{"id":1007,"date":"2016-08-02T22:55:00","date_gmt":"2016-08-02T22:55:00","guid":{"rendered":"https:\/\/www.guided-selling.org\/why-becoming-the-point-of-decision-is-the-only-way-to-go\/"},"modified":"2024-03-01T20:11:00","modified_gmt":"2024-03-01T20:11:00","slug":"why-becoming-the-point-of-decision-is-the-only-way-to-go","status":"publish","type":"post","link":"https:\/\/www.guided-selling.org\/why-becoming-the-point-of-decision-is-the-only-way-to-go\/","title":{"rendered":"Why Becoming the Point of Decision is The Only Way to Go"},"content":{"rendered":"\n

Life is full of paradoxes and facts change by the speed of light. Years ago, all it took businesses to be successful was offering products of good quality at a reasonable price. As long as you made sure that the quality of the furniture, detergent, shoes, cars or razors you sold was superior to that of the competition, people would come to you to buy. You were pretty much set. Today, with the standardization of quality products<\/strong>, it\u2019s getting more challenging for companies to differentiate themselves from their competitor. In fact, in a recent consumer survey we found that 60% of surveyed consumers thought that products by competing brands were very similar.<\/p>\n\n\n\n

Another significant change: Technology has led to a shift in our information environment.<\/strong>\u00a0The emergence of tools\u00a0such as advanced search engines, aggregation tools, reviews, online video, social media, and other technologies\u00a0have enabled\u00a0consumers to assess the quality of products and services more easily. 88% of shoppers consult an average of 10.4 different sources of information before making a purchase<\/a>. And when quality can be assessed quickly, people are less hesitant to try out new products and services \u2014 the barriers to switching are lower<\/strong>. It also lowers the barriers for\u00a0newcomers to enter and disrupt these competitive markets in which they\u2019ll enjoy higher chances for success \u2014 prime example being Dollar Shave Club who managed to disrupt the shaving industry<\/a>. Digital technologies have promoted the growth of the so-called \u201cswitching economy\u201d and the\u00a0steady erosion in customer loyalty.<\/p>\n\n\n\n

Brand loyalty and product allegiance have been declining for several years now. The paradox here is that while people explore more sources than before, we can also observe that consumers are consolidating their shopping destinations. They are more willing to stick to a select few retailers and brands, as long as they deliver. In 2013, PwC found that 43% customers prefer to shop at a maximum of two to five<\/a> different stores. A more recent 2016 consumer survey by SMARTASSISTANT and SapientNitro found that already 67% customers in the US, UK and Germany shop at less than 5 different shopping destinations and only 10% shop at 9 or more stores<\/strong>.<\/p>\n\n\n\n

Companies are forced to find ways to deliver value that goes beyond price and product. If you have a look at why retailers, banks and internet service providers consistently have had the highest consumer switching rates in the past decade, you\u2019ll find that poor customer experience and service are the most prevalent reasons. Customer service and convenience determine whether a customer would visit once again, or take their business elsewhere.<\/p>\n\n\n\n

So what does this mean to your business?<\/h2>\n\n\n\n

Essentially, it means that you need to act. A good shopping experience is of greater value to a customer than just a bargain. No more do consumers just compare a dozen different websites and choose the one with the lowest price. Instead, they frequent the chosen few websites that provide a smooth, enjoyable experience, even if it costs a little more.<\/p>\n\n\n\n

Ergo, to boost customer loyalty and secure returning customers, you need to make sure your online store is equipped to provide a great customer experience. That\u2019s right. The Customers 2020 report by Accenture<\/a> shows that by 2020, customer experience will be more important as a differentiator in established key markets than low prices or large assortments \u2013 and emerging-market countries will follow suit.<\/p>\n\n\n\n

In the long run, discounts will come to a plateau, bargain hunting will tire down and choice overload will further hurt sales<\/a>. The only strategy that will prevail, is providing an excellent customer experience.\u00a0The focus of any successful business strategy should hence be, to make your store the Point of Decision \u2013 the preferred place that customers come (back) to, to complete the purchase or seal the deal.<\/strong><\/p>\n\n\n\n

Succeeding with your Point of Decision Strategy<\/h2>\n\n\n\n

Becoming the Point of Decision is only possible if you stand out in the eyes of your customer by giving them a truly differentiated shopping experience. There are a number of features and functionalities you must offer to make this possible.<\/p>\n\n\n\n

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  1. Hygiene Factors<\/strong> determine if a customer would feel comfortable shopping electronically in the first place, or would rather ditch your online store instead. Your website design and content must reassure the customer that the transaction is secure, personal information is protected and privacy is being respected.<\/li>\n\n\n\n
  2. Motivators<\/strong> are factors that help a customer choose your store over others. Seamless navigation, personalized recommendations, a great search functionality and a good customer support system<\/a> are paramount.<\/li>\n\n\n\n
  3. Media richness<\/strong> refers to all additional functionalities that can be added to make a website more attractive, fun and engaging. Community forums, social shopping features, interactive content such as product comparisons and product exploration capabilities or audio\/video enhancements are a few of many options.<\/li>\n<\/ol>\n\n\n\n

    Your online store must have the right mix of all these elements so it becomes the ultimate place where a customer can get rid of all doubts, understand what she or he needs and make a decision. With the consolidation of shopping destinations quickly progressing, your business has a very real chance of becoming the one place where customers like to make a purchase. The question is \u2013 are you keeping up with the demanding consumers who now have more options, are more fickle and extremely tech-savvy? Is your store evolving to become the Point of Decision?<\/p>\n\n\n\n

    Dollar Shave Club<\/a> is an interesting example of how a Point of Decision strategy works:<\/p>\n\n\n\n

    Checklist: Are you a Shopper\u2019s Point of Decision?<\/h2>\n\n\n\n
    \"\"<\/figure>\n\n\n\n

    Stage 1 \u2013 Products and Navigation \u2013 \u201cShow me what you sell!\u201d (Basic)<\/h3>\n\n\n\n

    In order to offer true value to your customers, you need to make sure you have the right products that are easy to find.<\/p>\n\n\n\n

    Does your store feature<\/strong><\/p>\n\n\n\n