Sales force management strategies and practices

Internet Replacing Salespeople

Internet

Will the Internet replace the need for salespeople? In what situations is the Internet most likely to replace salespeople? What characteristics of a situation would make the Internet least likely to replace salespeople?

The allure of being able to significantly drop the cost of selling makes many companies look to gradually replace their salesforces with online selling applications including guided selling, catalogs, and online product and service configurators. While the Internet will never completely replace the need for salespeople, there are categories of products that fit best with the automated selling methods that online channels provide. Typically those products that are commodities and that customers buy purely based on price and availability are best sold online, as customers realize what the benefits of the product are and no sales consultation is required.

In fact research completed (Columbus 2002) shows that in general guided selling techniques work best for those commodity-like products that have inventory turns already, while face-to-face selling is best relied on for selling more complex, and therefore higher margin products or services. The correlation of the product or services' profitability to the amount of time a salesperson spends with the prospect or customer is supported by the research completed (Columbus 2002) showing that closed sales rates are higher on higher margin products when personal selling is relied on. Another aspect of this is that for the more complex the product or service being sold, especially in a business-to-business (B2B) environment, the greater the need for a solution selling strategy. Underscoring these differences is the need however to either have post-sales automated serve that anticipates and quickly responds to customers' needs, or having a personal contact to assist with any specific problems or concerns. The bottom line is that the Internet will never completely replace salespeople because in the end, buying is more about trust than it is about a transaction. Customers will buy online when they trust both the website and the brand of product being sold; they will not however merely buy on price alone. Relationships, trust, credibility and transparency are critical at the high end of any market for a product or service, and that cannot be duplicated online, hence the need for a salesperson to create, maintain and grow partnerships with customers.