The 5 steps of the buyer journey

Advisors know the importance of recognizing every client as an individual. If you perceive everyone as the same, your service becomes formulaic and clients start to wonder if someone out there can provide a better experience.

Of course, there are certain elements that are universal, and these are useful to remember when understanding clients and communicating the value of life insurance. For example, no matter what people are purchasing, said financial services veteran Jeffrey Scott, CFP, ChFC, they all go through the same five steps:

1.  Need recognition. “The clients have to be made aware that they have a need for a particular product or service. This is normally done via marketing, advertising or word of mouth,” Scott said.
2.  Information search. “This involves customers either researching (normally online) or shopping (visiting various stores), asking for testimonials from people who have used the product before, or engaging experts who understand the various products and the various options.”
3.  Evaluation of alternatives. “After determining all the products or services that are available, refine the selection to determine the appropriate product to meet their needs or wants.”
4.  Purchase decision. “This involves the selection of the product or service, with the appropriate options or features, at the correct price, from a reputable vendor or business.”
5.  Post-purchase behavior. “This is often the most critical of all of the steps, as this often involves the situation known as ‘buyer’s remorse.’ After clients have made their purchase, they may then regret the purchase or doubt if they made the most appropriate purchase for their circumstances. This is where appropriate interaction with clients is vital, by telephone, email, text or letters, reinforcing the decision that they have made based upon the analytical, somatic and emotional factors pertaining to them.”

Hear more in the June episode of MDRT Presents.

Written by Matt Pais, MDRT Content Specialist