FDLIC Corporate Officers blog about current issues in the preneed industry and in funeral service, providing insight, commentary, and news updates.
The Consultative Sales Process...A Diamond in the Rough?
Thursday, July 22, 2010
At Funeral Directors Life Insurance Company (FDLIC) we are in the midst of a major paradigm shift in the way we take our products to the marketplace. As we move further into the 21st century, we understand that the traditional sales approaches to the consumer will have less and less value. At FDLIC we are striving to position our preneed sales agents as professionals who are not only "knowledgeable," but also able to provide unique solutions to consumer problems. And we believe that the process of distributing our products and services to the senior marketplace may be the next "diamond in the rough."
Ask yourself this question. How do consumers view a typical preneed sales agent they meet with?
- Someone who pushes consumers to buy a certain funeral plan?
- Someone who is there to take an order?
- Someone who doesn't ask about needs?
- Someone who talks and talks and talks, but doesn't listen?
Unfortunately, too many times the answer falls short of what we believe consumers deserve. No one wants to be "sold" anything these days, especially when it comes to funeral services. We believe consumers deserve better. We believe the sales experience should be a positive one and that's why we believe in the consultative sales approach.
The consultative sales process is not a new concept. In fact, with a little research you can find that it has been around since the 1970's. However, it seems to me that it's been slow to be adopted in the consumer setting. I mean, think about the last time you bought a computer, or a suit or a new car. How consultative was the sales person? My guess is not very. From what I can determine, there are essentially three primary factors that indicate a consultative sales person:
- They ask more questions than other sales people.
- They provide customized (as opposed to generic) solutions.
- Their sales calls tend to be more interactive.
These 3 things combined help to better meet the customer's needs. The customer's needs are identified by the consultative salesperson through a combination of preparation and asking a series of specific questions. Sure, the process could take a little longer in some instances (although not necessarily), however let's think about the benefits for a minute.
First of all, trust levels will be higher and the chances of closing the sale will be better if the agent has done their job to understand the customer's needs. Secondly, performed correctly, a buyer will have a higher satisfaction rate in the consultative sales process because their needs are being addressed. No one wants to experience buyer's remorse. And finally, referrals will be higher because customers will feel comfortable about the process and more secure about the decision. More referrals lead to more opportunities for success.
So why aren't more sales organizations moving towards a consultative sales approach for all of their agents? My guess is that the shift in thinking is a difficult proposition. Not only is it expensive but it can be time-consuming as well. But at the end of the day, doesn't anything worth having come at a high price? Someone once said that "the greater the challenge, the sweeter the victory."
Whoever said finding a "diamond in the rough" would be easy?