I came across an insightful article the other day, entitled, "Sales is Dead." The author, Frank Reed, has 20-years of experience as a salesperson. His contention is that "selling" is destined for extinction, and salespeople are an endangered species. Rather than parapharasing his thoughts, he can speak for himself very ably right here:
"No longer is the “prospect” an unsuspecting, uneducated target who needs convincing that your offering is the ‘best of breed’. Those days are long gone in most industries. Now, if you are in sales you are really in business development. If you are good that is and you truly care about people and have a good solution for them. The club tie and the firm handshake are no longer instant credibility gainers. No, in fact this kind of approach has produced the image of the slimy sales guy who is always on the prowl and never really cares about anything other than the ‘close’."
His conclusions are interesting:
- Selling is really a relationship-building process of business development that "leads to a purchase that is based on understanding, education and trust in the product / service / company as well as the business development professional."
- Client acquisition in business development is the establishment of a long term client due to trust and the ability for the customer to make a decision based more on their comfort level than your ability to sell them.
Although Mr. Reed's career has not taken him into the financial service arena, many of his observations seem to resonate in our industry. As coaches who work with the top-performing financial advisors, we have observed that the brute-force marketing tactics, that may have worked 20 years ago, are dead and dying. In the 1980's, as a young advisor (we were called stockbrokers back then...another "bad" word) with E.F. Hutton, I recall direct mail campaigns offering free research reports...that garnered 10%+ response rates. Today, with unprecedented levels of skepticism on the part of the investing public, I can't even imagine response rates of 1%, let alone 10%.
So...what's the alternative?
The obvious answer is to focus on the antithesis of mass prospecting, towards a much more selective approach that is based upon high levels of trust, e.g. introductions and referrals from clients and professionals. Notwithstanding the betrayals of con artists like Bernie Madoff and "Sir" Allen Stanford, high-trust approaches remain one of the most effective methods to establish new relationships. High-trust approaches work because there is a transfer of trust...from an esteemed client, friend or professional...back to the financial advisor.
As coaches, we have found that the most successful, high-performing advisors are those financial advisors who can comfortably take advantage of their high-trust relationships, by leveraging them in a friendly and direct manner. For example, financial advisors who reach out to a trusted (non-client) friend by saying..."We've known each other for some time, and I want you to know that our friendship comes first. So I wanted to ask your permission to have a larger conversation and possibly, to expand our relationship..."
Is this "selling", or is it a non-manipulative, respectful question that could lead to a fruitful, expanded discussion?
by Chris Holman
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