Lessons in Leadership

The electronic Yellow Pages

Used effectively, the Internet can serve as a sales brochure

By Robert L. Bailey

“What’s the value of a salesperson,” someone asked me not long ago, “when that’s such an old-fashioned way of doing business? Everybody today does business on the Internet.”

Yes, the Internet is a fact of life and, with the vast availability of information on nearly any topic, it has changed the way many personal and business decisions are made. The Internet is like an electronic Yellow Pages. Every business and every salesperson must use the Internet to their advantage just as we use (or once used) the Yellow Pages.

In my own business, I can’t say how many sales result from my Web site. I doubt that many result from the site alone. But I can say virtually everyone who contacts me has visited it. Therefore, it’s clear that my Web site is a critical dimension of my sales efforts, and it should be a critical dimension of your sales program too.

Today’s shoppers are better informed, regard­less of the type of product or service offered. They do their homework, thanks to the Internet. The Internet is a place to do research; it’s a sales brochure; it’s a catalog. But the Internet alone is not a very good cash register unless you’re selling a commodity—which means every product is the same, the service is the same, the salesperson adds no value, and the only motivator for the buyer is price.

Avoid the commodity trap

It is critical that you never let your product or service become a commodity. Another form of marketing will always be able to sell cheaper. Your Web site must be designed to bring attention to the value you provide and the benefits you offer.

Direct marketing is not new. Richard Warren Sears and Alvah Curtis Roebuck may have been one of the first direct marketers when, in 1888, they distributed a mailer devoted to watches and jewelry. Even then they tried to avoid the “commodity” effect by promising, “We warrant every American watch sold by us, with fair usage, an accurate time keeper for six years—during which time, under our written guarantee, we are compelled to keep it in perfect order free of charge.”

The catalog sales trend continued to expand, fueled by the westward expansion of the railroads, by Rural Free Delivery in 1896, and by special postal rates of one cent per pound for “aids in the dissemination of knowledge.”

As the Sears direct mail sales concept expanded, its customer service efforts expanded as well. The 1903 catalog included the commitment, “Your money back if you are not satisfied.” The company employed translators who can “read and write all languages.” Even then “people” involvement was emphasized.

The 1905 catalog included wallpaper samples and swatches of materials used in clothing. As the catalog sales concept expanded, there were continuing efforts to add value to the transaction.

The evolution of the Sears catalog parallels in many ways the develop­ment of modern day sales, with increasing emphasis on adding value to the transaction.

Web marketing certainly has several distinct values. Buyers want to be informed consumers. They want to be smart enough to know if the salesperson is dealing fairly with them. For instance, what do people hate most about buying a car? Haggling. The Web helps level the haggling field. Would-be car buyers get information on sticker prices and dealers’ invoice prices and then go to the dealer as an educated buyer.

One study showed that people who shopped on the Web before buying a car fared a little better on price when they visited the dealer. Other studies are less conclusive. For the most part, Internet buyers do not save money and, in fact, there is little evidence that saving money is the driving force. Instead, buyers want to be better informed, and they are. Much of the credit for better-informed buyers goes to the Web.

The Internet may help the buyer find someone to talk to, but they still want someone to talk to. They still like to do business with people—“people like me.” On a business trip to London, a Texas businessman called for a car to transport him to the airport. A woman with a British accent answered the phone. As soon as she heard the man’s voice, she switched to a Texas drawl. “Where are you?” the man asked. It was a call center in Bangalore, India. The woman had learned to match a Texas accent from having watched “Walker, Texas Ranger” on TV.

One study found that shoppers are three times more likely to buy if they speak with a salesperson—especially “people like me.” And they are more likely to dial a local number than an 800-number.

To their credit, Internet marketers often do a better job of cross-selling than many salespeople. Note Amazon.com’s success with its reminder, “Customers who bought this item also bought…” This is one more technique that salespeople should be emulating.

Web limitations

Recognize the limitations of the Web. One expert maintains no search engine indexes of more than 16% of the total pages available. The pages number into the hundreds of millions.

An insurance company that had operated through local independent agents tried an intensive Web marketing experiment but discontinued it after a multi-million-dollar investment. “Customers want a trusted adviser to guide them through the insurance transaction,” the company’s president said, “from buying appropriate protection to servicing the business.” He went on to say, “People want to shop via the Internet but not necessarily buy.”

Experiments like these make it clear the Internet must complement normal sales efforts, not replace them.

Still, you need a Web site. If you don’t already have a Web site, develop one. Do it right, with attractive graphics and well-written copy. Briefly point out the benefits you provide to customers—always from the customer’s perspective, not your own. This is your sales brochure. It must be professional.

Over time, learn to use Facebook, Twitter, LinkedIn, and other forms of social media.

Set up Google and Twitter alerts to see what others might be saying about you and your agency. It’s nice to hear good things, but it’s even more critical to hear the bad things, for you need to know what you might be doing wrong so that you can correct the problem.

Consider writing a blog. If you choose to have one, it must be well written and must be updated regularly. If you’re not a good writer or don’t have time to update it two or three times a week, find someone to write it for you. Content must be about helping customers, not blatant, in-your-face selling.

These forms of electronic Yellow Pages are communication tools. They give prominence to your name and will bring people to you. Then it’s a matter of value—value that’s added by a professional salesperson.

The author
Robert L. Bailey is the retired CEO of the State Auto Insurance Companies. He is now a public speaker and author of four books. Check out his new book Super-Size Your Sales, at www.bobbaileyspeaker.com or contact him at (941) 358-5260 or bobbailey1@comcast.net.