It is true that customers buy less in a recession but the fact is that they still buy- they are just choosy about where they spend their money. So the question is why do they not buy from you? If you are in a commodity market then they may well be seeking lower cost substitutes, but in most cases, particularly for service brands, the reason is not price.
 
According to 'Conceptual Selling', by Robert Miller and Stephen Heimann, in over 50% of cases, lack of trust is the primary reason the customer decides not to buy. The next highest categories for not buying: 'no need' and 'no desire to change', both hover around 10%. 'No urgency' and 'no budget' trail even further behind. So, the elephant on the table in the failed sales department is absence of trust.
 
We have known this for years of course. Well over 20 years ago, J D Powers' surveys in the car sales market told us that customers would buy a car they liked, but weren't mad about, from a salesperson they trust rather than buy a car they love from a salesperson they did not trust. What is new though, is the importance of trust when it comes to brands.
 
Read the entire MyCustomer article.