Organisations make purchasing decisions for products and services needed for their operations. It can be a complex decision-making and communication process involving the selection and procurement of products. Organisational buyer behaviour refers to how buyers in the organisation engage with this process. Gaining a thorough understanding of this behaviour is crucial for driving better revenue outcomes. By understanding the specific decision-making processes and criteria of the specific organisation, sales teams can tailor their approach and messaging to resonate more effectively. This, in turn, can lead to increased sales traction, faster deal closure, and larger deal sizes. Furthermore, by fostering stronger account relationships through a deeper understanding of buyer behaviour, sales teams can increase the likelihood of repeat business and referrals. Ultimately, a solid understanding of organisational buyer behaviour enables sales teams to meet and surpass their sales quotas, resulting in greater success and revenue growth for the organisation.
Organisational buying behaviour can be divided into three main types: routine buying, modified rebuying, and new buying. These variations to the internally agreed buying process can have a big bearing on how you need to sell to them. When selling SaaS to IT for example, renewals or new product purchases can be significantly different and can dramatically change the organisational buyer's role and in particular the number of stakeholders involved in the purchase of your software. Understanding organisational buyer behaviour is essential for sales and marketing professionals to tailor their approach and communication to the specific needs and preferences of each type of organisational buyer.
Some of the areas to focus on:
- Decision-making process
- Buying criteria
- Purchasing power
- Relationship building
- Market research
1. Decision-making process:
Gaining an understanding of the decision process as early as possible should be done as early as possible. This involves identifying the key stakeholders involved in the purchasing decision, their roles and responsibilities, and the steps they go through to make a decision. By gaining a deep understanding of this process, the account manager can tailor their sales approach and messaging to align with the organisation's decision-making criteria and address any potential barriers or objections. Additionally, the account manager should proactively engage with the stakeholders throughout the decision-making process, providing them with the necessary information, support, and guidance to help them make an informed decision. By being a trusted advisor and understanding the organisational buyer behaviour, the account manager can increase the chances of successfully navigating procurement and sign off processes to ultimately close the sale.
2. Buying Criteria
The organisation’s buying criteria involve determining the factors and requirements that a specific organisation considers when evaluating and selecting suppliers or products. To best go about understanding this it is important to thoroughly identify the specific needs and requirements of the organisation. This can be achieved by conducting a comprehensive analysis of the organisation's goals, objectives, and priorities. It is crucial to engage with key stakeholders within the organisation to gather their input and insights on the criteria that are most important to them. Additionally, conducting market research and benchmarking against industry standards can provide valuable information on the criteria that are commonly considered by organisations in similar industries. Once the buying criteria are identified, it is essential to communicate and align these criteria with potential suppliers or products, ensuring that they are aware of the organisation's expectations and can meet the required standards. Regular evaluation and review of the buying criteria should also be conducted to ensure they remain relevant and aligned with the organisation's evolving needs.
3. Purchasing power:
Organisational buyer behaviour is influenced by the purchasing power of the organisation, which includes its budget and financial resources. Understanding purchasing power is important when selling to the IT department because it influences the dynamics of buyer power and the decision-making process. Purchasing power refers to a customer's ability to reduce prices, improve quality, or play industry participants off one another. In the context of IT purchasing, changes in purchasing power have led to a shift in decision-making, with non-IT stakeholders playing an increasing role in IT purchasing decisions. Additionally, IT decision-makers prioritise factors such as security, reliability, and cost savings when considering a vendor, underscoring the impact of purchasing power on the decision-making process. Therefore, being aware of the changing dynamics of purchasing power and its influence on buyer behaviour is crucial for vendors selling into the IT department. Getting a view of the organisation's or department’s budget and financial resources. Are there restrictions on capex or opex for example? As a start a cursory glance at the organisation's financial statements can help to get the “big picture” and then discovery meetings with stakeholders can be carried out where the budgeting process and any other limitations can be understood. Once the purchasing power is determined, it is crucial to align the offer with the organisation's purchasing decisions with financial requirements and strategy. This may involve restructuring the deal to accommodate realistic return on investment estimates or budgets. The procurement department in this instance will be working to negotiate favourable terms with suppliers and to prioritise purchases based on organisational needs and financial constraints. Additionally, it is important to regularly review and reassess the organisation's purchasing power throughout the deal cycle and beyond to ensure that your deal remains aligned with the buyer’s financial goals and objectives.
4. Relationship building
When relationship building across an account, it is important to prioritise communication and collaboration with suppliers and business partners. It emphasises the importance of building and maintaining relationships with suppliers and other business partners. This can be achieved by regularly engaging in open and transparent dialogue, actively seeking feedback and input, and fostering a sense of mutual trust and respect. Building strong relationships requires investing time and effort into understanding the needs and goals of all stakeholder parties and finding ways to align and support each other's objectives. It is also crucial to consistently deliver on promises and commitments, as this helps to establish credibility and reliability. Additionally, organisations should consider implementing relationship management strategies and tools, such as developing account-based marketing within their customer relationship management (CRM) systems, to effectively track and nurture these stakeholder relationships over time.
5. Market research
Lastly, when conducting market research, organisations should start by clearly defining the specific information they need to gather as part of profiling the account, understanding market factors, mapping the stakeholders in the account and building out the organisational chart. This could include understanding the competitive landscape, identifying potential competing suppliers, and staying informed about market trends. Once the objectives are established, organisations can use a combination of qualitative and quantitative research methods such as surveys, interviews, and data analysis to gather the necessary information.
Let’s Recap:
Understanding enterprise organisational buyer behaviour is crucial for sales teams to drive better revenue outcomes. By tailoring their approach and messaging to resonate with specific organisations' decision-making processes and criteria, sales teams can increase sales traction, deal closure speed, and deal sizes. Additionally, a deeper understanding of buyer behaviour fosters stronger account relationships, leading to repeat business and referrals. Key areas to focus on include the decision-making process, buying criteria, purchasing power, relationship building, and market research.
