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Customer Understanding

Why you need to reduce perceived risk in the buying process

By March 13, 2023June 5th, 2023No Comments

image showing a man cutting a piece of paper saying risk to support article about perceived riskIn the B2B (business-to-business) buying process, there are many factors that influence the decision-making process. One of the most important factors is perceived risk. Perceived risk is the level of uncertainty or concern that a buyer has about a product or service. In B2B buying, perceived risk can be a major obstacle to making a purchase. Here are some reasons why reducing perceived risk is essential in the B2B buying process.

1. Increase the likelihood of the sale

Firstly, reducing perceived risk increases the likelihood of making a sale. B2B buyers are often cautious and conservative, especially when it comes to large purchases or investments. They want to make sure that the product or service they are buying is going to meet their needs and provide a good return on investment. If they perceive too much risk, they may decide not to buy at all. By reducing perceived risk, you can increase the buyer’s confidence and make them more likely to move forward with the purchase.

2. Build trust

Secondly, reducing perceived risk can help to build trust and credibility. In the B2B world, trust is crucial. Buyers need to trust that the seller is going to deliver what they promise and that they are going to provide good service and support. By reducing perceived risk, you can show the buyer that you understand their concerns and that you are committed to providing a high-quality product or service. This can help to build trust and credibility, which can lead to long-term business relationships.

3. Differentiate your products

Thirdly, reducing perceived risk can help to differentiate your product or service from the competition. In many B2B markets, there are a lot of similar products or services available. Buyers may have a hard time differentiating between them and deciding which one to choose. By reducing perceived risk, you can make your product or service stand out from the competition. If buyers perceive your product or service as being less risky than the competition, they may be more likely to choose you.

4. Minimise post-purchase regret

Fourthly, reducing perceived risk can help to minimise post-purchase regret. In the B2B world, buyers often have a lot of regret after making a purchase. They may feel like they made the wrong decision, or that they could have gotten a better deal elsewhere. By reducing perceived risk, you can help to minimise these feelings of regret. If the buyer feels like they made a well-informed decision and that they have made a good investment, they are less likely to regret their purchase.

5. Increase customer satisfaction

Finally, reducing perceived risk can lead to increased customer satisfaction and loyalty. If the buyer perceives your product or service as being less risky, they are more likely to be satisfied with their purchase. This can lead to increased loyalty and repeat business. Additionally, if the buyer feels like you have taken their concerns seriously and have worked to reduce perceived risk, they are more likely to recommend your product or service to others.

Reducing perceived risk is essential in the B2B buying process. It can increase the likelihood of making a sale, build trust and credibility, differentiate your product or service from the competition, minimize post-purchase regret, and lead to increased customer satisfaction and loyalty. To reduce perceived risk, it is important to understand the buyer’s concerns and address them in a thoughtful and comprehensive way. By doing so, you can build strong, long-lasting business relationships that benefit both you and your customers.  In our next article we will provide a range of tips on how your marketing can help you deliver on all of the above. To ensure you don’t miss that article, either follow our Company Page or subscribe to our mailing list here.

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