The seller wants to be recognized as the best seller. The Engineer wants to be seen as the most innovative designer. Ego and image are still driving decisions. Remember that a business is just a collection of people. Personal relationships and feelings are still what get things done. Business people still buy with their emotions. The only difference is that they then (sometimes) apply logic to justify the decision. If two solutions are similar, you can be sure that the one that best satisfies the ego will win.
5.Fun
You don’t need to look any further than the multi-billion dollar entertainment industry to know that this is true. We love our free time and are willing to spend, spend, spend to have fun. That big screen TV or pool table in the basement has no practical purpose, it’s just fun. Companies are no exception. Companies spend millions each year on employee events, sporting event tickets and workplace ambiance. This is where we like to spend our money. It’s fun.
The desire to save or increase money
Although increasing your personal wealth is not one of the main reasons people buy, financial freedom is a burning desire within many of us. In today’s Western society, money is a powerful means of ensuring that we can meet all of our primary goals: basic needs, comfort, peace of mind, ego satisfaction, and fun. So it’s no surprise that people invest their money in things that save them money or make them money. We all want to be free. For people, financial freedom means securing their retirement, increasing their leisure options, leaving something behind for their children, and the ability to help others. For businesses, financial success is the ability to keep doors open and continue to help customers, employees, and owners. This is what it’s all about. Underneath it all, business success equals personal success for everyone involved. It is important to remember that making money is not the end goal. It is a means to an end. It is also important to remember that without money, it is impossible for a business to help someone.
Summary
Take a look at the solutions you offer your clients and find out which core motivators you are addressing. Spend some time really finding out. Now take a look at your existing marketing materials and see if they’re clearly addressing that core motivator. If so, great, you’re on the right track. If they aren’t, even better, you’re in front of a great opportunity to make some changes and see your sales grow.
In the end, providing the right solution improves people’s quality of life. The better you understand people’s reasons for wanting something, the better equipped you’ll be to help them with a great solution.