Your customer’s spending habits have a big impact in the way you market your product offering online. While some people have no trouble spending more money on a product, others will spend days trying to find the cheapest one on the market.
To appeal to each type of buyer, you need to cater to their spending predispositions. This means you first need to understand what makes each type of buyer tick and how you can use that information to better market your products to them.
Read on to find out more about the three main types of buyers and how to appeal to each.
The three types of buyers and how to appeal to each
Studies have identified the following three types of customers:
- Average spenders
1. Tightwads — 24% of buyers
“Tightwads” don’t like spending money so they’re predisposed to say “no” to a purchase, no matter how catchy your product description is. They strongly believe that money is meant for saving, not spending. So they’d rather have it sit safely in a savings account than spend it on a product.
For this group, spending hurts. They feel a high level of buyer’s remorse, which can happen most often before but also during and after they’ve made a purchase.
How to sell to this group
This type of buyer is the most difficult one to convert. Fortunately, there are a few smart techniques that can help minimise buying pain for this kind of customer:
Use data. A buyer with a numbers-driven mind set will make decisions based on numbers. To persuade them to buy from you, you will need to address their concerns with well-researched information that includes statistics, metrics, charts and studies.
Reframe value. You will have a greater chance of converting a conservative spender if you break down your pricing into smaller increments. For example, instead of $1000 per year try showing the monthly price of your product at $84 per month. Doesn’t that seem much more affordable?
Pay attention to messaging. Tweak your copy to bump conversion rates. For example, instead of “a $5 fee” you could say “a small $5 fee”. Also, since these buyers don’t respond to emotional copy like “you deserve to relax”, focus on the money-saving aspect with your messaging by using copy like “Save $100 when you book your trip today”.
Read this article for more excellent ideas on how to convince tightwad customers to buy.
2. Average spenders – 61% of buyers
This is the average Joe who is much more likely to respond to your marketing copy and buy. They will research their options to make an informed decision, but won’t overthink it.
Make sure you work on making your product benefits and features appealing, and your comparison charts as clear as possible so they can see the differences between the various products or packages.
Since average spenders make up the biggest slice of the pie chart, make sure you focus your marketing efforts on this group as they’re likely to bring in the most revenue.
How to sell to average spenders
Use emotional triggers. They respond to a mix of emotion and metric-driven marketing messaging so use both in your copy. Read more about writing with emotion.
Make your benefits clear. Use bullet points and comparison charts to clearly show what your product can offer and how it compares to other similar products or those of your competitors.
Give them free stuff. These types of buyers love extra options like free shipping, free returns, guarantees, warranties and more. So give them some extra free stuff as it can help tip them in favour of a purchase from you.
3. Spendthrifts – 15% of buyers
Ah, the spendthrifts. They are every marketer’s dream customer. Why? Because they love spending money with no hesitation. Also, they’re the opposite of tightwads in the sense that they feel little to no pain when making a purchase. That feeling of “buyer’s remorse” is foreign to spendthrifts. In fact, the more they spend, the better they feel.
Another great thing about this type of buyers is that they often disregard the price tag. They are driven by emotions and focus on the appeal of having a specific product or service. In many cases, they equate a higher price point to a top quality product or service.
How to sell to spendthrifts
If they are in your target market, they don’t require much convincing. However, here are some tips to appeal to them:
Appeal to their emotions. Spendthrifts are more likely to buy for pleasure than for practical reasons. So your copy and visuals should focus on their emotional needs, whether that’s status, gratification, adventure and more.
Don’t be afraid to set a higher price point. If you have a high quality product, don’t undersell it. If the price is higher, it may actually attract spendthrifts as it can lead them to believe that the product is more valuable and enjoyable.
Add on fees. While shipping costs may drive away other types of buyers, it won’t have a negative impact on the purchase of a spendthrift.
Knowing who your buyers are and adapting your copy and visuals to appeal to each group can help increase your sales and grow your business. In fact, a few simple changes could increase your revenue dramatically.
The idea is simple: know your types of buyers and what they want, and give it to them. Once you’ve got this figured out, you will be a step ahead of your competition.
Have any other tips and advice on how to sell to these three types of buyers? Share them with us in a comment below.