Thanks to the Flying Solo for this post today about the myths of selling online.
Myth 2: Cheap overseas retailers will always win.
Fact: People still prefer the safety and speed of local online shopping.
There’s no denying the pressure is on to be competitive on price, but research has shown that we still prefer the security and speed of buying locally. What’s more, it’s not all about price even in these ‘interesting times’.
A few years ago I was fortunate to interview the self-proclaimed ‘Professor of Selling’, Neil Rackham. In the 1970s Neil led the largest ever research study of successful selling and sales effectiveness. This massive project, supported by major multinationals including Xerox and IBM, involved a team of 30 researchers who studied 35,000 sales calls in over 20 countries. The research took 12 years at a cost, in today’s dollars, of $30 million.
So what? Well, what the research uncovered is that rather than being led by price, consumers look foremost for reassurance that they’re spending their hard earned dollars somewhere that’s safe. And what’s more, this focus on safety is the absolute priority in a market where money is being spent cautiously.
To illustrate this point further, it’s worth noting that research undertaken by the Australian Government revealed that 63 per cent of online orders fail to make it through to the final checkout.
Clearly the message here is to concentrate on making prospects feel comfortable.