We live in a commercial world and understanding why people buy is an essential skill to almost any profession or endeavor you want to undertake.
You need to understand why people buy because:
- You are in sales even if you don’t know it. You need to sell the value of your work and your ideas to other people to get ahead in your career.
- If you understand why people buy you will understand why YOU buy and make better decisions in your life.
The most important question you need to have in your mind to understand why people buy something is: What outcome do people expect when they buy your product?
In the book Product-Led Growth Web Bush describes three main reasons why people buy products:
Functional Outcome: The core task that customers want to get done.
Emotional Outcome: How customers want to feel or avoid feeling as a result of executing the core functional outcome.
Social Outcome: How customers want to feel or avoid feeling as a result of executing the core functional outcome.
Most people focus only on the Functional Outcome of products but in many cases, the Emotional and Social Outcomes are what differentiate two equally functional products. How do people choose between two products that offer similar functionality? Look at the emotional and social outcomes and you will understand.
You can apply this even further in your life. When you are thinking about buying something:
- Question yourself about what functional outcome do you want from that purchase.
- Ask yourself if there are any Emotional or Social outcome influencing your decision.
- There are other better ways to fulfill these emotional and social outcomes?
If you understand the three main outcomes behind why people buy products you have a strong foundation to improve your career and life.