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Another major error is relying on outdated assumptions about customer needs.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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Average Revenue per User

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Email Marketing

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Sales Director

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CPQ software

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CRM Analytics

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Objection Handling

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B2B Intent Data

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Remote Sales

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Open Rate

The open rate is the percentage of recipients who opened an email. It's a primary indicator of a subject line's effectiveness.

Open Rate

X-Sell

X-Sell, or cross-selling, is a sales strategy of selling additional, related products or services to an existing customer base.

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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

Data Pipelines

A data pipeline is a set of automated processes that move raw data from various sources to a destination for storage and analysis.

Data Pipelines

Funnel Optimization

Funnel optimization is the process of improving each stage of the customer journey to maximize conversions and drive revenue growth.

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Regression Analysis

Regression analysis is a statistical method for estimating the relationships between a dependent variable and one or more independent variables.

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Sales Compensation

Sales compensation is the total pay a salesperson receives, including salary, commissions, and bonuses, structured to motivate performance.

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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

Price Optimization

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

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OAuth

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Channel Marketing

Channel marketing is a strategy where a company sells its products or services through third-party partners, like resellers or affiliates.

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Dynamic Data

Dynamic data is information that updates in real-time. Unlike static data, it reflects the most current state of information automatically.

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B2B Sales Channels

Learn about B2B sales channels, including types of B2B sales channels, strategies for effective channel selection, & integrating technology in B2B sales.

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Account

An account is a company or organization that you're targeting for sales. It can be a prospective, current, or even a past customer.

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Complex Sale

A complex sale features a long sales cycle, multiple stakeholders, and a high-value transaction, demanding a strategic, consultative approach.

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Inbound Lead Generation

Inbound lead generation is the process of attracting potential customers to your business with valuable content and tailored experiences.

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Data Hygiene

Data hygiene is the practice of ensuring your customer data is clean, accurate, and up-to-date by removing duplicates and correcting errors.

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Hadoop

Hadoop is an open-source framework designed for the distributed storage and processing of extremely large data sets across clusters of computers.

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Lead Magnet

A lead magnet is a free incentive offered to potential customers in exchange for their contact details, like an email, to generate sales leads.

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Contract Management

Contract management is the process of creating, executing, and analyzing contracts to maximize performance and minimize financial risk.

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Day Sales Outstanding

Day Sales Outstanding (DSO) is a financial ratio that shows the average number of days it takes for a company to receive payment for a sale.

Day Sales Outstanding

Challenger Sales

The Challenger Sales model is a methodology where reps teach prospects, tailor their pitch, and take control of the sales conversation.

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Net Promoter Score

Net Promoter Score (NPS) is a metric measuring customer loyalty by asking how likely they are to recommend your company or product to others.

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CRM Enrichment

CRM enrichment is the process of adding third-party data to your existing customer profiles to make them more complete and accurate.

CRM Enrichment

Marketing Operations

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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

Private Labeling

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Sales Intelligence

Sales intelligence is technology that gathers and analyzes data to help salespeople find and understand prospects and existing clients.

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Bad Leads

Learn about bad leads, including identifying bad leads, warning signs of bad leads, impact of bad leads on sales, & strategies to minimize bad leads.

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Targeted Marketing

Targeted marketing focuses on specific consumer groups whose needs align with your product, allowing for more personalized and effective messaging.

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Sales Team Management

Sales team management is the process of leading, coaching, and motivating a sales team to achieve its sales goals and drive revenue growth.

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Conversion Path

A conversion path is the journey a visitor takes to complete a desired goal, such as making a purchase, filling out a form, or subscribing.

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Persona Map

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Sales Coach

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Predictive Lead Generation

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ABM Orchestration

ABM orchestration aligns marketing and sales actions across channels to deliver seamless, personalized experiences to high-value accounts.

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Landing Pages

A landing page is a standalone web page created for a marketing campaign. It’s where a visitor “lands” after clicking an ad or email link.

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Mobile Compatibility

Mobile compatibility ensures your site or app works flawlessly on mobile devices, like smartphones and tablets, for a seamless user experience.

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Account-Based Selling

Account-Based Selling is a B2B strategy where sales and marketing treat high-value accounts as markets of one, using personalized outreach.

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Omnichannel Marketing

Omnichannel marketing creates a seamless, unified customer experience by integrating a company's various communication and sales channels.

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Amortization

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Value Chain

A value chain is the series of business activities required to create and deliver a product or service, from conception to the final customer.

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Sales Funnel

A sales funnel is a model illustrating the customer's journey from initial awareness to the final purchase, narrowing down leads at each stage.

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Business Development Representative

Learn about business development representative, including skills and qualifications for BDRs, & roles and responsibilities of a BDR.

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Marketing Play

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Incident Response

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

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Objection Handling in Sales

Objection handling in sales is the process of responding to a prospect's concerns about a product or service to move the deal forward.

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Sales Dashboard

A sales dashboard is a visual tool that centralizes and displays key sales data, metrics, and KPIs to help teams track performance and goals.

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Consultative Sales

Consultative selling is a sales approach where a salesperson acts as an advisor, focusing on understanding and solving a customer's specific needs.

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Email Personalization

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

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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.

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Video Email

Video email involves embedding a short video directly into an email. This lets recipients watch your message without leaving their inbox.

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Target Buying Stage

The Target Buying Stage identifies a prospect's position in the buying journey, from initial awareness to the final decision to purchase.

Target Buying Stage

Customer Segmentation

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

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Consumer Buying Behavior

Consumer buying behavior is the study of how individuals select, buy, and use products and services to satisfy their needs and desires.

Consumer Buying Behavior

Service Level Agreement

A Service Level Agreement (SLA) is a contract defining the level of service between a provider and a client, including metrics and penalties.

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Closed Question

A closed question is a type of query that elicits a simple, often one-word answer like 'yes' or 'no,' or a specific, factual response.

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Sales Productivity

Sales productivity is the measure of a sales team's efficiency, focusing on maximizing revenue generation while minimizing the resources spent.

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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.

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Warm Calling

Warm calling is contacting prospects with a prior connection, like a referral or social media interaction, to make your outreach more relevant.

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Competitive Intelligence (CI)

Competitive intelligence (CI) is the ethical gathering and analysis of market data to inform strategic business decisions and gain an advantage.

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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.

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Stress Testing

Stress testing is a type of software testing that determines a system's robustness by pushing it beyond its normal operational capacity.

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Batch Processing

Learn about batch processing, including benefits of batch processing, best practices for implementation, & common use cases.

Batch Processing

Microservices

Microservices is an architecture where apps are built as a collection of small, independent services that communicate with each other over APIs.

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Horizontal Market

A horizontal market is one where a product or service is designed to meet a common need for a wide array of customers, regardless of their industry.

Horizontal Market

Infrastructure as a Service

Infrastructure as a Service (IaaS) is a cloud computing service that offers essential compute, storage, and networking resources on-demand.

Infrastructure as a Service

Customer Buying Signals

Customer buying signals are the actions, behaviors, or statements a prospect makes that indicate they are moving towards a purchase decision.

Customer Buying Signals

Customer Data Analysis

Customer data analysis is the process of examining customer information to uncover insights that drive business decisions and improve experiences.

Customer Data Analysis

Intent-Based Leads

Intent-based leads are potential customers whose online actions—like searches or content engagement—signal a clear interest in buying a solution.

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Sales Pipeline Management

Sales pipeline management is the process of organizing, tracking, and managing potential deals through every stage of your sales funnel.

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Firewall

A firewall is a digital barrier that protects a network by monitoring and controlling traffic, blocking unauthorized access and malicious content.

Firewall

Trade Shows

Trade shows are events where companies in a specific industry showcase their latest products and services to find new customers and partners.

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Sales Methodology

A sales methodology is the framework that guides how your sales team approaches the entire sales process, from prospecting to closing deals.

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Sales Script

A sales script is a pre-written guide of talking points that helps salespeople navigate conversations with potential customers.

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User Interaction

User interaction is any action a user takes within a digital interface, like clicking a button, scrolling a page, or filling out a form.

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Email Engagement

Email engagement measures how your audience interacts with your emails. It includes key actions like opens, clicks, replies, and forwards.

Email Engagement

Real-time Data Processing

Real-time data processing is the method of analyzing data the instant it's generated, enabling immediate actions and decision-making.

Real-time Data Processing

User Interface

A User Interface (UI) is the point where humans and computers interact. It encompasses all visual elements like screens, icons, and buttons.

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SEM

Search Engine Marketing (SEM) is a digital marketing strategy that uses paid tactics to increase a website's visibility in search engine results.

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Smarketing

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Omnichannel Sales

Omnichannel sales is a strategy that integrates all physical and digital sales channels to create a seamless, unified customer experience.

Omnichannel Sales

Cybersecurity

Cybersecurity is the practice of protecting computer systems, networks, and data from digital attacks, theft, and unauthorized access.

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LPI

LPI, or Lead Per Inquiry, is a key metric that measures how many leads are generated from each inquiry in a marketing campaign.

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Workflow Automation

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Lead Response Time

Lead response time is the duration between a potential customer showing interest and your team's first point of contact with them.

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Chatbots

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Sales Operations Analytics

Sales operations analytics is the practice of analyzing sales data to improve the efficiency and effectiveness of the entire sales process.

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Sales Champion

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Warm Outbound

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Call for Proposal

A Call for Proposal (CFP) is a document that solicits proposals, often through a bidding process, for a specific project or service.

Call for Proposal

Buyer’s Remorse

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Buyer’s Remorse