2 Evolution of Selling Models That Complement the Marketing Concept

A photo shows an agent in a discussion with a man in the office. — Source: Michael Ahearne

Learning Objectives

When you finish reading this chapter, you should be able to

2.1 Discuss the evolution of personal selling models as an extension of the marketing concept
2.2 Describe the evolution of consultative selling from the marketing era to the present
2.3 Define strategic selling and name the four broad strategic areas in the Strategic/Consultative–Selling Model
2.4 Describe the evolution of partnering and the nature of strategic account management
2.5 Explain how value-added selling strategies enhance personal selling

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Reality Selling Video—Ryan Guillory/Independent Consultant (TWFG)

Ryan Guillory, 33, a native of Houston, Texas, is a highly successful owner/agent of an independent insurance agency and branch owner of The Woodlands Financial Group (TWFG) (www.twfg.com), a privately held national firm that describes itself as a team of “caring, conscientious people” working through more than 300 TWFG retail branches and 3,000 independent agents in 38 states across the United States.

As an owner/agent of an Independent insurance agency founded in 2014, Guillory writes (sells) more than one insurance carrier. He represents about 75 different personal and commercial lines insurance carriers, allowing him to partner with his clients and sell many products that may not be directly associated with the main products he focuses on, that include home, auto, life, and commercial insurance. The partnering ability to meet additional customer needs regarding insurance protections is referred to as cross-selling.

Guillory’s business philosophy is to get his customers the very best coverage available at the best rate available. His unique customer insight into relationship-selling is that, even though he may not always have the lowest price, going over the quote and policies with customers in detail has its advantages. Through this consultative-selling approach Guillory spends considerably more time discussing a client’s insurance needs with them than his competitors might. He believes this helps the customer feel more comfortable buying the policies that he recommends.

Guillory’s strategy to beat competition is to keep a tab on market information on captive agents (an agent who can only sell one carrier such as State Farm or Liberty Mutual) and companies that do not have agents and sell directly to the customer such as Geico or Esurance. He mainly markets to home owners while cross-selling the auto policy—the idea being that while almost every home owner has an automobile that will need insurance, every customer who has an automobile does not have a home as they may rent or live with parents

The first conversation with the customer is for gathering strategic information, mostly on the customer’s property. Questions on personal details, past claims, acquaintances, experiences and primary concerns follow soon after.

Product presentation is always in person so that the client and Guillory review the quote together. Quotes are emailed before meetings that normally start by prodding the customer to ask questions to start the conversation. Thereafter, both sides go over the quote thoroughly focusing on exactly what the policy covers. To get additional information, Guillory peppers the meeting with open-ended questions. If the customer does not have any further questions, Guillory likes to say, “I can get this started as early as tonight for you.” If the customer wants to think about the offer, he likes to get a commitment on the day he can come back. As Guillory puts it, the goal is always to get a commitment which will lead to the sell.

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Table of Contents for
2 Evolution of Selling Models That Complement the Marketing Concept