Selling to The New Elite: Discover the Secret to Winning Over Your Wealthiest Prospects

By Stephen KRAUS, Dr. Jim Taylor, Doug HARRISON and Chip BESIO

In this practical and fascinating follow-up to their behind-the-scenes look at America’s most powerful and influential class, authors Jim Taylor, Stephen Kraus, and Doug Harrison reveal insights and indispensable techniques to help salespeople and marketers hone in on wealthy customers, pique their interest, and earn their trust--and repeated business. The New Elite leveraged unprecedented research to reveal what motivates the wealthy class, how they think, where they shop, and how they really spend their money. Now, based on studies of elite companies such as Lexus, Chanel, Neiman Marcus, Four Seasons, Cartier, and Louis Vuitton, Selling to the New Elite explains what the truly rich want from brands, what they expect from the marketplace, and how their changing purchasing patterns could mean big business for you. Including eye-opening stories from mutually satisfying interactions between salespeople and affluent buyers, the book showcases the best practices that have led to hundreds of successful sales and incorporates exercises that allow you to apply the information in your own context. By helping readers win over the wealthiest customers, this one-of-a-kind guide offers the key to becoming rich yourself.

• Language: English
• Publisher: Thomas Nelson
• Release date: Feb 9, 2011
• ISBN: 9780814416549

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ISBN: 978-0-8144-1654-9 (eBook)

Library of Congress Cataloging-in-Publication Data

Taylor, Jim, 1947–

Selling to the new elite : discover the secret to winning over your wealthiest prospects / Jim Taylor, Stephen Kraus, and Doug Harrison.

   p. cm.

Includes index.

ISBN-13: 978-0-8144-1653-2 (hardcover)

ISBN-10: 0-8144-1653-5 (hardcover)

1. Selling. 2. Affluent consumers. 3. Customer relations. I. Kraus, Stephen. II. Harrison, Doug, 1965– III. Title.

HF5438.25.T387 2011

658.85—dc22

2010039005

© 2011 Jim Taylor, Stephen Kraus, and Doug Harrison

All rights reserved.

This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019.

About AMA

American Management Association (www.amanet.org) is a world leader in talent development, advancing the skills of individuals to drive business success. Our mission is to support the goals of individuals and organizations through a complete range of products and services, including classroom and virtual seminars, webcasts, webinars, podcasts, conferences, corporate and government solutions, business books, and research. AMA’s approach to improving performance combines experiential learning—learning through doing—with opportunities for ongoing professional growth at every step of one’s career journey.

Printing number

10  9  8  7  6  5  4  3  2  1

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To Ellie,

with love, passion, and gratitude

Jim

Trademarked Terms Appearing in Selling to the New Elite

Aeropostale

American Express

Apple

Armani

Baccarat

Beretta

BMW

Bulgari

Cartier

Chanel

Coach

Coca-Cola

Domaine de la Romanée-Conti

Fendi

General Motors

Gucci

Hermès

IBM

Limoges

Louis Vuitton

Mercedes-Benz

Microsoft

Neiman Marcus

Prada

Radisson

Ritz Carlton

Rolex

Steuben

Tiffany

Timex

Vitamix

Volvo

Zales

Contents

List of Figures

List of Tables

Acknowledgments

Introduction

CHAPTER ONE

The Desire to Acquire

The Essence of Selling: Channeling vs.

Creating the Desire to Acquire

The Desire to Acquire . . . Something Nice

So What’s the Problem? The Biggest Challenge in Sales Today

Using the Three Passions to Achieve Sales Success

CHAPTER TWO

The Passion of the Salesperson

A Passion for Sales

Case Study: Top Sales Performers on Fifth Avenue

Case Study: Top Sales Performers in a Dallas Luxury Auto Dealership

A Passion for Relationships

The Long History of Passion-Based Selling

Lifestyles of Successful Salespeople

Discover Your Passion and Mold Your Environment

The Next Step

CHAPTER THREE

The Passion of the Prospect

The Biggest Myth About the Affluent

The Passion for Family and the We Need Economy

Money, Culture, and the Niche Passions

The Arc of Maturation and the Evolution of Passions

The Arc of Maturation and Selling Financial Services

Passion as the Missing Ingredient in Sales

Summing Up

The Next Step

CHAPTER FOUR

The Passion of the Product

Discovering the Essence of Luxury

The Five Dimensions of Transcendence

The Topography of Excellence

Reports of Luxury’s Death Are Greatly Exaggerated

The Next Step

CHAPTER FIVE

Theory into Practice: Thirteen Expressions

of Passion in Selling

1. Express the Love of Your Job

2. Tell Detail-Rich Stories

3. Discover a Shared Pursuit

4. Give the Docent’s Tour

5. Understand Their Ultimate Passion: Family

6. Satisfy the Passion du Jour: Value

7. Use the Language of Passion

8. Understand That Reliability Is The New Trust

9. Create a Ritual of Celebration

10. Communicate a Compelling Brand Promise

11. Hone a Compelling Elevator Pitch

12. Ask Passion-Based Questions

13. Sell to Happiness

The Next Step

CHAPTER SIX

From Passion to Execution

Why Most Sales Programs Fail

Compare Weight Loss to Sales Performance

Seven Principles for Making It Happen

A Final Thought

APPENDIX

Our Methodologies for Studying

the Affluent and Wealthy

The Survey of Affluence and Wealth in America

Optimism Continues Its Cautious Return

A Fragile Optimism, Weakened by Stock Market Concerns

Spending Cutbacks Still Prevalent

Finding Strength and Happiness Amid Economic Uncertainty

Key Take-Aways and the Outlook for the Future

The Survey of Affluent Attitudes Toward Salespeople

The Survey of American Attitudes Toward the Wealthy

Notes

Index

About the Authors

Figures

1.1    The Three Passions for Sales Success

3.1    Financial Concerns Across the Arc of Maturation

4.1    Luxury Interest Indicators, 2008–2010

5.1    An Effective Elevator Pitch

5.2    Percentages of the Affluent Who Describe Themselves as Very Happy, 2007–2010

6.1    Blueprint for Top Sales Performance

A.1    U.S. Asset Concentration

A.2    Percentage of U.S. Wealth Held by the Top 1 Percent of Americans

A.3    Changes in Three Wealthy Consumer Groups

A.4    Percentages of the Affluent Who Are Optimistic, Quarterly 2008–2010

A.5    Changes in Levels of Concern Among the Affluent, 2008–2010

A.6    Outlooks of the Affluent Regarding the Recession

A.7    Percentage of the Affluent Who Believe Stock Markets Will Rise

A.8    Measures of Financial Concern and Spending Cutbacks, 2008–2010

A.9    Projected Spending Changes, 2008–2010

Tables

1.1    Attitudes of Affluent Buyers Toward Salespeople

2.1    Predictors of Sales Performance

2.2    Self-Descriptors of Successful Salespeople

2.3    Leisure Activities of Top Salespeople

2.4    Behavioral, Cognitive, and Affective Manifestations of Passion

3.1    How Americans Describe the Wealthy

3.2    Myths and Realities of Today’s Wealthy

3.3    The Journey of the Affluent, in Their Own Words

3.4    What the Affluent Are Passionate About

3.5    Niche Passions of the Affluent

3.6    Percentage of Affluent Who Are Collectors/Connoisseurs

3.7    Percentage of Affluent Who Contribute to Specific Charity Types

3.8    Affluent Who Are Collectors/Connoisseurs

3.9    Do’s and Don’ts of Selling to Wealthy Segments

3.10  Fields in Which the Affluent Perceive Salespeople as Passionate

3.11  Summary of Key Take-Aways

5.1    Words That Resonate (or Not) with the Affluent

5.2    Words of Character and Complexity

A.1    Income and Assets for Higher-Income Households

A.2    Demographic Characteristics of the Affluent, 2008–2010

A.3    Major U.S. Recessions

A.4    Projected Spending Changes (by category)

Acknowledgments

We would like to thank the many people who contributed to this project with their time, energy, and forbearance . . .

•   The staff at Harrison Group, including our Wealth Team of Don Winter, Kevin Sansone, Kevin Sturmer, and Emily Randolph

•   The sales team at Harrison Group, including Burr Brown and Dan Merchant, who have tested and refined our techniques for sales success

•   Our editorial team at AMACOM, particularly Christina Parisi and Erika Spelman

•   Clients and colleagues who have given so much of themselves, particularly Carl Sewell of Sewell Motor Company, Jim Gold of Neiman Marcus, Bob Knebel of Flexjet, and Chip Besio of Southern Methodist University

We would particularly like to thank Cara David and the team at American Express Publishing, including Jackie Graziano, Kristy Bauer, and, of course, Ed Kelly. We appreciate all the work they have done with us and all that they enable us to do. We cannot thank you enough.

Most of all, we would like to thank the salespeople who graciously participated in our interviews and our training programs. They shared insights into their lives, their professions, and their passions—all with the hope of helping others achieve more fulfilling careers and lives.

Introduction

We have focused much of our work in the past five years on understanding wealthy individuals and luxury markets. We have worked with companies such as Mercedes-Benz, American Express, Cartier, Neiman Marcus, and many others. In other words, we have worked with companies for which luxury is not a preoccupation, but a passion. The same search for extraordinary quality also defines our clients who are not luxury providers, but are still exemplars of excellence in their categories—companies such as Microsoft, Coca-Cola, and Vitamix.

It is in passion, and with passion, that we find the greatest opportunity to sell.

We know how hard the last four years have been. Many have called it the Great Recession, with good reason, as it has already been far longer and more severe than any economic downturn since the Great Depression. Government economists tell us it began in December 2007, but our research identified spending cutbacks and an emotional recession as early as mid-2006. As of the writing of this book in September 2010, our research still suggests challenging times ahead for sales professionals. Despite the government’s assertion that the recession ended in June 2009, over 90 percent of the affluent believe the recession still continues today, and over 60 percent expect it to continue for more than a year—attitudes that can easily become self-fulfilling prophecies. Most have reduced their spending. I’ll buy whatever I want has been replaced with Let’s buy only what we need. The process has made them feel smart, not deprived, and most expect to continue their newfound frugality and value-orientation when and if the economy improves. The unfortunate bottom line: Today’s economic challenges are unlikely to resolve themselves easily, deeply, or soon.

We know it has been hard to make your numbers.

Challenge, as always, creates opportunities. The desire to acquire runs deep in the human species, and despite their heightened value-orientation, the affluent continue to shop, particularly in categories they are passionate about. Moreover, excellence is still valued. Despite the economy, the affluent have been reluctant to trade down—their expectations about and desires for quality, craftsmanship, and service have not diminished. Meanwhile, their expectations that purchases be thoughtful and meaningful have risen.

This is a book about how to sell, in these tough times, the very best things.

We wrote this book primarily for those engaged in face-to-face selling of high-end products and services to financially successful individuals. But it is also of interest to those more tangentially related to that core mission, such as:

•   Those who sell to the 90 percent who aren’t affluent.

•   Those who sell nonluxury products.

•   Sales managers whose charge is to hire, grow, and retain top sales professionals.

•   Advertising, marketing, and branding executives who try to build customer relationships from afar—through traditional and social media, through the products they create, through the brands they develop, through the retail experiences they design, through the corporate culture they build, and through the sales approach they instill directly and indirectly via hundreds of management decisions daily.

A WORD ABOUT OUR RESEARCH

Unless otherwise noted, data cited in this book are from our Survey of Affluence and Wealth in America, produced by Harrison Group and American Express Publishing. Now entering its fifth year, this industry-leading study of financially successful individuals is described more fully in the appendix. Throughout this book, for simplicity, we use the term affluent to describe the roughly 11 million U.S. households with at least $100,000 in annual discretionary income; we use the term wealthy to describe the 600,000 or so U.S. households with at least $500,000 in annual discretionary income. The spending power represented by these relative small groups is tremendous. In dollar terms, the 11 million affluent households account for a majority of the assets and consumer spending in the United States.

CHAPTER ONE

The Desire to Acquire

"We can do without any article of luxury we have never had;

but when once obtained, it is not in human nature to

surrender it voluntarily."

—THOMAS CHANDLER HALIBURTON

CHIMPANZEES LIKE PEANUT BUTTER as much as they like frozen juice bars.

That may seem an odd place to begin a book about selling to the affluent. The equivalent preference for two disparate monkey snacks is seemingly far afield from the topic at hand. But in fact, this conclusion about equal primate desires for peanut butter and frozen juice, gleaned from several studies, is actually a useful starting point in understanding a variety of sophisticated human behaviors, including the purchase of luxury products. It turns out that some human behaviors are so deeply ingrained in what we might offhandedly think of as human nature that, in fact, they transcend humanity itself. And so it is with the desire to acquire.

As scientists tend to do, primatologist Dr. Sarah Brosnan at Georgia State University introduced an interesting twist to an otherwise well-understood situation. Instead of letting the chimpanzees choose their own snacks, she gave some chimps peanut butter, and then gave them the opportunity to