HomeSkills & ProductivityWhat is Buyer Pyramid? How to get More Customers?

What is Buyer Pyramid? How to get More Customers?

Do you need more customers for your business? Well, who doesn’t?

But I don’t think you just want more customers. You want the right kind of customers.

So how do you get more customers?

One of the mistakes I see business owners and entrepreneurs make all the time is they only sell to the people at the very top of the buyer pyramid.

Now you may be thinking, what is the buyer pyramid?

What is Buyer Pyramid?

A buyer pyramid is a visualization tool of the market for a specific product or service. It describes the customer’s intent/interest to buy your product or services.

The buyer’s pyramid divides the population into five categories based on their willingness to buy a product. This pyramid was invented by Chet Homes. It is a fantastic tool to increase your business and get more customers.

The buyer pyramid divides the market into five parts.

  • Buying Now – 3%
  • Open to Purchasing – 7%
  • Not Thinking about it – 30%
  • Think They aren’t interested – 30%
  • Know They are not interested – 30%

Now It’s very, very simple. I want you to think about a triangle, and I want you to kind of make a few lines within the triangle.

buyers pyramid

I want you to think about the top, very top of the pyramid, the top 3%. At any given time, only 3% of the marketplace who you’re selling to is interested and ready to buy what you have to offer.

Only the top 3%. And most salespeople, entrepreneurs, they always only talking to the top 3%.

Anything that’s not within the 3%, they’re not ready to buy right now, they just ignore them.

The problem is, you are completely ignoring the other 97%.

Now, besides the 3%, let’s talk about the 7%. They are your ideal customers and clients.

They are capable of buying, they are open and interested.

They just maybe need you to answer some of the questions. They’re kind of on the fence, right, the 7%.

And some business owners, do try to communicate and market and talk to their 7%, but let’s talk about that.

The other 30%. So you have the top 10%.

The 30% below it, is the ones, in the warm market. These people, they are like, I’m kind of interested.

I could be convinced, I could be persuaded, right? I might have a need, maybe, maybe not right now.

But they could be persuaded if you do the right thing. So that’s the 30%.

Then, below that, you have the other 30% which they don’t even think they are interested.

They’re not even thinking about it. They just don’t know. They don’t even know why they need what you have to offer.

Then you have the bottom 30%, which is there’s no way in hell they’re going to buy from you.

These are the people, it doesn’t matter what you do, they don’t like you, they don’t trust you, they don’t need what you sell.

They don’t want to buy what you sell.

So, let me give you an example.

Let’s say you are selling real estate. Let’s say you’re a realtor.

At an given time in the market place out there, maybe only 3% of people are looking to buy a new home.

Maybe they are moving into the new city, right, or maybe their kids need to go to school.

They want to move to a better school network. They are looking to buy a home.

At any given time, 3% of the marketplace. And then you have the 7% that’s like, You know what, we’re thinking of moving.

We’re kind of looking, right? The open houses, they’re checking it out, but they don’t have to move right now.

They might move maybe a few months from now, but they’re considering. They’re open, they’re interested.

Then you have the 30 percent. They’re like, I’m not really thinking about moving. 

We are okay. But if someone comes along and makes a good offer at the house that they have right now, at a much higher price, they say, okay, I will sell and then I will move.

That’s 30%.

And then, you have than the 30% where, no, I’m not moving. I’m happy with where I am at right now.

Maybe, the possibility maybe three years from now, five years from now.

Then you have the bottom 30%. It’s just like, no, this is my home, I am not moving. I’m gonna die in this house, right?

That’s not your target market. So, I want you to think about in your marketing message, the way that you do your marketing, who are you talking to?

If you are only talking to the top 3%, which is what most people do, you are leaving a big chunk of the marketplace.

You’re not talking to them. You’re only talking to the very, very top that are ready to buy right now, which is nice.

But you have to understand, that’s a very, very small percentage of the marketplace.

So what could you do to get and to capture more market share out of this equation? 

I don’t want to talk to only the top 3% or even the top 10%. I want to talk to all 70%.

So what do we do? 

The easiest way is this, let me give you a straightforward example.

Let’s say you are in the business of XYZ products. 

Now, if you want to increase your customers. You can offer them part of the product for free.

Let’s say Diwali is coming and You are in the business of sweets.

Now what you need to do is you can cut up the little piece of sweet. Offer it to the customer. Give it for tasting that’s the best way.

So instead of talking to you, like the top 3%, let me tell you why this piece of sweet helps you to talk to 7% or 30%.  

It is one of the easiest ways to convince and grab the rest of the market to give part of the product for free.  

If you’re selling a service, if you’re selling intangible, the best way for me to convince the 30%, maybe not to do business right now, but maybe it could be one year from now, two years from now, it doesn’t matter, is to give you a taste of what I have.

Then I don’t need to convince you. You taste it.

Oh, hey, you know what, this is pretty good. Maybe I’ll buy a box, maybe not a box this year, maybe a box next year.

That’s okay. It doesn’t even matter.

That’s the best way for me to convince you. Instead of convincing you, just give you a sample, give you a taste.

So you’ve got to think about your business, and how can you add value in advance.

How can you let your customers? or potential prospects experience what you have, what you can do, and how you can solve their problems in advance?

You might have seen I am offering a free class. That is to give my student a feel of what and how they will learn in my program. 

I’m giving them a sample. I’m giving them a piece of that sweet and now they say, you know what, give me the whole box.

So shoot me an email at sk@moneyexcel.com and tell me how you’re gonna apply this strategy in your business.

Shitanshu Kapadia
Shitanshu Kapadiahttp://moneyexcel.com/
Hi, I am Shitanshu Kapadia founder of moneyexcel.com. I have written 1875+ articles on this blog. I am PGDBA(marketing), engaged in blogging for 10 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. The purpose of this blog is to spread financial awareness and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.
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