Assignment:
Read the Reality Selling Case Study
Job seekers who visit websites like www.monster.com are usually surprised to discover that sales careers represent one of the largest job-posting categories. The next big surprise comes when they discover the great variety of companies that hire salespeople. Alex Homer (pictured above) is a professional clothier for the Tom James Company (www.tomjames.com), one of the world's largest manufacturers and retailers of custom-made, luxury clothing. Each Tom James client purchases directly from one of the company's well-trained professional clothiers who provide clients with wardrobe consultation on a variety of fashion topics such as wardrobe coordination, current trends, proper fit, pattern and cloth selection, necessary collection pieces, and attire for specific occasions. Tom James clothiers like Alex always come to their clients, because appointments are conducted at the client's location of choice.
Alex Homer discovered the Tom James Company in 2007, after he placed second in the National Collegiate Sales Competition as a student representing the University of Central Florida. Tom James took interest in Alex, and Alex decided to learn more about Tom James by participating in ride-alongs with their existing sales representatives. He liked it and decided to accept the job offer. Before starting to actually call on customers, Alex received training in selling, product knowledge, and prospecting. Regarding career development, Tom James offers new hires the necessary training to build a successful selling career regardless of their level of past experience. They also offer opportunities for net worth building, such as profit sharing, 401(k), and stock plans. In 2009, 30 percent of Tom James sales professionals earned $100,000 or more in commissions, leadership pay, bonuses, and stock dividends.
Alex Homer, featured at the beginning of this chapter, works as a professional clothier for the Tom James Company (www.tomjames.com). Alex sells a comprehensive collection of high-quality attire: formal (black tie/tuxedo), business (suits), business casual (sport coats, slacks, etc.), and weekend (jeans, sport shirts, shorts, khakis, etc.). His clients are typically gentlemen and ladies who do not have time to go to the store, dislike the idea of store shopping, or have fit characteristics that present challenges for purchasing clothing "off-the-peg."
For Alex, it is important to call on existing customers as well as prospects and to be aware of the different approaches used in each type of sales call. Typically, prior to visiting with an existing customer, he puts together clothing ideas for the season that make sense for the client based on how she/he dresses and how much her/his closet is lacking in a particular area (e.g., shirts or slacks). For new prospects, Alex contacts them by telephone. Realizing that cold-calling is an antiquated way of building a long-standing and fruitful sales career, the Tom James Company emphasizes the importance of referrals to build a business. Referrals tend to be easier to contact by phone and they typically purchase more in person, due to the strength of the referrer's name. All in all, referrals remove many obstacles to turning a person who is completely unaware of one's business into a client.
According to Alex, the biggest challenge in his business is getting in front of people. This challenge stems from many possible sources: lack of time for the prospect, perceived price/value imbalance, lack of experience in in-office clothing shopping, and being perceived as a "suit" company rather than an all-inclusive clothing provider.
Especially for repeat clients, who represent 80 percent of the company's annual business, Alex Homer describes solid call preparation as key for successful selling. If the salesperson is unprepared and shows up in the client's office with bag-in-hand and a "what-are-you-buying-today?" attitude, clients can sense this and become frustrated. They understand that professional clothiers provide a service and expect them to be prepared as a partner/problem solver regarding their wardrobes. As Alex puts it, "Stores provide clothing. Tom James provides a service."
When it comes to understanding the needs of a prospect, Alex follows a certain sales process: He first asks his clients what is most important to them when they go clothing shopping. For most of his clients, it is one of four things: price, quality, fit, and trend-sensitivity. Based on that, he determines what clothing the clients wear during the vital parts of their business (client meetings, board meetings, trial, close-the-sale presentations, speaking engagements, etc.). Then he asks how they would evaluate their closet (excellent, good, fair, or poor). Finally, if applicable, he finds out what it would take to make a slight improvement in their closet. (See the chapter opener on page 4 and Reality Selling Today Role-Play 1 in Appendix 1 for more information.)
You will be an independent insurance broker for Liberty International Underwriters (see website at www.libertyiu.com), working out of the same office as Marcus Smith, featured in the Chapter 2 Reality Selling Today Video. Liberty International Underwriters is a division of Liberty Mutual Group, a company that operates in both personal and commercial insurance markets. Liberty Mutual's personal insurance products include auto, home, life, and personal liability. In addition, it also offers a wide range of products and services for business. Property insurance, including ocean cargo insurance, represents one of its important lines of business. Liberty International Underwriters was formed in 1999 as a global specialty business with an emphasis on niche insurance products distributed through the independent broker network. (Refer to the Chapter 2 opening vignette and case problem, and review the Reality Selling Today Video for more information.)
Address question 2-16
Value-added selling is defined as a series of creative improvements in the sales process that enhance the customer's experience. Describe the various ways that Marcus Smith can create value for his customers.
Reference:
Manning, Gerald L., Michael Ahearne, Barry Reece. Selling Today: Partnering to Create Value, 13th Edition. Pearson Learning Solutions, 01/2014. VitalBook file.