Why and How People Buy: The Power of Understanding the Customer

Inside Consumer Behavior

The science of consumer behavior describes and even defines how you shop and, more importantly, why you buy. Smart retailers study consumer behavior patterns and lay out their stores and merchandise accordingly. For example, did you know that 86 percent of women look at price tags when they shop, while only 72 percent of men do?Paco Underhill, Why We Buy: The Science of Shopping (New York: Touchstone, 1999), 99. And did you know that the average shopper doesn’t actually notice anything that’s in the entrance of a store? According to Paco Underhill, famous marketer, CEO and founder of EnviroSell, and author of the book Why We Buy: The Science of Shopping, consumers don’t actually begin shopping until a certain point after they enter the store. That’s why smart retailers include a “transition zone” at the entry to their store; it allows customers to get their bearings and choose their shopping paths. In other words, products, signs, and displays that are in the very front of the store might not be seen if there is not a transition for the customers when they enter. In the case of Abercrombie & Fitch, the transition is the space just inside the entrance that includes the humongous photo of the Abercrombie model du jour. When you go into Hollister, it’s the outside porch that serves the same purpose; it’s a transition that allows you to get your focus and plot your course in the store, even if you don’t consciously realize it.

Think about the last time you went into a grocery store or drug store; you might not have noticed anything until you were well inside the store, which means that the merchandise and signs that were displayed in the area before you got your bearings were virtually invisible to you.Paco Underhill, Why We Buy: The Science of Shopping (New York: Touchstone, 1999), 46. Based on consumer research, there’s a high likelihood that you turned right when you entered the store. Take note the next time you go shopping; chances are, you’ll turn right after you walk in.Paco Underhill, Why We Buy: The Science of Shopping (New York: Touchstone, 1999), 46.

Understanding how and why customers buy can make a significant difference in how you sell. Is the product a considered purchase, like a computer or car, or an impulse buy, like a sweater or music download? Is the product bought frequently, like an energy drink, or only once every few years or even once in a lifetime, like a car or a college education? For each of these products, the customer goes through a buying process. Understanding the customer and the buying process can make your selling efforts successful. This video featuring Martin Lindstrom, the author of Buyology: Truths and Lies about Why We Buy, highlights the science of consumer behavior in selling and marketing

Do You Need It or Want It?

Think of something you need, like an annual medical checkup, a new apartment because your lease is up, or even food to survive. There are some products and services you purchase solely because you can’t exist without them. Now think about something you want: a new pair of jeans, an iPhone, tickets to a concert. There is a significant difference in what motivates you to buy products and services you need, compared to those you want.

Maslow’s Hierarchy of Needs

When Hurricane Katrina hit the United States on August 28, 2005, the Gulf Coast was devastated. Thousands of people were stranded for days, some without food, water, or shelter due to overwhelming flooding. Almost two thousand people lost their lives in the natural disaster.United States Department of Health and Human Services, http://www.hhs.gov/disasters/emergency/naturaldisasters/hurricanes/katrina/index.html (accessed August 2, 2009). During those horrible days and in the aftermath, those who were affected by the catastrophe did not care what kind of car they drove, what anyone did for a living, or if they forgot to sign up for French or scuba lessons. They were focused on the basics: food, shelter, and clothing.

This tragedy is a demonstration of exactly how Maslow’s hierarchy of needs works. Abraham Maslow is among the most renowned psychologists of the twentieth century. His theory explains human behavior in simple terms: A hierarchy of needs that begins with the most basic of physiological needs (e.g., food, water, shelter, and clothing) motivates people, and when the lowest-level needs are satisfied, they are no longer motivators.[citation redacted per publisher request].

During the days after Hurricane Katrina hit, people were rescued and provided with water, food, and shelter. Many were relocated to temporary housing or even to housing outside the affected areas. It was not until after the physiological needs were met that people became concerned about the next level of needs on Maslow’s hierarchy: safety needs. Looting of shops in some of the cities began to occur, and there was even concern that the police force in some cities was not taking an active role in arresting those who were breaking the law.Associated Press, “Looters Take Advantage of New Orleans Mess,” msnbc.com, August 30, 2005, http://www.msnbc.msn.com/id/9131493 (accessed August 2, 2009). The people of the Gulf Coast were no longer motivated by simply getting water, food, or shelter; they had moved up Maslow’s hierarchy and were concerned about their personal security and well-being.

As the days and weeks passed after Hurricane Katrina hit, its victims wanted to get back to their normal lives. They searched for options to put their children back in school, ways to get jobs, and options to rebuild their lives. By Christmas 2005, people stopped to celebrate the holiday together. According to a story reported by CBS Evening News on December 25, 2005, about the Christmas gatherings in New Orleans, “The will to be home for the holidays outweighed everything else.”Joel Roberts, “Christmas After Katrina,” CBS Evening News, December 25, 2005, http://www.cbsnews.com/stories/2005/12/25/eveningnews/main1165360.shtml (accessed August 2, 2009). By this time, they were motivated by social needs, or the need to belong and have an attachment or bond to others.[citation redacted per publisher request].

Slowly but surely, people began to rebuild their lives and their cities. People took on leadership roles and began to take recovery to the next level. Even people who were hundreds of miles away from the hurricane-ravaged area wanted to help. Volunteers from all over the country began to make the pilgrimage to the Gulf Coast to help in any way they could. In fact, volunteer vacations to help rebuild cities such as New Orleans became commonplace and are still going on today.Sheryl Kane, “Volunteer Vacations: Rebuilding New Orleans,” June 26, 2009, SingleMindedWomen, http://singlemindedwomen.com/2009/06/rebuilding-new-orleans (accessed August 2, 2009). This is an example of esteem needs, or the need to feel respected and appreciated by one’s peers. Although volunteers were motivated by social needs and the need to help their fellow human beings, they found that they were also greatly appreciated for their efforts.

Although recovery will be going on for years to come, many of the people affected by the destruction of Hurricane Katrina are striving for self-actualization, which focuses on learning new skills, taking on new challenges, and “being all you can be.”[citation redacted per publisher request]. John and Starr Chapman are perfect examples of this; their restaurant, Chappy’s Seafood Restaurant, was lost in the hurricane. The couple relocated to Nashville, Tennessee, and in 2006, opened Chappy’s on Church Street. Although it was challenging and overwhelming at times, the husband-and-wife team is not only surviving but also thriving after this life-changing experience.Joy Messer, “Survivors of Hurricane Katrina Overcome Adversity and Open ‘Chappy’s on Church Street,’” July 23, 2008, Associated Content, http://www.associatedcontent.com/article/887343/survivors_of_hurricane_katrina_overcome.html?cat=22 (accessed August 2, 2009).

This all comes together at the point of sale, whether you are selling in business-to-consumer (B2C) or business-to-business (B2B) environments. When you understand the motivation of your customer, you can customize your solution and your message to meet their needs, emotions, and motivations. Consider the Hurricane Katrina example; would you attempt to sell fine jewelry, pitch the benefits of a landscaping service, or suggest a home theater system to someone in New Orleans on August 29, 2005? Probably not. People were focused on their most basic needs at that time, and none of these products or services would have been appropriate to sell. Although this may seem like an extreme example, it’s a good way to remember to look at the world through your customer’s eyes, as you’ll see a completely different view. Now that you can see what motivates people to buy, it’s time to learn who is buying. Although the buying process is similar for B2C and B2B, there are some distinct differences that can make a difference in the way you sell.

Business-to-Consumer (B2C) Buying

Think back to your visit to the Abercrombie & Fitch store. It’s pretty obvious that you are the customer, or in marketing parlance, you are the consumer, the end user of the product or service. You might be shopping for yourself or buying a gift for a family member or a friend. Either way, you (or the person to whom you are giving the product) are the ultimate consumer, which is what defines B2C buying. So, whether you are buying a cell phone and service at a Verizon store, a music download from iTunes, or a burger and fries at Burger King, you are buying in the B2C arena. Even though you may behave differently than your brother or roommate in terms of your purchasing decisions, you are all described as B2C customers because you are the ultimate consumer of the products or services you buy.

Business-to-Business (B2B) Buying

With B2B customers, sometimes referred to as organizational (or institutional) markets, there are several different types of situations that define needs and purchasing behavior. Some companies buy products to sell directly to consumers, whereas others purchase products as ingredients or components to produce their product. Still other companies lease products or services, while others serve the public, such as government or nonprofit organizations. Each of these different types of companies and organizations has different needs and requirements that impact the buying process.Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart, Marketing: Real People, Real Choices, 5th ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 179.

Big Differences

B2C and B2B purchasers are different for several reasons. The most important differentiator is that consumers purchase for their own consumption (or the consumption of their household or friends), whereas B2B customers purchase to produce or resell the product to a company or the ultimate consumer. There are also several other key differences between B2C and B2B buyers. Generally, B2C buying is based—for the most part—on impulse, low-risk decisions for products and services that are readily accessible. Whether you shop online, in a store, or at a direct selling party, your buying decisions impact only yourself and your family and do not put you at risk. Although you may make some significant buying decisions such as a house or a car, your options are easily accessible (go online, go to the mall or store), and your decisions don’t put you in danger of losing anything—except, of course, if you spend money you don’t have.

However, in a B2B buying decision, the buying decision is complex, and there is significant risk because a single decision can affect the quality of a product or service offered by a company to its customers, safety of consumers, or even profitability of the company. If a B2B buying decision is the wrong decision, the person or people who made the decision might suffer the consequences, including the loss of his job.Randy Shattuck, “Understand the B2B Buying Cycle,” http://www.internetviz-newsletters.com/PSJ/e_article001037852.cfm (accessed August 1, 2009).

Business-to-Business Means Person-to-Person

Although B2C buying behavior is very complicated, B2B buying behavior is even more complex. The fact is, although it’s called business-to-business buying, the term actually describes people doing business with people. A business never makes a buying decision; the decision is made by people who work for the company. So B2B buying decisions are subject to the same behaviors as B2C buying decisions, but on a more challenging level because B2B buying decisions usually include multiple decision makers, an extensive evaluation process, extended analysis, and they represent a high risk on the part of the decision makers.Kae Groshong Wagner, “The B2B Buying Process,” http://www.internetviz-newsletters.com/PSJ/e_article001037852.cfm (accessed August 2, 2009).

While many B2B buying decisions are made by an individual decision maker, many are made by a group of people working together, usually from different departments. When this is the case, the group is called a buying center, all the people in a group who are involved in the buying decision.Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart, Marketing: Real People, Real Choices, 5th ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 184. For example, hospitals use buying centers to make decisions on new equipment, a retail company might use a buying center to determine which point-of-sale register system to purchase. The buying center usually includes people from the organization who have expertise in different areas, and each may play a different role in the buying decision. Following are some roles that may be included in the buying center.

Types of B2B Buying Situations

There’s still more you can learn about the B2B buying environment. Although companies are so different from each other (some are large multinational corporations while others are one-person operations) and the types of products and services being purchased are so different (everything from business cards to office buildings), it might seem difficult to know how to apply the concepts covered to every buying situation. One way is to understand the different types of buying situations that face a B2B buyer.

The Traditional View of the Seven Steps of the B2B Buying Process

You are probably familiar with buying as a consumer. But did you ever think about how Aéropostale decides what products will be in their stores for the spring season, how a restaurant determines which beverages it will offer, or how Hewlett-Packard (HP) identifies which parts it will use to manufacture its printers? The buying process outlines the steps that the B2B customer goes through when he is making a purchasing decision on behalf of the company. This process applies whether the buying decision is being made by an individual or by a buying center.

1. Recognizing the need. The buyer realizes there is a need for the product or service.Ron Brauner, “B2B Buying Process: 8 Stages of the Business Sales Funnel,” http://www.ronbrauner.com/?p=68(accessed August 1, 2009). In the B2B environment, this might occur because of an internal need (e.g., the company needs more office space) or because of a customer need (e.g., green tea is becoming more popular, and so we want to offer it on our menu). This is the ideal opportunity for you to learn about your customers’ needs, although it may be difficult to know exactly when a customer or prospective customer is beginning this step. That’s why it’s important to engage your customer in dialogue to understand their current and future needs. Sometimes, you can help your customer see an opportunity that he didn’t realize.

2. Defining the need. This step usually involves users as well as initiators to put more definition around the type of product or service that will help meet the need.Ron Brauner, “B2B Buying Process: 8 Stages of the Business Sales Funnel,” http://www.ronbrauner.com/?p=68 (accessed August 1, 2009). For example, in the case of office space, the head of facilities would ask the head of human resources about the types of new positions that will be needed and the type of workspace each requires. He might also ask for insight from each hiring manager or department head in the company, such as the head of operations, marketing, finance, and other areas. This will help him more fully understand the general type of product or service that is needed. Salespeople can play a role in this step of the buying process by sharing information and insights from other customers, without divulging any confidential information.

3. Developing the specifications. This is the step at which the exact needs are outlined.Barton A. Weitz, Stephen B. Castleberry, and John F. Tanner, Jr., Selling: Building Partnerships, 7th ed. (New York: McGraw-Hill Irwin, 2009), 93. For example, if Target identified the need to create its own brand of DVD player, the appropriate people in the company would determine the exact specifications of the product: what functions it will have, how large it will be, what materials it will be made of, how many colors will be offered, and all other attributes of the product. When a salesperson has a good relationship with a customer, the buyer might ask the salesperson for insights and advice on different features, functionality, and production costs to finalize the product or service specifications.

4. Searching for appropriate suppliers. This step is focused on researching potential suppliers. This research can be conducted online by doing a Google search for suppliers of the desired product or service.Ron Brauner, “B2B Buying Process: 8 Stages of the Business Sales Funnel,” http://www.ronbrauner.com/?p=68 (accessed August 1, 2009). Trade associations are also an excellent source as many provide unbiased evaluations of suppliers; for example, Forrester Research publishes a report on Web site analytic tools.

And industry trade shows can be an excellent source of information about prospective suppliers. One of the best ways to identify suppliers is by referrals; use your business network, including LinkedIn, to get feedback about reliable suppliers that might be able to meet your needs.

5. Requesting proposals. This is when the buyer or buying center develops a formal request for proposal, often called an RFP, and she identifies several potential vendors that could produce the product or service.Ron Brauner, “B2B Buying Process: 8 Stages of the Business Sales Funnel,” http://www.ronbrauner.com/?p=68 (accessed August 1, 2009). For example, if Home Depot decided that it wanted to upgrade its bags, the buyer would have determined the specification, quantity, shipping points, usage, and other requirements (e.g., being environmentally friendly), and put the information into a formal document that is sent to several bag manufacturers along with questions about the history of the company, key customers, locations, manufacturing capacity, turnaround time, and other relevant information. Each manufacturer would have the opportunity to respond to the RFP with a formal proposal, which means that each company would provide information about their company, capabilities, delivery, and pricing to manufacture the bags. This is an opportunity for a salesperson to respond with a complete proposal that addresses the customer’s needs and concerns. See the sample RFP template for a nonprofit organization below.

6. Evaluating proposals. After the proposals are submitted, the buyer or buying center reviews each one and determines whether the company would be a good fit for the project. At this point, the number of potential vendor choices is narrowed to a select few. Usually, salespeople from each of the chosen companies are invited to meet with the buyer or buying center to discuss the proposal, capabilities, and pricing. Negotiation for pricing, quality, timing, service, and other attributes may also take place during this step.Ron Brauner, “B2B Buying Process: 8 Stages of the Business Sales Funnel,” http://www.ronbrauner.com/?p=68 (accessed August 1, 2009). This is the step where a salesperson may need to overcome objections, or the reasons why the customer may not want to choose her as the company of choice.Ron Brauner, “B2B Buying Process: 8 Stages of the Business Sales Funnel,” http://www.ronbrauner.com/?p=68 (accessed August 1, 2009).

7. Making the buying decision. The buyer or buying center chooses one (or the necessary number) of companies to execute the project, finalizes details, negotiates all aspects of the arrangement, and signs a contract. This step requires perseverance and attention to detail on the part of the salesperson. Once the decision is made, the real business of selling begins: delivering the product or service as agreed upon and building the relationship.

8. Postpurchase evaluation. Throughout the buying process, the buyer is provided all the good news: how the new product or service will solve her company’s problems, increase demand, reduce costs, or improve profitability. It is the postpurchase evaluation that tells the tale. Did the product or service perform as promised? Was the delivery and installation done correctly and on time? Are the business results in line with expectations? Is the relationship growing? Do the salesperson and his company really care about the performance of the buyer’s company? Does the salesperson add value to the buyer’s company? This is where the rubber meets the road; it presents an opportunity for the salesperson to communicate, anticipate, and solve any problems that may have arisen.Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart, Marketing: Real People, Real Choices, 5th ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 190.

The process makes sense and is a flow of systematic steps that leads a B2B buyer through a logical buying process. But there are two flaws in this thinking that significantly impact the buying process and, as a result, the selling process: (1) the Internet changes everything and (2) emotions dominate B2B buying.Geoffrey James, “Is Your Sales Process Obsolete?” BNET, March 30, 2007, http://blogs.bnet.com/salesmachine/?p=30 (accessed August 1, 2009).^,Bryan Eisenberg, “Buying Is Not a Rational Decision,” ClickZ, November 26, 2001, http://www.clickz.com/927221 (accessed August 1, 2009).

The Internet Changes Everything

It used to be that B2B buyers relied on salespeople to get information, demonstrations, and cost about products and services. Salespeople sold, and buyers bought; the world was a simpler place.

Today, B2B buyers are doing the work of two or even three employees because there are fewer people working at companies due to cutbacks and restructuring. The fact is, buyers don’t have the time to meet with salespeople like they used to. And the Internet has been a game changer. Buyers can not only research product and supplier options online, but they can also see product specifications, view demonstration videos, participate in online forums, get real-time recommendations and feedback from users on social networks, and basically be smarter than any salesperson before he even calls for an appointment.Geoffrey James, “Is Your Sales Process Obsolete?” BNET, March 30, 2007, http://blogs.bnet.com/salesmachine/?p=30 (accessed August 1, 2009). The power has shifted from sellers to buyers. In fact, the Internet has had such a profound effect on how people make purchasing decisions that the Wall Street Journal has coined a new term: “new info shopper.” These are people who can’t buy anything without getting information online first. What’s even more important to note is the fact that 92 percent of new info shoppers have more confidence in the information they get online than from an ad, salesperson, or other company source.Mark Penn, “New Info Shoppers,” January 8, 2009, Wall Street Journal, http://online.wsj.com/article/SB123144483005365353.html?mod=dist_smartbrief# (accessed August 1, 2009).

So what’s a salesperson to do? Stop, listen, and help your customer make the best decision for her business, even if it means that she doesn’t buy your product. Despite the importance of the Internet in providing information throughout the buying process, B2B buyers still gather insight from a variety of sources that include salespeople. Successful salespeople are those that truly focus on the buyer’s needs, which may mean giving up the sale and bringing valuable feedback to your company to change the product, service, or other options that are reasons why customers might not buy from you. The new world order requires everyone to rethink the conventional wisdom. Selling used to be something you “do to” a customer; now it’s something you “do for” a customer.Geoffrey James, “Is Your Sales Process Obsolete?” BNET, March 30, 2007, http://blogs.bnet.com/salesmachine/?p=30 (accessed August 1, 2009). The salespeople who win are the ones who listen in person, on the phone, and online, then make the recommendation that is in the customer’s best interest.

Information is no longer the exclusive domain of the salesperson. But great salespeople bring value to their customers with ideas, insights, knowledge, and personal commitment that can’t be duplicated on a Web site, online forum, or even on a social network. And the role of the Internet in B2B buying decisions is changing quickly.

Sales 2.0 has changed the way people seek, receive, and interact online. The Internet used to be only an information source, a place to search Web sites for information. But static Web sites have given way to not only information gathering, but to problem solving. Crowdsourcing occurs when a company takes a job that is traditionally done by an employee and issues an “open call,” usually online, to people all over the world to solve the problem. This is a new way for businesses and individuals to leverage the Internet in an efficient and effective way.BrightSightGroup, “Jeff Howe: Crowdsourcing,” video, July 6, 2008, http://www.youtube.com/watch?v=F0-UtNg3ots (accessed August 3, 2009). Crowdsourcing uses the wisdom of the crowd in a virtual way to make information and solutions readily available to everyone. This video describes how crowdsourcing has changed the photography business forever.

Salespeople can embrace crowdsourcing and bring the power of the crowd to solve any customer problem. Facebook, iPhone apps, and YouTube are just three examples of crowdsourcing. Consider this example of the power of the crowd: Apple offered more than 65,000 apps for its iPhone in less than two years, and the number is projected to rise to 300,000 in 2010.Will Park, “Apple Bans Hundreds of Spammer’s iPhone Apps,” Into Mobile, August 3, 2009, http://www.intomobile.com/2009/08/03/apple-bans-hundreds-of-spammers-iphone-apps.html(accessed August 3, 2009).^,Daniel Ionescu, “Android Market Hits 20,000 Apps Milestone,” PC World, December 16, 2009, http://www.pcworld.com/article/184808/android_market_hits_20000_apps_milestone.html(accessed December 20, 2009).

The use of technology in B2B selling, especially social networking, will continue to explode as digital natives (people, probably like you, who are under the age of 27) move into the workplace and meet the digital immigrants, Generation X and baby boomers who accept technology, but developed their online habits during a different time. Processes, behaviors, communication, and decisions will occur differently in the future.

Emotions Dominate B2B Buying

Whether you look at the traditional buying process or the role the Internet plays in providing information, it appears that the B2B buying process is logical and rational, but appearances can be deceiving. Despite the implication and belief that companies make purchasing decisions based on facts, it’s a good idea to remember one of the key tenets of B2B buying mentioned earlier: business-to-business means person-to-person. That means that although a B2B buyer is making a decision on behalf of her company, she still behaves like a consumer and is subject to emotions and feelings. “People rationalize buying decisions based on facts, but they make buying decisions based on feeling,” according to Bryan Eisenberg from ClickZ.com.Bryan Eisenberg, “Buying Is Not a Rational Decision,” ClickZ, November 26, 2001, http://www.clickz.com/927221 (accessed August 1, 2009).

The Evolving Buying and Selling Processes

The framework for the buying and selling processes has been in place for many years. The buying process changes literally every day and has dramatic impact on the selling process. As a result, the “new” processes are not yet clearly defined. One thing is for certain; the processes are no longer organized, controllable functions. “Linear is so twentieth century,” according to Michael R. Solomon, author of Consumerspace: Conquering Marketing Strategies for a Branded World.Michael R. Solomon, Conquering Consumerspace: Marketing Strategies for a Branded World (New York: AMACOM, 2003), 11. Cultural, social, and technological changes will continue to drive companies for even better performance, faster, and with ideas as currency, which will continue to drive change in the buying process.

To understand the impact of the rapid changes occurring in the buying process, it’s important to know the basic steps in the selling process. The next seven chapters review the selling process in detail and include insights into how the process is changing. A study by William Moncrief and Greg W. Marshall provides a roadmap for the evolution of the selling process in Table 6.2 “The Evolution of the Seven Steps of Selling”.

Buying Process Meets FAB

No matter how the buying process evolves, customers continue to make purchase decisions driven by emotions. You learned how motivating trust and fear are for people who are making B2B buying decisions. Comfort, vanity, convenience, pleasure, desire to succeed, security, prevention of loss, and need to belong are all emotions that motivate purchases. A company may want to build a new building that carries its brand name downtown to signal its importance to the city and business community; that would be an example of vanity as a motivator. Or perhaps the company wants to move its headquarters to a better part of town to provide better security for its employees. Maybe a prominent figure in the community donates a large sum of money to your college motivated by the desire to give back. The same types of motivations apply to B2C purchases: a woman purchases makeup in the hopes of looking as beautiful as the model in the ads, a man buys a sports car in the hopes of turning heads, a student buys a microwave for the convenience of having food when she wants it.

Emotions are the driving force in so many B2C and B2B purchases that you might not even realize it. Consider this: would you buy the product in Figure 6.10 “Nutritional Information”?

So how do you create the same type of emotional appeal with your customers? The answer is simple: FAB.

While you might not consider buying it based on only this factual information, you probably have bought this product based on the emotional appeal of the packaging, advertising, and other marketing messages that tell you that the product is the best late-night snack.

Consider this information that was on the home page of Amazon recently:

3G wireless means books in 60 seconds. No monthly fees, service plans or hunting for Wi-Fi hotspots. Over 300,000 of the most popular books, newspapers, magazines, and blogs available.Amazon.com, http://www.amazon.com (accessed August 4, 2009).

Amazon truly understands how to use FAB, a selling technique that focuses on Features, Advantages, and Benefits, to sell its Kindle electronic reader. FAB is more than a way of selling; it’s a way of thinking like your customers. Using the Kindle as an example, here are the details about how to use the FAB approach for effective selling.

• A feature is a “physical characteristic” of the product.Charles M. Futrell, Fundamentals of Selling: Customers for Life through Service, 10th ed. (New York: McGraw-Hill Irwin, 2008), 114.In the Kindle example above, the feature is the 3G wireless capability. Features are characteristics of the product; a feature comparison chart between the Kindle and the Kindle DX is shown below.

• A product advantage is the “performance characteristic” of the product, or what the feature does.Charles M. Futrell, Fundamentals of Selling: Customers for Life through Service, 10th ed. (New York: McGraw-Hill Irwin, 2008), 114. In the information about Kindle included at the start of this section, the advantages of the 3G service are that the user doesn’t need to hunt for Wi-Fi hotspots and that over 300,000 of the most popular books, newspapers, magazines, and blogs are available in sixty seconds.
• The benefit is the “result” the buyer will realize from the product because of the product advantage, or in other words, what the feature does or the result it delivers.Charles M. Futrell, Fundamentals of Selling: Customers for Life through Service, 10th ed. (New York: McGraw-Hill Irwin, 2008), 114. The benefit of the Kindle is the fact that you can “rediscover reading anywhere, any time.”Amazon.com, http://www.amazon.com (accessed August 4, 2009).

Notice how Amazon skillfully reinforces the benefit of portability by showing someone reading on a beach or a bus.

Why does FAB work? Because customers want to know what a product or service will do for them—not just what it’s made of. B2C and B2B customers seek information before making a buying decision but are also driven by emotions. FAB helps you appeal to a customer’s rational and emotional buying behavior by providing the most compelling features and factual information and then showing how the features provide an advantage that delivers a benefit. This is how salespeople help customers establish an emotional connection with a product. You remember from Chapter 1 “The Power to Get What You Want in Life” the power of an emotional connection between a customer and a brand.

You probably use FAB sometimes without even realizing it. “My new Lucky Brand jeans have a dirty wash, fit great, and make me look thin. The best part is they were on sale for only $89.00.” The features are the dirty wash and the fact that they were on sale for $89.00; the advantage is that they fit well (no easy feat when it comes to jeans); the benefit is that they make you feel like you look thin and, as a result, make you feel good when you wear them. Your statement is much more powerful when you frame it with FAB than if you simply say, “I got some new jeans today for $89.00.”

Or maybe you stopped into McDonald’s and tried one of their new Angus Third Pounders. The product feature is that the burger is one-third of a pound and is available in three flavor options; the advantage is that it is thick and juicy; the benefit is that you will enjoy the taste and your hunger is satisfied. The FAB message is more compelling than simply saying that you had a hamburger that was one-third of a pound; that would be stopping at the feature and not offering an advantage or benefit.

If you want to be able to use FAB in conversation, simply think in terms of the following:

• Feature: what the product has
• Advantage: what the features do
• Benefit: what the features meanLaura Clampitt Douglas, “Marketing Features vs. Benefits,” Entrepreneur, http://www.entrepreneur.com/magazine/homeofficemagcom/2000/december/34942.html(accessed August 4, 2009).^,Bryan Eisenberg, “Want The to Buy? Sell Benefits,” ClickZ.com, April 9, 2001, http://www.clickz.com/840121 (accessed August 4, 2009).

Table 6.3 “FAB in Action” gives features, advantages, and benefits for some common products.

For example, if you were describing Netflix in terms of FAB, you might say something like the following:

For only $8.99 a month you can watch as many movies as you want and never be charged a late fee. You can order online and have a DVD delivered in about a day and exchange it as many times as you want without a late fee, or you can watch streaming video of your favorite movies online anytime. Now that’s total personalized entertainment.Netflix, http://www.netflix.com (accessed July 12, 2009).

Now look at this FAB statement with the features, advantages, and benefits in bold:

For only $8.99 a month [feature] you can watch as many movies as you want and never be charged a late fee [advantage]. You can order online and have a DVD delivered in about a day [advantage] and exchange it as many times as you want without a late fee [advantage], or you can watch streaming video of your favorite movies online anytime [advantage]. It definitely saves you time and money [benefit] and gives you total personalized entertainment [benefit].

It’s easy to remember by using the FAB framework as your guide.

[Name feature] means you [name advantage] with the real benefit to you being [name benefit].Charles M. Futrell, Fundamentals of Selling: Customers for Life through Service, 10th ed. (New York: McGraw-Hill Irwin, 2008), 116.

Here’s another example, based on research about the 2009 Nissan Cube:Ben Stewart, “2009 Nissan Cube vs. Kia Soul vs. 2009 Scion xB: 300-Mile Fuel-Economy Test-Drive,” Popular Mechanics, February 24, 2009, http://www.popularmechanics.com/blogs/automotive_news/4306145.html(accessed August 4, 2009).

The Nissan Cube has funky, Japanese-like design and is friendly to the environment with a fuel-efficient 1.8-liter, 4-cylinder engine that gets over 30 miles per gallon. It’s hip, cool, and fun to drive. At $15,585, it’s a great value for the money.

Stories Paint Pictures

If getting the job or internship you want were only about the facts, you would only need to present your résumé on a job interview. But prospective employers are looking for that “certain something,” an emotional connection that helps them know that you are the one.Bryan Eisenberg, “Buying Is Not a Rational Decision,” ClickZ, November 26, 2001, http://www.clickz.com/927221 (accessed August 1, 2009). Every candidate comes into an interview trying to impress the interviewee and saying how much he wants the job. Why not stand out, show, and sell?

Think about your three brand positioning points you developed in Chapter 1 “The Power to Get What You Want in Life”. Now, think about the stories that demonstrate each one in terms of FAB. Table 6.4 “Personal FAB Example” shows you some examples.

Every Picture Tells a Story

Take your FAB one step up and create a portfolio that you can show during job interviews. When you tell someone about your experience and accomplishments, that’s good, but showing them really helps you stand out in the crowd. If you are lucky enough to get an interview, capitalize on the opportunity to sell yourself. Keep in mind that most companies interview at least two or three people, and sometimes more, before they make their hiring decision.

A portfolio isn’t just for creative or advertising people; everyone should have a portfolio. It is simply a collection of samples of your work from class projects, internships, volunteer projects, and any other work that demonstrates your skills.“Job Search: Back Up Your Resume with a Portfolio,” WorkForce2.org, http://www.workforce2.org/resume-portfolio.htm (accessed August 5, 2009).Creating a portfolio is as simple as putting samples of your work in a three-ring binder. You might find it helpful to view this video about how to create a portfolio.

You probably have more samples of your work than you think. And each sample is an excellent way to show and tell your FAB. Here are some ideas about what to put in your portfolio:

• Class projects. Choose those projects that demonstrate your skills, especially in your major. For example, if you did a sales presentation, include a video clip along with your selling aids. Or if you created a PR plan, include the plan along with the exhibits. Group projects are acceptable as long as the group names are included on the title page. A team project allows you to talk about how you provided leadership to the team or helped the team get focused.
• Internship projects. If you had an internship or multiple internships, include samples of the projects on which you worked. For example, include copies of Web pages, brochures, flyers, graphs, presentations, or other samples of your work.
• Volunteer projects. If you have been involved in a student group, community service, or other service organization, include samples of the projects on which you worked. For example, if your group did a fundraiser for breast cancer, include the flyer for the event along with photos and a summary of the contributions.

• Other work samples. If you enjoy photography, writing, design, selling on eBay, or other activity that has application to the position for which you are seeking, include that work. In other words, print the Web page for your eBay store along with the feedback you have received, include photographs or other projects on which you have worked to show your work. If you don’t have samples of your work for your portfolio, consider starting a blog and print copies of your entries.
• Letters of recommendation. Ask for a letter of recommendation from former supervisors, colleagues, team leaders, professors, and other people who will be happy to write a letter about your skills.Maureen Crawford Hentz, “How to Obtain and Use References and Recommendation Letters,” Quintessential Careers, http://www.quintcareers.com/references_recommendation_letters.html (accessed August 5, 2009) If you have had a summer job or internship, ask your former boss and other people with whom you worked to write a letter of recommendation. Keep the copies of the letters in your portfolio and show them to prospective employers during your interview. Although these letters are different from references, they serve the purpose of showing your prospective employer how highly people regard you and your work. You will be asked for references after the interview process if you are one of the final candidates. See the Selling U section in Chapter 4 “Business Ethics: The Power of Doing the Right Thing” for more information about how to contact and submit references, including how letter of recommendation from references can help set you apart.

Tips to Make Your Portfolio Even More Powerful

After you gather all of your work samples, here are a few tips that will help you organize them for an effective visual story.

• Choose a few work samples. Select samples (no more than five or six) that reflect your brand positioning points. If leadership is important, be sure to include projects, results, pictures, and other visual elements that will demonstrate your leadership story.
• Create a summary page for each work sample. Include bullet points for the project name, objective, approach or strategy, and results. A sample is provided in Figure 6.13 “Sample Summary Page”. This will help you quickly summarize the key points when you are showing your portfolio.

• Use clean copies, in color where appropriate. Avoid using papers that include comments or grades. Use fresh, clean copies of all samples. If you need to make a copy of an original document that was in color, splurge and pay for color copies; it’s worth it.
• Include extra copies of your résumé. Your portfolio is a great place to keep at least three or four extra copies of your most current résumé printed on twenty-four-pound paper. Although your interviewer may have already received your résumé before the interview, he may not have it handy when you come in. Or you may be asked to meet with some people that were not on the original interview schedule. If this is the case, you can be the consummate professional and offer your interviewer a reference copy of your résumé. It’s also the perfect time to mention your portfolio.
• Use a professional binder or portfolio. Visit a local or online art supply or office supply store and get a professional three-ring binder or portfolio. You can include your work samples in plastic sleeves, but it is not required. Many portfolios include plastic sleeves for your samples. Ask if the store offers a student discount.

www.You.com

A portfolio is a must to bring on a job interview. You might be wondering if it’s a good idea to also create an online portfolio. The answer is “yes.” Creating your own professional Web site as a way to showcase your résumé, samples of your work, awards, and letter of recommendation is a perfect way to build your brand and demonstrate to your prospective employer that you have additional technology skills.

Your online portfolio, or Web site, should include all the elements that are included in your offline portfolio. Since space is not an issue, you may want to include even more samples of your work, especially if you have writing or design samples. This is also an ideal place to include a link to your blog.

A word of caution: Your professional Web site should be exactly that—professional. That means no personal photos, comments, or casual blog posts from friends. In other words, your Facebook page is not an appropriate place for your professional Web site. Use a business-like domain name (http://www.yourname.com); if you don’t already have one, you can get one at Google or GoDaddy.com, for a minimal annual fee. The following article provides six steps to set up a domain name and your own Web site.

Use your online portfolio as a way to sell yourself on your résumé: add your Web site address to your contact information and mention it in your cover letter.Resumemic09, “What Is a Portfolio and How Can I Use One to Get a Job?” video, July 24, 2009, http://www.youtube.com/watch?v=PrHI0m0B1l4(accessed August 5, 2009). See résumé and cover letter samples in the Selling U section in Chapter 2 “The Power to Choose Your Path: Careers in Sales”.

How to Use Your Portfolio in an Interview

It’s always best to bring your portfolio to every interview, even if it’s an informational interview. In most cases, the interviewer will not ask you about your portfolio so you will have to bring it up in the conversation. The following video provides some tips about how to introduce your portfolio during an interview.

Be proud of showing your work samples. The Financial Times, in reference to Peggy Klaus’ book Brag: The Art of Tooting Your Own Horn Without Blowing It, wrote, “Start bragging…if you don’t speak up for yourself, who will?”Peggy Klaus, Brag: The Art of Tooting Your Own Horn Without Blowing It (New York: Hachette Book Group, 2003), front cover. To ensure that you are getting all of your FAB points across, it’s best to rehearse how you will review your portfolio in an interview. Keep in mind that time is short so it’s best to be concise and underscore the FAB points you want your interviewer to remember. A portfolio is an excellent visual tool that makes your FAB message come alive for your prospective employer. The bottom line is, “If you walk into an interview empty-handed, you’re missing an opportunity.”“How to Create an Awesome Work Portfolio,” ManifestYourPotential.com, http://www.manifestyourpotential.com/en/work/tensteps/4preparework/howto/jobsearch/portfolio.htm (accessed August 5, 2009).