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Psychology of the buyer – Understanding buyer behaviour in order to improve your negotiation skills Speaker: Alessandra Martelli. ProZ.com International Conference Barcelona 2012.
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Psychology of the buyer – Understanding buyer behaviour in order to improve your negotiation skills Speaker: Alessandra Martelli ProZ.com International ConferenceBarcelona 2012
Buyer = within an organisation, the buyer is the person responsible for obtaining products and services which are vital to the activities of the organisation they represent.PROFESSIONAL BUYERS = CUSTOMERS Buyer = any person who contracts to acquire resources (which could be financial resources, products, services, …) in return for some form of remuneration“OCCASIONAL” BUYERS = CONSUMERS Buyer – definitions
There are three main factors involved in the analysis of buyer behaviour: 1 – Buyer preferences2 – Budget limitations 3 – Buyer’s choice (combination of 1 & 2) ↓ Buyers will choose the product/service which will maximise their benefit, within budget limitations. Buyer behaviour
Product/service features • HARD FACTORS: Quantifyable aspects of a product or service • Type of service • Turnaround • Pricing • SOFT FACTORS: Unquantifyable aspects of a product or service • Does the product suit the buyer’s needs? • How easy it is for the customer to buy our product or service? • Is communication with the provider smooth & clear? SOFT FACTORS = ADDED VALUE!
How do customers &consumers buy? Or: THE DECISION MAKING PROCESS
Which steps of the decision making process can be influenced by our communication skills? Marketingstimulus Make it easy forthe prospect! The more detailedyour quote is, theeasier it is for theprospect toevaluate yourproposal If you did yourhomework overprevious, stepsthis one shouldcome easy… Happy customers are returning customers!
Despite of the product/service we are offering, our communication must be Clear and unambiguous Appropriate (watch out for cultural issues etc.) Polite Positive Honest Organised Additionally, you should make sure to address all of the prospect’s questions and doubts clearly yet firmly – ANSWERS, NOT APOLOGIES! Golden rules ofbusiness communication
Buyer types Or… WHO THE H**L AM I TALKING TO? Speaking of politeness …
Key characteristics: directive, assertive, results-driven, demanding, sometimes lacking tact Tips: Address their questions straight away Demonstrate your willingness of taking risks with them, but don’t be overwhelmed by their personality In case of conflicts, don’t worry too much about it Remember you are the expert: don’t be afraid to tell them what can and can’t be done Buyer type no. 1: THE DRIVER
Key characteristics: tactful, diplomatic, adaptable, respectful Tips: 1) Remember the importance of consensus building – make sure you understand all of their buying influences 2) Facilitate discussion 3) It might take a while for them to come to a decision – be patient, but let them know YOUR terms as well Buyer type no. 2:THE COLLABORATIVE
Key characteristics: interactive, relationship-oriented, creative, enthusiastic Tips: Keep technical details to a minumum Make sure to listen to their ideas Be friendly, but politely set boundaries When discussing projects, don’t be the “voice of reason”, but keep it realistic Buyer type no. 3: THE FRIEND
Key characteristics: introspective, critical thinker, takes a while to develop trust with people, usually prefers e-mail communication over phone calls, lacks in gestures and feedback Tips: Don’t get too friendly or personal too quickly Address his questions confidently and firmly Provide backup information/supporting documentation Prompt for questions and requirements Buyer type no. 4: THE SKEPTICAL
Key characteristics: empathetic, patient, service-oriented Tips: Do not focus on messages of “change” Do not provide too many options Keep them on track – do not let them “distract” Decisions are likely to take a long time – consider whether all the effort is worth the eventual possibility of a sale/collaboration Buyer type no. 5: THE TORTOISE
Key characteristics: needs “it” done by yesterday, makes decisions quickly & spontaneously, open to taking risk, gets bored by too many details Tips: Sell adaptability and flexibility as a benefit Don’t be overwhelmed by their attitude to pushing Be clear about delivery dates & timing – make them understand what YOU need to suit THEIR needs Stay connected and let them know you are contactable, otherwise they will just move on to the next option Buyer type no. 6: THE TORNADO
Key characteristics: cautious, strictly follows rules & established procedures, examines problems from all different angles Tips: Provide backup data to help them make their decisions Address their questions appropriately Do not criticise – they might take that personally Do not push too hard before they completed their analysis Provide information about your requirements in terms of timing and documentation/information Buyer type no. 7 – THE ANALYTICAL
Key characteristics: develops ideas & strategies independent of rules, informal, creative Tips: 1) Brainstorm with them 2) Don’t let them think working with you will cost them too much effort 3) Show how working with you will turn their ideas into reality 4) Be open to new suggestions & ideas 5) Make them understand your requirements are for the sake of the success of their projects Buyer type no. 8: THE INNOVATOR
Should you have any further questionsafter this presentation, you can contact me on info@mtmtranslations.com THANK YOU FOR YOUR ATTENTION! Questions?
References & bibliography BOOKS • Keith C. Williams, Behavioural aspects of marketing • Martin Lindstrom, Buyology. Truth and lies about why we buy • Daniele Trevisani, Strategic selling WEBSITES • Exploring buyer psychology http://www.buyerpsychology.com/index.html • lConsumer behaviour: the psychology of marketinghttp://www.consumerpsychologist.com
