Analyst, Sampler, Tire Kicker or Strategic Buyer?

Notes on Strategic Selling

1. A "Buyer" is really an entire set of buying roles played by different members of the organization
a. Economic Buyer - the one who signs the check
b. User Buyer - the one who will use the service
c. Technical Buyer - the one who will evaluate the proposal and find reasons why it won't work - generally, a negative buying influence: one who can say "NO" but who cannot say "YES" - often, the CTO or another technically skilled individual brought in to evaluate the feasibility of the purchase
d. Coach - the one who has a vested interest in the sales person's success, but is not necessarily directly affected by the outcome of the sale - they have a personal win - a reason to want the sale to succeed
2. Strategy is vital - When a purchase is a complex decision, the sale can go wrong at many steps, so the sales person needs to approach any sale as an orchestrated campaign, not as a single event
a. Unique value proposition from the personal perspective of all the individuals who will influence the purchase decision - What are the personal wins? How will you structure your offer in order to appeal to the different personal wins inside the account
b. Things that can go wrong to derail the sale - these are "red flags" - the mines in a mine field that maybe you can do nothing about, but that nevertheless you should be aware of and keep in your face throughout the sales process - it's better to be aware, however bad the news, than to be caught flat-footed and negatively surprised
c. Prioritize steps in the sale. Who is the most influential? What are the first order priorities, second-order, etc? What are the must-haves, the want-to-haves, etc.
d. How will you market what you are selling? - think in terms of the 4 Ps of marketing basics: packaging, promotion, placement, pricing - what is your strategy along these lines?

So, how much thought do you give to a purchase as a buyer? Which category best describes you as a buyer? And what does that portend for you ever actually getting what it is you purportedly seek as a "Buyer?"

Steps in Any Purchase

Before we talk about predominate buyer types, a little background is in order. Let's see if I get this mostly right. In any purchase, these steps are generally followed:
0) State of Blissful Ignorance - "Ah, ain't life grand! Not a care in the world!"
1) Realization of an unfulfilled need - "Something seems to be missing? This is a mess / problem!"
2) Exploration of the need and the requirements of a solution - "Can this be addressed, or am I stuck with living with this? What are my options?"
3) Check with friends - "Have you experienced this, or am I just unique? What did you do about it?"
4) Recognition that the market indeed has a solution - "Is there any help out there? HELP!!"
5) Exploration of the possible solutions and their relative values - "Let's go shopping! No Thanks, just looking!"
6) Evaluation of budget when compared to solution costs - "Can I afford it? Can I get a loan?"
7) Engagement with sellers to discuss solutions (this can happen sooner, but is not recommended before you know what you're looking for) - "I'd like to talk about what you have to sell (Seller: "Music to my ears!!!")"
8) Compilation of the request - whether formally or informally, any buyer must know what it is that buyer is looking for and determine how to go about asking sellers for what they want - "Here's my problem and here's how I understand your solution...What do you think? Are there any possibilities of working together?"
9) Evaluation of feedback to the request - "What did they say? How credible are their solutions? Are they in the ball park of my budget?"
10) Elimination of inappropriate solutions - "I need to narrow down my options to the short list of best/better/good."
11) Selection of a finalist - "Who do I really want to work with, based on what I've learned?"
12) Improvement of offer - "How can I make this solution better by exploring options with the finalist? How can I lower the price by restructuring what I'm asking for, but still meet my original objectives?"
13) Negotiation of Best Price - "What is the best deal I can get?"
14) Negotiation of Terms & Conditions - "What is the best total offer I can get?"
15) Structuring of financing - "How am I going to pay for this, now that I know what I've decided to get?"
16) Last minute Heart-to-Heart - "Now that I have all the cards on the table and I'm about to make a commitment, is this what I really, really want to do? Do I have to do it now? What happens if I delay my decision?" Pucker Time!
17) Commitment and Execution - "I'm going to buy it...OK, I'll take it (shakes hands) .. We have a deal!"
18) Post Purchase Remorse and Re-evaluation - "Oh Man, what have I done?"
19) Post Purchase Rationalization - "You know, I really needed this. I made the best deal anyone could make. I got a great bargain! I'm so glad I bought when I did."
20) Learning how to get the most from your new Purchase - "Wow, there's a lot to learn to really make the most of what I just bought!"

Does that about capture all the steps any buyer goes through on any purchase? (Let me know if I left anything out! )

So, which TYPE of buyer are you? Analyst? Sampler? Tire Kicker? Strategic Buyer?

Analyst: The analyst relies heavily on the research phase of the purchasing process - Steps 2-6 above, with the possibility of dabbling in Step 7. To an analyst, a purchase is all about gathering information and comparing options. This is the most important phase, and it's impossible to ever have "paralysis by analysis." It's really about making absolutely sure that you are ready before moving ahead. The problem for this type buyer, is that when technology is complex and rapidly changing, there is NEVER sufficient evaluation, because the situation is always changing and there is always a better deal and a better time, right around the next bend. (Think, WiMAX, etc.) If you are an Analyst, your biggest challenge is bringing this phase to conclusion, acknowledging that you have Enough information, and are ready to go ahead and engage in the purchase process. Beware of reverting to Steps 2-6 when under stress later in the purchase cycle! Time for more information! - but will more or better information really help??

Sampler: The sampler enjoys the purchasing cycle immensely, and all the perks it brings to be a buyer. Free samples, anyone? To move out of the evaluation phase and into an actual purchase represents a defeat of sorts, because it means the end of the dating phase, when all the vendors are in love with you as a potential buyer, and there are so, so many possibilities! Moving just ever so slightly beyond Step 6, the sampler reaps the benefits of his/her status through engagement with the sellers. "If only I could have a taste of what you're selling, I'm sure I would like it and would be better positioned to buy it." This is the area of the Trial, which in fact is an extension of the information gathering in the previous steps - a trial can be very legitimate if there is something new to learn from such an evaluation - or it can be a delay tactic to sample the product and enjoy its benefits, without a purchase. The principal risk for the Sampler is to get stuck - see Tire Kicker below.

Tire Kicker. The tire kicker is a more involved version of the Sampler above. The tire kicker is a derogative term that originated from frustrated car salesmen, who despaired that the shoppers would ever make a decision, but would spend all their time kicking the tires of the car and evaluating the purchase. Where there is a legitimate role to engage in a trial period to evaluate a serious purchase, the tire kicker takes this phase to the extreme and gets stuck, never moving on to a purchase. In a sense, the tire kicker is motivated by fear and a lack of confidence. "It's not that I'm afraid to move forward, I'm just a very thorough shopper," they say as they lie to themselves. The biggest risk a tire kicker faces is a loss of faith on the part of sellers, because their failure to take the sales process seriously and come to a conclusion identifies them as "non-serious" and "a waste of my time" in the eyes of serious sellers (the sellers that any serious buyer really wants to deal with over time).

Strategic Buyer: The strategic buyer understands that a purchase is a complex social process that involves creating trust on both sides of the equation. To have mutual trust, both the buyer and the seller have a role to play that over time, creates the foundation for a successful sale/purchase, where both parties feel that they got a win ("Win/Win") and leave the sale with respect and admiration for their opposite. A sale is a complex business decision that deserves special attention and resources at each step. A strategy will ensure that the buyer understands exactly what they need, exactly what the market has to offer and how it aligns with their need, and exactly (in the end) the value equation that justifies a Win/Win.

Which role most appeals to you? I recommend you take a second look at both the Notes on Strategic Selling and the Steps in Any Purchase check lists above. See what you can learn about your own purchase and the process you have in place, as well as what you can learn about your potential transaction partner, before the transaction gets too far down the road.