The hype is everywhere: if you’re a salesperson or company without a blog, you’re totally out of today’s marketplace and are losing position to the competition hourly because unlike them, you’re not establishing your image as an expert; if you’re not active on Twitter, Facebook, MySpace, and/or Youtube, you may as well concede that you won’t be in sales 6 months from now; if your focus is anywhere besides online, you completely misunderstand 21st century buyers.
The message from so many is simple: we live in a 2.0 (going on 3.0) world, and anyone who doesn’t recognize that and realign their business to focus on the enormous and exponentially growing online business opportunities is a dinosaur and cannot possibly be successful in the future—and the future is defined as tomorrow, the next day at the latest.
Certainly this is a message that many businesses and salespeople want to hear. No more having to cold call. No more having to figure out where to advertise—yellow pages? Magazines? Newspapers? Nope. No more having to network through physical groups and events. Focus on social media and the virtual world and grow your business without having to invest a dime or spend hour after hour prospecting and hearing ‘no’ after ‘no.’ Finally, a free–and rejection free–way to sell and make more than you ever dreamed possible.
What a crock.
It’s also a message that a great many people have a very vested interest in spreading. Take a look at the incredible number of social media, internet marketing, and online business “gurus” and “coaches” trying to connect with folks on Twitter. It appears that everyone who’s ever signed up on Twitter and successfully created a tweet considers themselves to be social media experts, ready and willing to charge the next sucker a buck to teach them how to create a tweet also—and promise them instant millions without having to work.
Then there are the “futurists,” predicting how technology is going to change the world of selling, virtually destroying the sales profession while creating untold opportunities for companies to increase sales and profits. These are the same futurists who upon the invention of the telephone predicted that salespeople would never again meet face to face with prospects; and who upon the arrival of the fax machine predicted that mail was no longer necessary; who upon being introduced to email declared that surely this time business mail really was dead. Now, with the gazillions of social media options, they’re proclaiming that this time technology really is going to completely revolutionize the world of selling.
And, of course, there are thousands and thousands of companies joining the chorus of social media and internet hype who must sell their products and services to the businesses and salespeople who want to be in the vanguard of the new sales world order.
Before I go any further let me say that despite the above, this isn’t a polemic against the internet or social media. My Sales and Sales Management blog is entering its fifth year of publication; I am active on Twitter and Facebook; I participate on LinkedIn and Focus and many other social media sites. I believe there is much of value and much to be gained from these technologies and you should be involved with them just as I am—but I don’t believe that they’re decreasing the need for massive traditional offline marketing and sales activities. If anything, the hype surrounding social media has lured many competitors away from traditional prospecting and marketing, giving those who recognize the current limitations of social media a distinct advantage over those who have bought into social media as the ANSWER.
I’m also not by any means trying to say that all trainers, coaches or advocates of social media are hyperbolic in their views of the role of social media. There are many great trainers and coaches who understand social media’s place in the marketplace and do a superb job in guiding and directing sellers and business owners in how to use and gain value from them.
The Reality of the Internet and Social Media
That being said, there’s still far too much unfounded, wishful thinking about the power of social media. A recent post by Brian Carroll demonstrates the lack of business generated by social media—Brian was quoting Sergio Balegno, Director of Research for MECLABS, the parent company of InTouch of which Brian is President.
MECLABS surveyed 2,300 marketers and discovered that by the end of 2010 only 6% were generating enough business leads to track ROI. Only 25% of marketers even have clear objectives and practices for engaging social media.
Those surveyed were marketers of good size companies, not small businesses and individual sellers. Sergio’s conclusions are very different from mine. His conclusion is that 6% of companies realizing enough sales to track ROI with such a new medium is impressive. That conclusion is all well and good–for a company that can afford to assign someone to managing an aggressive social media campaign.
My conclusion is that only 6% of sizable companies producing measurable ROI with a marketing department behind their activities indicate that a small business or individual seller is so far behind the 8 ball with social media that investing significant amounts of time trying to create business through it is a monumental mistake.
Further, if only 25% of the marketing departments of companies using social media have developed clear objectives and practices of how to use it, how many small businesses and individual sellers who don’t have the time or research resources of a fully fledged marketing department have developed such? How many can spend the time and effort needed to develop such a plan and still maintain their sales volume, much less increase it?
In addition, Dave Stein of ES Research Group, Inc, the only independent source of intelligence and advice on sales training approaches, programs and the companies that provide them, forwarded to me the following graph that indicates that there is still a huge segment of society that relies little or not at all on the internet for information and decision making help.
Although this chart tracks only three items; how many in each age group go online for any reason; how many in each age group access a government website; and how many in each group access financial information, it does give us some idea of how many use the internet for non-government oriented research and information.
According to the above study 79% of the population above 12 years of age goes online, yet only 38% of the population above 18 uses it for financial research and information, which is one of the top research topics on the internet. This correlates well with a study by Ruder Finn Internet Index which found that 80% of all internet users go online to socialize but less than half that number uses the internet for shopping and/or research.
If we assume there are about 235 million Americans 18 or older and 79% go online but only 50% of them use the internet for shopping and research, there’s only 93 million adults online shopping and using it for research (39.5% of the total adult population). That means there are still 142 million Americans (60% of the adult population) not buying online or using the internet for research, i.e., 142 million Americans that you won’t be reaching online no matter what you do.
The question is simple: do you want the opportunity to reach 40% of your market (online), 60% of your market (offline), or 100% of your market (both segments)? If you concentrate on those who are online, you’ll be eliminating 60% of your potential market (these numbers do not include businesses which would add many more millions to each category).
Now, take 60% of your potential market away and then realize that only 6% of companies with a marketing department that has the resources to aggressively work social media have generated enough business from it to be able to track results. What are the realistic chances that social media is going to become a significant income stream producer for you or your small business?
I know, I hear the answers now—“I’m not online to sell, I’m looking to develop relationships; sales are secondary and hopefully will come someday.” Really? You’re spending two, three, four, five hours a day online to develop relationships with people or companies not to sell–but to maybe sell someday? What would a sales manager say if when she asked you how you spent your week you said something like, “Well, I spent about 10 hours this week on the phone calling and meeting with prospects and clients, and I spent 20 hours online trying to develop relationships.”
“I see,” your manager says, “what are your sales projections from spending so much time online?”
“Oh, you misunderstand,” you answer, “I’m really not trying to sell, I’m developing relationships with lots of folks that maybe in the future might someday be prospects. See, social media isn’t for selling, it’s for relationship development and to do it right I’ve got to spend a good deal of time interacting with them.”
“I’m sorry,” your manger responds, “I was under the impression your job was to sell. How did I get such a wrong impression?”
“I know,” you respond, “it’s hard for you to grasp the new sales paradigm. Things have changed, we now sell by not selling, we engage with people who might want to buy at some point in the future. With social media I can engage hundreds of these companies. One day, if I continue to spend half my time engaging this way I’ll be a big producer, I’m sure. You’ll see.”
“Uh, huh,” your manager stammers. “How much business have you gotten so far?”
“None, but don’t worry, it’s the wave of the future, everybody says so.”
“So is unemployment,” your manager responds, “it’s the wave of today.”
Sounds silly? Yes. Real? Yep, there are lots of sellers spending huge amounts of time engaging in social media when they should be selling. But, hey, social media’s easier and safer—and everybody’s doing it.
The Real Role of the Internet and Social Media in Sales and Marketing
What does this mean for sellers and small business owners? It doesn’t mean ignore social media. Not by any means. Social media can play a real role in your marketing—and it will become more important over time; just take a look at the percentage of each age group that is plugged into the internet. As you would expect, it gets bigger and bigger as the ages get younger, and, of course, those youngsters will become oldsters one day. Likewise look at their activities. Those in the 18 to 34 age group aren’t that far behind the older age groups in using the internet for financial research. As they age, more and more members of this age group will engage the internet for reasons other than socializing. By the time they reach the 65-73 age group, their financial research numbers could well be almost twice what that current age group’s numbers are.
But that’s a good ways away.
Unless you sell only to internet users—say you’re selling SEO services, website design, and such—your market is more offline than online (even if you only sell to net users you still have to spend a good deal of time selling offline—EBay and Esurance are good examples).
For most of us the internet is a viable marketing tool if used correctly. (For an interesting current discussion of using blogs to establish credibility and expert status, see Dave Brock’s post and the comments here.) Unfortunately, it can also be the ruination of us if we allow it to eat up too much of our time hoping for easy, faceless, no rejection sales. There’s really no magic bullet to get around the fact that selling success has, as Tibor Shanto of Renbor points out, “always come down to planning, discipline and execution.” Tibor goes on: in B2B sales “most buyers are not plugged in to the [internet] echo chamber to the degree 2.0 gurus would lead you to believe. Speak to most office supply sales people, speak to buyers in the transport trade, or a vast majority of buyer and sellers, and they are not in the 2.0 lane, some are not in any lane at all. Even many of the buyers who are ‘tuned in’ find themselves with information overload and contradictory input, as a result studies show that they still turn to direct interaction with trusted sales professionals.”
I think that in today’s world investing a few minutes a day in social media makes perfect sense and is a commitment almost every seller should make; making social media a major time and effort commitment doesn’t.
Where you invest your time—and how much you spend–is the real question. Most salespeople need to engage social media as a prospecting and marketing tool. More than that, they need to engage social media as a tool to develop and strengthen relationships with their prospects and clients who are tuned into technology. Linda Richardson of Richardson, one of the leading sales training companies, put it well:
“Selling is about relationships and competency. Sales 2.0 does not take the place of relationships, but it does give salespeople and customers a new platform for building relationships and increasing competency. Sales 2.0 is more than technology. The tools enable collaboration, better preparation, and create a more effective and efficient way to sell. 2.0 is about reaching and connecting with the right people, getting a lot smarter and engaging in more meaningful conversations. Of course not every company or buyer is leveraging 2.0 but by waiting on the sidelines sales organizations and salespeople are placing themselves at a serious disadvantage and risk. Sales 2.0 is transforming sales and opening up possibilities never before seen. It is a fast moving 2.0 Sales World and with the ever increasing number of tools there is a real need to help salespeople learn how to use them to reach their buyers.”
Where are buyers today? Certainly there’s a large contingent that engage the internet, yet most are there not to buy or to do research or inquire about products, services, needs, or wants, but to connect with their circle of friends—to socialize with their group.
That recognition means we have to consider just how much are we willing to invest in the 2.0 world when we are not going to be able to engage with the majority of our prospects. Can we connect with prospects? Can we even make an occasional sale? Yes. Is it going to produce the business that could be otherwise produced in strategic offline prospecting and engaging of prospects? Testimony and research to date seems to indicate the answer is a resounding no, not now. Are the hoped for relationships that will result in future sales worth spending large numbers of hours on social media sites? Not if your paycheck relies on sales. Unfortunately you can’t cash a relationship, no matter the future potential.
The internet and social media will continue to grow in importance. You need to have a presence and grow that as the influence of the technology grows. But if you want to be in business long enough to see significant business come from it, you have to be fully engaged in the business of selling—offline. That hasn’t changed and it won’t change for many, many years to come.
The Major Role of the internet and Social Media for Most Sellers Today
That doesn’t, however, finish the discussion of the role of the internet and social media for us sellers. Although the chart Dave sent me points out the limitations of social media and the internet for marketing, Dave emphasized the very real benefit of them for virtually every salesperson to significantly change and improve their prospecting research, for learning and sharpening sales and product knowledge, and for the fast and inexpensive (often free) opportunities for great training and skill development through blogs, article sites, webinars, forums and groups, and the other platforms available on the net.
Webinars offer unbelievable training and learning opportunities and should be a core resource for every company and seller. You can get guidance and training from some of the best trainers and thinkers in business and sales without having to leave your office; whereas in the past you couldn’t get their training unless you were lucky enough to have your company bring them in or you lived in or were willing to travel to a place where they were presenting a public seminar—if they gave public seminars. The internet has opened those opportunities to every seller in the world that has a computer and internet connection–and often at no cost. (Webinars are also one of the best resources for sales and customer service as the uses for selling, customer and internal training, and servicing customer needs is endless.)
LinkedIn groups and sites such as Focus offer sellers the opportunity to ask questions and get answers from some of the top sales minds in the world, as well as from other sellers. These forums and groups make it possible to get world class answers to virtually any question a seller could possibly have—free of charge.
For most of us the internet has opened tremendous new doors for researching our markets, for identifying quality prospects, for doing competitor research, for obtaining training and developing new skills. As Linda indicated above, it can help us create a more effective and better way to sell—both online and offline.
The 2.0 world does have a tremendous impact on how we sell. Its influence will continue to grow. Right now it can open doors to opportunities in training and research that can change the very basic nature of how we do things. The only thing it can’t do is help us reach that more than 60% of our market that doesn’t use the internet or social media outside of socializing with their group. For that—for the lion’s share of our market—we have to hit the street in the same manner we’ve always done. And that means it really isn’t quite a 2.0 sales world–yet.
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