Dr Sandeep Bhardwaj
The dead bodies keep on mounting. It started with the Secretary, she was the first to be killed. Then came the Postman and the Travel Agent, they too was murdered mercilessly. After this there were an avalanche of professions who were found dead in cold blood. The serial killer in each case was same - Technology. It is Gigantic, Omnipotent and Ruthless. It is coming over for you, me and everybody!
We always thought there was this one guy, ‘The Salesman’, who will fight till the very end and come up as a winner. After all, he was our only connect to the customer. He could turn your inventory into cash and bring back valuable feedback about the competition and the customer. He was the guy who brought home the bread and butter. But the target of Technology for some time now has been this poor soul with the intent to wipe him off too.
Sales as the customer connect
Sales has always been one of the most valuable area in an organization since it has always satisfied customer’s needs and wants with the products and services of the organization. That, being the reason for the very existence of an organization. The Sales Story started way back with the industrial revolution when people started producing goods in bulk to be sold to people, who they did not know. Thus was born the Salesman. Sales evolved into a much complex system where the Salesperson carried out the selling function either In-house or being a travelling salesperson. The In-house sales person made sales calls from his office or home and consequently booked sales or further in-person appointment. The travelling salesperson would hop from one door to another in search of an order. As businesses grew they too had their own needs to purchase things. The Sales function then got classified into Consumer sales and Industrial sales or the modern day nomenclature of B2B and B2C. Not only do sales people sell products to existing customers, they also expand the customer base by continuously looking for newer prospects. A good salesman knows the value of an existing customer, hence makes all out efforts to retain him. Thus the Enterprise was totally dependent upon the Sales department only for their business growth.
Advent of the Information Age
The Post Industrial age gave way to a society which was completely dependent on information technology. The speed and storage capacity kept on increasing and the cost kept on decreasing. Computers became household essentials and the digital revolution in the form of internet brought all possible information at the click of a button (eventually, the button too gave way to the smart screen!). The democratization of Information changed the way society functioned and the businesses operated. People became self-dependent for their Information, Communication and Entertainment needs. One Google search can throw up millions of matches in a matter of seconds. Today, one can instantly communicate with a person sitting on the other side of the globe at practically ‘free of cost’. Entertainment has shifted from physical spaces to inside the pocket on the ubiquitous smart phone. Add to that, the total madness of the Social Media and we find ourselves in a world that no one had imagined just thirty years ago
Changes in consumer behavior
Earlier, the biggest weapon in the hands of the Salesperson was information. The customer was mostly clueless about the features of the product, the competing brands, the emerging new technology, other user’s feedback or even the fair price of the product. Recollect how you bought your first color television set. Your entire buying decision was dependent on what the sales person at the small ‘electronics store’ told you. Today, the consumer’s buying decision begins with an internet search. Comparative features with other brands are checked online using various websites. The referral groups influencing the decision are his friends on the social media. Finally, the order is placed online on a common portal or the company’s website. So, where is the Salesperson in all this?
The enterprise too is closely connected with the buyer. With digital marketing, companies can track consumers through all stages of decision making. It knows exactly the profile of its customer. It can easily target that profile using buyer’s digital footprint using information provided by the Social Media companies themselves. The enterprise can create customized promotion campaign for the individual customer. It can use anonymous accounts on Social Media to push their agenda on neutral sites. Companies can now increase their reach and frequency at a fraction of the cost of traditional media. “According to Measuring Success, over 80% of consumers use the web to research products and services.” Once again, where is the Salesperson in all this?
Well, the Salesperson is out there banging his head on the wall, wondering why his targets are not being met. Amazon has beaten Walmart in retail sales and in terms of market valuation, Amazon is 2.5 times worth more than Walmart. Does one need more proof of the fact that technology is breathing down the throat of the salesperson. And, this is just the beginning of the frenzied changes we see around us. When technologies like Artificial Intelligence, Machine Learning, Chatbots etc. hit in full swing, the face of customer interaction will change forever. Will the Salesman survive? Do we still need the indispensable human interaction?
Future of Sales
Larry Myller in his article in forbes.com “Is Your Offering Simple And Cheap, Complex And Expensive, Or Somewhere In Between?” classifies product offerings on the basis of:
- Complexity of Purchase / Adoption process and
- Price Point
Simple and Cheap
Salespersons dealing in this category of products will be hit the most by technology. These products even today are being sold massively on e-commerce platform. A customer does not think twice about ordering products which are easy to purchase and cheap. The whole business model of Amazon was built on the foundation of selling books online. E-Commerce has very easily replaced products in this quadrant.
Complex and Cheap
For products that have a complex purchase process and are cheap, the investment on salesperson is not worth it since margins are really not great and sales cycles are long. Companies would not be dependent on salespersons but force the customers to use the product as free samples or call for a demo. Lenskart uses ‘3D Try On’ on their website itself for a demonstration of their eyewear products. For products in this category, the role of Salesperson will be limited to providing product knowledge or giving demos.
Simple and Expensive
In this quadrant, the adoption process being simple and the products being expensive, the requirement for salesperson is highly experienced but very few in number. The products in this category like jewelry or collectors’ items like watches or paintings are not made in bulk. There is a need for Salesperson but a highly specialized one.
Complex and Expensive
Technology is introducing newer products that are highly complex and expensive to buy. Products like Home Automation systems need to be sold by a professional sales force. They have to be technically qualified in that field so as to make the right pitch to the customers. Many products in this category are sold to B2B customers. This is one quadrant where there will always be need for expert salespersons building long term relationships and sustaining large cycle times. This quadrant will always need Salespersons, not in large numbers but with expert qualifications.
The Last Word
So, what does the future portend? The signs are ominous and the long shadow of technology is looming large. Consumers and Corporates are making the best of the new avenues available while the need for the salesperson is drastically decreasing. Is this curtains for them, then? Well, the answer is “Yes” to a large extent though it is not a complete wipe out. Salesperson’s can upgrade themselves to sell complex and expensive products for whom there will always be shortage. Another way for Salespersons to find a niche for themselves is to use technology itself instead of fighting it – “if you can’t beat them – join them”. They can use the same analytics to arrive at customer profiles and approach them with customized solutions. They will end up doing a much better job than a data analyst to complete the sale.
In the end, Technology is out there to kill the Salesman and most will perish. Only few who adapt to the changed world will survive.
