We were puzzled. What did the guys in pin-stripes know that non-bankers had not yet figured out? It was very simple – wealthy people deal with consultants in their professional lives. They don't want to deal with a one-trick pony in their personal financial lives. They understand consulting and they need that kind of quality communication from the professionals they deal with. Think of it like this, if you can't operate as a consultant, you become a blue-collar worker in their eyes. No offense to the people with blue collars, but you wouldn't hire one to handle your life savings.

That by itself should put a fright into you. You know this – transactional selling is all about selling the product. Consultative selling is all about the relationship. Anyone can sell a product. A product salesperson brings little value and is easily duplicated or replaced.

The point is – if you have not taken the time and effort to learn the specific skills for building relationships, you cannot effectively build a relationship. As soon as you start trying to build rapport and capture psychological language, you'll show that you're a duck out of water. Here's an analogy – skiing is just sliding down hill, but if you don't have the specific skills, you don't slide, you fall.

Evidence 2:

In recent weeks, my firm was secretly contacted by one of the largest life insurance and annuity carriers in North America. My partner and I brainstormed with them for three hours on how to teach their wholesalers to use a consultative selling approach and then spread it across their entire field force. Their main concerns: cost, time efficiencies and learning to distinguish themselves in a very crowded marketplace.

Perhaps wholesalers have the most difficult road to hoe in the entire industry. It's tradition – the focus is product. The conversation is product. Wholesalers try to distinguish themselves by highlighting the product features. In an age of parity, that's simple insanity. But what are the results? They're terrible. The producers listening to all that product talk suffer from product information overload. They can't distinguish one product from another. But, they easily distinguish wholesalers from each other. The ones who communicate best are the ones remembered. And, the ones remembered get the business.

Evidence 3:

In recent months, we began getting calls from annuity marketing organizations. They wanted us to teach their producers how to use psychology in their seminars and sales presentations. As we began to conduct these training programs, we realized that within ten minutes we could tell who would succeed with it and who would fail.

Observation #2 – a strategy for failure!

As you would imagine, because of my interview show and the columns I write, we conduct a lot of coaching. In all of these relationships, the question of target market always comes up. What target market will resonate most to consultative conversations? Seniors. But which ones? In our research, we identified three separate senior target market segments. It is the differences between them that pose major threats to your business.

Most annuity marketers have focused intensely in the WWII generation for a long time. Their long-range strategy has been to eventually start selling to boomers. And, to make sales, they'll simply apply the same left-brain, logical approach they use with WWII seniors. Surprise – that's a strategy for embarrassment and failure. Boomers (especially leading-edge boomers) are drastically different from the WWII generation. What they want, what they value and how they need to be treated are 180-degrees different.

In our meeting with that big life carrier, we handed them a resource branded by their firm. It was their own report on the senior market. Then we showed them our book (The Psychology of the 50+ Senior Market). Within three seconds, they could see that their report is all about demographics – none of it is psychological.

What that means is hugely significant! Their report is mostly a waste of time and money. It simply shows them what they already know – that there's a market out there. But without the psychological component, their producers can't use it to connect with their senior prospects and/or sell any product.

Observation #3 – look who's spending the money!

Let's look at who is spending money on training and what they're looking for.

Evidence 4:

One of the large financial advisory firms (one that still employs captives) approached us about teaching their people how to conduct the consultative selling conversation to generate new business. Their target market – boomers. Their main concerns – leveraging their marketing investment, and helping their veteran producers adjust from "selling" to "consulting."

What's the difference between selling and consulting – and why is it important? Someone who "sells" already knows the solution before the conversation begins. His main task is to get the prospect to recognize it. In a consulting conversation, the consultant has no idea what the wants, needs, problems or goals are until he asks. He conducts a conversation devoid of agenda. Why is this significant? Because the prospect can immediately tell the difference.

See, it's not about you or what you know. In fact, few people care how much you know. It's all about the prospect and what's best for him. It sounds so simple, but in truth, it's a significant philosophical difference. Remember, your target markets have heard all the BS and pitches for years. What they have probably not heard is intelligent questions.

Evidence 5:

As I write this report, I'm just returning from a trip to British Columbia where we met with an independent "boutique" financial advisory firm. They hired us to cross the mountains (in a snow storm) and conduct the first of a series of workshops on our consultative selling program. I found this invitation exceptionally intriguing because in Canada, the banks own most of the financial industry. They also employ most of the financial advisors. When you're the big gorilla, you don't need to change. But, if you're a small boutique firm, you do. Guess what they want to learn. First, how to read their prospects. Second, how to ask relevant questions. Third, how to make a relevant presentation based on the prospect's psychology and the answers to the questions.

Can you see the expansiveness of the spectrum of financial professionals interested in seniors and consultative conversations? With those in mind, there is a big question that you probably want to ask right now: "What's the big deal about consultative selling?"

Observation #4 – boomers rule.

Consultative selling is just about the only way boomers will buy financial products. The psychology of boomers is so drastically different from that of their parents that it poses a severe threat to producers who do not quickly learn to make the adjustment.

No request. I'm not asking you to consider exploring consultative selling. The psychological truth is, about half the people reading this article are incapable of participating in a consultative conversation. It is a serious differentiator and a huge bolder in your path. Those able to operate in a consultative role will be able to work very effectively with wealthy boomers. Those unable to make the adjustment will be rejected by boomers. That's because the boomer mindset is this – My values and I are very important, and you agree with us, don't you!

How can you tell if you're one of the people who can make the adjustment? Let's explore this question. Answer the questions below by marking Yes or No.

In a selling situation:

1. Do you talk more than listen? Y/N
2. Do you think ahead about what you're going to say next? Y/N
3. Do you finish your prospects' sentences? Y/N
4. Do you enter the conversation already knowing what you're going to present? Y/N
5. Do you typically give the same advice? Y/N
6. Do you believe all prospects are viable clients for you? Y/N
7. Can you "read" your prospect's nonverbal behavior? Y/N
8. Can you recognize your prospect's personality type? Y/N
9. Can you recognize values words? Y/N
10. Do you ask questions, even when you already know the answers? Y/N
11. Are you prepared to turn prospects away if they're not a good match for you? Y/N

(See below for the )

Consultative selling has nothing to do with selling. It is not a sales presentation; it is a conversation in which your role is to serve as the person with the questions. With those questions – many of which are improvised – you uncover the pain or problems. With other questions, you uncover the implications of the pain and problems. And, with still other questions, you explore solutions or payoffs.

Consultative selling is really a psychological conversation – like a psychological intervention. In order to succeed with it, you must be able to read the prospect and recognize values words. The purpose of doing that is so you can make the communication with that person very easy and comfortable for him or her.

Answers

Answers to questions: 1-6 should be No. 7-11 should be Yes.

How well did you do? Let me know.