Barriers can be physical, rational or emotional. Physical barriers might include:
- Long load times on a web page
- Credit disapprovals at a car dealership
- Small type size in an ad
- Long distances to a dealership
Rational barriers might include:
- Higher prices than competitors
- Feature sets mismatched to needs
- Confusing steps to buy
Emotonal barriers might include:
- Fear of the unknown
- The brand doesn't match my identity
- Distrust of the product / brand
When a marketer adds up all the barriers, you get something similar to a Markov chain. Each barrier can be thought of as "erected" or "non-erected." A non-erect barrier means the probability of a customer passing through that barrier is 1--because the barrier doesn't exist. But an erect barrier will cause some fall-out, and will effect all downstream barriers, too.
Doing a buying analysis based on barriers can be a powerful tool. One gets the sense that a company like Apple has done them in their retail stores, but maybe not for their B2B business. Looking at an Apple store, there are very few barriers.
Physical:
- Everything is in stock
- The stores are close to target populations
- There are products available for demo all the time
Rational:
- Prices are clear and intuitive
- Features meet consumers' needs
- Buying is simple--just talk to an associate and you walk out with your mac / ipod.
Emotional:
- The store is appealing and comforting
- The brand is trusted
However, when you look at B2B, there are barriers galore.
Physical:
- Where does one go to get Mac for business? The store? A distributor?
- What if my battery runs out? Why are the batteries internal? (some insulting me emotion here.)
Rational:
- Apple doesn't work seemlessly with Office. Or does it (some confusion mixed in here.)
- Apple doesn't make servers.
- There isn't enough business software available for Apple.
Emotional:
- I've never thought of the Apple brand as being built for businesses.
- Apple spends all its time marketing iPods.
Anyway, it's a simple example for illustrative purposes. But I love doing these barrier / hurdle projects. Maybe I'll do another post on the simple math... which gets to the upside business case of barrier removal.
Great post. It can be amazing to observe the amount of money that some organizations spend to get a customer to make a purchase only to then drop the ball by putting their new customers through an arduous sales process.
ReplyDelete