Hey buddy, have I got a deal for you…

People like Prudential Investment senior executive Lester Anderson are proof that the fine art of salesmanship is alive and kicking in the financial services industry. Stuart Engel reports on the pearls of wisdom Anderson presented to a recent Mercantile Mutual seminar.

Like many of his colleagues in the US, Lester Anderson is in the business of helping people make more money. In particular, he tries to help people in the financial services industry make more money.

"I travel the world working with financial planners doubling their commissions," he says when people ask him what he does for a living.

And the reason he makes grand statements such as these is not just because he is an American. One of the main purposes in saying something like this is to stir up interest and create curiosity in the minds of his audience.

He preaches the same principle to financial planners interacting with clients.

"A mind that seeks information is five times as likely to retain that information than one that is having information pounded into it," he says

The difference between exciting curiosity and hammering a point home is at the heart of his sales strategy. Linked to this is the fundamental split between marketing and selling.

"Marketing and selling are two completely different exercises," he says. "They certainly overlap and they are certainly dependent on each other but they involve completely different skills."

"Marketing is a declaration. It is a non-participatory process. Clients don't have to participate; all they have got to do is sit and let it happen.

"Sales on the other hand is a participatory process. Clients have to participate with you, therefore questions or interrogations are the driving force behind sales."

According to Anderson, the first step to increasing sales is getting the product right. But the product for Anderson is the person selling, the person representing the company.

"You've got to think about the whole packaging process," he says. "This involves how you look, talk and sound because it all sends a message about you. You are what customers are buying, not the managed fund or insurance policy.

"For instance if you decide to target females over the age of 65, there are a couple of rules about presentation. Rule number one, there is no such thing as a short sleeve dress shirt. It is like military intelligence, there is no such thing.

"Secondly, your socks should not be funnier than you are. Third, facial hair should be avoided. I don't care if you wear a beard or funky looking socks or short sleeve shirts. But it is not my money you are after. Your target market, however, does care."

But once you have got the package right, you have to have a strategy to maximise the value of each client. Anderson says the only way to do this is to provide all the financial services clients are looking for.

As in Australia, financial planning is the hottest growth area in the intermediary business. Anderson says stock brokers and insurance agents are doing it tough in the US and financial planners are picking up the pieces.

"The most powerful growth segment in the United States today is financial planning because the phenomena that is occurring is: get it all," he argues.

"You wouldn't share your wife or husband with someone, so why would you share your client? My client is mine and I am going to get every dime they have got. Nobody else is playing in my accounts. I want all the insurance, all the investments, all the children's accounts and all the property and casualty. How else could I draw a reasonable and intelligent plan if I don't control all of these?"

However, cornering all the needs of clients does not mean servicing as many clients as possible, Anderson argues. He is a strong advocate of niche marketing.

"The first thing you have got to do is decide on your target market group," he says.

"You've got to specialise in clients or markets but not in products. You must move from being product driven to market driven.

"Power comes from being the big fish in the small pond, not being the big fish out in the ocean. The idea is to get a marketplace where you control what's going on and get all of the money in that market."

Of course with target markets comes target demographics. Anderson reckons one of the best niche markets is what he terms "little old ladies" - single females, over 65 and unemployed.

"According to the Securities Industries Association in the US, 60 per cent of capital wealth is controlled, managed or influenced by women over 60," he says.

So how do you target this demographic?

"You do the things old ladies do. You learn to play bridge, you learn bowls. You must learn how to use where they are and what they do so you can get exposure to them.

"If you want to attack chief executives as clients learn to play golf, get a great handicap and get invited to tournaments."

Referrals are the most useful of all sales tools, according to Anderson. But once a client has referred someone to you, when is the best time to meet them?

"The best time to meet someone is breakfast," Anderson says. "Early in the morning they are fresh and you are fresh. No one gets drunk and makes an ass of themselves at breakfast. Breakfast is cheap and it gives you the opportunity to call back after lunch to reinforce the meeting."

And the client who has referred a friend should also be rewarded, Anderson says.

"If you receive a referral from a client, thank with a suitable gift of chocolates or cigars or a bottle of wine. Nothing extravagant, nothing crazy, but something that says 'thank you very much'. He or she should feel appreciated and inclined to repeat the referral."

But above all, it is important to provide products which suit your market.

"You have many alternatives in the products you use. Always use the most appropriate one for the client. Never sell them something that is inappropriate because you'll get something you don't want; a bad name."