Do you find yourself changing ad copy, tracking conversions and trying to make tiny tweaks all the time? Not that this is a bad thing, but do you know at which point in the decision process your potential customers are presented with your ads? If you don’t, read on. Because this has a major impact on your RoI (Return on Investment). To understand the behaviour of a customer we have to define the thinking process and let’s call it the purchase timeline. There are four major steps in this purchasing process: Step 1 - recognition of a need The first step in the purchasing process is that the customer realizes there is a need for a specific product or service. If you are trying to get a customer at this point in the timeline you are looking for an impulse buyer. Even though this is an early stage in the purchasing process, it can be a quick sale if you have the right product. When you are the trigger that can set of a new need you are also exposing them an instant gratification of that need. The exposure to your product has made them recognize a need - whether it is a rational or irrational one. This can be something as simple as a customer driving on the highway and seeing a big McDonald’s drive-through nearby, he realizes he is hungry and gets of at the next exit to grab a Big-Mac. Another example is a gas station with a big display “When was the last time you’ve shown your spouse that you loved them?†just above an outlet with red roses. Again they are trying to trigger a need and offer instant fulfilment of that need. So to market a product or service to customers in this first step can be good if you have the right product. The percentage of purchases from customers who have been exposed to this type of advertising is low though. So you need to have either a very good profit margin or an inexpensive means of advertising. Step 2 - researching possible fulfilments After a customer has recognized they have a need for a product or service, the next stage is research. A customer will try to find out what kinds of products or services are available to fulfill the need from step 1. Let’s take the guy from step 1 as example, we’ll call him Dennis. At the gas station the sign made him realize he has been neglecting his wife. Too many fishing trips and too little quality time. He did see the display with red roses but Dennis wants to give her something nicer like a necklace. Back at home he starts to search on the internet. So right now his purchasing process is at step 2, research. He uses google to search for jewlery stores in his area to see if they have any nice specials. All the related ads he sees in the search results are targeting this second step. The customer is already aware of his need, so in this stage the advertising has to stand out from the rest of the information and advertisements he finds during research. To get a customer during this research stage you need convincing ad copy, a good price or another unique selling point. It is more effective than advertising during the previous step of the decision process because you have already prequalified a customer’s need. Step 3 - ready to purchase but where? Dennis has done some research and he has found the type of necklace he would like to get for his wife Kristin. Now he is ready to purchase. All he wants now is to find the best price. If you can advertise to a customer in this stage it is an excellent opportunity. The momentum is there and you have to be the one to stand out from the rest. Now while this sounds very much like the previous step, it isn’t. The clear distinction here is that the customer is actually ready to purchase and has decided on what they need. All they are looking for now is where to get it. This is the reason why price comparison sites like http://billzilla.com and http://line-provider.com do so well. They serve the customer in this third step which is very close to the actual purchase. If you are able to convince the customer that your price (or another unique selling point) is the best, you have got them. This is a difficult step to target your advertising to, but if you are able to the RoI can be very high. Step 4 - contacting the business to purchase In this step the customer has gone through all the previous steps and knows what and where to purchase. Next they will actually place an order. Of course if you can intercept the customer here that is the ideal stage. Back to Dennis, he wants a golden necklace for his wife and knows exactly which one to get. He also has decided to go to the jewelry in the next big town since they offer free polishing after 6 months and the price was great. Not to get his wife suspicious he wants to get it the next day right before going to work so it can remain a surprise. The next morning. Dennis gets in his car and drives to the next town to get x the beautiful necklace. There are not many things that can distract a customer from their purchasing intentions at this stage and you have to be creative in your advertising to have any chance. A relatively new form of advertising that targets customers at this stage is the free directory assistance service http://1800-free411.com. It allows advertisers to play a short ad targeted to customers requesting a business telephone numbner in a certain category.So here’s John on his way to the store to pick up the ring. But because he didn’t sleep very well he was tired when he got up and forgot to take the address of the jewelery store he was going to. All he remembers was the store’s name. He pulls over at a gas station and gets out his mobile and calls 1800-free411 to get their phone number. He asks for Oborn Jewlery’s store in Draper, Utah and before he get’s their number he hears this brief advertising: “Looking for a gift for your wife? Come visit Edwards Fine Gold, our prices are great and you get a complementary romantic dinner. Press 1 to get connected to Edwards Fine Gold.†Bottom line: be aware of where in the purchasing process you are trying to convince a potential customer to purchase, and adjust your advertising methods to that. ps. Dennis and Kristin lived happily long ever after ---------------end--------------- Feel free to copy entire article without changes. This is my first marketing article so comments to improve it are much appreciated, as well as opposing views of course.