Personal selling

PERSONAL SELLING

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Personal selling is a sales technique that involves direct communication between a salesperson and a potential customer, with the aim of persuading the customer to purchase a product or service. Through personal selling, the salesperson can tailor their message to the customer's specific needs and respond to their questions or concerns in real time. This sales technique tends to be most effective for high value products or services, where the customer needs more information and guidance before making a purchase decision.

Some of the advantages of personal selling are

  • Greater control over the sales process: the salesperson can direct the conversation and tailor their message according to the customer's needs.
  • Increased customer confidence: by interacting directly with the seller, the customer can feel more secure and confident in the product or service being offered.
  • Possibility to build long-lasting relationships with customers: personal selling can help to create a closer bond between the salesperson and the customer, which can lead to long-term loyal relationships.

However, personal selling also has some disadvantages:

  • Costs: Personal selling is often a more costly technique than other forms of selling, due to the time and resource costs involved for the seller.
  • Geographical limitations: personal selling may be limited by the geographical location of the customer, which may make it difficult to expand the business nationally or internationally.
  • Possibility of rejection: personal selling involves a higher level of exposure and contact with the customer, which increases the risk of customer rejection.

In summary, personal selling can be an effective technique for high-value products or services, but it can be costly and limited in its geographic reach. It is important to carefully assess the needs and objectives of the business before deciding to use personal selling as a sales technique.

Examples of personal selling in different situations:

  1. An insurance salesperson who approaches a potential client at a networking event and offers a free assessment of their financial and insurance situation.
  2. A car salesperson who meets with a potential customer to show different car models, take a test drive and explain the details of the purchase and financing process.
  3. A technology vendor meets with a business customer to demonstrate how their products can improve efficiency and productivity in their company, and discuss customisation and support options.
  4. A consulting services vendor who meets with a business client to discuss their business challenges and present a detailed proposal on how his team can help solve them.
  5. A salesperson at a trade show booth interacting with visitors provides information and displays the company's products to generate interest and sales leads.

In all these cases, Personal selling involves face-to-face interaction with the potential customer, where the salesperson focuses on building relationships, understanding the customer's needs and offering personalised and compelling solutions to generate a successful sale.

In which situation is personal selling more convenient?

Personal selling is most suitable in situations where the purchase is complex, expensive or requires a high level of trust and relationship between the seller and the customer. Examples of situations where personal selling is more suitable are the sale of luxury goods, consulting services, insurance, industrial machinery, among others.

Evolution of personal selling

Personal selling is one of the most important yet oldest functions in business. However, approaches to selling have not always been the same. The traditional image of the salesperson is that of a person whose sole mission is to sell regardless of the customer's real needs and without concern for customer satisfaction. It was a transactional approach that went hand in hand with so-called pressure selling techniques.

It was in the mid-1960s when, influenced by new marketing concepts, the sales function incorporated a new orientation known as the "needs approach" or "customer focus". The salesperson's functions include getting to know his customers and identifying their needs in order to adapt his offer to them. Over time, companies are becoming increasingly aware of the importance not only of knowing their customers and their needs, but also of establishing long-term relationships with them. This is referred to as customer loyalty and relationship marketing.

At this point we can point to a definition of personal selling: "That process of interpersonal communication during which the salesperson discovers and satisfies the customer's needs, all in a context of seeking long-term, mutually beneficial benefits for both parties". All these changes involved the emergence of new ways of selling and also new ways of managing the sales force. but in no case did they call into question personal selling or the figure of the salesperson. In fact, no other sales method allows sales arguments and the handling of customer objections to be adapted more quickly and effectively than "face-to-face" selling.

Digitalisation in business

The innovation and digitalisation are two concepts that go hand in hand and their arrival implies a systematic questioning of the way companies have been managed until very recently. And sales, the strategies and techniques used to sell and the organisational forms of commercial management are also under constant review.

DIGITALISATION MEANS THAT MARKETING AND SALES ARE BECOMING MORE INTERCONNECTED AND NEW WAYS OF SELLING ARE EMERGING:

In order to understand the current situation of personal selling, we can analyse two major forces that operate in parallel and have a decisive impact on the understanding of selling. On the one hand, the competitive demands of the market generates a tendency towards increasingly customer-focused business models, looking for the long-term relationship, through face-to-face contact. On the other hand, the arrival of the The digital era has generated new forms of customer relations that call into question personal selling as it has traditionally been practised.  

The challenge of personal selling today is perfectly defined by Benoit Mahé, author of "The Connected Salesperson". The subtitle of this book reflects the new paradigm of personal selling: "Recovering the baker's smile in the age of omnichannel commerce". Although this book is focused on retail sales, the principles that inspire it are valid for sales activities in general. How to combine the human relationship, which remains a key aspect of customer loyalty, with the use of new technologies that significantly expand this relationship. Another aspect to consider is the increasing level of demand that companies are placing on their salespeople, due to the reduction in the size of sales teams, a growing product portfolio with a shorter life cycle. 

CONSEQUENCE

Salespeople must increase their productivity, consolidating long-term relationships with their clients, using new technological tools. All of this requires salespeople to constantly update their knowledge and technological skills, but also to take advantage of new neuroscientific trends applied to sales, and to master digital marketing techniques. 

Selling in the context of entrepreneurship:

Selling is an activity that is inherent to human beings. But in the case of entrepreneurs, knowing how to sell is a fundamental requirement. Financiers, suppliers, clients, partners, investors are some of the interlocutors to whom the entrepreneur needs to sell. They are pThe arguments therefore need to be adapted to what each of these actors wants to hear.

When it comes to the marketing of products and services, we must not forget the importance of the salesperson in the initial stages of the business. Even when we talk about technology-based products and services in which online sales systems can play a fundamental role. Sometimes it is the entrepreneur himself who assumes the commercial functions, but in the long run it is necessary to create a commercial structure that responds to the different sales methodologies available. In that structure we must incorporate people who are well trained in the mastery of technologies but also have the skills to establish strong, long-term personal relationships with customers. For a start-up business, having people with in-depth knowledge of the sector and of the potential customers to whom the offer is addressed means gaining time of particular value as it allows commercial activity to be generated from the outset.

APPLY THIS TIP TO YOUR PROJECT

TASK

Now that you have read this TIP, answer the following questions:

  1. Could you reflect on the forms of sales that your project should adopt?
  2. Do you think personal selling is important for your project and why?

CASE STUDY FOR ENTREPRENEUR WHO WANTS TO IMPLEMENT PERSONAL SELLING IN HIS NEW COMPANY

Juan is an entrepreneur who has just launched his new business selling beauty products. Although he has tried to boost sales of his business through online advertising, social media and other digital media, he has not achieved the results he had hoped for. For this reason, Juan has decided to implement a personal selling strategy in order to reach his potential customers more effectively.

To begin with, Juan hired a team of salespeople who would visit the main shopping centres and beauty shops in the city. The aim of this strategy was to allow the salespeople to talk directly to potential customers, offering them product samples and explaining the benefits and features of the products.

Juan also implemented an incentive system for the salespeople, offering them commissions for each sale made. In this way, the sales team would be motivated to achieve as many sales as possible.

Another strategy Juan implemented was to organise special events in department stores, offering product demonstrations and special promotions. This allowed Juan to reach a larger number of potential customers and generate greater brand awareness.

By implementing the personal selling strategy, Juan was able to significantly increase his company's sales and establish a closer and more personalised relationship with his customers. In the long term, Juan hopes to keep this strategy as a fundamental part of his business model and continue to grow in the beauty market.

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Fernando Weyler

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