The Whys of the Buys Will Help You Monetize (Your Software)

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These days, most companies target their products at different types of customers, or buyer personas. These personas are often vague (a marketer who…), contain extraneous details (recent college grad…), or discuss job tasks (heavy spreadsheet analysis…).

The one thing many personas miss, unfortunately, is a summary description of why that persona buys.

Targeted Offerings

Just recently we logged into our Bank of America (BofA) account and were offered a BofA credit card. Look, let’s be frank… a credit card is a credit card, right? Not in this case.

The same credit card product addressed very specific customer wants: cash back, travel rewards, pay down balances faster, and low APR. These sound a lot like a summary description of why different personas buy.

In addition, the bank offered different incentives to sign up for one of the cards:

By narrowly focusing on a key buying motivation, the bank is in an ideal position to do highly targeted promotions.
  • $100 for those wanting cash back
  • 10K bonus points for people wanting travel rewards
  • $25/quarter for people wanting to pay down their balance
  • A low APR for people seeking a lower interest rate

(The bank also included a phrase on the credit card indicating whether this was a cash back, travel rewards or other type of card.)


The Takeaway

By narrowly focusing on a key buying motivation, the bank is in an ideal position to do highly targeted promotions – of bank products, of partner products or even local vendors’ products (where local can mean down to the branch or most frequently used ATM).

The lesson should be clear: Make sure your SaaS buyer personas are well targeted so it is easier to understand what drives the buying decision. Once that is done, you can design software offerings that fit their needs and resonate with your customers’ reasons to buy.

About the Author

Jim Geisman

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Jim is the founder of Software Pricing Partners. The firm was started in 1982 and, since 1987, has focused solely on software pricing. Jim has helped emerging and established software companies solve some of their toughest pricing problems. He also helps SaaS companies price, structure and negotiate “the big deals”.

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