2: Getting Into The Affluent Mind
Selling to the affluent requires you to understand the affluent - who are widely misunderstood. Many popular stereotypes about affluent people are entirely wrong: that they inherited wealth, have never worked for a living, and who spend their lives holed up in their mansions, well insulated from the rest of the world, and spend lavishly on frivolous things.
Less than 1% of the affluent inherited wealth and are among the "idle rich." The vast majority are from the ranks of the middle class who have earned their own fortunes: 44.9% are highly compensated employees, 25.9% are self-employed professionals, and 22.4% are business owners. They are actively engaged in their professions, and over 75% report working 60 hours or more per week. They are value-conscious and most live well below their means.
In terms of their attitudes and beliefs, they are similar in many ways to other Americans who come from the same backgrounds and neighborhoods of their childhood, though success and the experience of life has changed them: they are more focused, more committed to their careers, more clear about their goals, and more willing to work to achieve success.
The author uses narratives to suggest certain ideas about the buying behavior of affluent people:
- They are willing to pay a higher price for a better product
- Even so, they are mindful of value and seek a good deal
- They value their time and expect transactions to be efficient
- They insist on a high level of professionalism, and expect to be treated as a valued customer
- They do their research, typically online, and arrive prepared
- They are savvy about the sales process and tend to by cynical and suspicious
- They do not like being subjected to procedures and policies that don't seen necessary or logical
- They consider their experience of ownership and the quality of service after the sale in deciding whether to repurchase
A few stray paragraphs discuss the significance of stress in the lives of the affluent, though the message is a bit mixed: most deal with a fair amount of pressure and conflict in their professional lives and can handle it well, but look to avoid stressful situations outside the office. If a salesman uses pressure tactics, they will recognize it, are more likely to walk away than cave in.
Three's another loose bit on the level of influence that affluent people have with their peers and those less affluent than themselves. They enjoy talking about their experiences and giving advice to others, and when others follow their example, they feel their decision is justified. This is significant in alleviating buyers remorse, but also works in reverse.
What Drives Major Purchase Decision Making
The author identifies significant factors that drive buying behavior by the affluent:
- Time. They never have enough of it, spend it on things that matter, and look to save it wherever possible.
- Respect. They have achieved a level of success in life and expect to be treated with some level of deference.
- Professionalism. Most have become successful for being professional and detail-oriented, and are contemptuous of those who do not do the same.
- Trust. They can see through deceptive tactics and react strongly against any attempt to deceive or manipulate them.
- Value. They do their own research and define value on their own terms, and then take initiative to go out and get it.
- Independence. The affluent do not seek the approval of others and are not motivated to keep up with the Joneses. (EN: For the lesser ranks of the affluent, this may not be entirely true.)
- Stress. They deal with enough tension and hassles in their daily life and expect those they deal with when they are a customer to make the experience hassle-free.
- Quality. While they are cautions of being overcharged, they generally are willing to pay a premium for better quality and better service.
- Logic. They do not consider themselves to be emotional people, and while emotion still plays a part in their decision-making, they will couch it in logical terms.
Failure to consider any of these factors can completely derail a sales process with an affluent customer.