You don’t have to be in business too long to know there are different types of buyers. Some people buy on impulse, while others analyse their purchases to the last cent.

Every person that comes across your business – online or offline – will have a certain amount of money and a certain tendency to spend that money. As a business owner or marketer, it is your job to influence their spending behaviour.

How do you do that? Primarily by understanding what type of buyer you are dealing with based on their predisposition to spend.

The Three Types of Buyers

  • The tightwads

Twenty four per cent of the population are identify as tightwads. They are the ones who believe money is a non-renewable resource and should be kept in a bank. Needless to say, they do not enjoy spending money and feel remorse before, during or after a purchase.

Since tightwads have strong self-control, persuading them can be extremely hard – albeit possible.

  • Spendthrifts

On the other end of the buyer spectrum are the spendthrifts, the smallest percentage (15%) of buyers and the easiest to market to. Unlike tightwads, spendthrifts feel little to no remorse in pulling out their wallets.

Spendthrifts are going to be spendthrifts no matter how much money they make. They are motivated by the benefit or pleasure of gaining the product or service, not by the consequences of spending. If they do feel “pain” about buying, it is not until after the purchase has been made.

  • The average spenders

Majority (61%) of the population fall into this category. Average spenders are more receptive to persuasion, which means you have a good chance at making a sale. This group are ready to think about your proposition, as they want to make an informed decision.

Average spenders are the balance between the tightwads and the spendthrifts. They look at the facts first but don’t overthink their purchases.

Marketing Tips

Given the distinct characteristics of the different types of buyers, it seems easy enough to target your marketing efforts. Go for the spendthrifts and average spenders – nevermind the tightwads.

Here’s the thing, though, some people can be both a spendthrift and a tightwad depending on what they are buying. In fact, the buyer spectrum is like a continuum between the two extremes. A buyer’s behaviour can change in different areas of spending and based on factors like age, income and many others.

So how do you capture all three main types of buyers?

  • Marketing to spendthrifts

It’s rather easy. Spendthrifts will buy a product regardless if you use or don’t use persuasion. Nevertheless, you can improve your profitability by keeping these tips in mind.

Firstly, highlight the pleasure factor. Draw their attention to the gratification, luxury or adventure they will experience by buying your product or service.

Another strategy is to make the price higher or adding extra fees. Spendthrifts don’t mind paying more especially if they are already aware of the product’s benefits. In fact, they will even consider the product to be more valuable if it comes with a higher price tag.

  • Marketing to tightwads

Use numbers, statistics and studies. Tightwads respond better to data than to flowery sales talk. If you reinforce the logic and value in buying your product, they will be more likely to consider it. Show them that your product or services fills a need, and how that is so.

More importantly, offset the “pain” of a purchase with the pleasure of being able to save. In other words, offer cost savings.

  • Marketing to average spenders

Since average spenders are the most likely to respond to persuasion, it makes sense to spend more time on winning them over. They are the ones who will look at your marketing copy and product information closely.

Influence their spending behaviour by providing data coupled with persuasive techniques. For example, use expert mentions and reviews to provide social proof, or improve your content to make it more convincing and relevant.

Takeaways

By identifying the types of buyer who are purchasing from you, you will be better equipped to improve not just your conversions but also your profits. And by getting to know your clientele more, you will be able to serve their needs better and build a deeper connection, which increases their lifetime value.