Understanding why customers buy your services is a fundamental element of success for any business. While the answer may seem straightforward – customers buy services to solve a problem or fulfill a need – the psychology behind what motivates their decisions in a little more complex. In this article, we’ll delve into 3 types of clients and the motivations that lead them to buy your services. By understanding what motivates customers to buy, you become a rockstar in creating packages and services that are irresistable for them and that generates higher sales 😍.
The 3 Client Types:
There are 3 client types to be aware of; budget, value, and luxury clients. Each one has their own motivations on what they expect from your services, how they perceive value, and what they are willing to invest. Let’s break these 3 client types down and find out what makes them tick. ⏰
Budget Clients are motivated by one thing only: PRICE. These clients are looking for a bargain and if the price is right, they will book you. Quality and value take a back seat to budget clients and they will often try to negotiate pricing with little to no consideration of the quality you bring to your work. It’s important to say that a lot of times when we are first starting out, we mostly attract budget clients because our price points are low. There is a threshold for how much a budget client is willing to spend and as you increase prices, you will eventually price yourself out of a budget client’s range. This will cause you to have to restructure your pricing and gain new clients that are less concerned about price and more focused on value.
If you want to attract budget clients, consider all-inclusive type packages with simple delivery. Minimize your time by keeping the service short or combining it with other offerings. Keep pricing low and limited to only basic services.
Value clients are motivated by good prices and excellent quality. They want a high perceived value but also feel like they got a good deal when purchasing services. Value clients put importance on finding the right person that provides the quality they are looking for. Price is secondary (but still a high consideration) and they understand that higher quality comes with a higher price tag. Depending on what service you offer, this is a great place to price yourself- even if you are just starting your business. It is much easier to start at a value client price point and raise your prices than to start in the budget range and have to move up. Remember budget clients have a threshold on what they are willing to pay, so as you raise prices, you will have to target a whole new client type as you move past a certain amount. Consider offering limited-time discounts when you start out (emphasis on the word “limited”) while gaining the experience you need.
When building packages for value clients make sure you are communicating a high perceived value. Consider bundled packages or discounted products. Services should include some customizations and bonuses that show clients they are valued.
Luxury clients are motivated by a high level of customer experience. They want a high-touch, exclusive experience that isn’t offered or available to just anyone. They want options that are highly customizable and can cater to their needs. Price is of little consideration and is outweighed by service, quality, and convenience. Working with high-end buyers is exciting, but your business has to be structured to support their desires. Luxury clients are high-touch, so if you are not equipped with the time or the employees to give them the experience they want, you will be left with a lot of unhappy clients. You also need a large variety of customizable options and exclusive benefits that you may not be equipped to provide. Do your research and see what luxury clients want from your services and be prepared to up your game.
To build packages for luxury clients, you need to offer services with hi-touch options that make your clients feel pampered and cared for. Your offerings need to be highly customizable to meet their needs with exclusive offers that aren’t available to everyone. Services should be a full “done for you” experience.
Now that you understand why customers buy your services, it’s time to make the decision on which type of client is ideal for you. Remember, the more money you charge the more time per client you will need to spend, so if you are running a side business or have other priorities, you may want to keep it simple.
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