It is very important to understand how Gen Y makes decisions during different stages within the sales funnel and what they value most. We used open-ended questions and tag cloud technologies to uncover these preferences. We found that generations prioritize product features differently. The order of these priorities changes as the customer progresses through the funnel. However when it boils down to reasons for purchase, the features remain constant throughout generations. (Please see exhibit C.1 and C.2). These observations and market research in choices and decisions helped us in reaching to these conclusions:
- First non-compensatory and then compensatory strategy for decision-making. During initial phases of sales funnel, the number of product features discussed is more and these are more qualitative in nature. During last phase of sales funnel, the number of product features considered is less and most of these measures can be measured. This indicates that customer uses non-compensatory strategies during initial phases of sales funnel but uses compensatory strategies in the last stages of decision-making.
- Emphasize on different product features at different sales funnel stages. Features’ priority changes so sales personnel should emphasize on different features at different stages of sales funnel to improve conversion rate.
- Tips to close deal in the last stage. Because priority of price and mileage is high during last phase of sales funnel, sales persons can use the tools such as reference pricing, and coding money as gain (Mental accounting).
- Opt-out works in all sales funnel stages. Providing opt-out option can help dealers to have a better conversion rate in initial phases. On the other hand, it will also help sales persons to reach to price point of customer in the last stages of sales.