WHITE PAPER The Changing Role of the Sales Person.
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1 WHITE PAPER The Changing Role of the Sales Person. Pareto Law: The authority on sales, no less, since 1995.
2 THE CHANGING ROLE OF THE SALES PERSON When Ranconteur reviewed the changing image of the sales profession in The Times supplement 2012, there was a tangible attitude shift in perceptions towards the industry. No longer underhand dealers pushing hard-sell sales tactics with a one-foot-in-the-door mentality to closing the final deal, sales professionals are now embracing a changing world that calls for consultative, relationship-based selling. A new world has bred a new type of customer, and in turn, a new sales person. The original boundaries and responsibilities have shifted: the role of the sales person is, arguably, at its peak and calling for a unique skill set that has never been demanded before. But just what does this changed role of the sales person mean for UK and international business? How can sales people adapt to this evolution and what steps must be taken by those at management level to equip their sales teams with the tools required to not only survive but thrive in this new environment? What does it mean to be a sales person in a modern-day marketplace? A POWER SHIFT The evolution of sales through the production and sales eras through to the more modern-day marketing and partnering eras have seen a significant shift in focus for both customer and sales person. How can sales people adapt to this evolution and what steps must be taken by those at management level to equip their sales teams with the tools required to not only survive but thrive in this new environment? A historical sales cycle, far shorter in length by comparison to it s modern-day equivalent, typically focused heavily on the transactional nature of moving goods and making the customer or client purchase. The sales person held a powerful position as the knowledge-bearer, controlling the entire sales cycle and shaping the process from marketing and prospecting right the way through to delivery. With limited resources available to them, the customer was subject to propaganda that was deliberately placed into their hands: advertising and marketing collateral, leaflets, brochures, radio and television advertisements designed by those very companies who are striving to close the deal. A powerful sales tool and far from impartial, these forms of communication were often the only basis for decisionmaking available and, as such, were the responsibility of the sales person in terms of content and message. The sales person, in effect, controlled the knowledge of the prospect. The sales era saw a need to stimulate, rather than simply satisfy, demand for products. Persuading customers that they required goods in order to satisfy the needs of the business saw a pattern of aggressive hard selling, with a primary focus upon closing techniques and directive approaches designed to make the customer buy. However, as competition increased and alternative options for the customer instigated a changed marketplace, the balance of power began to shift. The marketing era introduced the concept of having to compete for the customer, considering their needs and requirements in the development of sales strategy. Sales people began to ask questions and step into an advisory role, still driven by a need to close the sale, but taking the time to uncover customer need. In effect, the sales person become a problem solver, practically adapting selling to match the needs of the customer. It is a trend of power transfer that has continued to grow and evolve as the business marketplace embraces a new era of relationship marketing and selling. Now, the customer is in the driving seat.
3 INFORMATION OVERLOAD Knowledge, or so we are led to believe, is power. However, the question of exactly who holds that power is subject to debate. The obtainment of knowledge is perhaps the single most significant and impactful cause for change in the world of sales. At customer level, there are virtually unlimited amounts of information available due to the growth of the internet. Each individual now has the potential to research and determine their own needs, requirements and the best deals available before the sales person even begins to feature: if, indeed, they feature at all. With the power to determine their own preferences customers are becoming increasingly market-aware, making them powerful negotiators in the sales journey. As such, the sales person is no longer in a position to persuade or influence to the same degree: the focus lies instead upon identifying customer needs and providing the information necessary to make informed decisions. With choice and competition in abundance the sales person can no longer be the sole source of those differentiating factors that once helped drive (and close) the final sale. Instead, they must build value by working in partnership with the customer to develop solutions that enhance the profits of both parties, developing and maintaining relational exchanges to mutual benefit. For the sales person, the sales process and particularly the lead generation and prospecting stage have become highly electronic. The result has seen a delegation of responsibility as more and more of the original sales functions are pushed out to marketing: powerful tools of the modern-day marketing and sales trade including PPC, SEO, marketing automation and e-marketing are all embracing technology to replace original methods once solely controlled by sales people. Sales professionals now have more information ahead of the first cold call than ever before. With just a click, a catalogue of history and data is readily available: from when that prospect first looked at a company website to what original search term brought them to the table, the number of times they have visited or their journey through the website and what products or services have engaged their interest. By the time a sales person comes to pick up the phone, those nuggets of information can not only tell us who that person is and the position they hold, but exactly what it is they are looking to purchase. The rest is simply a case of fine-tuning the pitch to match those specifics. LONGEVITY: BUILD SOLID FOUNDATIONS, GROW AN EMPIRE The sales person no longer simply takes orders and delivers goods. A single sale is, for the large part, a virtually obsolete asset to any given organisation: greater value and revenue is obtained through fostering long-term and profitable working relationships with customers and clients, who will return to make repeat purchases and promote new business through positive reviews passed along their own business network. We know now that the customer is, in effect, the one with the upper hand in terms of holding information that engenders power: so how can sales professionals successfully capitalise on any given opportunity in order to satisfy long-term customer and business needs, rather than focusing on the short-term sale?
4 One suggestion is to revert to the foundations of selling and shift the balance by empowering our sales people, once more, with real information about their prospects and clients. Rather than having a marketing function that simply compiles often impersonal nuggets of fact, we charge our sales people with returning to their roots and concentrating on building stronger working relationships and a tailored, personalised approach to selling. Direct contact, as opposed to impersonal telephone selling, can ensure foundations are laid that satisfy a call for purpose-built sales pitches that meet the exacting needs of the individual. By putting those tools of lead generation and prospecting back into the hands of sales people, we ensure they are fully armed with everything required to close the sale. In addition, there remains a need to view each individual sale as part of a bigger picture: the building blocks of a long-term relationship. This may, in some instances, mean a short-term sacrifice in order to generate long-term gain. Or it may be as simple as ensuring that the first (and arguably most significant) sales are undertaken with seamless efficiency and professionalism that offers that differentiating factor above competitors. If 7 companies all offer the same product boasting the same features at the same price, it is the service and delivery exercised by the sales person that creates added value: sales people are now the selling point. The partnership between customer and sales person, like any other marriage, requires trust and commitment to work in the long-term, satisfying needs to mutual benefit. A one-sided relationship that ignores the requirements or interests or either party is doomed to boom and bust. Arguably, the sales person no longer simply enables the selling process: they are an integral part of the sale itself. If those first building blocks of the relationship are solid, it then stands to reason that the structure built on those foundations will continue to hold up to the test of time. DIFFERENT TRADE, DIFFERENT TOOLS The evolution of the sales function has taken sales professionals from providers through to the persuader, the problem solver and now, ultimately, the value creator and relationship partner. It stands to reason, therefore, that business leaders need to evolve their approach to recruitment and training of their sales people to match these changing needs and skill sets. A training regime that continues to focus heavily upon closing techniques, overcoming objections and directive persuasive techniques to make the customer buy is, therefore, no longer sufficient to equip our sales people for this consultative-based sales environment. Foundational, fundamental selling skills are by no means obsolete: however, if business leaders are to continue achieving maximum profit and consistent results, there is a call for extended training initiatives that take into account this changing market.
5 Areas of focus will include interpersonal engagement, account management and presentation skills, ensuring the sales person is well-equipped and confident engaging on a regular basis with customers and clients, investing time and effort into maintaining the relationship. The ability to question effectively in order to continually identify and satisfy changing needs is also paramount. Extensive product knowledge will ensure sales people are well-equipped to cross-sell, up-sell and match needs efficiently, while simple customer service and conflict management skills will ensure relationships are continually strengthened. If organisations focus attention upon short-term sales goals and invest in the undeniably vital and yet more primitive hard sell sales skills, sales success will arguably continue to plateau. A long-term approach that focuses upon the recruitment of consultative-focused individuals and then complements that skill-set with training and development centred on relationship selling will future-proof the sales profession, ensuring our sales people can continue to match the changing needs of a rapidly evolving market. Each individual sale is part of a bigger picture: single building blocks of a long-term relationship. Call Pareto today for more information on or info@pareto.co.uk HEAD OFFICE ADDRESS Pareto House, Church Street, Wilmslow SK9 1AX T W E info@pareto.co.uk
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