Here Are
The Big Three
1. The perceived benefit from switching the product is not worth the time and effort the customer must invest in
the change process.
OK, so your LAGS (latest and greatest solution) will save him 5%. But, he must work off his old inventory, notify the current supplier, switch all the numbers in his purchasing and inventory systems, perhaps rewrite protocols, maybe train staff in the new thing, communicate the change so that everyone internally knows about it, etc. See the problem?
It takes time, effort and money to change a product. And most of your
customers, if they are like most of the business world these days, have too much to do and not enough time in which to do it. They don’t need another project. So, while your LAGS is an improvement, the improvement just isn’t worth the time and effort.
2. The potential change infringes on a well-established relationship.
It maybe that the current product is being purchased as part of a committed relationship with the competition. And it may be that the
competitor performs other services for this customer that would be jeopardized if the customer didn’t buy this product from them. For example, the competitor may invite this customer to an annual outing to his condo on the beach in Florida. If the customer switches this item, he may believe that it jeopardize that. Or, the competitor inventories the product for them, provides special dating, packages it specially, etc.
The issue here is that switching the product harms an existing relationship, and the relationship is more important to the customer than the savings or benefit of your product.
This relationship issue can also extend to the individual. In other words, the customer has
a long-standing excellent relationship with the competitive sales person. And the customer doesn’t want to do anything that might be seen as jeopardizing that relationship. In either case, the relationship trumps the benefits of your product.
3. The risk isn’t worth it.
Every decision to buy carries with it a perception of risk. Risk is defined by the perceived cost to the individual customer
if he/she makes a mistake. Think of it this way: What happens to the individual decision maker if he decides to switch to your product, and it doesn’t work out the way you portray it? Maybe the product doesn’t quite work as smoothly as it seems, or your ability to deliver isn’t what you promised. What grief does that cause...[CLICK HERE TO READ THE ENTIRE ARTICLE ONLINE]