Understanding the reasons why people make a purchase decision is crucial for the sustainability of any business.

By the end of this article you will know the reasons why people make a purchase decision. And also be able to judge if you should focus your marketing efforts to a particular segment of the market or learn and adapt to serving different types of customers. 

When you know why people buy: 

• It helps you create effective marketing strategies that understand the customers needs and desires, create goods and services that meet those needs, and promote them in a way that resonates with the target audience.
• It helps businesses ensure their product or services meet and exceed customer’s expectations, thus leading to brand loyalty.
• Knowing why people make a purchase decision can help businesses to identify gaps in the market and create new products or services to fill those gaps. This can lead to increased revenue and market share.
• By creating content that resonates with the target audience,  businesses can engage  with their customers  in a meaningful way and build stronger relationships.

Reasons why people make buying decisions.

Price

Getting a good deal or prize is a good motivator to make a purchase decision. It is common to see companies place discounts, coupon codes or buy one get two deals to target lazy buyers, or those who couldn’t just afford before. Even Though, some companies use it as their strategy to compete in the marketplace which I think is not the most sustainable. Imagine another competitor comes in the market and slashes their price; 20% or 30% less than what you have been proposing. You completely get down the rail. But it still remains an option.

Selection

Selection is a big factor when it comes to reasons why people make a purchase decision. I just moved into a new neighbourhood. At first I was grocery shopping at almost all the mini markets around but recently, I am sticking to one. Because they offer a wide range of selection. It reduces the hassle and saves me time.

 Amazon is another great exam, there you don’t only get to choose from a variety, but you can actually compare prices and read reviews which facilitates confidence and making a buying decision.

Quality 

There are people ready to buy certain products because of quality. To some high quality products are durable, to others, it brings more satisfaction, to others is an act of self love and also status. There is always  a segment of people in the marketplace willing to pay more for premium and quality products. 

Convenience 

People are willing to save time and pay more for convenience. They are willing to decrease the hassle and make their lives more comfortable. 

A good example could be an entrepreneur who decides to take a 30 minute airplane flight to a nearby city instead of queueing in the bus station for a 2 hour drive.

Also with more and more businesses going online, customers will choose to buy from brands with easy payment methods and delivery.

Personalized services

Customers today more than ever expect some kind of personalized service, in a way that genuinely serves them. It makes customers feel valued plus a greater brand trust. 

This could be from providing a VIP experience for your best customers, offering custom and unique services, sending them personalized messages or gifts.

Let’s say you order for new stock and immediately inform them about the arrival date, so they can be the first to select.

Or you pack and do deliveries.

Out of these 5 points which one should you focus on. Which should be your point of differentiation?

Some gurus say you should focus on one of them instead of trying to compete on all.

I see all the points important and useful for any business especially with the competitive world of today.

If you focus on any, say quality or personalised service, there is a probability you will charge more

Let me know what you think?

The 4 most common types of buyers and how to sell to each.

Understanding the unique needs and preferences of different types of buyers is key. This will help tailor your sales approach to effectively sell to each type of customer. One of the more reasons you need to do target market research and then market segmentation.

When you deeply understanding your target market :

• It assists tailor your messaging to each buyer persona. That is using language and terminology that resonates with each type of buyer, and highlighting the benefits of your product or service that are most relevant to them.
• Adapt your sales approach: The way you sell to a difficult buyer is different from the way you will sell to an affluent buyer.
• Customize your product or service to meet the specific needs of different types of buyers. 

Example: Offering different pricing tiers, features, or packages that cater to different types of customers.

Here are the 4 common types of buyer and how to sell to each

#1  Discount buyers

Discount buyers buy based on price, discount. They want a good deal. They enjoy being smart.. They are often willing to wait for a sale or promotion to make a purchase, rather than paying full price. Businesses that target discount buyers may use price promotions, flash sales, and scarcity to appeal to this segment of the market.

#2 Difficult Buyers

These are the most challenging customers to satisfy, they are either skeptical or resistant to make a buying decision. It doesn’t matter even if you go the extra mile, they just don’t buy. Most at times they focus on challenging you, either your knowledge, products, they look at the slightest to hang on. They are interested in making your life a living hell.

Difficult buyers may also be more likely to negotiate prices, ask for additional benefits or concessions, or have complex decision-making processes. 

I think it is the reason more and more service providers are beginning to focus their energy towards reaching their ideal clients.

Nevertheless. It is important to approach these types of buyers with patience, empathy, and professionalism. Listen to their needs and concerns, provide clear and accurate information, and offer alternatives solutions.

Note: Even when these types of buyers eventually become customers, they are difficult to maintain. 

#3 Sophisticated Buyers

These types of buyers have a high level of knowledge, expertise, and experience in a particular industry or market. They sometimes do a lot of research before making a buying decision. Sophisticated buyers have a specific requirement, quality, performance and reliability of product or service rather than the price. They may also have a high level of expectations regarding customer service, delivery times, and other aspects of the purchasing process.

So how do you deal with this type of buyer?

Don’t be overly convinced. Stay away from typical sales tactics when dealing with sophisticated buyers. Provide the necessary information and  let them come to their own conclusion. If not, you turn to sound pushy. Give them room to make decisions on their own.

They also love when you tell them what your  products can’t do. It helps build trust.

Takeaway: Sophisticated buyers may also be interested in working closely with businesses to develop custom solutions or products that meet their unique needs. Building strong relationships and providing excellent customer service is critical if your business targets sophisticated buyers, as these buyers often value long-term partnerships and collaborations.

#4 Affluent buyers

Affluent buyers have a high level of wealth or income and can buy whatever they want. They are interested in premium unique and personalized products or services that cater to their specific tastes and preferences. If your business targets affluent buyers, you must provide a high level of customer service and attention to detail, convey exclusivity and prestige of their products or services.

Affluent buyers buy feelings, emotions and convenience. They buy luxury and status. 

Think about how you can go the extra mile to make their life easier. 

Example: Affluent buyers will appreciate when they visit your flower or chocolate shop, and you walk them out diligently and wait for their automatic door cars to open and then you carefully place them. 

You might be thinking…

How to know the different types of buyers

To know how to sell and close deals is a skill, skill pitchers know within seconds whether face-to-face or on-call the type of buyer they are going to be dealing with. But you can easily detect by their communication style, and behavioural patterns.

Conclusion

One of the most difficult decisions you can make in business is deciding on what kind of buyers you want. 

Have you ever wondered, two competitors with the same products, one is charging high while the other is barely struggling to get low ticket buyers.

See when you choose what clients you want to attract for your business, you will focus your energy, time and money trying to reach them.

When you attract any of these types of client, you turn to attract their entourage

Turning your low-ticket offers into high-ticket premium services requires an understanding of the four main reasons people make purchase decisions. If you are able to make your audience feel seen, heard and understood: that is you solve their specific problems, appeal to their emotion and defend with logic, you will continue to sign clients consistently, regardless of what you charge. 

Note: The success and growth of your business depends on being able to attract and sell to your ideal customers.

Have you come across any of the above buyer types?