The Power of the Pyramid

Attracting new customers is hard. And is it any wonder why? Only 3% of buyers in any market are ready and willing to buy right now. And then of course, there’s no guarantee that they want to buy with you.

Chet Holmes was an acclaimed corporate trainer, strategic consultant and motivational expert. Through extensive research of buying behaviour, he created what he called ‘The Buyers Pyramid’. This simple diagram breaks down the audience of buyers into five distinct categories.

tipsheet2-pyramid-diagram

At the base of the pyramid are around 30% of all buyers in any market. These people don’t want to buy anything– be it tyres, shoes or dishwashers – this 30% is just not interested in purchasing.

The next layer up are people who, based on the information they have at hand, don’t believe they’re interested either. They also number around 30%. It’s important to note that should the information they have change, they could easily move up (or down) a layer.

In the middle we have those buyers who aren’t thinking about buying at this time, another 30%.

The next group up are open to considering a purchase. This narrows down to 6-7%.

And at the top we have 3% of all available buyers who want to buy right now.

What does this mean for businesses? Well, for most, it means actively marketing and advertising to those 3% of ‘Right Now’ buyers. That’s a lot of competition in a crowded marketplace!

But what about the other 97% of the pyramid? These are potential buyers who could quite easily move up to the top level when the time is right. The trick is to get them thinking about your company when it’s time for them to buy.
So how do you achieve this? There are two easy steps.

STEP ONE:

Create a ‘lead generation magnet’, or a free product or service, that will attract potential clients to your business.

For instance, a tyre company might run a series of marketing messages like this:

“What you don’t know about buying tyres can cost you money and threaten the safety of your family! Find out more in our FREE report!

Many people would feel compelled to order that free report – even if they weren’t thinking about buying tyres right now. Inside, they would find recommendations to buy tyres before they’re fully worn for improved safety and increased fuel efficiency.

This would help move these non-buyers up the pyramid. And as an added bonus, the tyre company has now positioned itself as a tyre expert.

STEP TWO:

Once you have an audience of qualified, interested buyers, you need to keep making contact with them in a way that adds value.
A monthly electronic newsletter, like those that Newsletter Ready creates, includes information that customers find useful and entertaining. It’s an easy, effective way to maintain contact with potential buyers, position your company as an expert in its field, and keep top of mind with the consumer. So when the time is right to buy, your customer is more likely to choose your products and services.

Sales are made easier when you have a larger group of potential buyers with whom to communicate. Think outside the 3%. There’s 97% waiting just for you!

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