Dealing
with Different Buyer Types
Anyone who has
been in sales for an extended period of time can tell you that there
are a variety of different buyer types in an organization. These
buyer types have different interests and concerns and make buying
decisions based on their particular needs. Regardless of the
management level of the person you are dealing with, with the exception
of executive buyers, you are liable to encounter each buyer type
in all levels of an organization. In some instances, specific
buyer types are more likely to reside in particular positions.
Occasionally, you may even come across one person who bridges across
two types. No matter the situation, you have to understand what
motivates that buyer type to know how to deal with them.
There
are four buyer types you are likely to encounter:
- The Financial Buyer
- The Technical Buyer or Specifier
- The User Buyer
- The Executive Buyer
The
Financial Buyer: The financial buyer is most concerned
with the cost of
a product or service – not only the initial cost but also future
costs that might be incurred in the long-term. Their main concern
is cost efficiency and they are sometimes apt to purchase a product
on price alone. In some cases, they may select a lesser quality
product simply due to a lower purchase price. This ironically
goes against their interest of seeking a product or service that
is cost-effective in the long-term. You are likely to encounter
financial buyers in purchasing/procurement departments. This person
can make the final decision.
The
Technical Buyer or Specifier: The technical buyer
or specifier is usually involved in influencing the person who makes
the final decision on a product or service. They are tasked by
the decision-maker
to research and evaluate different options and then provide a recommendation
for a purchase. When looking at different product or service specifics,
they are more concerned with quality and the ability of those specifics
to meet their particular requirements. Price is often not as big
a concern for this person but it can be a factor. Be aware that
there are times when this person may not have the information required
to answer your questions.
The
User Buyer: This type of buyer will review the
impact of a product or service being used. In the case of a software
product, for example, they may be the end user who will need to
work with the product on a daily basis. Their concern will be how
a product will affect the way they do their job. They want to know
about the practical and functional aspects of that which is being
purchased. If a product
or service is inadequate, ultimately, they are the ones who
have to deal with the ugly consequences. While they have influence
in the buying process,
they generally do not make the final call on a purchase.
The
Executive Buyer: As they say, more often than not, the
buck stops here. It is very common for the executive
buyer to have all the decision-making power or to have a strong
influence in buying decisions.
This is the case even if the purchasing process has been delegated
to someone who works for the executive. Ultimately, the executive
buyer will be involved. Their main
concern is how a product or service will help advance their
organization’s strategic goals. Their main concern lies with profits,
strategic growth and long-term vision.
Can you pick out which type of buyer would ask a seller the
following questions?
“Can
I rely on your company to be there whenever we need technical
support?”
“How
can this product improve our ability to compete in the marketplace?”
“Can
you show me what kind of return we can expect on our investment?”
“I need the
technology to be up-to-date? Is your product release compatible
with other products in the industry?”
The first question
would come from a User Buyer, someone who would be concerned
with the impact of a product or service on their ability to do their
job. Here is a possible way to answer their question…
User Buyer: “Can I rely on your company to be there whenever
we need technical support?”
Sales Rep: “Absolutely. We have a dedicated technical
support staff available twenty-four hours a day, seven days a week.
Our staff is accessible via our toll-free number and also provides
e-mail support. You can also access an online knowledge base via
our secure technical support web page.”
The second question
would come from an Executive Buyer,
someone who would be concerned with strategic issues and the long-term
effect of a product or service. They will want to know what you
can do to help them beat the competition. Here is a possible answer
to their question…
Executive Buyer: “How can this product improve our ability to compete in the
marketplace?”
Sales Rep: “Simply put, by utilizing our equipment
in your manufacturing plant,
you will be able to turn out 25% more product within the same timeframe
as your competitor. This provides you with the ability to keep up
with supply and the strength to fulfill larger orders that your
competitor is ill-equipped to meet.”
The third question
would come from a Financial Buyer, someone who looks at the
financial impact
of all purchases. A possible answer to their question would be…
Financial Buyer: “Can you show me what kind of return we can expect on our
investment?”
Sales Rep: “By
switching to our shipping
and distribution system, you will be able to save 10% on your
overall distribution costs, enabling you to shift important funds
into other areas of the company.”
The last question
would be presented by a Technical Buyer or a Specifier.
Their focus is to find out if your product or service is the best
possible option for their company and is the best technology. They
want performance. A possible way to answer their question would
be as follows…
Technical Buyer: “I need the technology to be up-to-date?
Is your product release compatible with other products in the industry?”
Sales Rep: “Absolutely. Not only is our product
compatible with the most current versions of the software you use,
it is also backwards-compatible with legacy systems. Our research
and development team has made sure our product is the most compatible
in the industry.”
As you come
across different people in the sales cycle, listen to their questions
and observe their concerns. Categorize
them into one of the possible buyer types so as to be able to
address them in a manner that speaks to their interests. Determine
their needs and their level of influence (decision-maker, influencer,
etc.) and adjust your actions accordingly. Your statements need
to appeal to the buyer types to influence them to recommend or choose
your product.
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