Why do customers buy from you?

There are many myths about why customers buy - it's hard to get at the truth. So I decided to investigate.

Reviewing the research is also inconclusive but the evidence suggests that in many markets customers buy for one of four reasons:

1. Price
2. Quality
3. Service
4. Personal relationship or habit

In many markets its seems it is about 25% for each of the four criteria.

Lessons....

1. Do not assume that all your customers buy for the same reason.

2. You may be able to increase your prices and profits if they are buying for reasons 2 - 4.

3. The only real way to find out is to conduct research to give you better customer insight.

Understanding customers, done!