Some promo deals take shape immediately, while others seem to stretch on indefinitely. Many factors impact how fast a deal closes, from the prospect’s decision-making process to the nature of their business. The urgency of the need also plays a big role. If the prospect needs to resolve an issue or seize an opportunity quickly, they may be ready to buy right away.
The varying timelines can be challenging, but it can help to understand what influences B2B buying decisions. Writer Kateryna Kalnova says that when you know what influences someone’s decision to buy, you’ll be better equipped to navigate the process.
In this issue of PromoPro Daily, we share her thoughts on some of the key elements that drive B2B buying decisions.
1. Company size and structure. This organizational factor can significantly influence buying behavior. Kalnova says larger organizations with complicated hierarchies frequently have more established procedures that require the participation of stakeholders from several departments. This can draw out the decision-making process. Smaller businesses, on the other hand, can often make decisions faster.
2. Budget constraints and allocation. Regardless of size, all companies must operate within a budget. Depending on their budget, you might recommend one promo for one prospect and another promo for a different prospect. Budget constraints also dictate timing of purchases, Kalnova says. For example, a business may postpone a major purchase until the next quarter or fiscal year to comply with their budget cycle.
3. Internal policies and approval processes. Large organizations typically have some policies in place that ensure every purchase aligns with their broader business objectives and compliance requirements. While critical for accountability and governance, Kalnova says this step can also hinder purchasing. If a purchase has to go through several layers of approval, it may take weeks or months, to complete.
4. Market trends and economic conditions. These external factors can profoundly impact B2B buying behavior, Kalnova says. When times are good at a company, they’re more likely to take advantage of the upswing and buy promo that can further expand their brand and help them move toward their goals. During leaner times, businesses are likelier to scale back on purchases.
5. Industry standards and regulations. Deals may seem to stretch on in highly regulated industries like the pharmaceutical and financial industries. Kalnova points out that modifications to trade agreements or policy changes could also impact how long it takes to get a deal done.
6. Buyer expertise. If a prospect has purchased promo before, they may take a more systematic approach. Kalnova says this might mean conducting more thorough research, weighing several options and looking for the best deal. Less-experienced buyers may rely more on others’ opinions or even their own feelings.
From company size to budget allocation, a lot goes into every promo buying decision. When you understand these factors, you’re better prepared to address objections and guide the prospect through the sale more efficiently.
Compiled by Audrey Sellers
Source: Kateryna Kalnova is a contributor to the Sales Intel blog. SalesIntel is a B2B data provider and sales intelligence platform that offers a variety of data to help sales, marketing and revenue operations teams
