History of the Sales Funnel

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A history of the modern Sales Funnel * *abridged By Brian Reynolds The 1950’s Dawn of the TV Era 1800’s - 1950 “Snake Oil, Carpetbaggers & the General Store” Characterized by its intimacy and isolation, in this period it’s rare to buy anything from someone you wouldn’t see in church on Sunday. In those cases where an outsider emerges with the promise of “something new” there’s no way to find them once they’re gone. One Salesman One Customer “Marketing” as we know it doesn't exist because there’s no reliable way to reach a mass market. Sales are limited to the reach of your voice and because customers are rare they are all pressed with an equal lack of mercy. America sees the birth of a broad middle class, the capacity of media to reach every home in the country and the beginning of the modern consumer age. Bolstered by the twin forces of Madison Avenue “Ad Men” and a completely opaque market, salesmen assume you need what they have and build a clumsy process to extract as much money from you as possible. Suddenly their audience is huge and tequniques designed for 20%-Qualify 40% - Close, close, CLOSE! 30% - The Show Visit any disreputable used car lot and you’ll see the last practitioners of this craft. Heavy handed and reliant on the salesman’s informational edge this “Funnel” relies on media to grab the unfiltered masses, a cursory introduction and financial assessment before the press of product and CLOSE begin. 10% - Building Rapport The 70’s, 80’s & 90’s I’m not a ‘Salesman’, I’m a ‘Consultant’. By now everyone hates the word “Salesman”. It defines someone who tries to get you to buy things you don’t want for prices you can’t afford without bothering to ask you if you need them. Guru’s like Zig Presenting - 20% 40% - Build Trust 30% - Assess Needs Confirming/Closing - 10% Direct Mail Your Address Anywhere, State, USA Hello? Ziglar, Tom Hopkins & Brian Tracy work to transform the very structure of sales to make it a more reputable profession. Meanwhile direct mail, A Simple Conflict By this time professional salespeople preach the gospel of ‘Trust’, ‘Rapport’ & ‘Common Ground’ but there’s still a deep inequality at the negotiating table. It remains a challenge for customers to get clarity on what the fair price is for goods & services. Some companies convince themselves that anyone can be successful with enough training only to find out that not everyone can be “trained” to build trust. small numbers of prospects fail utterly to distinguish between the sudden glut of prospects, good and bad. Sadly, it doesn’t matter. Television streams limitless buyers to the troth & the blunt hammer of old methods focuses on forcing everyone to buy. Get Attention HereThen 1-800 numbers, telemarketing and multi-level systems make huge strides forward. A level of refinement is arriving and smart businesses construct methods for customers to self-select and push themselves further down a funnel for the first time. So what’s the story now?

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Ever wonder how salesmen got such a bad reputation? Why the worst of them seem to only want to sell things you don't need at prices you can't afford? Why modern, professional salespeople are so good at understanding their customers and making a purchase effortless? The answer has a lot to do with how the sales process has developed over the last hundred years. Take a look.

Transcript of History of the Sales Funnel

Page 1: History of the Sales Funnel

A history of the modernSales

Funnel**abridged

By Brian Reynolds

The 1950’s Dawn of the TV Era

1800’s - 1950 “Snake Oil,

Carpetbaggers & the General Store”

Characterized by its intimacy and isolation, in this period it’s rare to buy anything from someone

you wouldn’t see in church on Sunday. In those cases where an outsider emerges

with the promise of “something new” there’s no way to find them once

they’re gone.

One Salesman

One Customer

“Marketing” as we know it

doesn't exist because there’s

no reliable way to reach

a mass

market. Sales are limited to

the reach of your voice and

because customers are rare

they are all pressed with an

equal lack of mercy.

America sees the birth of a broad middle class, the

capacity of media to reach every home in the country and the beginning of the modern consumer age.

!Bolstered by the twin forces

of Madison Avenue “Ad Men” and a completely

opaque market, salesmen assume you need what they

have and build a clumsy process to extract as much

money from you as possible. Suddenly their

audience is huge and tequniques designed for

20%-Qualify

40% - Close, close, CLOSE!

30% - The Show

Visit any disreputable used car lot and you’ll see the last practitioners of this craft. Heavy handed and reliant on the salesman’s informational edge this “Funnel” relies on media to grab the unfiltered masses, a cursory introduction and financial assessment before the press of product and CLOSE

begin.

10% - Building Rapport

The 70’s, 80’s & 90’s I’m not a ‘Salesman’, I’m a

‘Consultant’.By now everyone hates the

word “Salesman”. It defines someone who tries

to get you to buy things you don’t want for prices you can’t afford without

bothering to ask you if you need them. Guru’s like Zig

Presenting - 20%

40% - Build Trust

30% - Assess Needs

Confirming/Closing - 10%

Direct Mail Your Address

Anywhere, State, USA

Hello?

Ziglar, Tom Hopkins & Brian Tracy work to transform the very structure of

sales to make it a more reputable profession. Meanwhile direct mail,

A Simple Conflict By this time professional salespeople preach the gospel of ‘Trust’, ‘Rapport’ & ‘Common Ground’ but there’s still a

deep inequality at the negotiating table. It remains a challenge for customers to get clarity on what the fair price is for goods & services. Some companies convince themselves that anyone can be successful with enough training only to find out that not everyone can be “trained” to build trust.

small numbers of prospects fail utterly to distinguish between the sudden glut of prospects, good and bad. Sadly, it doesn’t matter.

Television streams limitless buyers to the troth & the blunt hammer of old methods focuses on forcing everyone to buy.

Get Attention HereThen

1-800 numbers, telemarketing and multi-level systems make huge strides forward. A level of refinement is arriving and

smart businesses construct methods for customers to self-select and push themselves further down a funnel for the first time.

So what’s the story now?

Page 2: History of the Sales Funnel

Consumers Win! Why today’s businesses are

scrambling to prove they care.

Consumers have become comfortable

going around salespeople. They shop

for products in stores only to buy them

cheaper online. For the first time buyers don’t have to take

anyone at their word because competitive shopping for almost every product and service is available at the click of a mouse. Social media speeds this along. No company can hide from a

bad review, no salesman can assume the customer is uneducated and no single channel can deliver mass eyeballs.

Soo…

…many……channels.

And it’s

WAY BETTER like this!

Why?

TAKE A LOOK:FOR CUSTOMERS

FOR MARKETERS

FOR SALESPEOPLE

FOR BUSINESSES

Pressure Evaporates

!

Consumers have never had so

many choices and better

still

they can research onlin

e to

weed out companies and

services that aren’t

meaningfully unique so that

they can build comfort with a

company in advance of talki

ng

to anyone who works there.

Trust Becomes Assumed !

It used to be that the majority of a salesperson’s energy went into building the relationship or twisting arms. The relationship is still the most important thing, but now Prospects are self selecting not just because of the product, but because they have learned about the company’s culture, gotten word of mouth all in advance and validated their view of the salesman as a thought leader all in ADVANCE of the first phone call. There’s still a lot of work to be done, but the floor has been raised.

The only eyeballs are Qualified Eyeballs !

For decades advertising was about the mass market but unfortunately that meant that the

majority of people that saw your ad were people who couldn’t use your product. Businesses

were paying to get in front of the wrong people. Modern content marketing has changed that. It may be true that it takes more Time & Work to attract a customer, but it's never been CHEAPER to get in front of them and customers have never been so willing to engage back. Wise businesses

know their customers better than the customers know themselves and can speak to niche needs that build tremendous credibility without in a way that’s dirt cheap and sticks

around far longer than a 30-second spot.

Everyone, Everywhere can hear you… for free. !

There will always be a place for super-bowl ads but the way to a customer's heart is in targeted, highly tailored content. A blog post detailing a workout plan is better at building trust in high end running shoes than an ad in sports illustrated. Search engines and social media will do all the work for you if you understand your customers well enough and speak to their needs. The best part is that good marketing will last forever. You don't have to pay to play the ad over and over. Instead good content marks you as a thoughtful, trusted partner and it builds on itself year after year.

About the Author

Brian Reynolds is an entrepreneur and corporate consultant. He specializes in advising companies on how they can beat their competition in getting to the future.

!An Innovation Engineering Black Belt, his time is spent

helping companies grow in highly profitable ways.Additionally, he speaks and lectures publicly on the impacts climate change

will have on the business community and how individual companies can turn the climate crisis into a business opportunity.

For more from Mr. Reynolds including contacting him for :

www.Linked.com/IN/BrianReynoldsofNJ Twitter @BrianofNJ

www.Facebook.com/BrianofNJ