Wells Fargo Ethics and Selling Practices

Wells Fargo Ethics Case

• Wells Fargo created fake accounts to incentivize employees and increase sales.
• Employees were pushed to "cross-sell" products, leading to unethical practices.
• The CEO was penalized, and over 5,300 employees were fired.
• This case highlights the importance of ethical sales practices.

Ethical Decision Making

• Ethics are about justifying decisions consciously.
• Decision-making is influenced by unconscious thoughts (heuristics, biases), ingrained customs, personal values, and reflective practice (considering contexts and principles).
• Ethical behaviors are shaped by culture and personal background.

Sales Call Rejection Therapy

• Jim Jiang's TED Talk emphasizes embracing rejection.
• Understanding the "why" behind rejection can create new opportunities.
• Rejection is not personal; it's a process of repetition.
• Learning from rejection and understanding close rates is crucial for success.

What is Selling?

• Sales is a mutually beneficial exchange.
• A holistic business system enables effective sales exchanges.
• Salespeople represent companies, generate revenue, solve customer problems, and build relationships.
• Existing customers are easier to sell to due to established trust.
• Finding new customers involves recognizing switching costs and building trust.
• Salespeople support post-sale processes and provide company intelligence.

Types of Sales Representatives

• Retail Sales Rep: Focuses on selling products to consumers, frequently in stores, and provides assistance during transactions.
• Wholesaler Sales Rep: Sells products in bulk to retailers, managing relationships and distribution.
• Manufacturer Sales Rep: Carries in-depth product knowledge and sells goods to wholesalers, retailers, or industrial users.

Sales vs. Marketing

• Marketing focuses on brand awareness and product promotion (often one-to-many).
• Sales is about direct interaction and building relationships (with a focus on businesses).

Different Sales Roles

• Edward (Oracle): Focuses on direct selling, prospecting, and maintaining customer relationships with existing accounts.
• Rob (Reebok): Focuses on account management, building trust, and working with resellers.

Drivers of Ethical Behavior

• Individual ethics are influenced by personal values, leadership, and moral frameworks.
• Organizational culture significantly impacts ethical behavior; a "do what you're told" culture can lead to unethical behavior.

Sales Terminology

• Cold calling: Approaching new customers without prior contact.
• Inside sales: Sales conducted from within the company (often remotely).
• Outside sales: Sales interactions conducted away from the office.

Trust Pyramid

• Trust is a crucial goal in building customer relationships.
• Intimacy, reliability, competence, authenticity, and grit support trust-building.