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What Drives IT Buyer Behavior?

One thing that I have learned over the years is that almost all “needs” are negotiable (with the exception of a few). What I mean by this is that the area between a want and a need is more gray than we’d like to admit. In order to justify purchasing what we want, we try to convince ourselves that it’s a need. 

For example, I came across a really nice BBQ smoker last week that was on sale at the home improvement store. I don’t have time to smoke meat, nor do I have a place on my deck to put this giant outdoor appliance, yet there was a lightbulb going off in my head that said “you should really consider buying this.” Suddenly, I began picturing the times I would actually need a utility such as this; birthday parties, family gatherings, etc. This was my internal negotiations at work and a way to justify the want as a need. Thankfully (for my marriage), I kept walking and eventually the need had passed, never to be thought of again until this moment. 

Let’s face it, most small businesses don’t want IT or cybersecurity. They want things that IT and cybersecurity may enable for them, but there are little to no internal negotiations at work that are helping to justify a want as a need. If there were, it would make our jobs as providers of this technology a lot easier. In the case where no want exists, it’s really on us to influence the buying behavior externally. To do this effectively, it helps to know what the core buying triggers are, which may offer a psychological advantage throughout this process. 

Here are some of the most common behavioral principles and theories that are present in the IT decision-making process, which you may use to empathize with and influence your prospect’s buying decisions along the way: 

Key Psychological IT Buying Triggers

Risk Aversion and the Fear of Unknown

Prospect Theory by Kahneman and Tversky, suggests that people are more motivated to avoid losses than they are to acquire whatever equivalent gains would be. Put more simply, they prefer known risks over unknown risks and tend to make their decisions accordingly. As you can imagine, there is no shortage of unknown risks when it comes to technology. This makes for an interesting dynamic when it comes to IT decision making. 

Small Businesses tend to operate with shoestring budgets and limited resources, therefore there is only so much capital to go around. In many cases they would prefer to allocate that capital in areas where they understand both the risk and the opportunity. When it comes to IT, it is often the case that neither of these outcomes are crystal clear. Overcoming this really comes down to clarity of communication. Your ability to help them comprehend both the risk and the opportunity will allow them to re-underwrite their decision in a more informed way. 

Predictability and Locus of Control 

Locus of Control by Rotter is a framework where individuals who have an internal ‘locus’ feel as though they themselves can control outcomes, whereas those that have an external locus feel that outcomes happen to them via external forces. Most of the SMBs that I’ve known operate with a purely internal locus. They are used to getting up every morning and taking complete control of their destiny. In many cases, that attitude is likely what led them to start a small business to begin with and thus it is ingrained in who they are and how they operate. 

Predictability and a sense of control are the key triggers here. It’s important to help the buyer understand that in most cases, an investment in IT offers them more levers and control over their desired outcomes. The ‘information’ in information technology is exactly that. It’s the ability to harness data, learn from it and make it work for you in ways that produce outcomes that you want. Helping them understand that IT is a path to tighter control over the things they care about the most (like their business) can be crucial to influencing their buying decisions. 

Social Proof and the Bandwagon Effect

Social Identity Theory by Tajfel and Turner states that people tend to model their behavior on that of their peers so that they may feel part of a group, especially when they deem them as knowledgeable or higher up the social pyramid. The fact that many MSPs claim referrals as their number one source of net new customers could actually support this theory. It would make sense that this segment (above all others) would be more motivated and comfortable with their IT purchase decision. In some cases they may even choose an IT provider simply to strengthen their relationship with the other parties involved and assess their risk accordingly. 

There are many different ways to harness this bandwagon effect to your benefit. The most obvious of these being the use of social proof, reviews, and case studies to support your claims. These become even more effective when the potential buyer knows of and looks up to the party that is providing the proof. For example, it might be a reputable company in their industry or a leader in their Chamber of Commerce or networking group. Gathering and maintaining these proof points so that you are always ready to deliver them to a prospective buyer will go a long way in influencing their decisions. 

Cognitive Load and Simplification

Cognitive Load Theory by Sweller explains that people prefer to minimize cognitive load, especially in situations that require complex decision-making. For the average person, IT can be perceived as complex, confusing, and even intimidating. This leads SMBs to gravitate more toward simplified offerings and solutions that reduce complexity rather than add to it. Some IT Providers see this as “dumbing-down” their offerings in a way that understates their abilities, however it has been proven that in some cases this is necessary to get the message across. 

Reducing technical jargon, simplifying package options, and presenting your value proposition more clearly are all ways to accommodate this buying trigger. Ultimately, the goal should be to avoid making your prospect think too hard as they confront this decision. Education is important, but not to the point where it becomes overwhelming. Try to find the right balance between what they need to know to make an informed decision and what could be better left unsaid. 

Scarcity and the Fear of Missing Out

The Scarcity Heuristic by Cialdini can be considered a ‘mental shortcut’ where people place a higher value on items or opportunities that they perceive as scarce. This scarcity taps into their human desire to avoid missing out on such opportunities which many call the ‘FOMO’ effect. This trigger can be powerful when SMBs perceive that your IT solutions or service could give them a competitive edge. Adding a sense of time sensitivity to it also amplifies this effect.  

While manufacturing scarcity can feel like a gimmick to some, it can indeed accelerate decision-making when applied subtly and tactfully.  For example, I once talked to an MSP that paced their onboarding process so that they were only bringing on one new customer at a time and all of the onboarding resources were allocated to that single new customer. For their prospects who were considering moving forward, they may have considered expediting their decision to make sure they get the onboarding slot that fits with their desired timeline. On the flip side, this could have also backfired. The scheduling could be perceived as unaccommodating and the prospect  may instead choose to move forward with a provider that is willing to onboard them at any time. Not everything has to be exclusive or scarce, but it’s certainly influential nonetheless. 

Conclusion

Fully understanding and catering to these psychological triggers can have a meaningful impact on your MSP’s sales process. It’s about establishing a deeper means of connecting with prospects in a way that resonates with the thing that is really driving their decisions. It’s also important to note that every client is unique. Not every one of these triggers will apply in every scenario, so part of your job in the discovery process is to uncover which ones are in play for each prospect. By aligning your talk track and messaging with these psychological behaviors, you can help support their own internal negotiations between wants and needs.