HomeSkills & ProductivityHow to Sell? - Sell by Understanding Customer Types

How to Sell? – Sell by Understanding Customer Types

Selling is everything in business. How to Sell? This is the most common question that arises in businessmen’s minds when it comes to starting a business. In today’s dynamic marketplace, the art of selling has evolved significantly. With technological advancements, shifting consumer behaviors, and fierce competition, understanding your customers has become more crucial than ever. This article delves into the intricacies of selling in 2024, focusing on the importance of recognizing and catering to different customer personas.

how to sell - customer type

Customer Types or Customer Personas

Customer personas are fictional representations of your ideal customers based on market research and real data. They encompass demographic information, behavior patterns, motivations, and goals. Creating detailed personas helps businesses better understand their target audience and tailor their sales strategies accordingly.

Customer personas are crucial tools in sales and marketing, as they help businesses create personalized experiences that align with the needs, preferences, and pain points of various customer segments. This results in higher conversion rates, enhanced customer satisfaction, and ultimately, better sales performance.

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How to Sell? – Sell by Understanding Customer Types

When a customer decides to make a purchase, it is crucial to identify their primary motivating factor. This will influence whether they choose to spend money on your product or service. Understanding the five different customer types is key during sales interactions, as it helps tailor the positioning of your product to align with their motivations.

Regardless of the value or type of product being sold, what is important is the positioning of the product or service to convince the buyer to make a purchase. Whether selling gym services, jewelry, luxury cars, or B2B services like digital marketing or recruitment, the focus should be on understanding the personality of the buyer.

#1 Necessity Driven Customers

The first group of people are known as necessity-driven customers. These customers only spend money on a product or service if they see it as an absolute necessity. Once you identify that someone is a necessity-driven customer, you should position your product or service as a necessity, regardless of whether it is a luxury item like jewelry. For example, if a family buying jewelry for a wedding is identified as a necessity-driven customers, phrases like “you need this” or “you can’t do without it” should be used to establish the product as a necessity.

When managing a gym, if I notice a potential customer entering out of necessity, I should emphasize the importance of the product or service with phrases like “you need this” or “this is a must-do.” This creates an emotional appeal and increases the likelihood of them investing in the offering, regardless of the context. Ultimately, showing that the product or service is a necessity leads to a higher inclination for customers to spend money.

I mean you can use this in any situation to highlight that the product or service you’re providing is essential to the person, making them more likely to purchase it. These customers are driven by necessity.

#2 Convenience Driven Customers

The second group of customers are known as convenience-driven customers. These customers only invest or spend money on products or services that will make their life easier, more comfortable, and more convenient. Identifying convenience-driven customers is crucial, as pitching your product or service to them should focus on phrases like “this will simplify your life” or “all you need to do is sign up.” Positioning your product or service as something that will make their life easier and more convenient will make these customers more likely to purchase. Engaging with both necessity-driven and convenience-driven customers is important for any product or service.

#3 Prestige Driven Customers

The third customer persona, known as Prestige driven customers, are individuals who only purchase a product or service if they believe it elevates their status among others. These customers value being seen as part of the elite group and prioritize status and vanity when making purchasing decisions. They feel that this product or service puts them in the top 1% or 10% of the people. In short they are buying status. 

Consider this scenario: as a gym owner, when a potential customer enters who values prestige, I will position my gym as high-end. I will showcase that the gym is frequented by notable individuals in the area and we are selective about our members. Similarly, in a B2B setting, offering services to a corporate brand, I can highlight working with top clients in the industry, creating an air of exclusivity and prestige.

So please understand this it doesn’t matter what product or service you’re selling, it’s about how you position it based on the customer’s type and persona. You can position every product or every service as a necessity as convenience or as Prestige.

#4 Exploration Driven Customers 

The fourth customer Persona is known as exploration-driven customers, who enjoy trying new things and exploring products, services, and brands they have never tried before. When engaging with these prospects, use phrases like “try this, it’s something new” to encourage them to explore your offerings.

In a B2B setting, when offering recruitment services, I might approach potential clients by suggesting that they consider working with us in addition to their internal sourcing team and current recruitment vendors. Our methodology involves two rounds of screening before presenting candidates, potentially resulting in a more qualified candidate for their team to interview. By exploring this option, they may experience improved quality without any negative consequences. Customers who are driven by exploration appreciate phrases like “try it out.”

#5 Spontaneous Customers

Spontaneous shoppers are impulsive and driven by emotions. They make purchasing decisions based on immediate desires and impulses rather than rational thinking. To appeal to spontaneous shoppers, focus on creating a sense of urgency, highlighting limited-time offers, and leveraging persuasive language that taps into their emotions.

#6 Methodical Customers

Methodical customers are cautious and deliberate in their decision-making process. They weigh all available options, compare features, and seek reassurance before committing to a purchase. To win over methodical consumers, provide them with detailed product comparisons, customer testimonials, and guarantees to alleviate any concerns they may have.

How to Identify Customer Type?

Before beginning to pitch your products or services, it is important to have a set of questions prepared in order to understand the client’s needs while interacting with them. The set of questions will help you to identify customer type or customer persona. Some sample questions are – 

  • What is it that they want to achieve by buying a product or service?
  • What do they want in a product or service?
  • Why they are looking for products or services?
  •  What is the importance of a product or service for them?

In their language, you will detect phrases indicating whether they are driven by necessity, comfort, prestige, or exploration. Therefore, it is important to inquire about their desires, motives, goals, values, and emotional experiences when interacting with a supplier, partner, or vendor. Their responses will reveal their profile.

FAQs

What are customer personas, and why are they important in sales?

    • Customer personas are fictional representations of ideal customers, based on real data and market research. They are important in sales because they help businesses understand the unique needs, preferences, and pain points of different segments of their target audience, allowing them to tailor their sales and marketing efforts accordingly.

How can businesses create effective customer types?

    • Businesses can create effective customer personas by conducting thorough research and analysis of customer data, including demographic information, purchasing behavior, preferences, and pain points. By segmenting customers into distinct personas based on common characteristics and behaviors, businesses can gain valuable insights into their target audience and tailor their sales strategies accordingly.

How can businesses leverage customer types in their sales strategies?

    • Businesses can leverage customer personas in their sales strategies by customizing their pitch, messaging, and approach to resonate with different audience segments. By understanding the unique characteristics and preferences of each persona, businesses can address objections and concerns more effectively and increase the likelihood of closing the sale.

What role does data and analytics play in understanding customer types?

    • Data and analytics play a crucial role in understanding customer personas by providing valuable insights into customer behavior, preferences, and purchasing patterns. By leveraging tools and techniques for gathering and analyzing customer data, businesses can refine their understanding of customer personas and adapt their sales strategies accordingly.

How can businesses build long-term relationships with customers using customer personas?

    • Businesses can build long-term relationships with customers using customer personas by providing ongoing support and assistance, soliciting feedback and input, and offering exclusive perks or rewards to loyal customers. By demonstrating a commitment to customer satisfaction and value, businesses can foster loyalty and retention and drive sustainable growth over time.

Conclusion

In today’s hyper-competitive marketplace, the ability to sell anything to anyone requires a deep understanding of customer personas and a customer-centric approach to sales. By leveraging data and analytics, adapting sales strategies, and communicating effectively with different personas, businesses can increase their chances of success and drive sustainable growth in 2024 and beyond.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money.