by Mark Jensen
The lead you are contacting operates from a Buying Cycle. The Buying Cycle is the potential buyer’s system and behavior processes used to create a purchase. It is an echelon of activity that increases in intensity up to and past the point of a purchase. There are three stages to the Buying Cycle:
Stage 1 - Problem Recognition
Step One. Current Product
Step Two. Problem
Step Three. New Product
Stage 2 - Strategy Development
Step One. Solutions
Step Two. Resources
Step Three. Strategy
Stage 3 - The Solution
Step One. Ownership
Step Two. Adoption
Step Three. New Situation
Explanation of the Buying Cycle
Stage 1 - Problem Recognition
Step One - Current Product > Step Two - Problem > Step Three - New Product
“Problem Recognition is the conscious acceptance that a Current Value is no longer totally acceptable.”
Ultimately we learn a problem exists but recognizing the problem is a critical step. A prospect recognizes a difference exists between his or her current state of affairs and some desired state. A current value will not suffice. There is a negative attitude attached to the current value. The recognized value can be general or specific. It can be a simple process or a complicated process. Awareness is a primary factor in Problem Recognition. Being aware a problem exists becomes more critical the greater the value.
Problem Recognition requires conscious thought. You have to identify or discern issues surrounding the problem. Often times we don’t recognize the attributes of a problem but we realize we are ignoring something. If we ask ourselves, “What am I overlooking?” we can often spot problem
Step One - Current Product. The Current Product is the current product, service or situation of the lead, prospect or customer that you, the seller, hopes to change.
The lead, prospect or customer has a current situation you, the seller, hopes to affect. The lead, prospect or customer has a need for your product or service and currently doesn’t have it or you hope to replace the current product or service with your own. The Current Product is the product, service or situation of the lead, prospect or customer.
It’s essential you learn the Current Product of the lead, prospect or customer if you hope to sell your product or service. You want the potential buyer to know the benefit you offer. Without knowing the potential buyer’s situation you would be operating from a weak position. Your need analysis and assessment would be impaired. Your ability to offer meaning solutions would be weakened. The true value you offer wouldn’t be communicated effectively.
Step Two – Problem. A Problem is an accepted inequality of values.
Prospects and businesses purchase goods and services to solve problems. We have been raised to believe that all problems are bad. A problem, in and of itself, is not necessarily a negative thing. It is an issue to be resolved.
How do we know when we have a problem? When we question ad query. Simple questions such as, “Am I hungry?” or “Do I want to go to a movie?” start the process. If we are mentally faced with difficulty or disagreement we are surely faced with a problem. If the purchase or use of a good or service solves a problem we are dealing with a problem.
Define each and every product opportunity in business as a problem. Don’t think of a problem as a negative issue. It may be but it may also be an opportunity.
Step Three - New Product.
A New Product is the product or service you, the seller, are introducing to the potential buyer as an alternative to Current Product and as a solution to a problem.
As a seller, you are interested in selling your New Product to the potential buyer. The New Product is your product or service. It’s how you generate your company’s revenue. You want to position your New Product as the solution to the potential buyer’s problem.
Stage 2 - Strategy Development
Step One - Solutions > Step Two - Resources > Step Three -Strategy
Step One – Solutions. Solutions are ideas and concepts you discuss with a potential buyer that would solve a problem and improve a Current Product.
In Stage Two, the potential buyer develops a strategy to solve the problem addressed in Stage One. Solutions will be discussed that can potentially solve the problem. Sometimes there’s only one solution but most often there are multiple solutions. You’ll want to discuss the solutions with the seller and attempt to position your products and services as the solution of choice. Stop One is often a brainstorming session but one you hope to guide in your favor.
Step Two - Resources. Resources are all the things needed by the potential buyer to solve the problem created by the Current Product and the positioning of the New Product.
Resources can be many things. It can be the money to pay for the product or it can be the buying center group that will approve a purchase. It could approval from a governing body or a license granted by an agency. Resources are person, place or thing that contributes to the solving of the problem.
Step Three - Resolution Strategy. A Resolution Strategy is a plan with necessary controls designed to resolve the problem.
A strategy is a plan or a method to solve a problem. A strategy to solve the Current Product problem will be formed after solutions and resources are determined. This includes a search for information, a determination of perceived risks and choosing alternatives. A goal will be chosen that resolves the conflict and then, desire to implement the strategy begins to build. The strategy will include a transaction that completes the purchase of your New Product.
Stage 3 - The Solution
Step One - Ownership > Step Two - Adoption > Step Three -New Value State
Step One - Ownership. In Step One, ownership of the New Product is started and completed. The first part of ownership is the transaction. The transaction is completed and payment is exchanged for goods or services. The product or service is delivered to the new owner where the benefits can be derived.
Step Two - Value Adoption. Value Adoption is the taking and receiving of a New Value into an existing environment.
Value Adoption is the process a prospect implements to adopt the value of the problem resolution. The greater the problem the harder the process of integration can be. Integration is the process of deriving value or benefit from a product or service through its use. Some products have immediate integration such as foods and beverages. Others take time to derive the benefit such as a new software program or a new book. Adoption is the description for the entire integration process including concepts of ownership, integration and conflict resolution.
Step Three - New Situation. The New Situation is the new situation, condition or identity created from the adoption of the New Product and completion of the problem resolution process.
Products and services create new situations, conditions or identities for the prospect who purchased it and adopted its values and received the benefits. Some products have a profound effect on the purchaser. A family purchasing a first home or a teenager with the first car is examples where the new value state is profoundly different than before the problem resolution process.