Do you need more customers? Then you should read this article we would not just show you how to get more customers, we would also show you how to get the right kind of customers.
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The Buyers Pyramid Break Down Step by Step
Let us take a good look at the triangle above, it is called the buyers pyramid and it represents the Market place.
A represents 3% of the total buyers in the market place. These are the people that actually needs your product or service and are ready to buy at any time. This set of people would come directly to your office, or call you asking to buy your product.
Most Entrepreneurs in Nigeria actually targets just this 3%, because they are not willing to spend money on any form of advertisement, or feel it is a waste of time.
B represents 7% of the market place, they are your ideal customers and clients, there is a strong possibility of them buying your product or services. They just need to ask a few questions, probably about the durability, the price, usage cycle etc.
Only 35 % of entrepreneurs in Nigeria actually targets this people.
C represents 20% of the market place, they are partially interested, and there is a possibility of convincing or persuading them to buy your product with time, maybe by reducing the price or offering them a bonus.
Less than 15% of entrepreneurs in Nigeria actually targets this people.
D represents 30% of the market place, they do not think they need your product or services. They do not have any idea and are kind of not interested.
Less than 5% of entrepreneurs in Nigeria actually targets this people.
Finally, we have the bottom E which represents 40% of the market place (almost half of the market place). These people are never going to buy from you. They are not interested and would never be for reasons best known to them. Have you met this kind of customers? please comment down in the comments section below.
Statistics reveal that more than 90% of Entrepreneurs in Nigeria have met with these customers. Do not be scared since they cover almost have of the market place they are totally unavoidable.
Real Business Scenario with the buyer’s pyramid.
When I started my career as a web developer I met all the buyers, and I would be using this as an example, so that when you meet with a potential customer you can tell the type of buyer he/she is.
So, imagine yourself as a web developer for instance,
At any given point in time only 3% of people in the total market place needs to build websites. Maybe they need an online shop, or a blog or a company website, and they are looking to buy this site at any time.
Then we have the 7%. This people are thinking of getting a website, because they understand the value of having a website, or they have found out that they are running at a huge loss without one. They are open to see what you could do, and if it is good enough they could buy with time.
We also have the 20%. They are not really thinking about getting a website, although they know slightly about the value of having a website, but they are not looking to buy a website, because they don’t see it as a “must have”, and they believe they are doing fine without it. But if someone comes along with a good and rare offer, they could buy one.
Fourthly we have the 30%. They do not know the value of having a website. They are mostly startups and do not want to buy, but there is a slight possibility that they could buy a website.
Finally, we have the 40%. These people have never bought, do not think of buying a website, and will never buy! This people could range from those the time wasters, or those that could fight with you because you are advertising your service. They are not your target market.
Now that you understand how the buyers pyramid works, how many percent of this pyramid are you talking to? If you are talking to just 3% then you are missing out on a larger percentage of the market. You are only talking to people that are ready to buy, and guess what? A lot of people that offer the same services as you are also talking to them. That is when you hear some people say “customers are scarce” or “It’s a bad market”. If you have been interacting with these people then you are doing it all wrong. Focus on the 60% and do not waste your time with the bottom 40%.
How to close 60% of the pyramid
What could you do to target the entire 60% of the market place?
The easiest way to do this is to actually give this potential buyer a taste of the product or services you offer. Like in our life Scenario about web development, instead of trying to convince schools or hospitals about how good looking my website is, or the amazing features I have, I would rather give them a one-month demo free trial, which won’t hurt either parties right? But the moment they start using that software then they would begin to find out about all the problems they are facing without using your website.
Then after the one-month trial is over and the website goes off guess what? They become the 3% of buyers looking to buy a website, that way you have converted a fraction of the entire 60% of the market place to your customers.
Please comment down in the description how you can use this strategy in your business fields, also talk about other strategies you can use to target the 60% of the market place.