Sales forces are familiar with the concept of “Sales 2.0” – like most “2.0” monikers, it refers to the online sales paradigm and integrating that with standard, face-to-face or phone sales to create a mostly seamless sales regimen that spans the customer base both online and off. Because Sales 2.0 is still an emerging and fast paced arena, things change continually within it. Current trends are giving insight into where this new quadrant is going.
Trend #1 – Throw a Broad Net, Then Progressively Filter
Because the Internet gives such an easy, relatively inexpensive way to find prospects and bring them into the fold – through search engine marketing, social networking, etc. – the general tactic most sales forces online are using is to cast a broad net and capture as many prospects into your “sales funnel” as possible and then narrow them down by filtering out the uninterested and non-buyers. This has been a common tactic for years and is considered the easiest way for any market, including insurance, to operate online sales. Filtering after capture is easier and less likely to push away customers than filtering before capture.
Trend #2 – Deliver Value, Then Sell
This is not so different than face-to-face sales where a sales person talks to the prospect, shows them options, gives them policy ideas, tailors something to their needs, and basically spends quality time with the client before closing the sale. Online, this process is similar, but often involves more general content pushing and less individualized attention. The difference is mainly in how many prospects an online versus offline sales person is going to be dealing with at any one time.
Trend #3 – Every Sales Person Should Be Online
This is a newly-emerging trend that is showing big results for many. IBM, for example, has all 1,000 of their sales force online with individual Twitter, a web page with 2-way video chat capability, LinkedIn profiles, etc. They are given weekly updates for content ideas to keep their networks flowing and are encouraged to interact individually with people who join their networks. IBM sees this as being as important as issuing cell phones and email addresses to their sales force. In insurance, this is even more important because what insurers do is much more personal to the client (be it an individual or a busienss) and so those personal connections via alternative media is a big bonus. Further, this tactic has not yet caught on with many in insurance, so it could put you ahead of the curve.
Trend #4 – Move Towards Less “Touch”
In sales, “touch” refers to the face-to-face or one-on-one meeting that often seals the deal. Today, fewer and fewer sales are happening this way and more are happening online in a more impersonal way. Amazon.com, for example, does $30 billion in business annually and has no sales reps at all. With insurance, this completely hands-off approach is probably not feasible, but it does show that removing much of the physical leg work from the equation may be possible. Today, auto inurance and even homeowners or property insurance is becoming more and more hands-off and retail-like as customers begin setting up policies online without ever once talking to a sales rep.
Trend #5 – Online Demonstrations Sell
Continuing with trend 4, in this trend, we see that online demonstrations of product can be a big sales driver. With insurance, having automated quote systems, fast access to sample policies, video demonstrations of claims processes and typical scenarios for policy issuance are all ways that insurers can boost sales through online media. Many industries are seeing 45% and better sales volume online with demonstration programs.
These trends are showing how Sales 2.0 is building into a major part of the industry and should show you why your insurance firm needs to be on board with the new wave of social selling.