4 Types of Customers and How to Sell to Them - How To Sell High-Ticket Products & Services Ep. 5

Dan Lok

24 Jun 201609:30

Summary

TLDRThe speaker discusses four types of clients: Cheap Clients who buy solely based on lowest price; Difficult Clients who are demanding and unpleasant to work with; Sophisticated Clients who are educated, do research, and ask thoughtful questions; and Affluent Clients who buy based on emotions and feelings rather than logic. The speaker advises entrepreneurs to structure their business and marketing to attract Sophisticated and Affluent Clients rather than Cheap and Difficult ones in order to find more rewarding customers.

Takeaways

😊 There are 4 types of clients: Cheap Clients, Difficult Clients, Sophisticated Clients, and Affluent Clients.
😤 Cheap Clients buy purely based on lowest price and don't appreciate value.
🙄 Difficult Clients have a negative attitude and make unreasonable demands.
🧐 Sophisticated Clients educate themselves and ask thoughtful questions.
💰 Affluent Clients buy based on feelings and don't need deals.
👍 Most entrepreneurs subconsciously target Cheap and Difficult Clients in marketing.
✨ Want to attract Sophisticated and Affluent Clients instead.
🛒 Extreme Couponers exemplify being ultra cheap consumers.
😠 Don't bend over backwards for Cheap Clients hoping they'll pay more later.
🎯 Structure marketing to appeal specifically to your ideal target clients.

Q & A

What are the four types of clients mentioned in the transcript?
-The four types of clients mentioned are: Cheap Clients, Difficult Clients, Sophisticated Clients, and Affluent Clients.
How do Cheap Clients make purchasing decisions?
-Cheap Clients buy primarily based on price. They are very price sensitive and demand the lowest possible price.
What characterizes Difficult Clients?
-Difficult Clients have a negative attitude. They complain a lot, are demanding, and make things unnecessarily difficult. They seem to be having a bad day and want to make your day worse.
How do Sophisticated Clients approach purchases?
-Sophisticated Clients research thoroughly before making purchasing decisions. They know exactly what they want, ask intelligent questions, and make informed choices.
What motivates Affluent Clients' purchasing decisions?
-Affluent Clients buy based on feelings and emotions rather than logic. As long as it feels good and they can afford it, they will buy it.
Which type of client do most entrepreneurs try to target?
-Most entrepreneurs subconsciously try to target Cheap and Difficult Clients without realizing it. Their marketing message attracts these types of clients.
What's the issue with trying to give Affluent Clients a deal?
-Affluent Clients don't care about getting a deal. If you offer them a discount, they may wonder if there is something wrong with your product or service.
When selling to Affluent Clients, what approach works better than educating them?
-Rather than educating Affluent Clients, build an emotional connection. Help them imagine how good it will feel to own your product.
As an entrepreneur, what types of clients should you aim to acquire?
-As an entrepreneur, you should aim to acquire Sophisticated and Affluent Clients rather than Cheap and Difficult ones.
How can understanding these four client types help your business?
-Understanding these four client types can help you craft marketing messages that attract your ideal clients. It also helps you serve clients better based on their preferences.

Outlines

00:00

😃 Four Types of Clients to Focus On

The speaker discusses four main types of clients: Cheap Clients who only buy based on price; Difficult Clients who are negative and demanding; Sophisticated Clients who are educated and discerning; and Affluent Clients who buy based on emotions and feelings rather than price or features. Most entrepreneurs mistakenly target the first two groups, but you really want to sell to the latter two on the right side who better appreciate value.

05:03

😊 Clarifying Questions from Sophisticated Buyers

Sophisticated buyers ask intelligent, relevant questions and need more time to research and consider before making purchases. Unlike difficult customers, sophisticated customers demonstrate knowledge, ask about things like warranty terms, timelines, features and benefits. Their questions show genuine interest and build trust in working with you.

Mindmap

Keywords

💡Cheap Clients

Cheap Clients are a type of customer that buys solely based on getting the lowest price. They don't care about quality or value, just cheapness. Examples from the script include asking "How much does it cost?" without knowing anything about the business, shopping around without loyalty, and comparing prices to extremely low-cost options like Fiverr.

💡Difficult Customers

Difficult Customers are negative, demanding customers that make interactions unpleasant. As described in the script, they seem to be having a bad day and attempt to make the service provider's day worse too. Examples include complaining "My life sucks" and "I don't have time for this."

💡Sophisticated Customers

Sophisticated Customers have done their research and know exactly what they want when making a purchase. As the script explains, they ask thoughtful, relevant questions about features, warranties, terms and conditions because they want to fully understand a product or service before committing.

💡Affluent Customers

Affluent Customers have ample financial resources and buy based on emotional appeal or how a product makes them feel, not practical factors. As illustrated in the script, the speaker bought a sports car simply because it seemed "cool," not because he understood the specifications.

💡Types of Customers

The script outlines four main types of customers: Cheap Clients, Difficult Customers, Sophisticated Customers and Affluent Customers. The speaker argues entrepreneurs often market to the wrong types without realizing it, but should target the Sophisticated and Affluent Customers on the right side of the matrix.

💡Buying Criteria

The script looks at the different buying criteria used by each customer type. Cheap Clients focus only on lowest price. Difficult Customers are focused on complaining. Sophisticated Customers buy based on detailed product research and information. Affluent Customers buy based on emotional appeal and positive feelings about the product.

💡Customer Experience

The speaker explores the different experiences service providers have with each customer type. Cheap Clients demand lowest prices and deep discounts. Difficult Customers drain energy with their negativity. Sophisticated Customers ask thoughtful questions and need more information. Affluent Customers respond best to positive emotional messaging.

💡Customer Loyalty

The script implies that the level of customer loyalty corresponds to the client type. Cheap Clients show almost no loyalty and abandon providers over minor price differences. Sophisticated and Affluent seem most loyal as they focus on quality and value over sheer low prices.

💡Customer Relationships

The speaker looks at best practices for managing the different customer types. Don't bend over backwards for Cheap Clients hoping to win loyalty - it won't happen. Set boundaries with the demands of Difficult Customers. Invest time answering questions for Sophisticated Customers. Create emotional appeal for Affluent Customers.

💡Target Customers

The core message is that businesses should target and tailor their marketing towards Sophisticated Customers and Affluent Customers to attract the right types of clients, maximize value, and avoid headaches from the extreme cheapness of Price Shoppers or negativity of Difficult Customers.

Highlights

There are four types of clients: Cheap Clients, Difficult Clients, Sophisticated Clients, and Affluent Clients.

Cheap Clients buy purely based on price and don't care about value or quality.

Difficult Clients are demanding, have a negative attitude, and try to make your day worse.

Most entrepreneurs unconsciously attract Cheap and Difficult Clients with their marketing message.

Sophisticated Clients have done their research and know exactly what they want to buy.

Sophisticated Clients ask intelligent, knowledgeable questions.

Affluent Clients buy purely based on feelings and emotions, not facts or figures.

Affluent Clients don't want deals or discounts, that cheapens the product for them.

As an entrepreneur, you want to attract and sell to Sophisticated and Affluent Clients on the right side.

We often play different client roles ourselves: sometimes Sophisticated, sometimes Affluent, sometimes just wanting a Cheap deal.

Don't try to over-educate Affluent Clients with facts and details, they buy based on feelings.

Giving discounts and deals to Attractive Clients makes them suspicious, like something is wrong with the product.

Sophisticated Clients appreciate education and details because it builds trust in your expertise.

Difficult Clients ask illogical questions and drain your energy.

Avoid structuring your business and marketing to attract only Cheap and Difficult Clients.