What Is Passive Selling: Methods, Channels And Examples

Hello! In this article, we will talk about passive selling.

Today you will learn:

• What is passive selling;
• What are the principles of passive sales;
• How to create a passive sales channel.

The concept of "passive sales"

Sales are the main source of profit for an organization. The main selling point is how to sell. There are different types of sales : personal and non-personal, indirect and direct , active and passive. Let's take a look at the last classification.

Active and passive sales technologies differ in the seller's approach to the sales process and the level of consumer awareness of the product and company.

In the case of active sales, the manager independently seeks and attracts the consumer. Active sales are necessary when the product itself is not of particular value to the consumer.

Passive sales are suitable for branded products, essentials, exclusive products.

Imagine a sales funnel . It consists of four levels: awareness, interest, desire to buy, purchase.

Passive sales are only possible when your customer is at the level of interest or desire to buy. He himself will come to your store , he will take the goods from the counter and pay for the purchase. The seller can only wait for his buyer.

Active sales start from the first level, when the client is only aware of the product and the company.

To finally understand the concepts of active and passive sales, we present their main differences in a small table.

Active sales

• Seller Tasks - Attract a buyer, identify a need, present a product, answer objections, sell
• Buyer Readiness - Not ready to buy
• Who suits - Anyone who does not have a strong brand or special quality product
• Advantages - High efficiency; No need for other means of product promotion
• Flaws - Success depends only on the seller; Long learning process for managers ;Excessive obsession

Passive Selling

• Seller Tasks - Provide advice, if necessary, sell
• Buyer Readiness - Ready to buy a product
• Who suits -branded products; Exclusive item; Essential item
• Advantages -Low personnel costs; No pressure on the client
• Flaws -High probability of losing a client; Additional marketing costs required

Principles of Passive Selling

The basic principles of lazy selling are very similar to those of marketing. In order for the buyer to come to the store specifically for your product, it is necessary that this product is of particular value to him, that is, it has a competitive advantage over similar products.

These benefits and features include:

• Strong brand. Remember the queue for a brand new iPhone;
• Special product quality, added value, exclusivity;
• financial benefit;

Your product is a consumer product. However, in this case, the consumer will not care what product he buys: yours or your competitor.

From here you can form the principles of passive sales:

• Build a brand . “Lazy” sales are possible only when the potential buyer knows about your company and the benefits of your products. Advertise your product , use a variety of marketing communications tools, your product must be known to the target audience .
• The main thing is the consumer, his problems and needs . If in the case of active sales, the needs of the client are identified at the stage of contact between the consumer and the seller, then in the case of passive sales, it is necessary to identify the problems and preferences of the target audience at the stage of product development. The product, its price, promotion, points of sale must meet the expectations of potential consumers, otherwise you will have to resort to active sales.
• We do not sell what we produced (purchased), but we produce (we buy) what they will definitely buy (see the previous paragraph).
• We use our advantages and tell the target audience about them.
• We don't deceive our customers . If you don't live up to your client's expectations once, they may never come back to you. Therefore, you should not attribute to the product properties that it does not possess.
• Forecast sales volumes . This is very important when using the passive sales technique, because in this case you cannot quickly influence the volume of sales.

Formation of passive sales channels

The first thing to do when forming passive sales channels is to make a forecast for the sale of goods for each of the distribution channels. It is advisable to make a forecast for a period of not more than one month, this will allow for flexibility.

Flexibility, in turn, will allow you to respond in a timely manner to the deviation of the actual sales result from the forecast and take measures to adjust marketing tools.

To achieve the flexibility you need, budget for a certain percentage of safety stock.

The second step towards the formation of passive sales channels is recruitment . While lazy sales personnel do not have a significant impact on business outcomes, they do affect the overall customer experience of interacting with your company, which ultimately determines the brand's position in the minds of consumers.

In passive sales, sales personnel are divided into the following categories:

• Passive sales manager or salesperson. He makes personal contact with the consumer. The tasks of the seller when using passive sales techniques are: consultation at the request of the client, registration of the sale and purchase, entering the client into the database, forming long-term relationships;
• A telemarketer is a person who makes sales via the Internet and telephone. At the same time, the specialist works only with incoming calls and letters;
• The distributor , in addition to the sale, conducts a presentation of the goods;
• Marketing Analyst . Although this specialist is not involved in the process of passive sales, he determines their effectiveness. The tasks of a marketing analyst include analyzing the market and consumers. It is on his shoulders that the most important work lies - determining the needs and requirements of the target audience.

The third step in the formation of passive sales channels is the definition of promotion channels. When implementing passive sales techniques, it is better to choose mass coverage channels ( advertising on television and radio, exposing advertising) or channels with a high degree of personalization ( advertising on the Internet : targeting , contextual advertising ).

Also a great marketing communications tool for you will be viral marketing , that is, advertising that is distributed by consumers themselves.

After all three steps have been worked out, you can start selling yourself. Don't forget to compare sales forecasts with actual sales figures.

Passive Selling Example

In conclusion, here are some examples of passive sales.

Let's imagine that we sell mobile phones. A buyer comes to us who chooses between two specific models of smartphones. He is ready to buy goods now, but he needs help. The manager comes up to him and helps him decide. This is passive selling.

Now let's imagine that we sell cakes through an online store . We receive an application from a potential consumer for a callback. The manager calls the client and places the order.