How can you use market research to negotiate with difficult customers?

1 Identify your customer's profile

The first step is to identify your customer's profile, which is a summary of their characteristics, behavior, and motivations. You can use market research methods such as surveys, interviews, focus groups, or online reviews to collect data about your customer's demographics, psychographics, goals, challenges, and buying criteria. This will help you tailor your offer and communication style to match your customer's needs and expectations. For example, if your customer is a young and tech-savvy startup, you might emphasize the innovation and scalability of your solution, and use a casual and friendly tone.

2 Analyze your competitive advantage

The second step is to analyze your competitive advantage, which is the unique value that you offer to your customer that sets you apart from your competitors. You can use market research methods such as SWOT analysis, benchmarking, or competitive intelligence to evaluate your strengths, weaknesses, opportunities, and threats, as well as your competitors' products, prices, features, and benefits. This will help you highlight your differentiation and justify your pricing. For example, if your competitive advantage is your quality and reliability, you might showcase your testimonials, awards, or certifications, and explain how your solution will save your customer time and money in the long run.

3 Prepare your negotiation strategy

The third step is to prepare your negotiation strategy, which is the plan of action that you will follow to achieve your desired outcome. You can use market research methods such as value proposition, best alternative to a negotiated agreement (BATNA), or win-win scenarios to define your offer, goals, priorities, and concessions, as well as your customer's interests, concerns, and alternatives. This will help you establish your negotiation range and leverage, and anticipate your customer's objections and counteroffers. For example, if your value proposition is to increase your customer's revenue by 20%, you might propose a performance-based contract that aligns your incentives and reduces your customer's risk.

4 Engage in constructive dialogue

The fourth step is to engage in constructive dialogue, which is the exchange of information and ideas that leads to a mutually acceptable agreement. You can use market research methods such as active listening, probing questions, or empathy statements to build rapport, understand your customer's perspective, and address their issues. This will help you create trust, respect, and cooperation, and avoid conflicts, misunderstandings, or impasses. For example, if your customer is hesitant or skeptical, you might ask open-ended questions to uncover their needs and concerns, and use positive feedback and validation to acknowledge their feelings and opinions.

Using market research to negotiate with difficult customers can help you gain insight, confidence, and influence, and achieve win-win outcomes. By applying these four steps, you can turn your market research data into actionable and persuasive arguments that will convince your customer to sign the contract.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?