Terms

Buying Criteria

Buying criteria are the specific attributes and standards customers use to evaluate and select a product, service, or supplier. These factors, which can include everything from price and delivery speed to service quality, form the basis of a purchasing decision. Essentially, they are the set of requirements and preferences that guide a customer when comparing different options in the market.

Key Factors Influencing Buying Criteria

Understanding what drives a customer's decision is crucial for any business. These buying criteria often extend beyond the sticker price, encompassing a complex mix of functional, financial, and emotional needs that influence the final choice.

  • Price: The overall cost of the product or service, including any ongoing fees.
  • Quality: The perceived reliability, performance, and effectiveness of the solution.
  • Functionality: How well the product's features address the customer's specific pain points.
  • Service: The level of support and customer care provided before and after the sale.
  • Implementation: The ease, speed, and resources required to integrate the new solution.

Common Mistakes in Establishing Buying Criteria

A frequent misstep is assuming price is the ultimate decision-maker. Companies often default to competing on cost without understanding the deeper motivations behind a customer's choice. This leads to a failure to communicate their unique value proposition effectively.

Another major error is relying on outdated assumptions about customer needs. Businesses fail to regularly research and revisit what their customers truly value. This results in a disconnect between their offerings and the actual buying criteria of their target audience.

Buying Criteria vs. Buying Motives

While related, buying criteria and buying motives represent different aspects of the customer's decision-making process.

  • Criteria: These are the logical, tangible standards like price or functionality used to evaluate options. They provide an objective framework, which is crucial for formal enterprise procurement, but can miss the deeper emotional drivers behind a decision.
  • Motives: These are the underlying "why"—the emotional or psychological drivers for a purchase. Understanding motives helps build deeper connections, which is valuable for mid-market companies seeking to differentiate, but they can be less tangible and harder to surface than concrete criteria.

The Role of Buying Criteria in Decision-Making

Buying criteria are the backbone of the decision-making process. They serve as the specific standards customers use to evaluate and compare different options. By weighing these factors, such as price and quality, customers can logically select the product or service that best meets their needs and priorities.

How to Evaluate and Adjust Buying Criteria

This is how you can evaluate and adjust your approach to customer buying criteria.

  1. Research why your customers buy from you. Ask what they like and what could be improved.
  2. Question customers about the specific problems they need to solve and the criteria they use to choose a solution.
  3. Analyze the feedback to find common themes and understand which criteria carry the most weight.
  4. Refine your marketing and sales strategies to directly address these core customer priorities.

Frequently Asked Questions about Buying Criteria

How do buying criteria differ between B2B and B2C markets?

B2B criteria are typically more formal, focusing on ROI, integration, and long-term value. B2C decisions are often more influenced by personal preference, brand reputation, and emotional factors alongside price and quality.

How often should we reassess our customers' buying criteria?

Reassess buying criteria at least annually, or even quarterly. Market dynamics and customer needs change quickly, so staying current ensures your value proposition remains relevant and effective in your sales and marketing efforts.

Can a customer's buying criteria change during the sales process?

Yes, criteria often evolve as a prospect learns more about their problem and potential solutions. New priorities can emerge, and the weight of initial factors may shift as they move through the buying journey.

Other terms

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Customer Centricity

Customer centricity is a business approach that puts the customer at the heart of every decision, aiming to build loyalty and long-term value.

Customer Centricity

Pay-per-Click (PPC)

Pay-per-click (PPC) is an ad model where you pay a fee each time your ad is clicked. It's a method of buying targeted visits to your website.

Pay-per-Click (PPC)

Event Tracking

Event tracking is the method of collecting data on specific user actions, or 'events,' on a website or app, such as clicks or downloads.

Event Tracking

Customer Engagement

Customer engagement is the ongoing, value-driven relationship a business builds with its customers to foster brand loyalty and awareness.

Customer Engagement

A/B Testing

A/B testing is a method of comparing two versions of something, like a webpage or email, to determine which one performs better with your audience.

A/B Testing

Win/Loss Analysis

Win/Loss Analysis is the process of systematically tracking and analyzing the reasons why you win or lose deals with prospective customers.

Win/Loss Analysis

Email Personalization

Email personalization uses subscriber data—like their name, interests, or past behavior—to create highly relevant and targeted email campaigns.

Email Personalization

Outbound Leads

Outbound leads are potential customers a business proactively contacts through outreach like cold calls, emails, or social media.

Outbound Leads

Sales Operations Key Performance Indicators

Sales Operations KPIs are measurable metrics that track the efficiency and effectiveness of a sales team's operational processes.

Sales Operations Key Performance Indicators

DMP

A Data Management Platform (DMP) is a tech platform used to collect and manage data, mainly for digital marketing and advertising campaigns.

DMP

AI Data Enrichment

AI data enrichment uses artificial intelligence to automatically enhance and update raw data, making it more complete, accurate, and valuable.

AI Data Enrichment

Net 30

Net 30 is a common payment term where a client has 30 calendar days from the invoice date to pay for goods or services in full.

Net 30

Functional Testing

Functional testing verifies that software performs its intended functions as specified in the requirements, ensuring it works as users expect.

Functional Testing

Predictive Analytics

Predictive analytics uses historical data, statistical algorithms, and machine learning to identify the likelihood of future outcomes.

Predictive Analytics

Sales Calls

A sales call is a real-time conversation between a salesperson and a prospect, aiming to persuade them to purchase a product or service.

Sales Calls

Solution Selling

Solution selling is a sales approach focused on understanding a customer's pain points to offer a comprehensive solution, not just a product.

Solution Selling

Qualified Lead

A qualified lead is a prospect vetted as a good fit for your product. They match your ideal customer profile and show genuine interest.

Qualified Lead

Product-Market Fit

Product-market fit is when a product meets the needs of a strong market, leading to high demand, customer satisfaction, and organic growth.

Product-Market Fit

Bounce Rate

Learn about bounce rate, including understanding bounce rate implications, key factors affecting bounce rate, & reducing your bounce rate effectively.

Bounce Rate

CPQ software

CPQ (Configure, Price, Quote) software is a sales tool for creating accurate, configurable quotes for complex products and services.

CPQ software

Feature Flags

Feature flags let you remotely control features in your app without new code. This enables safe testing, gradual rollouts, and quick rollbacks.

Feature Flags

Content Management System

A Content Management System (CMS) is software for creating, managing, and modifying website content without needing specialized technical skills.

Content Management System

Cold Emailing

Cold emailing is sending unsolicited emails to potential customers you haven't contacted before, aiming to start a business conversation.

Cold Emailing

OAuth

OAuth is an open standard for access delegation. It lets you grant apps access to your data on other services without sharing your password.

OAuth

Average Revenue per Account

Average Revenue per Account (ARPA) is the average revenue generated from each customer account, usually measured on a monthly or annual basis.

Average Revenue per Account

Customer Segmentation

Customer segmentation is dividing customers into groups based on shared traits. This allows for more targeted and effective marketing efforts.

Customer Segmentation

Branded Keywords

Learn about branded keywords, including identifying your branded keywords, & strategies for optimizing branded keywords.

Branded Keywords

Sales Pipeline

A sales pipeline is a visual representation of where prospects are in the sales process, from the first contact to the final sale.

Sales Pipeline

Account Executive

An Account Executive (AE) is a sales professional responsible for closing new business deals and managing existing client relationships to drive revenue.

Account Executive

Cost Per Impression

Cost Per Impression (CPI) is the price an advertiser pays for each time their ad is displayed to a user, irrespective of clicks.

Cost Per Impression

Decision Maker

A decision-maker is an individual with the authority to make significant choices for a company, especially regarding purchases or strategy.

Decision Maker

Data Security

Data security protects digital information from unauthorized access, corruption, or theft throughout its entire lifecycle.

Data Security

Marketing Intelligence

Marketing intelligence is gathering and analyzing data about your market, customers, and competitors to inform strategic marketing decisions.

Marketing Intelligence

Website Visitor Tracking

Website visitor tracking collects and analyzes data on user behavior to understand their journey and improve the overall user experience.

Website Visitor Tracking

Net New Business

Net new business is revenue from customers who have never purchased from your company before. It’s a crucial indicator of sustainable growth.

Net New Business

Persona Map

A persona map visually outlines a target customer, detailing their goals, behaviors, and pain points to help your team build genuine empathy.

Persona Map

B2B Data Platform

Learn about B2B data platform, including key benefits of B2B data platforms, choosing the right B2B data platform, challenges in implementing B2B data platforms.

B2B Data Platform

Sales Presentation

A sales presentation is a formal pitch by a salesperson to a prospective customer, showcasing a product or service to secure a sale.

Sales Presentation

Buying Committee

A buying committee is a group of stakeholders within an organization who are jointly responsible for making major purchasing decisions.

Buying Committee

Scalability

Scalability is a company's ability to handle increased workloads or market demands without a drop in performance or a spike in costs.

Scalability

Sales Pitch

A sales pitch is a persuasive presentation of a product or service, aimed at convincing a potential customer to make a purchase.

Sales Pitch

ETL

ETL, short for Extract, Transform, Load, is a data integration process for moving raw data from various sources to a central data warehouse.

ETL

Revenue Operations (RevOps)

Revenue Operations (RevOps) is a business function that aligns a company's sales, marketing, and customer service teams to drive predictable revenue.

Revenue Operations (RevOps)

Version Control Systems

A version control system (VCS) tracks changes to files over time, allowing you to recall specific versions and collaborate without conflicts.

Version Control Systems

Marketing Metrics

Marketing metrics are quantifiable values that marketing teams use to measure and track the performance of their campaigns and efforts.

Marketing Metrics

RESTful API

A RESTful API is a web service interface that uses HTTP requests to access and use data, adhering to the constraints of REST architecture.

RESTful API

B2B Intent Data

Learn about B2B intent data, including how B2B intent data enhances sales strategies, sources of B2B intent data, leveraging B2B intent data for competitiveness.

B2B Intent Data

Content Syndication

Content syndication is the process of republishing your web content on third-party sites to reach a much wider audience.

Content Syndication

D2C

Direct-to-consumer (D2C) is a sales strategy where a brand sells its products directly to end customers, bypassing any third-party retailers.

D2C

Nurture

Nurture is the process of building relationships with potential customers, guiding them through the sales funnel with personalized communication.

Nurture

Simple Object Access Protocol Application Programming Interface

A Simple Object Access Protocol (SOAP) API is a web service that uses XML to exchange structured information between different applications.

Simple Object Access Protocol Application Programming Interface

GTM

A go-to-market (GTM) strategy is an action plan that outlines how a company will reach target customers and achieve a competitive advantage.

GTM

Churn

Churn, also known as customer attrition, is the rate at which customers stop doing business with a company over a given period.

Churn

Compounded Annual Growth Rate

Compounded Annual Growth Rate (CAGR) measures the mean annual growth of an investment over a specified period of time longer than one year.

Compounded Annual Growth Rate

Target Account Selling

Target Account Selling is a focused sales strategy where teams identify and pursue a specific list of high-value accounts.

Target Account Selling

Weighted Sales Pipeline

A weighted sales pipeline forecasts revenue by assigning a closing probability to each deal, giving a more accurate picture of potential income.

Weighted Sales Pipeline

Total Audience Measurement

Total Audience Measurement (TAM) provides a holistic view of content consumption, tracking viewership across all platforms and devices.

Total Audience Measurement

Average Order Value

Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on your website or mobile app.

Average Order Value

Average Selling Price

Average Selling Price (ASP) is the average price at which a particular product or service is sold across different markets and channels.

Average Selling Price

Quarterly Business Review

A Quarterly Business Review (QBR) is a recurring meeting to assess performance against goals and align on strategy for the next quarter.

Quarterly Business Review

Hard Sell

A hard sell is an aggressive sales technique that uses high-pressure tactics to push a customer into making an immediate purchase decision.

Hard Sell

Edge Locations

Edge locations are globally distributed data centers that cache content close to users, reducing latency and delivering web content much faster.

Edge Locations

NoSQL

NoSQL ("Not only SQL") databases offer a flexible alternative to relational models, excelling at managing large and unstructured data sets.

NoSQL

Big Data

Learn about big data, including understanding big data characteristics, benefits of leveraging big data, & challenges in managing big data.

Big Data

Virtual Selling

Virtual selling is the process of selling to customers remotely using technology like video calls, rather than meeting them in person.

Virtual Selling

Precision Targeting

Precision targeting is a marketing strategy that uses data to identify and reach a highly specific audience most likely to convert.

Precision Targeting

Awareness Buying Stage

The awareness stage is the first step in the buyer's journey, where a potential customer realizes they have a problem or an opportunity to explore.

Awareness Buying Stage

Economic Order Quantity

Economic Order Quantity (EOQ) is the ideal order quantity a company should purchase to minimize its total inventory-related costs.

Economic Order Quantity

Content Delivery Network

A Content Delivery Network (CDN) is a system of distributed servers that deliver web content to users based on their geographic location.

Content Delivery Network

API

An API (Application Programming Interface) is a software intermediary that allows two applications to talk to each other and exchange information.

API

Ideal Customer Profile

An Ideal Customer Profile (ICP) is a detailed description of the perfect, hypothetical company that would get the most value from your product.

Ideal Customer Profile

Ballpark

Learn about ballpark, including estimating with ballpark figures, understanding ballpark estimates in sales, & ballpark estimates vs. precise quotes.

Ballpark

Personalization

Personalization is the practice of using data to tailor products, services, or content to an individual's specific needs and preferences.

Personalization

Price Optimization

Price optimization is the process of finding the ideal price for a product or service to maximize profitability or other business objectives.

Price Optimization

Sales Performance Metrics

Sales performance metrics are key data points that measure a sales team's effectiveness in achieving its goals and driving revenue.

Sales Performance Metrics

Dark Social

Dark social is the sharing of content through private channels like messaging apps or email. This traffic is hard to track as it lacks referral data.

Dark Social

User-generated Content

User-generated content (UGC) refers to any form of content, like images, videos, or text, created and shared by users on online platforms.

User-generated Content

Field Sales Rep

A field sales representative, or outside sales rep, travels to meet prospects in person, selling products or services directly within their territory.

Field Sales Rep

Shipping Solutions

Shipping solutions are services or software that streamline the logistics of getting products to customers, from label printing to final delivery.

Shipping Solutions

Use Case

A use case is a detailed description of how a user interacts with a system to achieve a specific goal, outlining the steps from start to finish.

Use Case

Account-Based Advertising

Account-based advertising is a hyper-focused B2B strategy that targets key accounts with personalized ads across multiple channels.

Account-Based Advertising

Sales Conversion Rate

Sales conversion rate is the percentage of prospects who take a desired action, like making a purchase, turning them into customers.

Sales Conversion Rate

Overcoming Objections

Overcoming objections is the process of addressing and resolving a prospect's concerns or hesitations to move a sale forward.

Overcoming Objections

Knowledge Base

A knowledge base is a self-serve online library of information about a product, service, department, or topic.

Knowledge Base

B2B Demand Generation Strategy

Learn about B2B demand generation strategy, including key elements of demand generation, & crafting your demand generation plan.

B2B Demand Generation Strategy

LinkedIn Sales Navigator

LinkedIn Sales Navigator is a premium tool helping sales teams find and engage with the right leads and accounts on the LinkedIn network.

LinkedIn Sales Navigator

B2B Data

Learn about B2B data, including sources and types of B2B data, leveraging B2B data for sales success, & ensuring the accuracy of B2B data.

B2B Data

Cross-Selling

Cross-selling is a sales tactic of encouraging customers to purchase products or services that are related to what they're already buying.

Cross-Selling

Incident Response

Incident response is an organization's systematic approach to managing and mitigating the aftermath of a security breach or cyberattack.

Incident Response

Customer Data Platform (CDP)

A Customer Data Platform (CDP) centralizes customer data from all sources to create a complete, unified profile for each individual customer.

Customer Data Platform (CDP)

Lead Generation Software

Lead generation software helps businesses automate finding and capturing potential customers' contact information to build sales pipelines.

Lead Generation Software

Generic Keywords

Generic keywords are broad search terms that lack specific details like brand or location. They attract a wide audience with less specific intent.

Generic Keywords

Programmatic Advertising

Programmatic advertising uses AI and real-time bidding to automate the buying and selling of digital ad space, targeting specific audiences.

Programmatic Advertising

Supply Chain Management

Supply Chain Management oversees the entire production flow of a good or service, from raw materials to final delivery to the consumer.

Supply Chain Management

Triggers

Triggers are predefined conditions that, when met, automatically launch a workflow or action, ensuring timely and relevant outreach.

Triggers

Marketing Analytics

Marketing analytics involves measuring and analyzing marketing data to understand campaign performance and improve return on investment (ROI).

Marketing Analytics

Demand Forecasting

Demand forecasting is the process of predicting future customer demand for a product or service based on historical data and market trends.

Demand Forecasting

Sales Bundle

A sales bundle groups multiple products or services into a single offering, often at a discounted price to provide greater value to customers.

Sales Bundle

Smile and Dial

"Smile and dial" is a high-volume sales tactic where reps make numerous cold calls from a list, often with little to no prior research.

Smile and Dial

Escalations

Escalations are the process of moving a customer issue or sales opportunity to a more senior or specialized team member for resolution.

Escalations