Three Phases of the Customer's Buying Cycle

When business owners talk about what their day-to-day operations are like, you often hear of the sales cycle: the process of steps between identifying potential customers and actually selling a product or service to them. The complementary counterpart to that is the customer's buying cycle. This refers to the sequential series of steps a customer takes between the time they begin shopping around for something and actually committing to purchasing it.

Understanding this cycle will help you structure your marketing and sales strategy around what your customers want and will respond to.

The customer buying cycle can be broken down into three stages: awareness, interest and purchase. Awareness describes the point at which your customer first learns of who you are and what you are offering to them. Interest is when a customer begins to see your product or service as something they might want to buy - this consideration comes from the belief that it fits their needs or wants in some way. Purchase involves the final evaluation of your product - this is where customers will ultimately decide whether or not they want to buy what you have to offer. Most sales pitches are made in this phase. Understanding a customer's needs in each part of the buying cycle will go a long way towards helping your business attract and retain customers.

1) Awareness

This is when customers first become aware of you, and by extension it is the first impression they will ever have of you. Your advertising and marketing team likely focuses on this part quite a bit, as creating a sense of brand awareness is what allows a business to market itself to a new demographic. If a brand tries to cultivate a semblance of luxury and refinement, everything about the way they market themselves to new customers will reflect this. SEO (Search Engine Optimization) Optimization is also utilized during this phase - a potential customer who is previously unaware of your brand will better find your company and everything that it offers if the keywords on your website better reflect what your ideal customer might be looking for.

2) Interest

This is the phase where customers have explicitly or implicitly stated that they want the product or service on offer, but have yet to commit to any kind of a purchase. This is the phase where you inform your customers of what you offer them, and how you can better serve their needs. Companies targeting this phase of the buying process will offer their potential customers all the information they need to settle on a decision. Furthermore, this is where businesses can tailor their product and/or services to fit what their ideal customers want.

The other half of exploiting this part of the buying cycle lies on the customer's end - that is, what other people have to say about your product. For instance,  you're looking for a product that fills a specific niche. You find something that looks like it might fit, but you know nothing of its quality or reliability. Offering customer and industry testimonials praising what you offer will go a long way towards convincing your potential customer that you are the right choice for their specific needs. 

3) Purchase

While this phase does include the actual purchasing of a good or service, it also encompasses the final evaluation of your product. What differentiates this from the interest phase is that the customer is now receptive to a more in-depth understanding of what you are providing. They have demonstrated that they are not only interested in what you offer, but have given a direct signal that they want to buy from you. This is your opportunity to quite literally seal the deal.

Car dealerships understand this part of the process well - the purchase phase begins when customers sit down to actually negotiate the payment of a vehicle and every term and stipulation thereof. Not all customers actually buy, but by sitting down to negotiate a payment, they have indicated that they have moved beyond a mere interest in a car and are now showing an intent to commit. The sales team is usually involved in this part of the process, and how you match your product to their needs as well as providing a good deal will determine whether or not you make the sale.

As a business owner, you may not be able to control every aspect of the customer experience, but you can provide enough information to your customers where it's easier for them to make a purchase. With more awareness of the customer buying cycle, you can update your marketing and sales strategy to help you drive more business.

Source: Three Phases of the Customer's Buying Cycle

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