No matter which business you are in, if you are employed or self employed, it is always best to identify WHY people buy and what will supply your income source.
There are different kinds of customers and there are different kinds of products and services to suit and you need to understand these to be successful. Every business needs to sell itself, and needs to identify where their target customer lies.
To be successful you need to have something to suit every kind of customer.
I will use 3 examples for this purpose…
- social media training company
- physical shop
- direct sales company
Social Media Sales Company
- Ideally you want to have a basic entry level product – a trial or service that people can use and that is easy for you produce. In some cases, this might even be free. This will drive people to you because this product / service will solve a problem for them and be something they need
- The entry level product will prove your worth and value to your customer and this will help sell them a higher end service that they will be prepared to pay a little extra for but that will provide great quality for them.
- High end products are ones that only one in a few will ever buy. This is a service that you should never discount or give away for free because it will instantly become devalued.
- Your entry level product has to be something on trend, low end price, that most of your customers need, and ideally something that can be a repeat purchase. This will get your customers through the door. It is important to be ahead of trends. Many .shops associate this will a cheap product and don’t stock it as they don’t want to be perceived as cheap, but without it, people would not call in and see what else you have to offer. These products will also help towards paying your basic overheads.
- Your middle of the range stock has to be great quality and something that people want and are prepared to spend a little extra on. Display of these products is paramount. Association with the brand name and the emotions they associate with buying them are key.
- High end stock. There is more profit in these products but they sell the least. It’s the celebrity scarf or sunglasses, it’s the most expensive handbag. To sell this product, you have to understand why the customer wants it.
- Your basic product range has to be something interesting that people need or like and it is convenient for them to buy. It is a repeat purchase, a regular lipstick or nail polish, a breakfast shake or something they use on a daily basis.
- Your middle of the range is an add on, something they don’t need all the time but decide to treat themselves. It can be a pre-order sale product, a one time offer, a item for a special occasion or something that fulfills a need in them at a certain time of crisis or celebration – can they afford NOT to have it?
- High end. yes we would love lots of high end sales and more commision, but this is generally a high powered sales pitch. Why would they want to buy it, which emotion will make them buy? Sometimes they will buy because a celebrity has it, it related to them at a particular time or occassion (wedding / gala ball / home party)
Types of customers = Types of purchases
Basic level purchases are motivated from need. They need the product, they don’t want to spend much on it. The only emotion is need – a customer whose car breaks down might not have the money for a car but needs a new one so will spend the least they can.
Middle range customers are motivated by both need and want. They need it (or need it soon) and because they want it, they are prepared to pay a little extra – they know they need a new car soon, and have their eye on a new one, so are saving to get something that they like, want and need. They think about functionality and longevity.
High end customers might not need the product, they simply want it. In fact, the more expensive it is, they might want it more. If the person next door has something similar, they may want better and more expensive. If the brand influencer says it’s worth it, this is enough to make them buy it.
How to identify these customers?
Asking the right questions is the way to identify your customer. By not asking the correct questions, you are doing your product and service a disservice and not fulfilling the customer needs…
WHO: who is the product for? if it a gift, there may be a budget
WHAT: what colour, what size, what do you need?
WHERE: Where is it for? home, work, wedding, party, work… different places and occasions have different needs.
WHY: Maybe their past branded product has broken, be careful not to offer the same again
WHEN: if they need it yesterday, then sell them what you have ready right away or they will walk away
FEATURES: what features are they interested in… if they are looking for fine detail, they may be persuaded to spend extra
SPEND: what do you have to spend on this, it might be slightly stretchable
PAY: how and when would you like to pay. this normally is when they have displayed buying signs and you know if you have a time waster – or not
People generally are motivated to buy for 2 reasons… pleasure and fear? which one can you tap into in your sales technique?