1.2 Sales Drives the Company and the Economy

“Until something is sold, nobody gets paid.” This was true in the 1800s when “peddling” goods marked the start of sales and is true today. In the interim, the profession of sales has evolved. In the 1920s through the 1950s, there were several types of selling that were in vogue. One was psychological selling, which focused on what makes a customer “tick.” That advanced to relationship selling with the popularity of the best-selling book by Dale Carnegie, How to Win Friends and Influence People. That evolved to barrier selling which focused on asking questions to which the customer would say “yes.” Formula selling became popular, which we still see today in the form of telemarketing.

Today, the Internet, amplified with the use of smartphones and other mobile devices, has been a game changer for selling in many ways. Just like the Internet expands the reach of a company to virtually anywhere in the world, it also provides customers with access to information, products, and services that they never had before. In some industries, the Internet has virtually eliminated the need for a salesperson. Travel agents are no longer the exclusive providers of reservations and travel plans. Music stores are almost extinct. Newspaper want ads have almost vanished. In other industries, the relationship of the salesperson and customer has changed dramatically. The power has shifted from the seller to the buyer. Take, for example, the auto industry. It used to be that when you wanted to buy a car, you went to a car dealership. The salesperson would show you the cars, take you out on a test drive, and then negotiate the selling price when you were ready to buy, holding the dealer invoice close to the vest. Today, customers may e-mail or text a car dealership to set up an appointment to drive a specific car after they have researched different models of cars including features, benefits, competitive models, editor and customer reviews, competitive pricing, and dealer invoice pricing. In some cases, the customer may know more than the salesperson.

As a result of the fast-paced changes the Internet brought to Sales with social networking, online reviews and forums, the term Sales 2.0A term used to describe the role of the Internet in the selling process including social networking, online reviews, communities, and collaboration. was coined in the early 2000s. Salespeople and sales managers had to change their thinking because they were no longer the only way prospects or customers could get information. LinkedIn, Facebook, Twitter, YouTube, online reviews, forums and communities changed the paradigm. They allowed prospects and customers to get unfiltered information at the touch of a keyboard. In fact, according to CEB Global, B2B prospects conduct 57 percent of their research about a purchase before coming in contact with a sales rep. The implications of this are discussed in Chapter 6 “#SocialSelling—Adding Value to Your Network”.

Today, Sales organizations are embracing a movement called Sales 3.0 A term used to refer to the application of data to automate and anticipate customer needs and make selling activities more efficient.. The use of data analytics, artificial intelligence, machine learning, and cognitive computing to focus on the prospects and customers most likely to buy at the time they need the product or service. Anticipating customers’ needs and providing a completely seamless customer experience are the goals. That is not yet the case. According to research conducted by CEB and reported in an article in the Harvard Business Review, B2B senior executives described the process of making a major purchase as “hard,” “awful,” “painful,” and “frustrating.”

Sold.

It’s a deal.

Let’s shake on it.

Sign on the dotted line.

You’ve got the job.

Those are the words that signal success in selling. They seem simple, but according to Gerry Tabio, bringing a saleThe activity of selling a company’s products and services. to fruition is “not just about celebrating the sale; it’s about celebrating the growth of the customer.” The most successful companies work to build and sustain relationships with the customer at every touch pointAny point in which the customer comes in contact with a company, such as in person, by phone, by e-mail, website, social media, invoice, advertising, and more., any way in which the company comes in contact with the customer, and consider selling the job of everyone in the organization. In other words, although there are specific functional departments such as sales, marketing, operations, human resources, finance, and others, everyone in the organization is focused on the customer. This is called a customer-centric organizationAll employees are focused on anticipating and meeting the needs of the customer..

You might wonder why all companies aren’t considered customer-centric. After all, if they were in business to sell products and services to customers, it would make sense that they would be customer-centric. However, you have probably encountered companies that aren’t really focused on the customer. How many times have you heard this message while you were on hold to talk to a salesperson or customer service representative, “Your call is important to us. Please stay on the line for the next available representative”? Being on hold and hearing a recorded message hardly makes you feel as if you are important to the company.

Being customer-centric means insisting on accountability. Although everyone is focused on the customer, every employee is part of a department or function. Each department has goals and accountabilities. In a true customer-centric organization, the departments work together to satisfy the needs of the customer and achieve the financial objectives of the company. Most companies have core functions or departments such as sales, customer service (sometimes it is included as part of the sales department), marketing, operations, finance, human resources, product development, procurement, and supply chain management (also called logistics). Departments such as finance and human resources are called support (or staff) functionsA department that provides services that support those that are on the front lines with customers, such as human resources, finance, and marketing. This department is also called a staff function. since they provide support for those that are on the front lines such as sales and customer service (these departments are also called line functionsA department that is part of the daily operations of a company such as sales and customer service. as they are part of a company’s daily operations). In a customer-centric organization, the focus on the customer helps prevent organizational “silos” (i.e., when departments work independently of each other and focus only on their individual goals).

The sales department is the heartbeat of every company. According to Selling Power Magazine, the manufacturing and service companies listed on its “Power Selling 500 Report” generate $7.5 trillion dollars in sales annually. Each salesperson supports an average of 15.1 other jobs within the company. This means that the level of sales that is generated by each salesperson actually pays for the roles in human resources, marketing, operations, and other departments. It makes sense that the salespeople fund the operations of the company. After all, it is a salesperson with whom you interact when you buy a Mini Cooper, lip gloss at Sephora, or an interview suit at Macy’s. The people in the sales department “ring the cash register” (whether the business has a cash register or not). They are responsible and accountable to deliver sales to generate revenue and profit, which are required to operate and to invest in the company. In fact, the sales department is considered so important that even in a difficult economy, many companies hire salespeople even when they are not  hiring in other departments. Without a healthy and strong sales department, companies can wither and die.

So you might be wondering, if the sales department interacts with customers, what exactly does the marketing department do? That’s a great question. Some people use the terms in tandem—sales and marketing—to refer to sales. Some people use the terms interchangeably and refer to marketing as sales. It’s no wonder that it confuses so many.

According to the American Marketing Association, “marketingThe activity of creating, communicating, and delivering brand messages to customers.  is the process of getting consumers interested in your company’s product or service. This happens through market research, analysis, and a solid understanding of your ideal consumer’s wants and needs. Marketing pertains to all aspects of a business, including product development, distribution methods, sales, and advertising.” In other words, it is the role of the marketing department to use the four Ps of the marketing mix (product, place, promotion, and price) to determine the brand message, which is ultimately communicated to customers. Then, the marketing department uses the elements of the promotional mix of advertising, sales promotion, public relations, direct marketing, interactive marketing, and personal selling to get the word out to customers. Marketers seek to motivate prospective customers to purchase by driving them to a website, store, phone, event, or another related, desired action. Essentially, marketing builds relationships between customers and the brand. When you see an online ad for Best Buy, get a text message about the new release of a new movie, call the 800 number to check on your My Best Buy point balance, post a comment on the Best Buy Instagram feed, respond to a tweet from Best Buy on Twitter, see a newspaper insert or an ad on television, or read about the opening of a new store near year you, these are all examples of marketing. They are designed to encourage you to engage with the brand and encourage you to take an action—visit the store, go to the website, call the 800 number, or tell your friends about the brand.

When you go into the store or visit the website, it’s the sales department that takes over. A salesperson will speak with you (either in person in the store, online with live chat, or by phone) to determine what you need and to help you make the best decision by communicating product information (this printer is wireless), service information (we can deliver that tomorrow), warranty information (it has a 90-day manufacturer warranty), and other pertinent facts. The salesperson extends the relationship that was established with the marketing contacts and makes a personal connection with you. If you have a good experience, your relationship with Best Buy gets even better, and you are more likely to shop there again and tell your friends.

At times, however, sales and marketing don’t play well together. When organizations are not customer-centric, the departments may appear to have separate or conflicting goals. Marketing may feel that sales doesn’t follow up on prospective customers, or perhaps sales feels that the marketing efforts are focused on the wrong customers. 

In addition to closing the sale (when the customer purchases the product or service), the salesperson has a very important role in the marketing process. Because the salesperson (in the store, online, or on the phone) is a primary touch point and has a personal interaction with the customer, the salesperson is the brand in the eyes of the customer. According to Dr. David A. Shore of Harvard University, “The sales force is the most visible manifestation of the brand. Salespeople need to say with a singular voice, ‘This is who we are and, by extension, this is who we are not.’ The critical element that power brands have is trust, and a sales force needs to become the trusted advisor to the customer.”

So now you can see that marketing and sales work hand-in-hand—one develops the brand and the other assumes the image of the brand. Neither works without the other, and the relationship between the functions must be transparent to the customer. There’s only one brand in the eyes of the customer, not two departments. When marketing and sales work well together, the customer experience is seamless.