Understanding people’s spending patterns is key to developing a proper marketing strategy. We recently kicked off our series of buyer profiles with Tightwad Tom, the cheapskate who is the least likely to let go of his money regardless of whether or not your product or service is a good fit for him. 

Today, we’re jumping to the opposite end of the spectrum – and for every dollar that Tightwad Tom doesn’t spend, our next buyer will more than make up for it. 

Buyer #2: Spendthrift Steve 

Percentage of Buyers: 15%

Thrifty isn’t even an option for Steve. He’s living in the moment. If he’s hungry for a taco and the only taco stand within a 12-kilometer radius is selling them for $2,000, then Steve’s getting himself a taco that costs more than his Land Rover payment. Spendthrifts are going to spend until there’s a problem and then spend their way out of it. Extended warranties, infomercials and those tabloid racks at the checkout are all designed with Steve in mind. They’re the ones making it rain no matter if they’re at the club on a Saturday night or shopping for shoes at Target.

YOLO, amirite?

These big spenders are very much impulse buyers, but they still need to be convinced that what they’re buying is valuable. Although they only make up about 15% of the buyer’s pie, they can be the easiest sales to capture. There’s no budget, no sticker shock, no buyer’s remorse and they’ll try to justify a higher price tag if it’s something they really want.

How to Market to Spendthrift Steve 

If Steve is ready to drop a couple cool G’s on a taco stuffed with heart disease and disappointment, then why do you even need to put any effort into attracting him? Although spendthrifts don’t need much convincing, you still need to get in front of them before they buy the first thing on the shelf. This means putting a premium on visuals and emotional advertising. Color psychology also plays a big role in how spendthrifts make a buying decision, so use it to your advantage. Check out our article on how different colors affect our decision making.

We’ve seen the two extremes of the three types of buyer, but together they only make up about 40% of the buyer’s pie. Coming up, the biggest chunk is probably the least interesting of the group, but is still easily the most important, and also the one who will will likely be your bread and butter customer.

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