Tip Financial Services
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Case Study Four: TIP Financial Services
Identify the selling strategy used in the financial industry. How are traditional and on-line service sales different?
The selling strategy used in the financial industry consists of more than one approach as many institutions offer an array of products that are tailored to different needs. In this particular case, TIP financial utilizes three selling approaches depending on the type of end user. Affiliative selling is used with the companys existing customers as there is a heavy emphasis on maintain the relationship with these clients to keep them satisfied and loyal to TIPs services.
The institution also takes on the consultative approach when prospecting for new clients. Sales reps are trained on how to identify client needs and goals before proposing potential products that will meet their objectives.
The last approach used in the financial industry is enterprise selling. Enterprise selling, or B2B selling, is a selling approach that fosters company to company relationships. Enterprise selling approach often times encompasses the other strategies mentioned above as sales reps offers different products to people who may have different needs in the company.
The transactional selling approach is for those who are interested in closing the sales as quickly as possible. Customers who may have a vast amount of knowledge regarding the particular product or service, may find this approach to be beneficial and less timely. I would have to say that this is where on-line service sales differs from traditional sales. Customers willing to do business through online-services will most likely have a clear understanding as to what they are looking for; therefore, little time is spent researching products or companies. Online sales services allows these consumers to close the sale promptly and without face-to-face interaction with a rep.
What issues does Don Krane face? What could he be doing better?
Don Krane has faced many issues during his time at TIP Financial. Technology, for one, is working against Don as he struggles in an industry that is moving more and more services online. As consumers gain more knowledge about service, or products, they are more likely to need assistance from reps. Don could work on introducing some of the services that are currently administered through sales reps online. This would free up time for some and allow customers to feel that they are more involved in the company.
Another issue faced by Don is the high rate of employee turnover. The high rate is not only detriment to the companys image, but it also increases the companys overhead as new employees are required to engage in an extensive training program. The high turnover rate is also due to the rejection that often came with prospecting for new business. Don should have new reps shadow those more experienced prior to prospecting for new business. This will allow the reps to build up