Definition
An economic buyer is the person who can approve the money for a purchase and has the final say on whether it happens. In B2B deals it is often a different person from your main contact or from the people who will use the product. Without their yes, a deal is not real.
Why it matters when you sell B2B
Most B2B deals are pushed forward by someone who is not the signer. A manager loves the demo. The director who controls the budget has never heard of you. Deals stall at exactly that gap.
The economic buyer is the E in MEDDPICC and the A, for authority, in BANT. It is not the same as your buyer persona, which describes a type of role. Knowing who it is early changes how you sell: you build the case they need, not the one your contact likes.
A worked example
Say you sell a $60,000 a year analytics tool to a retailer. Three people are in the deal.
Three people, one dealExample
User
Store analysts
Use the tool every day. They want speed and fewer spreadsheets.
They tell you what works.
Champion
Head of merchandising
Wants it and argues for it inside the company. Can approve up to $25,000.
They get you to the signer.
Economic buyer
Chief financial officer
Approves anything over $25,000. Cares about payback and risk.
They need the business case.
You can often find the economic buyer before the first call. Public bodies often publish who can approve spending, and up to what amount. For a private company, the leadership page and annual report show who runs the budget for the area you sell into.
Then confirm it on the call by asking how a purchase like this was approved last time. Our approach to research shows how we map the people inside an account.
Common mistakes
- 1Assuming the most senior person you know is the signer. Ask who approved the last purchase of this size. The answer is often someone you have not met.
- 2Meeting them too late. If the first time they hear of you is the contract, expect new questions and a delay.
- 3Confusing a champion with the economic buyer. A champion sells for you inside the company. The economic buyer decides.
- 4Pitching features to the economic buyer. They care about cost, risk and return, not about how the product works.
- 5Forgetting the limit. Above a certain amount a different person, or a board, signs. A bigger deal can change who the economic buyer is.
Find the economic buyer with four questions
Ask your main contact:
- Who approved the last purchase of this size?
- What is the spending limit before someone else has to sign?
- Who would need to agree if this came in over budget?
- Can we plan 20 minutes with them before a proposal?