The Internet Buying Cycle

It is best to understand the Internet buying cycle before deciding upon search terms and their position in the pay per click rankings.

The buying cycle consists of three general steps.  The first is the research step, the second is cost comparison and the third is the actually purchasing or contact.  Keep in mind all these steps are not necessarily done online.

Research

The first step to the purchasing of a product or service is research.  What exactly am I looking for?  What variations, brands, sizes, qualities are available? Who offers it?  When doing the initial research step the individual is most likely to search with general terms.

As an example:  Let’s say someone is looking for a computer.  They probably have some idea of what they want – Apple or IBM compatible, Desktop or Laptop, used, refurbished, new.  They’ll start by searching with terms like “computer”, “used computer”, “desktop computer”, “IBM laptop”.

Another example:  Let’s say someone is planning on moving to Florida.  They think they want to live in the Tampa area.  Some terms they could use are “Florida real estate”, “Tampa, Florida”, “moving to Tampa”, “Relocating to Tampa”. 

During this phase they are not likely to jump in and buy.  This is an information gathering step.

For these general terms your site need not be listed at the top of the page.  Further down on page one or even sometimes page two is just fine.  They’re doing research and they’ll get to you.

Note:  Larger companies that are using the search engines as a branding tool (and have the budget for this) will want to be at the top of Yahoo, Google, MSN, etc. on all major terms.

Comparison

Especially when searching for products most purchasers will want to compare availability and prices.  Here they will go with more specific terms such as “new IBM laptop”, “refurbished Power Macintosh”, “home in Tampa”, “inexpensive IMB desktop”.  As in the research phase the potential buyer is likely to search many different sites so you don’t necessarily need to be in the top three positions.

Buying

Once the research and comparison steps are done the Internet shopper is ready to make his or her decision and buy the product or sign up for that particular service. Here is where the most specific terms are searched for and it is at the stage of the Internet Buying Cycle that you want your web site to be in plain view.

You would want to be listed in the top three positions (or top five depending on your budget.)  Choose the most specific terms such as: “ibm thinkpad laptop”, “apple imac g5”,  “dell notebook computer”, “home in tampa, florida” , “tampa florida realtor”.

By understanding this buying cycle you can make the best use of your Internet advertising budget by spending you dollar where you are most likely to get a return on that investment.