ProZ International Conference Barcelona 2012

ProZ.com International ConferenceBarcelona 2012

Psychology of the buyer –Understanding buyer behaviour

in order to improve your negotiation skills

Speaker: Alessandra Martelli

Buyer – definitions

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 behaviour

There are three main factors involved in the analysis of buyer behaviour:

1 – Buyer preferences2 – Budget limitations3 – Buyer’s choice (combination of 1 & 2)

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Buyers will choose the product/service which will maximise their benefit, within budget limitations.

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 D

ECISION M

AKING PROCESS

Decision making - theory

Decision making - complications

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 yourproposalIf you did your

homework overprevious, stepsthis one shouldcome easy…

Happy customers are returning customers!

Golden rules ofbusiness communication

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!

Buyer types

Or… WHO THE H**L

AM I TALKING TO?

Speaking of politeness …

Buyer type no. 1: THE DRIVER

Buyer type no. 1: THE DRIVER

Key characteristics: directive, assertive, results-driven, demanding, sometimes lacking tact

Tips:

1)Address their questions straight away2)Demonstrate your willingness of taking risks with them, but don’t be overwhelmed by their personality3)In case of conflicts, don’t worry too much about it4)Remember you are the expert: don’t be afraid to tell them what can and can’t be done

Buyer type no. 2: THE COLLABORATIVE

Buyer type no. 2:THE COLLABORATIVE

Key characteristics: tactful, diplomatic, adaptable, respectful

Tips:

1) Remember the importance of consensus building – make sure you understand all of their buying influences2) Facilitate discussion3) 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. 3: THE FRIEND

Buyer type no. 3: THE FRIEND

Key characteristics: interactive, relationship-oriented, creative, enthusiastic

Tips:

1)Keep technical details to a minumum2)Make sure to listen to their ideas3)Be friendly, but politely set boundaries4)When discussing projects, don’t be the “voice of reason”, but keep it realistic

Buyer type no. 4: THE SKEPTICAL

Buyer type no. 4: THE SKEPTICAL

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:

1)Don’t get too friendly or personal too quickly2)Address his questions confidently and firmly3)Provide backup information/supporting documentation4)Prompt for questions and requirements

Buyer type no. 5: THE TORTOISE

Buyer type no. 5: THE TORTOISE

Key characteristics: empathetic, patient, service-oriented

Tips:

1)Do not focus on messages of “change”2)Do not provide too many options3)Keep them on track – do not let them “distract”4)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. 6: THE TORNADO

Buyer type no. 6: THE TORNADO

Key characteristics: needs “it” done by yesterday, makes decisions quickly & spontaneously, open to taking risk, gets bored by too many details

Tips:

1)Sell adaptability and flexibility as a benefit2)Don’t be overwhelmed by their attitude to pushing3)Be clear about delivery dates & timing – make them understand what YOU need to suit THEIR needs4)Stay connected and let them know you are contactable, otherwise they will just move on to the next option

Buyer type no. 7: THE ANALYTICAL

Buyer type no. 7 – THE ANALYTICAL

Key characteristics: cautious, strictly follows rules & established procedures, examines problems from all different angles

Tips:

1)Provide backup data to help them make their decisions2)Address their questions appropriately3)Do not criticise – they might take that personally4)Do not push too hard before they completed their analysis5)Provide information about your requirements in terms of timing and documentation/information

Buyer type no. 8: THE INNOVATOR

Buyer type no. 8: THE INNOVATOR

Key characteristics: develops ideas & strategies independent of rules, informal, creative

Tips:

1) Brainstorm with them2) Don’t let them think working with you will cost them too much

effort3) Show how working with you will turn their ideas into reality4) Be open to new suggestions & ideas5) Make them understand your requirements are for the sake of

the success of their projects

Questions?

Should you have any further questionsafter this presentation, you can contact me on

info@mtmtranslations.com

THANK YOU FOR YOUR ATTENTION!

References & bibliographyBOOKS

• 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