Daniel Spencer discussed the concept of the "Decision Cycle" in the context of real estate sales, with a particular focus on the different stages that customers go through when making the decision to buy property. The speaker highlighted that individuals had specific triggers that initiated their decision-making process. These triggers varied depending on their life circumstances and included factors such as realising that their mortgage payments could be more affordable than renting, experiencing significant life events like downsizing due to health issues, preparing for a family expansion, or addressing tax-related concerns as an investor.
In the first stage of the Decision Cycle, customers acknowledge the problem or need driving their decision. This acknowledgement varied among different buyer types. For example, first-time homeowners realised that buying a property was financially beneficial compared to renting, while downsizers were prompted by health-related issues to make a move. Investors considered real estate as a means to reduce their tax burden.
The second stage involved defining criteria for solving their problem. Customers explored various options and considered the pros and cons of each. Skilled salespeople guided customers through this phase, helping them weigh the advantages of purchasing specific properties, such as off-plan developments, against other alternatives.
The next phase was the investigation stage, where customers actively gathered information, including property visits, financial assessments, appraisals, and consultations with experts. They aimed to validate their decision and gather the necessary data to make an informed choice.
In the selection phase, customers made their final decision on which property to purchase. At that point, the value proposition offered by the developer or seller became crucial in influencing their choice.
Finally, customers often experience buyer's remorse after making a reservation or commitment. It was essential for the salesperson to stay engaged and reassure customers that they had made the right choice, as referrals often happened during this period.
The discussion concluded by emphasising the predictability of this Decision Cycle in people's lives, shaped by life events, job changes, and relationship developments. The speaker highlighted the importance of starting sales inquiries by understanding the motivation driving the sale, as it was the driving force behind the decision-making process. This motivation acted as the propeller that kept customers committed to their purchase, even in changing market conditions.
