How effective is social media as a sales tool? According to a pair of researchers at Behavioral Sciences Research Press, the old tried and true method of person-to-person contact is much more effective.
Trelitha Bryant and George Dudley made a presentation at the annual convention of the Southwest Psychological Association based on the results of two surveys which examined which form of client communications is most helpful for generating new sales.
They asked 4,768 sales people in more than 1,000 U.S. companies which form of client communication is most helpful for generating new sales. Almost 70% said face-to-face and telephone contact were the most helpful in creating new sales. Only 10% claimed email was most effective and less than 10% said other forms of computer-mediated communication were most effective.
"Further analyses uncovered another relationship," Dudley said. "Sales people claiming social media is most effective might be struggling with sales call reluctance, an emotional impediment to production characterized by apprehension, conflict, hesitation or avoidance specifically associated with sales prospecting. They had elevated prospecting distress scores on 11 of the 12 forms of sales call reluctance measured by the test."
A follow-up study of 1,512 additional sales people found similar results. Bryant said, "Computer-mediated social media may help find a date, keep tabs on old friends or support a political campaign. But most sales people don't think it's as helpful as conventional person-to-person contact for generating new sales."
But before running out and canceling your Facebook and LinkedIn accounts based on what these researchers found, let's remember a few things.
While traditional methods may secure the initial sale, other studies have found people forget the name of the loan officer rather quickly after loan closing. Social media is a way to keep your name in front of those past customers in a cost effective manner.
And like many employers checking out potential employees on the Internet, people do check out those they are considering using in one of the most important financial transactions in their lives.
Yes, more traditional methods may get you the sale. But social media could help you secure this sale, as well as future ones.
