What is Buying Cycle?

Did you know that only 21% of sales manage to succeed? Optimization of the buying cycle can bring this percentage up and improve the profitability of your business.

You’ve probably been through the buying cycle yourself. You become aware of a product or service, find out more information, and then decide whether to buy it.

Understanding the process sales prospects go through, from discovering your product to deciding whether to make a purchase, will help to tailor marketing efforts, pricing and the sales process, boosting brand awareness, conversions and customer loyalty.

In this page, we’ll go through the stages of the buying cycle, why it matters and what you can do to improve it so that you can make the best decisions for your company.

What is a Buying Cycle

The buying cycle, also known as the purchase or sales cycle, is a series of stages a customer goes through as they decide to purchase a product or service. Depending on their needs, additional considerations and budget, the buying cycle looks different for every customer.

Related: The Psychology of Consumer Buying Behavior: Understanding How and Why People Buy

Buying Cycle: Why It’s Important

Understanding the buying cycle helps improve your business performance and cater to your customers’ needs at every stage. It can help you fill in the gaps, whether that’s in marketing, advertising or sales.

How to increase brand awareness? Perhaps there’s a lack of Search Engine Optimization or social media presence.

Why are leads not becoming customers? It’s likely because there’s something missing in your strategy which you need to fix. Examining the cycle and isolating the challenges customers face can help you come up with solutions to meet these needs.

It lets you get into the minds of your customers. Seeing your business through the perspective of the customer will help to make it stronger in the long run

Still unconvinced? Let’s break down some benefits you’ll be able to reap from the buying cycle

Buying Cycle: What are the Benefits to Look Out For

Tailor Marketing Efforts

Marketing falls under the awareness stage of the buying cycle, and it can be used to create on-the-mark strategies. It can help you tailor your marketing towards the customers’ needs.

Use the channels that are most successful in making them consider a product—for example, influencer sponsorships. Find out what the customers are looking for in a product and centre promotions on these aspects.

Expand Customer Base

It helps you identify what is lacking in your approach, which in turn makes you able to provide the needed solutions. Viewing your product through the eyes of an average customer helps you understand their pain points and understand their hesitation. You’ll be able to provide the necessary information and solutions, which consumers appreciate, resulting in a higher success rate.

Improved Customer Retention

The buying cycle doesn’t consist only of convincing the customer to buy the product but also how to retain that customer after the initial purchase. Customer care is essential in repeat purchases and in creating goodwill, which pays off in word-of-mouth advertising. Analysis of the final stage of the purchase cycle and implementation of its recommendations enhances customer retention.

Also Read: 12 Must-Ask Questions for Your Customer Support Surveys

Stages of the Buying Cycle

Now that we know the benefits, let’s break down the different stages which make up the cycle.

Awareness

The customer becomes aware that they have a problem that needs to be solved, and this is where your company steps in. The customer searches for what can solve their dilemma. Your marketing efforts need to reach the consumers so they know you have the solution for their problem.

The Customer Decision-Making Process: 4 Things You Ought to Know

Consideration

The customer has realized that they need to find a solution to the problem they’re having and they conduct research on the different options available. You need to convince them why your product or service is worthy of being a top option.

Give all the information about your product and its description. In this stage, it’s good to compare your product to those of your competitors and highlight its strengths.

For example, imagine you’re selling a facewash. You can make a chart comparing it to those of other brands by putting a spotlight on its advantages, such as the absence of harmful chemicals found in other facewashes.

Intent

This is the stage where the buyer decides which option to buy out of all the others. You need to pull out all the bells and whistles but don’t be pushy. Appeal to the buyer’s feelings and logic. Why should they choose your product from the vast sea of others? This could be an advantage in pricing, reliability or a particular feature that others don’t have. Your sales division should play on this and persuade the customer that your product will fulfill their needs the best.

Purchase

This stage is quite simple — the customer has decided to purchase your product and the purchase is made.

This stage also includes customer care. Elements, such as handling complaints or questions, check-ins with product satisfaction, etc. should be handled well because they go a long way in leaving a favourable impression on the customer. This boosts your brand’s reputation and goodwill, ensuring future opportunities. This segways perfectly to the final stage of the purchase cycle.

Also Read: Post Purchase Experience: Meaning, Benefits and 25 Ways to Improve

Repurchase/Renewal

In this stage, we can see the efforts from the previous stages paying off. If the customer was satisfied with the product or service and with the level of care they received, then it’s highly likely they’ll repurchase or renew (in the case of a subscription service.) It’s crucial that the business and customer have a good relationship with each other for repeat business, so don’t neglect after-sales service.

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Tips to Optimize the Buying Cycle

Improvements can be made in every stage of the cycle so that you can customize your teams’ efforts to match the needs of the customers and generate the highest number of sales.

Awareness – Maximize Marketing Tactics

Your marketing team needs to understand the purpose of your product or service and tailor their future campaigns around it. You must understand who is your target audience, what is their problem and how your product solves that problem. Create content that speaks to them and ensure it reaches them through the channels they’re active on.

Rather than focusing on one method, use multichannel marketing to reach as large an audience as possible.

If you’re looking for the top multichannel survey distribution tools, this guide will come in handy.

Consideration – Content and Tier Pricing

The consumer is in the research stage so this is the time to put the spotlight on your product. Direct them to articles about the product, videos showcasing its use, testimonials, etc.

Depending on what you’re selling, you can use a tiered pricing strategy. This way customers can pick a plan with the features they need and don’t have to fork over extra money for features they will not use, making your product more attractive.

FURTHER READING: Competitive Pricing Analysis: A Complete Guide

Intent – Let your Brand and Product Shine

The intent stage is all about swaying the customer to purchase your product. Use reviews, descriptions, comparison charts and brand reputation to hammer in why people choose you. Highlight what puts the product above its competitors and why your brand is trustworthy and reliable.

A great way to showcase this is to offer free trials of your product. After all, what better way to show the efficacy of your product than to let them try it out for themselves?

Purchase – Double Down on Reasonable Pricing

Nothing will turn off a customer faster than exorbitant pricing. Make sure your product has a price tag that aligns with what it offers the customer.

You can also coax customers with incentives like coupons or special discounts. For example, if you collaborate with an influencer, you can give a special code to viewers, who will then receive a 20% discount.

Sales periods are also a great way to increase conversion rates.

Repurchase – The customer is King

Repeat customers make up a big part of revenue, close to 65%! Customer service influences a big part of that loyalty (the same study reveals that 69% of customers believe so), hence that is a part of the business which should not be neglected.

Keep in contact with customers by answering their questions, sending customer satisfaction surveys and rewards for loyalty, such as a points system. Customer goodwill to the brand will go up, increasing your share in the market. You can ask them to leave reviews of the product or participate in case studies or testimonials.

Supercharge your Buying Cycle with SurveySparrow

It is no secret that businesses need robust tools for gathering customer insights, measuring satisfaction, and continuously improving their strategies. This is where SurveySparrow comes in as an invaluable asset.

SurveySparrow offers a comprehensive suite of survey tools designed to support you at every stage of the buying cycle:

• Awareness: Use SurveySparrow’s market research surveys to understand your target audience’s needs and pain points, informing your marketing strategies.
• Consideration: Gather and showcase customer testimonials with SurveySparrow’s user-friendly survey templates, building trust with potential buyers.
• Purchase: Deploy quick post-purchase satisfaction surveys to address any immediate concerns and improve the customer experience. Here’s a template you can use to get started right away!
• Repurchase: Implement regular customer satisfaction surveys to maintain strong relationships and encourage loyalty.

Ready to take your buying cycle to the next level? Explore how SurveySparrow can transform your customer insights and drive business growth. Start your free trial today and see the difference for yourself!

Your competitors are listening to their customers. Are you?

Optimize your buying cycle with SurveySparrow's free trial today!

Signup

14-Day-Free Trial • Cancel Anytime • No Credit Card Required • Need a Demo?