As a society, we like to spend. That’s no secret, but the way people spend differs from person to person. As a marketer, it’s important to understand how to appeal to each type of spending pattern and type of buyer.

The 3 Types of Buyers

Neuroeconomics experts have labelled our spending patterns into three different groups. Each type of buyer responds differently to various forms of marketing so there’s never going to be a single one-size-fits-all marketing solution that charms everyone at once. That’s why you’re going to need to appeal to each type of buyer. But who are these people?

Buyer #1: Tightwad Tom

Percentage of Buyer: 25%

You know who I’m talking about. These cheapskates are the ones who are only letting go of their cash if it’s ending up in their TFSA or they’ve been struck by a garbage truck full of typhoid. They make up about 25% of the buyer pie and they are usually identified by the neon windbreaker they’ve been wearing since 1987 that they’ll tell you will come back into style any week now. Before they spend a dime, Tightwad Tom is going to research and price compare the fecal matter out of your product or service before making a decision between now and the time your grandkids invent hoverboards.

Tightwads already have an idea of what they think they should be spending. It’s no biggie. They’re just looking to squeeze every last drop of value out of their dollar and stick to their budget. They aren’t the type of people who will indulge in luxuries, because let’s face it – who wants steak and potatoes when Kraft Dinner and hot dogs are 38 cents per metric tonne?

 

It’s not that diabetes runs in your family, Tom. It’s that no one runs in your family.

How to Market to Tightwad Tom

So what can you do to appeal to someone who is already in the mindset that your product is a grudge purchase? For starters, you can focus on value. Bundle products or services together and consider repackaging them in a more attractive pricing structure. For example, instead of $120/year, maybe it’s $10/month. Use messaging that focuses on savings and negative emotions like ‘tired of losing money? instead of ‘you deserve this.’ Remember that tightwads are extremely analytical, so any data or product and pricing comparison you can offer right off the bat will also help the decision process while they spend their weekend splitting Charmin 2-ply by candlelight.

Tightwad Tom is the first of our three buyer profiles. Next time, we’ll look at a buyer who is the complete opposite of the cheapskate.

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