Know how to sell to your 3 types of buyers.
Every business (no matter the industry) is going to have to deal with the 3 types of buyers out there.
All other aspects aside, these 3 groups are defined by the “pain” that they receive when purchasing something. Neuroscientists have defined human spending patterns as a process of “spend ’til it hurts!”, so understanding these different levels of pain points is essential to increasing your sales.
According to the research, all customers are grouped into the following categories:
Fortunately, the secret boils down to utilizing well-written captions in your posts.
According to some remarkable neuroimaging studies, minimizing buying pain for “tightwads” (and everybody else) can be accomplished successfully by incorporating the following strategies.
1. Re-frame the value
If I told you that my product costs $500 a year, you’d definitely approach with a little hesitation, right?
Right. That’s because $500 isn’t peanuts.
What if I told you instead that my product costs $44 a month? Not bad right? If you got enough utility out of it for your business (or for yourself) every month, it would be a very worthy purchase.
The thing is, that’s the same as $500 a year!
If you’re offering something that has a recurring cost or that could be broken down into smaller increments, look into how you might be able to incorporate this into your pricing.
What about the example of AP-24 Whitening Toothpaste? Most retail it for $20. Why not say it's just $ .66 a day.
2. Reduce pain points through bundling
Neuroeconomics expert George Loewenstein has noted that all customers (but especially conservative spenders) prefer to avoid purchasing multiple accessories if there is an option to complete their purchase in one swoop.
He cites our willingness to upgrade from different car packages, but how difficult it is for the brain to justify each individual upgrade (“Yes, I will pay extra for the navigation… and leather seats… and…”, etc).
Lowenstein would assert that these individual purchases create individual pain points, whereas a bundled purchase creates only one pain point, even if the price is much higher.
3. Sweat the small stuff
Just how small of a change matters?
In what I’ve named the goofiest bump in a conversion rate that I’ve ever seen, research from Carnegie Mellon University University reveals to us that even a single word can affect conversions.
Researchers changed the description of an overnight shipping charge on a free DVD trial offer from “a $5 fee” to “a small $5 fee” and increased the response rate among tightwads by 20 percent!
Has the word “small” ever felt so big? With a single added word increasing conversions by that amount, I think it’s safe to say that the devil is definitely in the details.
The Takeaway: No matter what business you’re in, you will always have 3 types of customers. Know how to sell to tightwads, they make up a large base of your potential buyers and you can reduce their buying pain with the right choice of words.
Monte Schumacher is a 31 year Direct Sales industry veteran. He leads one of the largest networks of independent sales reps in the world.