Editor’s note: the following is a guest column by Robert B. Withers, president of Withers & Company in White Plains.
The recent resignation of Goldman Sachs banker Greg Smith begs the question ”“ who”™s listening?
Smith”™s resignation letter discusses the “culture-gone-bad” environment at Goldman Sachs. He cites, for example, his disillusion with current management and their obsession with profits. He bemoans the sales culture, which seems to foster an environment where salespeople are unable or unwilling to ask the proper questions of their customers.
The thought that so much money is changing hands without a proper customer needs-assessment is discouraging at best. But, this type of business mentality continues everyday on Wall Street, and also on Main Street. Billions of dollars are risked every day on investments sold by ‘salesmen’ who do not take the time to truly understand their clients”™ real needs or ”“ what is referred to as ”“ their “actual risk aversion tolerance.” That”™s if, as Smith asserts, they were even provided with any real truth about the investment”™s risk at all.
It happens every day, across industries, within the public and private sectors, with products and services involving millions, if not billions, of dollars. “Salespeople” are often not trained to ask questions first, or to dig deeper into the client’s goals and objectives in the original sales encounter. Instead they often spew out features, before any meaningful conversation or true “listening” has occurred. There is little fact-finding on the salesperson’s part, maybe only a question or two before launching into a sales pitch.
I am all for great sales results, profits and capitalism, after all, I consult in sales and marketing to the financial services industry! What I”™m against is selling someone something for the sake of the sale where the only objective is profit for the company, not servicing of the client. Now for those of you who are “seasoned sales professionals,” you”™re probably thinking, “Is this guy joking? Tell that to my management!”
But think about it. If more time was spent asking questions about the client’s needs, their objectives, what they were trying to accomplish, even across several different areas, and a real understanding of their responses took place, the end result could be a bigger or better sale resulting in a greater dividend to the company AND to the client. But let’s say after listening, the result was a good solution for them and NOT as much money for you or perhaps not a sale right then and there. Is that a loss, really? Or have you earned the client’s trust?
Anyone who believes that doing business for the sake of the sale and not for the sake of the customer is “good ” business is sadly mistaken. In today’s financial services environment, the customer is suspicious and more demanding and has little tolerance for gimmicks or sales pitches. And good or bad, I predict that environment will be with us for a while. Therefore incorporating a comprehensive needs-assessment process into sales training and ultimately, the sales process is a strategy for success, and will earn customers for life.
I applaud Mr. Smith for taking the stand he did; it won”™t be easy on him on the Street. I must say though, if more professionals took this position of moving against the status quo and approached their business with this type of fearless integrity, what we encountered in 2008-2009, the trillions in lost equity, money, homes and the damage to lives and livelihoods might have been averted or at the very least, limited in its scope.
Robert Withers is president of Withers & Company in White Plains. He has been in the financial services industry in Westchester County for more than 25 years and now provides sales training to companies in that sector. He can be reached at rwithers@withersco.com.
