stay or leave? They came to you based on the premise that you could give them good returns. If they weren’t previously unhappy with their situation or identified that they were receiving poor returns, they are left to question if what you are saying is true or if you are just trying to make a sale. Should they trust you? How long have you been doing this? After all, how long does it take to trust somebody when there is not a catalyst? There are many difficulties that come along with trying to “convince” somebody that you can do better.
Even more precarious of a position is attempting to motivate a prospect to action by employing a fear of loss strategy. This is when you tell them something is wrong with their current situation. If they don’t change something, they will be in bad shape. The public is very much desensitized to this message, as they are with the “hope of gain” angle. I mean how many chain emails have you gotten promising “something good will happen” if you send this email to five of your friends? As in the example with the roofer, the public is constantly being told what is wrong with their situation. As a matter of fact, I received a letter in the mail the other day that I found interesting. It was from a local car dealership. It stated that they knew I had a 2003 Tahoe and they were confident that by working with them I could trade in mine for a brand new one with no money down and the same monthly payment. I pursued the letter by calling up the dealership. After getting all my information on the loan payoff and such it was a bust. It wouldn’t work in my situation. I could have guessed that…but they got my attention enough to call. I really wasn’t in need of a new car and in fact I really like the one I had. Their hope of gain tactic, however, was successful at getting me to pick up the phone. Before I hung up the phone the salesman changed gears on me and mentioned that he understood I wasn’t in the position to buy the car now, but I should really think about doing something before it got to 75,000 miles because there is a major drop in trade in value at that point. This is probably true but the context of the whole situation caused me to brush it off because I didn’t need a car right now, and my impression was he was trying to create a need in the future. When you approach a prospect with this strategy and context you shoot yourself in the foot by compromising your professionalism. You are now like any other salesman: should they believe you or not?
What would happen in the above example if I had already decided that I needed a car? Let’s say that I actually drove to the dealership and was presented with the same comment about the mileage? I might have actually used that piece of information to support my desire to buy a car. The same message has a different meaning depending on the mindset of the prospect. Unfortunately the pre-existing mindset of the prospect is something that you cannot control. You can sell by hope of gain and fear of loss much more subtly when the prospect has already done most of the work. Using these approaches in a more subtle manner allows you to maintain your professionalism.
One of the most common situations I see as an advisor coach starts where the financial advisor has done everything correctly. They have obtained the first meeting. They have explained their services and attempted to explain why they are relevant. They have even “created” a need in the mind of the prospect. The prospect seems to be on board, but month after month passes, and the paperwork doesn’t get signed. These same advisors buy books, talk to other advisors, and question their own skills in attempts at becoming better “closers”. The art of “closing” is most definitely something that can be practiced and improved upon, but I would like to suggest that the problem lies earlier in the prospecting process. Usually the closing skills of a sales person are sufficient as they exist. It is the opportunity that is faulty. Let’s face it: if you have ever had a date (excluding blind), you have the ability to close. Let’s look at that a little closer though. If the person you are asking on a date was interested in you as well then it was easy to get the date. If you ever found yourself in a position where you were making your case for why they should go out with you then your chances weren’t that good no matter how good your argument. When an advisor is on a time line or a schedule to bring in assets, this cycle can be very frustrating and eventually lead to decreasing motivation. This business requires an unparalleled amount of activity to be successful, and nothing will detract more than lack of motivation.
Success builds motivation, and motivation builds success. That is the cycle you must find yourself in, as early as possible and activity is the on ramp to this roundabout.
Understanding the fundamentals of sales and the anatomy of a sales decision can help you sell the right way with the right message and maintain your professionalism.
Comprehension Quiz
1 Rick Wilcoxon says that people “are motivated to action” by fear of _______________ and hope of ______________.
2 A sales professional is charged with ______________ or _____________ needs with prospective clients.
3 True or False? The general population has become increasingly receptive to sales professionals, and the tried and true methodologies salespersons have employed over the years.
4 Generally speaking, a buying decision that exists in the world of financial services involves a ______________, (high or low), level of emotion.
5 Success builds motivation, and motivation builds success. _____________is the on ramp.
Social Media Update
“What has changed is that the population has become increasingly numb to previously used sales methodology, and the task of creating a need has become more difficult, especially in the world of financial services.”
This phrase, from the last chapter, couldn’t be more true today. In the subsequent years after it was written, we saw the mass adoption of social networking tools like LinkedIn, and Facebook. Whether you personally think sites like Facebook, Twitter, Myspace, and LinkedIn are silly or not, you can’t argue with their popularity. You can’t argue with hundreds of millions of people that flock to these services each month. The viral spread of these tools is is interesting to me, and something that I think happens for two reasons; reasons that connect with our inner most desires.
First, I think that the majority of the population wants to be heard. I’ve seen statistics around the percentage of people who desire to write a book in their life time. Across the board, I think it’s safe to say, that some 80% of people have, or have had, the desire to write a story. We, as a people, think that we have something important to say. It is human nature to believe that the circumstances that surround our lives are unique to us. Identifying and sharing our opinion of our life help us to become comfortable with where we are. A former client of mine, Brett Hurt’s company, Bazaarvoice, is in the business of UGC or User Generated Content. This is where the users of websites actually deliver the content. This is useful in retail business where others want know about others’ experiences. Who would have thought that people would pour their hearts out over a tissue brand, or a cleaning product? But they are. What is becoming overwhelmingly evident, is that people will spend time writing copious notes about what some people may believe to be very mundane things. For a long time I have been amazed at the amount of time people spend writing in technical forums. Why do they take the time to do this? Because we love to be right. We love to correct people, and give our opinion. The web has given us all the ability to have a voice and satiate one of the inner most desires we have.
Second, if you have ever seen the movie, Into the Wild, then you know that (according to the film) another of our core desires is to connect and share. In the movie, Christopher MCandless becomes fed up with the “establishment” and sheds all worldly possessions to move to an isolated camp in Alaska. He spends his first moments happy as a clam about his ability to exist simply and free from everything in this world. If you don’t want me to ruin anything, then stop reading here. The message of the movie is that no emotion or experience is rich, if we cannot share it with someone else. Life is about not just having experiences, but sharing them with others.
