How to Determine the Customer’s Decision-Making Unit?
- Martin Anev
- Jul 3, 2024
- 3 min read
Updated: Nov 15
Many startups struggle to understand why their products fail to gain traction despite having a strong value proposition. The underlying issue often lies in not knowing who makes the ultimate decision to purchase and who influences that decision. This lack of clarity can derail even the most promising products.
Understanding the Decision-Making Unit (DMU) is crucial. By identifying all the key players involved in the purchasing process, startups can tailor their sales strategies to meet the needs and concerns of each role. Bill Aulet provides a framework for mapping out the DMU in one of the chapters from his book Disciplined Entrepreneurship, that will help ensure your product reaches the right hands.
First, let’s define the primary roles, the key individuals or groups involved in the decision-making process for purchasing a product or service. These roles are critical because they significantly influence whether or not a purchase is made. Understanding these roles helps tailor your sales and marketing strategies to address the needs and concerns of each key player involved in the decision. The primary roles include:
The Champion: The person who actively supports and advocates for the purchase of the product. They are often the end user and play a critical role in promoting the product within the organization or household. The champion is the driving force behind the acquisition, making the case for why the product is needed.
End User: The individual who will directly use the product and benefit from its features. Their feedback and experience with the product are crucial, as they often influence the decision to buy. In many cases, the end user is also the champion.
Primary Economic Buyer: The key decision-maker responsible for approving the expenditure. This person typically controls the budget and has the authority to make the final purchase decision. They evaluate the financial implications and overall value of the product.
Primary and Secondary Influencers: Individuals who provide input and sway the decision-making process. Primary influencers have a significant impact, while secondary influencers play a supportive role. They may have specialized knowledge or expertise that shapes the opinions of the champion and the primary economic buyer.
Person with Veto Power: Someone who has the authority to block the purchase, regardless of the opinions of others. In a corporate setting, this could be a senior executive or department head. In consumer markets, this might be a trusted advisor or regulatory body.
Purchasing Department: The team responsible for managing the procurement process. They handle logistics, negotiate terms, and ensure compliance with organizational policies. Their role is to facilitate the purchase while often trying to drive costs down.
Mapping Your Customer's Decision-Making Unit
Identify the Primary Roles: Recognize the Champion, End User, and Primary Economic Buyer. Understand their needs and motivations.
Map Out Additional Roles: Determine who the Primary and Secondary Influencers are, as well as anyone with Veto Power or within the Purchasing Department.
Conduct Thorough Research: Use inquiry mode to gather information about the DMU. Ask targeted questions to understand the decision-making process.
Create a Visual Map: Plot out the DMU visually to share with your team and validate with your customers. Refine this map based on feedback to ensure accuracy.
B2B Decision-Making Unit Example: Salesforce
Company: is an American cloud-based company that provides customer relationship management software and relationship management apps focused on sales, customer service, marketing automation, e-commerce, analytics, etc.
B2C Decision-Making Unit Example: Disney +
Company: Disney is an American multinational mass media and entertainment conglomerate known for its streaming service, Disney+.
Gaining a clear understanding of the DMU helps companies avoid several negative consequences such as missed sales opportunities, inefficient sales processes, and unexpected rejections. This insight ensures that all key stakeholders' needs and pain points are addressed, leading to more aligned product offerings and reduced customer churn.
Understanding the Decision-Making Unit (DMU) is specially important for B2B and SaaS companies because their sales processes often involve multiple stakeholders and complex decision-making. In B2B scenarios, high-value purchases require a tailored approach for each key player, while SaaS solutions demand consensus across various departments for successful adoption and long-term commitment.
By identifying and engaging with all relevant stakeholders—such as the champion, end user, economic buyer, and influencers—companies can effectively address specific concerns, customize proposals, and mitigate potential risks. This not only streamlines sales cycles and increases approval rates but also enhances post-sale support and customer retention, ultimately driving sustained growth and success.
The Challenge!
Use our worksheet to visually map out the different roles, and share the initial DMU map with your team and selected customers to get feedback. Ensure it accurately reflects the decision-making process.