Building Trust and Building Trust and Sales EthicsSales Ethics

Module TwoModule Two

The Importance of TrustThe Importance of TrustAn Expert’s Viewpoint:An Expert’s Viewpoint:

Gary Schliessman, owner of Schliessman and Associates Gary Schliessman, owner of Schliessman and Associates has been in the insurance and financial planning business has been in the insurance and financial planning business for over 30 years. According to Gary “ . . . we have to do it for over 30 years. According to Gary “ . . . we have to do it right the first time, every time to ensure the trust of our right the first time, every time to ensure the trust of our clients . . . until I know what their dreams and goals are, I clients . . . until I know what their dreams and goals are, I can’t tell them what to buy . . . . and I won’t sell them can’t tell them what to buy . . . . and I won’t sell them something they don’t need.”something they don’t need.”

ActionAction

The Importance of TrustThe Importance of TrustAn Expert’s Viewpoint:An Expert’s Viewpoint:

Gary has developed a large and loyal customer base. Gary has developed a large and loyal customer base. The reason for Gary’s success is his honesty, The reason for Gary’s success is his honesty, dependability, and drive to do things right for his dependability, and drive to do things right for his customers.customers.

ResultResult

Building Trust:Building Trust:A New Day for SalespeopleA New Day for Salespeople

“ “ . . . we have to do it right the first time, every . . . we have to do it right the first time, every time to ensure the trust of our clients . . . until I time to ensure the trust of our clients . . . until I know what their dreams and goals are, I can’t know what their dreams and goals are, I can’t tell them what to buy . . . . and I won’t sell them tell them what to buy . . . . and I won’t sell them something they don’t need.”something they don’t need.”

Trust refers to the Trust refers to the degree to which degree to which one person can one person can rely on another rely on another when the former when the former is dependent on is dependent on the latter.the latter.

Why is Trust Important?Why is Trust Important?

A fundamental competitive strategy of a A fundamental competitive strategy of a growing number of organizations is to build growing number of organizations is to build long-term mutually beneficial relationships long-term mutually beneficial relationships with their customers. The ability of those with their customers. The ability of those organizations’ salespeople to earn their organizations’ salespeople to earn their customers’ trust is essential to the success customers’ trust is essential to the success of that strategy.of that strategy.

Trust Develops When the Salesperson is:Trust Develops When the Salesperson is:

Candid

Expert

Customer Oriented

Dependable

Compatible

TrustTrust

Trust Builder – ExpertiseTrust Builder – Expertise

Expert

The extent to which a salesperson The extent to which a salesperson possesses relevant knowledge and possesses relevant knowledge and capability.capability.

The salesperson knows what he/sheThe salesperson knows what he/she needs to know. The salesperson and needs to know. The salesperson and his/her company have the ability and his/her company have the ability andresources to get the job done right.resources to get the job done right.

Trust Builder – DependabilityTrust Builder – Dependability

Dependable

The extent to which a salesperson The extent to which a salesperson consistently and predictably follows consistently and predictably follows through on commitments he/she through on commitments he/she makes to others.makes to others.

Buyers can rely on the salesperson.Buyers can rely on the salesperson. The salesperson keeps his/her The salesperson keeps his/her promises.promises.

Trust Builder – CandorTrust Builder – Candor

Candid

The extent to which a salesperson is The extent to which a salesperson is honest and upfront with others, honest and upfront with others, especially with regard to issues/factors especially with regard to issues/factors that may impact those others.that may impact those others.

The salesperson is honest in his/herThe salesperson is honest in his/her spoken word. The salesperson’s spoken word. The salesperson’s presentation is fair and balanced.presentation is fair and balanced.

Trust Builder – Customer OrientationTrust Builder – Customer Orientation

Customer Oriented

The extent to which a salesperson The extent to which a salesperson values and protects the interests of values and protects the interests of his/her customers.his/her customers.

The salesperson truly cares about theThe salesperson truly cares about the partnership. The salesperson will go partnership. The salesperson will go to bat for the customer.to bat for the customer.

Trust Builder - CompatibilityTrust Builder - Compatibility

Compatible

The extent to which a salesperson’s The extent to which a salesperson’s behaviors, actions, and personality are behaviors, actions, and personality are consistent with and/or appreciated by consistent with and/or appreciated by his/her customers.his/her customers.

The buyer likes doing business withThe buyer likes doing business with the salesperson. The buyer likes the salesperson. The buyer likes doing business with the doing business with the salesperson’s company.salesperson’s company.

Knowledge BasesKnowledge Bases

• IndustryIndustry• CompanyCompany• ProductProduct• Price and PromotionPrice and Promotion• ServiceService• Market/CustomerMarket/Customer• CompetitorCompetitor• TechnologyTechnology

Industry KnowledgeIndustry Knowledge

In order to develop and executeIn order to develop and execute effective selling strategies, and to effective selling strategies, and to be viewed as a market information resource, be viewed as a market information resource, salespeople must understand the dynamics, salespeople must understand the dynamics, structure, culture, and forces that affect the structure, culture, and forces that affect the industry or industries in which they work.industry or industries in which they work.

Company KnowledgeCompany Knowledge

Salespeople must understandSalespeople must understand their company’s culture, mission, their company’s culture, mission, goals, policies, and procedures so that they goals, policies, and procedures so that they may effectively and accurately represent the may effectively and accurately represent the company when interacting (e.g., negotiating) company when interacting (e.g., negotiating) with its prospective and current customers.with its prospective and current customers.

Product KnowledgeProduct Knowledge

Salespeople must have aSalespeople must have a thorough understanding of their thorough understanding of their product offering(s) so that they are perceived product offering(s) so that they are perceived (by the customer) as experts and capable of (by the customer) as experts and capable of accurately matching those offerings to the accurately matching those offerings to the needs of the customer.needs of the customer.

Service KnowledgeService Knowledge

Closely tied to the market offer is theClosely tied to the market offer is the service and support an organization service and support an organization provides its customers. Salespeople must provides its customers. Salespeople must know their company’s service capabilities know their company’s service capabilities and then match those to the needs of their and then match those to the needs of their customers. customers.

Promotion and Price KnowledgePromotion and Price Knowledge

Salespeople must be capable ofSalespeople must be capable of administering promotional programs administering promotional programs and answering related questions in order to and answering related questions in order to facilitate their customers’ participation. In facilitate their customers’ participation. In addition, salespeople must understand the addition, salespeople must understand the pricing structure of their products so that they pricing structure of their products so that they may negotiate accordingly with the buyer. may negotiate accordingly with the buyer.

Market and Customer KnowledgeMarket and Customer Knowledge

Salespeople must possess knowledgeSalespeople must possess knowledge of the markets they serve in order of the markets they serve in orderto develop and implement effective selling to develop and implement effective selling strategies. In addition, salespeople must strategies. In addition, salespeople must understand their customers, including needs, understand their customers, including needs, personalities, and communication styles so that personalities, and communication styles so that may be able to create and clearly communicate may be able to create and clearly communicate relevant solutions. relevant solutions.

Competitor KnowledgeCompetitor Knowledge

Salespeople must posses knowledgeSalespeople must posses knowledge of their competitors so that they of their competitors so that they know how to position their products against know how to position their products against those of their competitors’.those of their competitors’.

Technology KnowledgeTechnology Knowledge

Salespeople must understand how toSalespeople must understand how to take advantage of technology (e.g., take advantage of technology (e.g., internet, computer, and telecommunications) internet, computer, and telecommunications) that may help them be more competitive. that may help them be more competitive.

EthicsEthics

Ethics refers to right and wrong conduct Ethics refers to right and wrong conduct of individuals and institutions of which of individuals and institutions of which they are a part.they are a part.

Clearly Clearly WrongWrong

Clearly Clearly RightRight

Ethical Ethical DilemmaDilemma

Image of SalespeopleImage of Salespeople

Areas of Unethical BehaviorAreas of Unethical Behavior

DeceiveDeceiveHustleHustleScamScam

ExaggerateExaggerateWithholdWithhold

BluffBluff

PushyPushyHard SellHard Sell

Fast TalkingFast TalkingHigh PressureHigh Pressure

ConConDefraudDefraud

Misuse Company AssetsMisuse Company Assets

Deceptive PracticesDeceptive Practices

Illegal ActivitiesIllegal Activities

Non-Customer-Oriented BehaviorNon-Customer-Oriented Behavior

Areas of Unethical BehaviorAreas of Unethical Behavior

ExaggerateExaggerateWithholdWithholdDeceiveDeceiveHustleHustleScamScamBluffBluff

Deceptive PracticesDeceptive PracticesMisuse CompanyMisuse Company

AssetsAssetsDefraudDefraud

ConCon

Illegal ActivitiesIllegal Activities

PushyPushyHard SellHard Sell

Fast TalkingFast TalkingHigh PressureHigh Pressure

Non-Customer-Oriented BehaviorNon-Customer-Oriented Behavior