IT Study – Motivating Factors as to Why Client’s Buy

by Victor Antonio

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Last week I posted a video titled “Reduce Costs or Increase Revenue” which highlighted the three primary motivating factors for a client to make a buying decision:

– Increase Revenue (sales)

– Reduce (cut) Cost and

– Avoid Missed Opportunities

I stated that the most impactful of the three was showing clients how they could ‘reduce cost’ because clients can quantify, control and make permanent those cost reductions.

I’ve had a few people question whether leading off a presentation with Reduce Cost scenarios has more impact than Increasing Revenues projections.  So I dug a little deep and found this IT survey done on small and medium size businesses (SMB) that further validates this point.

A sample of 500 SMBs where asked to list the top 3 motivating factors for buying new technology.  As you can see from the graph, second to “Increasing Productivity” (which is a cost cutting measure to increase cash flow) is ” Cut Cost”.  You’ll note that “Increase Revenue”  (sales) comes in sixth in terms of motivating factors.

(Click on image to enlarge)

 

Survey of IT Buyers

source: marone-lunsford (2005)

It’s important to emphasize once more that addressing cost cutting, increase revenue and avoid miss opportunities are all relevant and warrant a discussion with the client.  The only point I wish to make here is that putting more emphasis on how your product or service can help them reduce costs will probably resonate more with your client.