When somebody is thinking about buying a financial service and the price tag is more than they’re accustomed to, they may find it difficult to make a decision. There may be a lot riding on the outcome and they’ll want to answer several questions in their own mind before they proceed. For example:
- is it “worth the money?”
- is it available elsewhere at a lower price?
- is it suitable for their needs?
- will it live up to their expectations?
- is it fit for the purpose?
When they do come down off the fence and make the purchase, this could trigger what psychologists call “cognitive dissonance,” or the fear of having made a bad decision. Put another way, they will experience buyer’s remorse, and this is not a good scenario for the seller.
In fact, the seller needs to be very aware of this risk and prepare for its eventuality. The buyer could experience more than simply “remorse” and this elevated level of fear could cause them to act in an irrational way.
The seller must be proactive immediately after the sale has concluded by taking steps to assuage the individual and persuading them that they have, indeed, made the right decision.
What’s at Stake
If the seller does not make a concerted effort to address buyer’s remorse head on, there may be a number of different consequences. The worst-case scenario is that the buyer will simply try to pull out of the transaction right away and may investigate their cancellation options as soon as possible.
If cancellation is a challenge, they may seize on the smallest inconsistency in the product offering and try to use it as a trigger to get a full refund. With increasing displeasure, they may lash out in their social media circles, which will create a bad impression for the seller and may risk creating a wave of similar action from others.
At the very least, the seller risks the loss of a sale, any prospect of future sales from the individual and any positive feedback to help with their marketing objectives.
Meet the Challenge Head-On
With so much at stake, it’s important to address buyer’s remorse right away.
- Send the buyer not just confirmation of the purchase and other technical information, but a lot of “feelgood” material.
- Address each and every potential “remorse” with a counter, to reinforce that the buyer has made a good decision, after all.
- Introduce key members of staff, product or service support structures, FAQs and any ancillary services.
- Over-deliver on any promise by adding a surprise element or two so the individual feels that they have received fantastic value from day one and looks forward to the rest of their experience.
Never underestimate human psychology, especially when it comes to a major purchase. Always keep in close touch with your buyer during the crucial on-boarding stage and address any second thoughts that they may have immediately.