May 12th, 2010 | 
Author: The game seems to have changed. The art, process, career – call it what you want – of selling is being changed by Social Technology, even in the lagging industry of insurance. Skeptical of this? You have only to look at your most recent sales – or losses. Whether B2B or B2C, do you have a sense that the buyers, BEFORE they decided whether or not to buy, engaged in an effort to “check you out online”? In this due-diligence process, what did they find out about YOU (B2B) or your product reputation and/or brand reputation (B2C)? Was this act on behalf of the consumer as common just two years ago (2008)? How about 2005? Even if it was common in those days, did it carry as much weight in the purchase decision? I think if you really look at the trends, you’d have to admit that the selling process has changed.
Think about it. How would you characterize the most recent selling paradigms we’ve seen over the past few decades. As a B2B sales guy since 1988, I’d say I’ve seen three distinct era’s in 20+ years, certainly with convergence and overlap. Generally speaking…
- 80′s / early 90′s – Relationship selling
- early/mid 90′s – Solution-oriented selling
- late 90′s, 2000′s – CRM-based selling
What do you remember about the pro’s and con’s of these earlier phases? What struggles did you have adapting to the changing paradigms? Any funny anecdotes that come to mind relative to this? How would you characterize what we’re seeing now with Linkedin, Twitter, Facebook, and Blogs and their impact on sales? Consumer/Client rating? Retweets, ShareThis, Recommendations? Email marketing? Podcasting? Viral video? Content syndication?
My own funny story… I remember when I was selling for ADP in Phoenix around ’91/92, a couple years into it, I got my first laptop and bought a copy of ACT! That year I made President’s Club for the first time – a really big deal for me just starting out trying to establish myself as a capable sales guy. Relative to my small patch in east Mesa on the rural areas to the east (Globe, Payson, Show Low) the tools definitely helped me get to the next level. But I now had a new challenge. “Where the frickin’ OUTLET around here???? I need a POWER SUPPLY for my laptop!!!” :-) So much for McDonalds – not outlets!
Stories? Thoughts?
Selling from a hotel room at a conference.
Posted in Enterprise Social Technology, Insurance-Technologies | 
Tags: "affinity insurance marketing", insurance technology, Sales with Social Networks, Selling with Social Media, Social Content Syndication, social media, Social Media Marketing, social media policy, social networks, Social Tech Workshops, Social Technology
I agree 100%!!! Selling in 2010 is much different than selling in 1985 or even 1995 for that matter.
And social technology is becoming a bigger factor in the overall mix. People look for other people they either know or can trust. This is evident when filling a job posting or buying a product/solution. The old saying "It's not what you know….it's who you know" has never been more applicable.
In my new business development role, I leverage social technology to help me connect with people I do not know…through people I do know. Networking is something that we ALL need to do, and it needs to be an ongoing process.
Many companies are still trying to figure out how to use social media, let alone justify the expense associated with social media marketing staff/consultants. And I blame the marketing teams for not selling the concept. There are countless ways in which social media can be used to promote a brand, enhance a company image and/or (most importantly) have laser focus in your marketing activities. Executives still view social media as a "cute broad market communication vehicle". In reality, social media marketing is the complete opposite.
JMHO.
I read your post and agree that as a culture social media has taken over, at least as far as the perception goes. However, in the business I'm in, I don't consider myself a "salesperson", per se. Sure I need to sell myself, and my capacity to help the potential client accomplish their objectives, but relationship and expertise makes the sale every time. As time goes on and the generation X'ers mature into planning clients, social media will be more important than what I see today from the baby boomers. Baby boomers still rely on word of mouth, which is most often transmitted voice to voice, than through an electronic means. I do agree that your web presence can be helpful, but not critical with the type of client I'm looking to engage.
So much has changed with the advent of the internet. The largest being the way people shop.
There was a study done a few years back that noted that individuals would take the opinion of a stranger (when reading ratings and opinions on sites like Amazon) over the opinion of an "expert". This fact specifically translates to the social-sphere, where many of the conversations that people have are with non-experts or strangers.
So, from that standpoint, the name of the game has changed. In the Web 2.0 world, it is necessary to be timely and relevant. It is also necessary to have a voice. It is even more important to become recognized as thought leaders (not necessarily "experts") – someone (or as an organization – something) that people look to in shaping their thoughts on a subject matter.
From a sales perspective, it is imperative that you are present – present in the social sphere. Conversations are happening all around you, and if you ignore them you are looking at lost opportunities.
As a brief example, yesterday a contact of mine reached out to me on Facebook. He had a general idea of the space I worked in, but not any of the details. Through a lengthy conversation, it was evident that he needed my services. A meeting has been set up to allow us to talk even further.
Web 2.0 (soon to be 3.0) does not replace the ultimate sale. It does, however, influence the path that it can take. And, if you're not involved or aware of the happenings around you inside the social-sphere, they WILL pass you by.
With the plethora of social media tools now available, the power shift has begun from marketer/seller to the buyer (consumer or business). As a result, buyers have more power over sellers so sellers have to adjust accordingly. With this shift occurring, marketers have an enormous opportunity for creativity and accountability because everything can be measured and on a real time basis. Yet, I haven't seen much creativity nor dedicated marketing dollars to the social media effort in the insurance industry – for the reasons John mentioned. Once a laggard always a laggard? Or, maybe the hesitation comes from the fact that everything, like the direct marketing world, is measurable?
I agree with you about our paradigm shift. This shift is allowing marketers to think outside the box when it comes to creating a strategy for a product. For those sales people out there who are marketing themselves (insurance people) social media gives them a great platform to increase communication and build a relationship with clients, AKA friends. That’s the real shift here; consumers will no longer walk blindly out and buy, they want be able to research you.
As a millennial working in the insurance industry, I find it disappointing that we struggle with change. Even with this minor disappointment, we still have inspiring leaders and game changers out there that help keep me enthusiastic. For me, it’s about being the change that I want to see in others.
LK
I marvel at how seldom my phone rings. I’m busier than ever but my phone is no longer the lifeline to new business it once was. The preferred channels of communication have changed and will continue to evolve.
Marketing has changed more in the last 5 years than in the previous 50 years. With the impact of media proliferation the line between science and art has been blurred. Today’s consumer has availability to information like never before. They are well informed and can seamlessly move between channels. The result is a severe time compression creating its own challenges and opportunities for the marketing community.
Marketers are at a Crossroads. Some will become paralyzed by the complexity and apparent loss of control, while others will embrace this shifting marketplace with new ways to listen, learn and influence consumer behavior.
I believe marketers must adopt new ways to engage consumers, differentiate brands and earn long-term preference. I find the marketers who will grow and prosper are those who embrace Customer Experience Marketing (CEM). This strategy delivers relevant interactions that anticipate and respond to the many ways consumers want to engage, shop and buy today.
To learn more about CEM and the Epsilon point of view shoot me an email at pclark@epsilon.com or visit our web site at http://www.epsilon.com
Best Regards,
Patrick Clark
Epsilon Strategic Database Services
215)348-2311
Perhaps semantics – but I am not sure selling has changed. The way people buy has – the way we communicate has – the way we build and maintain relationships has. The mass marketing/interruption based marketing of yesterday has give way to inbound/permission based marketing. People want to buy from other people they “feel” they have a relationship with or know. We are back to paying attention vs (blast messaging from faceless corporate brands) to the advice from family and friends – except that now we include on-line friends (product reviews and endorsements).
For most – “selling” always has been and remains a relationship business – yes, today we have more tools to help us build trusted relationships.
The Internet became a disruptive technology that has changed the face of marketing forever. We marketers are not in control anymore. We need to give away valuable information and resources so that we attract followers online. We need to invite our customers to connect with us online so that we can extend our conversation with them. If we do this in a very value-add way (not overt selling!), we increase trust, credibility and relationships. People buy from people they like and trust. What have you done to add value for your prospects and customers lately?
Mike,
Very nice blog. Really like the format and content. With regard to the impact of social media on marketing and sales:
• No doubt the game continues to change
• Buyers have much more control to accessing information thx to technology
• Messaging has become much more critical
• There are countless marketing modalities and the challenge lies in maximizing the value versus cost of accessing the targeted audience
• B2B is less reliant on the technology component of social media, but can’t ignore
• I find incredible irony in the decline of “relationship selling” vs the rise in “social technology”
• I’d perhaps argue that selling or reaching a deal will ALWAYS be about relationships but the marketing modalities are evolving with the technology evolution
Much like good old communication the marketer’s challenge is determining how each target prefers to communicate: in the old days it was written vs phone vs face to face. Then we added faxing and emailing. Now we’ve added tweeting, webinars, blogs, etc. All are effective for some part of your market and none (not even fax) can be completely disregarded. I always think of it much like a golf bag full of different clubs. You get the best results if you’re able to execute the correct club for the individual shot.
That will always be business development’s challenge.
Thanks for reaching out and keep up the good, thought provoking work.
David Cox
one of my favorite things about SM is that it is dissolving the old equation that "80% of your business comes from 20% of your clients." With SM, I am able to stay connected to so many more people than ever before. In the past, I could randomly meet someone at an event, tell each other what we do, exchange business cards, put those cards in a big dust collecting rolodex and never interact with each other again. Now, with SM, we are able to connect in an interactive fashion and "stay in front of each other." Example: I met a guy in my industry but in a totally different sub-industry so our paths would probably rarely cross in the future, much less utilize each others products/services. We connected on Linked In, even though he told me he isn't very active on it and didn't have many connections, and conversely, I am very active, always updating my status and promoting myself and my business. Several months passed and we bumped into each other at an event and he said, "Hey, I love all that stuff you do on Linked In, you really keep people up to date with what's going on… I have a referral for you, can you call me tomorrow and I'll give you the details."
While my prime referral sources are still that, I'm finding that a salesperson who has a "Mile-wide-inch-deep" network is finally able to make that inch into 3 or 4 inches which results in more sales….
oh, irrelevant to the conversation but relevant to tech, I got notification of your blog update, read the new post and responded to it all on my Palm Pixi. I'd be interested in an article on how like-minded folks are using their smartphones and laptop/ipads to become better sales people…
I'd characterize this era as "engagement marketing" which involves social media and its associated technology but most importantly involves dialogue and interaction between customer and business to a much greater degree than before. In fact, it is through the engagement that a product or service is developed; the business has various products or services in the backroom, for example, and through iterative feedback and dialogue, the customer understands his or her problem, understands the various solutions available to that problem, understands how to evaluate those solutions, learns what others have done to solve a similar problem and makes a decision.
In fact, engagement marketing is really aimed at helping clients make better decisions rather than simply make a purchase. The products/services sold are the articulation of those decisions.
Final thought: don't get caught up in the technology — focus on the engagement. The technology will change the minute you have it figured out. The process towards effective engagement, however, should last.
Mike,
Let’s see, either go with the tide or get washed away. My Dad was an 30 year insurance professional and he was the last, in his district, to get a fax machine. He went kicking and screaming into the world of technology and that was 13 years ago.
I could not imagine how he would do today. Technolgy changes by the minute and our use of it in the selling process changes ,as well.
What has not changed is the importance of building and having relationships. Technology can move things along at a much quicker pace. But when it gets down to signing the contract, that relationship – know, like & trust – is what closes the deal.