Marketers and others are fond of categorizing people into
subsets of the general population. If you know the type of
person your potential customer is, you have a better notion of
how to make your sales presentation.
In theory, if your target is an engineer type, you provide
all possible information about how your gizmo works. He or she
will decide whether or not it will work well. And if your
target is the impulsive type, load your copy with words that
grab emotionally, that trigger the impulse to buy.
People Don't Fit Nicely Into Categories
The difficulty with categorizations is that no matter how
carefully drawn, people don't obligingly fit into a single
category without some serious squeezing. The most devoted
engineer type may buy after only a glance, thus behaving
impulsively. Yet one who tends to grab the first thing that
"looks good," may surprisingly want to study every detail about
your gizmo before even considering purchase.
I've studied dozens of categorizations constructed by really
bright people. I've never seen one that worked worth a hoot in
practice. In designing a website I continue to recommend
providing whatever any visitor may need to make the buy
decision. That is, ignore types and seek to meet the needs
of all.
Having said this, here is...
A Categorization Scheme That Works
Roy H. Williams
in a recent
"Monday Morning Memo" (a brief free must-read newsletter)
pointed out that potential customers can be divided into two
types: Transactional and Relational. He quoted Bill Bergh as
follows.
"Shoppers tend to be either transactional or relational.
Transactional shoppers are focused only on today's transaction.
They're willing to deal with a supplier they don't trust because
they've spent a lot of time investigating the product and
consider themselves the expert.... Transactional shoppers enjoy
negotiating and are looking for the lowest-cost provider.
"Relational shoppers... consider today's transaction to
be one in a series of many. Relational shoppers don't enjoy
comparison shopping or negotiating. They are looking for a
supplier who is an expert they can trust.... Consequently,
relational shoppers are far more likely to be repeat customers."
A Practical View
This view of web shoppers jolted me. It's so obviously
true, I remain surprised I have overlooked it for so long.
Further, this categorization does work.
Sure, most people looking for a good mechanic will be
relational in their approach. And many looking for an expensive
new television set, take a transactional approach. Gather the
facts, then shop to save a hundred bucks or more. So as in all
categorizations, there is overlap. But these definitions hold
better than any I have seen.
Who Is Buying On The Web?
There's simply no question; the vast majority of web buyers
are transactional. (Or behaving in this way.) The evidence is
only indirect, but inarguable.
Go look for a digicam. You'll find a thumb nail which links
to a larger view which includes the key features of a particular
model. You'll find absolutely no information that helps you
evaluate the benefit of a given feature. Information needed by
anyone new to digicams, simply isn't available.
Such sites are only interested in transactional shoppers,
people who already know what they want, and are shopping for
price.
Unless you have an extensive marketing and sales background,
it is unlikely you can succeed on the Web targeting
transactional shoppers.
Your Best Bet
Apart from the categorizations, the key point to be derived
from the above quote is that only relational shoppers become
repeat customers. Exactly what every small business needs.
Once a fellow buys the digicam, he won't be back. Thus if you
seek repeat business, ignore transactional types and target
relational shoppers.
This means demonstrating all manner of service and support.
Cover the spectrum. And by all means be expert in your narrow
niche. You want people to come to trust you, your knowledge,
and support.
The Real Challenge
That few online shoppers are relational, goes a long way
toward explaining why small businesses seeking to grow a base of
repeat customers struggle so. The number of relational shoppers
will increase as more of the sorts of businesses and services
they need become available online. However this growth won't
happen quickly.
If your web-based business depends upon repeat customers,
and thus relational shoppers, be patient with yourself. This
will take time.
About the Author
Bob McElwain, author of "Your Path To Success" and
"Secrets To A Really Successful Website." For
info, see
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