Selling to the Affluent

Citation

Feldman Barr, T. (1999), "Selling to the Affluent", Journal of Consumer Marketing, Vol. 16 No. 6, pp. 616-628. https://doi.org/10.1108/jcm.1999.16.6.616.2

If you have ever spent any time in sales, you know that identifying the best prospects is the real key to being successful. In his series of three books, Dr Stanley Thomas introduces us to his methods of marketing to, selling to, and networking with the affluent in the USA. A well‐known expert on the affluent, Dr Stanley has also written the New York Times bestseller, The Millionaire Next Door, and has been interviewed dozens of times on the subject since his initial study was completed in 1973.

Although geared toward the seller of financial services to the affluent market, these books identify and elaborate on principles that are applicable to almost any selling situation and any target market. Dr Stanley gives examples of the “Extraordinary Sales Professional” – William D. Caller, Holly Boyett, Roger Thomas, and many others. He outlines the characteristics that both his anecdotal and empirical evidence suggest are critical to becoming an “ESP”. Stanley maintains that these essential characteristics are:

1. 1.

   (1) courage to overcome fear of rejection and ask for the business;

2. 2.

   (2) extensive knowledge of a small number of products and a narrow market;

3. 3.

   (3) development of and experience with proactive marketing techniques;

4. 4.

   (4) ability to discover and effectively utilize a wide variety of sources of information;

5. 5.

   (5) a “big league orientation” including how to identify the affluent; and

6. 6.

   (6) recognized expertise by others in your field.

Marketing to the Affluent elaborates on each of these in seven chapters, outlined below. Additionally, four appendices provide information on how affluent consumers respond to mail surveys, the financial lifestyles of American millionaires, targeting using geodemographics, and marketing specific investments.

Courage

A main distinction of the ESP is one’s ability to overcome fear of rejection. Anyone who has ever been in sales knows what rejection feels like. Good sales reps learn to live with it. ESPs overcome the fear, often turning every encounter into a game, trying new techniques, but ultimately, always maintaining the willingness to knock on the next door. The ESP develops courage to always ask for the business.

Knowledge

ESPs become very adept at nicheing themselves. They develop extensive knowledge of a small set of products or services and a narrow market. They do not try to sell everything to everyone. One such market that Stanley suggests (for professional selling financial services) is retiring business owners, who will have an immediate influx of cash and will be looking for ways to invest to provide for their futures.

Development of techniques

In order to be successful, the ESP must develop or become experienced in techniques that allow them to be proactive in marketing to their targets. Examples of some of the creative techniques that ESPs have developed include taking the role of the “underdog”, starting a “Breakfast Club” of noncompeting sales professionals to talk about marketing to the affluent, and becoming a mate on a sailing yacht to network with an affluent target. These and more are discussed to give the up‐and‐coming ESP ideas of how to be proactive to the market. Selling to the Affluent further provides a vast array of potential selling strategies.

Sources of information

One’s ability to discover and effectively utilize a wide variety of sources of information – many creative – is critical to becoming an ESP. “Most successful marketers are strategic readers who consume and digest information about the factors that influence their target markets...To be an effective marketer to the affluent, you must separate yourself from the pack. Read what others do not read. Read what will give you strategic advantage” (p. 102). Stanley’s recommendation to one former student was to read the classified ads in the back of the newspaper. “Be especially sensitive to those sections where information is given about large sums of money that will be in transition. Auction notices are only one of dozens of important sections carried in the classified....Sell to sellers, not to buyers!” (p. 103).

Big league orientation

One of the biggest problems, according to Stanley, is identifying who the affluent consumers really are. Many sales professionals are fooled by who “looks” affluent – those who live in big, expensive homes in exclusive neighborhoods and drive luxury or high‐performance sports cars – are often unable to buy anything because they are cash poor. Stanley calls them the pseudo‐affluent. Instead, Stanley suggests that there are many “pockets” of very wealthy individuals who do not have the outward “entrapments” of wealth. Finding these pockets is essential to becoming an ESP. Stanley suggests identifying individuals with privately held businesses, or sole proprietorships, or other sales professionals. Identifying the truly affluent and then finding out where they conduct business (trade shows, professional conferences, etc.) are major steps toward becoming a successful ESP. Once found, it is important to clearly communicate with the affluent, by carefully allocating marketing resources, only to those who are or have the real potential of being affluent.

Expertise

The successful ESP works to become recognized as an expert in his/her sales area. The ultimate goal is to “develop an image that causes affluent prospects to call” (p. 202), for doing so provides “a psychological barrier to protect your market” (p. 203), especially when selling services. Building/gaining credibility is also a key to successful selling in the affluent market. Your credibility as a sales professional is evaluated based upon, in part, the source of the information. Aligning oneself with other credible professionals is one way to gain credibility and ultimately the business of the affluent. Stanley provides several methods to build expertise and gain credibility, including hiring your own public relations professional to help you capitalize on potential opportunities for enhancing one’s image. Networking with the Affluent elaborates on various methods to build one’s image of expertise.

All three books are easy to read, entertaining, chock full of ideas that are adaptable to anyone in a sales position. And while they are not textbooks, they also provide some great examples for those teaching personal selling and sales management. Every sales professional could benefit from taking a look at this series.