Business is all about making good decisions and then executing them. Deciding what products and services your business buys is a key driver of your firm’s profitability. There are different types of buyer personas that we see in the marketplace. The key takeaway here is to be aware what type of buyer you are in any given purchasing situation. Shifting your “buyer persona” can be a huge advantage to your firm.
The three types of buyer personas:
- Low Cost
- Tactical
- Strategic
The low-cost buyer is the easiest to understand. No matter what product or service you purchase, you want at least three “quotes,” and then you figure out how to get what you want at the lowest possible cost. It does not mean you want poor quality, but you are unwilling to pay FOR quality. Commodity purchases are often made through this lens. Why pay more for water, power, or other commodities than you must?
The tactical buyer is looking to solve a specific business need that affects the profitability of the business. The decision-making process is focused on features, benefits, and costs. This is often done with a matrix of all the potential options ranked in some way. The tactical buyer still uses cost as a component of their decision. The difference between the low-cost buyers is that they will also consider other tactical factors.
The strategic buyer is looking to solve a business need or enhance the profitability of the firm in some way. They have quantified what solving this is worth based on a return of time, productivity, or decreased risk to their business. They are interested in the overall value they will get from working with a partner, not just the immediate return. This buyer persona is very important when dealing with areas that affect the entire business or are going to require a long-term commitment of either time or capital.
Next week we will discuss which buyer personas are most effective in any situation.