The primary goal of any business is to generate sales and increase its profitability. The question is how it could achieve higher sales. The answer lies in building strong relationships with customers. Human psychology reveals that we engage in business and financial transactions with people we trust. This concept is effectively utilized through personal selling. In this article, we will discuss the importance of personal selling and its critical concepts.
Personal Selling Definition
When you hear the phrase personal selling, a picture of a pushy salesman might come to mind. It is not your fault, as salespeople are subjected to several negative stereotypes. Some think a salesperson could go to any length to complete a sale. Others think they only care about their benefits in terms of commissions and bonuses. These stereotypes about personal selling and the conduct of salespeople could not be more inaccurate.
Personal selling means establishing direct contact with existing and potential customers through a sales team. Its aim is not just to engage and convince customers to buy a product/service but also to build strong relationships with them.
Personal selling adds a personal touch to the sales process. The salesforce is usually well educated and trained to handle customers' queries and resolve their problems. They assess customers' needs and fulfill them by coordinating the company's efforts. The success of personal selling depends on the sales team's ability to forge strong and sustainable customer relationships.
Salespeople must also possess strong interpersonal skills and prioritize customers' needs above all else. These are key to building customer trust and eventually leading to a sale.
Fig. 1 - Personal selling - adds a personal touch to sales
Personal Selling Advantages and Disadvantages
There are some advantages and disadvantages when implementing a personal selling strategy.
Personal selling advantages
First, let's talk about its plus points. Here are five main advantages of personal selling:
Customer's trust – When communicating with customers, a salesperson can foster the trust factor between them. The key is to listen to the concerns or queries of the customers and provide them with information that would help put those concerns to rest. By the end of this process, a salesperson will likely win over the customers' trust.
Personal selling disadvantages
That said, personal selling is not without its disadvantages. Here are some challenges when implementing personal selling:
Training costs – Having a well-trained sales team comes with its costs. Companies spend huge amounts of money on training their sales teams. Training equipment, travel expenses, and health care benefits are some costs associated with training a sales team.
Direct Marketing vs. Personal Selling
Direct marketing and personal selling are both techniques to sell products or services to customers. However, both techniques differ in terms of audience reach, costs, and objectives (See Table 1).
Direct marketing is a type of marketing where a company communicates directly with the customers to sell its product/services.
Direct marketing | Personal selling |
To sell products/services and to inform customers directly. | To sell products/services and to inform customers through the sales team. |
It is used to sell less complex products/services. | It is used to sell complex products/services. |
It has a massive reach. | It has a limited reach. |
It allows less personalization. | It allows more personalization. |
It is a more aggressive form of sales technique. | It is not an aggressive form of sales technique. |
The focus is on informing the customers about a good offer | The focus is on developing strong customer relationships. |
Text messages campaigns and database marketing are examples of direct marketing. | A salesman selling a product is an example of personal selling. |
Table 1. Direct marketing vs. Personal selling
Types of Personal Selling
There are three main types of personal selling. Companies could use one or all of them based on sales activities. It is decided in the sales strategy what type of personal selling is ideal for improving sales performance:
Personal Selling Examples
There are many examples of personal selling in our daily lives. From a departmental store employee to street vendors, we see the use of personal selling in marketing and sales. Here are a couple of examples of personal selling:
Personal selling example: The sales rep in tech stores
The sales representatives in tech stores help customers in making purchase decisions. They listen to queries, provide information, and assist customers. They ask customers questions about their price range and desired specifications, and suggest a product that fulfills their requirements.
Fig. 2 - Sales reps and customers in an Apple store
Personal selling example: Door-to-door sales
One of the common examples of personal selling is door-to-door sales. The salespeople knock on the doors of potential customers to advertise and sell the products/services. They try to convince the customers to buy from them with their strong interpersonal skills. In many cases, they give free product demos to eliminate customers' doubts.
Fig. 3 - Door-to-door salesmen
Personal Selling - Key takeaways
- Personal selling is about adding a personal touch to the sales.
- The success of personal selling depends on the salesperson's ability to forge strong and sustainable customer relationships.
- Direct marketing and personal selling methods differ in reach, costs, and objectives.
- Bilateral communication is one of the top advantages of personal selling.
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