Understanding the Three Types of Buyers
In this episode, we go over the three types of buyers. Neuroscientists have discovered that people “spend till it hurts” and can be categorized into different types. The three types are separated by their pain level when it comes to spending money. Spendthrifts are the buyers/spenders with the highest pain tolerance when it comes to spending money and make up 15% of the spenders. ^1% make up the majority of spenders/buyers and are considered unconflicted with an average pain tolerance for spending. But the most sought-after group in the bunch is the tightwads, they make up almost 24% of the population of spenders so they are a group large enough to target.
If you can package your products and services in a way to get tightwads to buy it the other types will already be buying. So spend time figuring out how to get money from the tightwads.
3 Ways to Alleviate Spending Stress
There are three ways to get past their apprehensive nature when it comes to relinquishing money for goods and services. The first is reframing your proposition. By testing and retesting your copy, you can hone in and soften your pitch. Consider if your subscription costs about $1000 a year. That is a big nut to swallow, but $89 dollar a month is far easier to sneak into the budget. So break it into small pieces, such as “only four easy payments of $19.95” rather than $80.
The second way is to create added value by bundling. Making bundles that add value but hold higher prices give the impression that they are receiving more than they are paying for.
The last is sweating the small things. A simple adjective such as “small” in front of the word fee can change your conversion by 20% in some studies. Be very aware of the verbiage you use to describe your offers.