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Understanding Your Potential Customers

Posted by Admin | 1 year ago | Filed Under Entrepreneurship

One of the ways to distinguish yourself as a good sales person is to properly understand your buyers. Knowing the types of buyers you are dealing with is crucial to making great sales and meeting targets.

Often times, a sales person is so overwhelmed with the pressure at work and the constant pressure of meeting target that he / she is only interested in going straightaway to pitching. Thus, the crucial aspect of understanding the nature of preferred buyers and prospects is often left out.

For example, convincing a tightwads prospect to buy a N20,000 shoe is most likely a waste of time as such a person is extremely conscious of his spending. Therefore, expecting such a person to part with such an amount may likely not happen. You may have to properly articulate your pitch to prove how the shoe is a better choice than similar products in terms of the durability, the quality, and the expenses it may save the person amongst others. Converting a tightwads prospect into a customer is never easy and often times requires conscious strategic planning.

On the other hand, selling such a shoe to a spend thrift won’t be as difficult as it would be for a tightwad or an average spender. As a salesperson, you may really not need to pitch extensively or give positive testimonials of previous user to convince a spendthrift as you would a tightwad buyer.

Knowing these, we decided to expantiate on the different types of buyers we have to enable every sales person understand the types of prospects they may meet in trying to close a sale.

Neuroscientists have defined human spending patterns as a process of “spend ‘till it hurts!,” so understanding these different levels of pain points is essential to maximizing your potential sales.

Average Spenders: also known as Unconflicted spenders. They make up approximately 61% of all consumers.

They are conscious of prices and the financial and emotional effects they have, but their reasoning is generally logical and they see consequences as equal to the actual expense incurred. They are logical and need to be convinced that what they bought is actually worth it and that the value is worth the actual costs.

“Average spenders do not want to be tricked into anything or upsold. They are level-headed, making buying decisions based on both emotions and value, so it’s important to align your marketing with both of these in mind.”

 

An easy way to do this is by offering a product guarantee or warranty. Average Spenders are practical with their money and by having messages like these on your pricing, consultation, or product pages you can help reassure them that they are making a smart purchasing decision.

 

Other ways to offer reassurance to an Average Spender is through facts, data, & social proof. It is not enough to say how great your product or service is, you need to prove it. This kind of third-party praise helps your audience know what they can realistically expect from you while also confirming that you’re not making empty claims.

 

When it comes to an Average Spender, you can also use a discount or premium to pique their interest. At the end of the day, even if your brand is short on social or industry proof, a deal may be the deciding factor between you and a competitor.

 

Spendthrifts: They are able to spend more than the average buyer before hitting what the study called “maximum buying pain” and they love to treat themselves by spending. In fact, they feel best if they are spending and often associate higher price tags with quality and luxury. So people like this, you love luxury and would probably buy anything that reflects status.

You can consider offering premium package or edition to this type of buyer.

 

Tightwads: Tightwads do the most research before making a purchase so they also require the most nurturing. They go through the most pain when making a purchase, because they are very conscious of how they spend and it takes more time trying to convince those in this category. They rarely make purchases and when they do so, it is usually in a justified way or manner.

With this in mind, always be as thorough as possible with your Marketing and make sure you have strategies in place to meet their needs.

You can publish an educational content to fully inform them of your products/services/idea. You can also offer special discount in order to spur them to buy.

The bottom line is that No matter what business you are in, it is important to understand the three types of buyers. Selling to tightwads is especially important because they make up a large base of your potential customers. The right choice of words can greatly reduce their buying pain.

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