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Relationship Selling Vs Transactional Selling Pt 1

Should one try to build a relationship with each and every one of their clients? Not a relationship that depends on being the best of friends, but one where the client and the salesperson get to know each other or finding common interests. 

One can argue that relationship selling is old school and that sales people can do just fine through a more transactional approach. The seller sets the price, the buyer accepts it and pays for the product or service and it's done. No "getting to know you" or "how are the kids?", just a straight up transaction.

This has been a topic of debate within the sales community in the last few years, so I thought I would take a look at the topic from a couple of different angles because I'm not really sure if there is a right or wrong answer. 

As I discuss in my book, my first sales job was with a door-to-door insurance company selling accident insurance in rural areas. We would go to someone's home, unannounced mind you, and try to sell them a policy. One of our managers called it "guerilla sales" because of the hit and run nature of it all. There weren't a lot of opportunities to build a relationship with the client because of our time constraints. We were told to give ten presentations a day, which was impossible unless you worked into the night. 

Building a rapport with someone consisted of small talk about family members in photos, like "Those are great looking kids. Are they your grandchildren?" Yes, it was horribly cheesy but it was the only option at the time. Walking around a stranger's home and pretending to be interested in their lives, families and activities was part of the job.

Years later, I was taught the mantra that people buy from people they know, like and trust. I personally don't think they have to know you at all. Most people can size you up in less than five seconds, which means they will decide if they like and/or trust you immediately. Asking superficial questions about grandchildren will not earn you trust, as it can make you come across as insincere. 

The obvious question at this point is whether or not the half-baked attempt at rapport building worked. In some cases it did, but those clients were, for the most part, elderly and alone. They were just happy to have someone to talk to, even if it was the salesperson trying to pry $30 from their wallets for a crappy policy. 

The opposite result was when I would try to make small talk with someone only to have them threaten me and tell me to leave. I learned that many people have guns. Such is life. 

On the other end of the spectrum is a completely emotionless transaction. The first example of this when you buy a burger at a fast food restaurant. You walk up to the counter and say something like, "I'd like a burger with fries and a drink." The cashier may ask if you would to "supersize" it or add a dessert. That's what they are trained to do - the upsell!

Notice, the burger clerk doesn't ask how you are. They really don't care to know if you are having a bad day or if your significant other left you or how work is going. They just want to know if you want that order "for here or to go".  Indifference to you and your situation is the key. 

And here are the dirty little facts that go along with that transaction. You knew what you were getting into when you walked in the door of that fast food joint. You would probably be put off if they even tried to make small talk because you really don't want a rapport with the cashier either. Everyone is on the same page when it comes to expectations. 

The interesting part is that you have been going there for years and will continue to eat there. The fast food place will continue to do great business and sales without having to be your friend or know your situation. In that case, transactional sales works great and will continue in such a manner. 

In the next post we'll take a look at another transactional atmosphere which is succeeding and growing each day. In the meantime, stay healthy!


Chris Castanes is a professional speaker who helps sales people succeed through workshops and humorous presentations. He's also the author of "You're Going To Be Great At This!", a humorous look at sales. For booking information, click here. He's also the president of Surf Financial Brokers selling life and disability insurance in several states.

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