Don't be fooled that no one seems to understand economics - not even the economists! - these days..because one person is practising economic theory each day...and that is your customer.
As part of the purchase process, a customer automatically weighs the trade off between risk and benefit.
Risk in terms of choosing the brand, spending that money, making the wrong choice, of problems down the line, of what it does to their personal brand!
Benefit in terms of the use, the pleasure, the self gratification and of course the kudos.
We all do it....
Yet when it comes to social media or business communication....rarely do you see the brand helping the customer through the purchase crisis.
Social media can play a key role...in identifying the risks, reducing the risk, offering customer service, offering comparisons, and by showing the benefits.
For me this works best when the risks are presented in a rational, logical way then the customer is taken through the emotional story of the benefits - both of the product and to their individual life.
To do this you need to know...what are the risks and what are the benefits from the customers perspective - again social media can be a great tool to find out but also to research what they are saying in relation to you and your competitors.
