Closing a profitable sales deal is always a challenge. From evaluating your business to stating a price that’s mutually beneficial to both parties, the whole ordeal can be quite challenging. And above all these challenges lies the most dreaded task: understanding your potential buyers.
Whether you’re selling an outfit or a multimillion-dollar company, you’ll come across several types of customers. Each one of them will be unique in terms of their behavioral, psychological, and logical characteristics. And to understand the ins and outs of consumer behavior, it’s imperative to learn the most basic concept: buyers’ types.
Continue reading this article and learn all about the three main types of buyers.
Spendthrifts are customers who make impulsive buying decisions. They rely more on their instincts than rational thoughts. These customers aren’t a fan of thinking before acting and they love purchasing whatever catches their eye!
A common misconception about spendthrifts is that they’re prodigal and materialistic. In short, they’re the best buyers you can get! They’re less likely to negotiate stated prices and, therefore, more likely help you gain massive profit.
Some of the other characteristics found in spendthrift buyers include:
- Lack of self-control when making a purchase decision.
- They can jump to conclusions rather quickly.
- They often don’t mind spending a considerable chunk of their income.
- They’re extremely likely to incur high debts and payables because they tend to borrow loans to satisfy their spending habits.
2. Frugal Spenders
Many people misconceive that frugalists, AKA frugal buyers, make cheap purchase decisions and are inclined to save money rather than spending.
When looking for B2B or B2C customers, you’ll come across many prospects that are interested in saving money, making product comparisons, and conducting detailed analysis.
The reasons behind this buying behavior are market volatility, stiff industry competition, and the growing bargaining power of customers. As businesses try to hold their sales to increase profit margins, their buyers gain more power to negotiate and save money.
Here’s a quick rundown of a frugal customer’s characteristics:
- They prioritize their spending decisions over their desires.
- They may prefer fulfilling their needsinstead of wants.
- They often assess the whole situation (market, rates, prices, trends, etc.) when making a purchase decision.
- They’re interested in maximizing the value of their wealth and time.
- They tend to follow all the customer purchase cycle steps and make the value their bottom-line priority.
3. Average Spenders
A majority of customers fall under this category. Average spenders are neither conflicted nor stingy when making a purchase decision. They buy what falls within their budget and don’t exceed their fixed expenditure.
They take a reasonable time to decide and analyze a sales deal and come up with a mutually beneficial price point that maximizes value and saves money. Average spenders avoide impulsive and compulsive buying episodes.
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