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LeBlanc
& Associates
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Issue 13 Fall 2001
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The Front Porch Objections are a reality in life. Neighbors object to your dog barking too long and too loud. Families object to your moving too far away. Friends object to you not taking enough time to get together. Lawyers always object, but that is another story. So why are objections so difficult to deal with during the sales process? We deal with them in our everyday life, but when an agent gets confronted with one from a prospective buyer, too often the agent refuses to deal with it. Or perhaps they just don't know how.
Buyers raise objections when they don't understand, accept or agree with what you say or what they see. Though some sales agents look at objections as roadblocks, successful salespeople view them as opportunities to enlighten the prospective buyer, to learn more about them, and to convince them of how the agent can help. The first rule? Acknowledge it; don't ignore it. If a concern is raised, it is a concern. Unless it is an issue that is totally irrelevant and completely out of anyone's control, the buyer needs to be heard. The agent should demonstrate empathy by listening attentively. Don't interrupt until the buyer has fully explained the objections in his or her own words. Then the agent should repeat the objections to make sure they fully understand it.
Secondly, the agent needs to probe to clarify the objection. This is done by questioning. "How do you feel about Š.? Is there anything more that you'd like to know? Do you think this will help to solve your concern?" To succeed at clarifying the objection, the sales agent must be sure that: They know what kind of concern the buyer is expressing. If the buyer expresses a drawback about the homes, the agent might want to emphasize other features and benefits. If the buyer misunderstands something, the agent may have to provide additional information or repeat what they have said in a different way. They understand the concern thoroughly. Behind many customer objections are unexpressed or unidentified needs. By probing, you can uncover hidden needs, learn more about the buyer, and gain the opportunity to demonstrate how you can satisfy those needs.
Allow the buyer to fully express doubts or misgivings. When buyers are reluctant to express objections, probing may help them open up and say exactly what's on their mind. While the agent needs to selectively utilize this approach, probing questions fosters a better exchange of information between the agent and the buyer. This helps to build a stronger relationship. Some type of "seeking" questions are "What do you want to know?" "What would make you feel more comfortable?" When an agent feels they adequately understand the customer's concern, they need to provide the appropriate (key word) information to resolve it. Always make sure the information you provide has been accepted by the buyer and that the concern has been resolved to their satisfaction. The agent might simply ask, "Does that satisfy all your concerns?" The agent should then pay close attention to the buyer's body language and facial expressions. If the agent senses any discomfort or continued concerns, the agent should ask, "Would you like me to walk through this again just to make sure we've covered everything to your satisfaction?"
A truly professional sales agent should be able to identify the various types of objections they will encounter in their community. The best way to deal with objections is to anticipate and prepare for them. Many top sales people have their own system for classifying objections. We suggest that an agent think of all the objections that might arise in their community and then prepare how they would resolve them. Another important factor in dealing with objections is to respect the customer's honesty. While all agents encounter the individual that objects for the sake of an objection, most objections represent real concerns or a question the buyer needs to have answered to defend the purchase decision. When an agent acknowledges the right of a buyer to raise objections, they will be able to develop a more positive attitude and accept them as a normal part of the sales process. Top of page Don't enter into a debate. Agents need not always be right. Buyer's objections can sometimes make an agent feel defensive about their product and themselves. They should not allow the emotional response to guide their actions. Otherwise, they might adopt an adversarial stance with the buyer and undermine rapport. Instead, focus on educating the buyer by clearing up any misunderstandings, offer substantive information, and provide pertinent information on your product's features and benefits. Finally, ask for the sale!
Kudos Korner As the focus of this newsletter is about the sales agent, I felt that truly good sales professionals deserve recognition beyond their own company. This is the beginning of that recognition. Each issue of The Home Front will list agents who rank in the top percentile of those evaluated during the past quarter. Top of page Our first group of agents to receive our praise are all from the same builder, Engle Homes in Phoenix. Each of these agents have superb selling skills wrapped in unbridled enthusiasm and pride in their chosen profession. Carole
Murphy Sam
Amselmo Luigi
Ravacchioli Angie
Daddario Congratulations to each of you! If you have a "superstar" on your team, and would like to share their value with other regions, feel free to contact us. The Eyes Have It Why the video evaluation? Even with the best product and in the best of markets, success ultimately relies on the quality of representation in the sales centers. Through our Video Profile, we capture the agent's entire sales presentation through the eyes of the buyer. Top of page Get the whole picture. Through the Video Profile managers and agents are now able to see what our evaluation reports have been reporting. The denial aspect of the evaluation process is eliminated. Technically speaking, LeBlanc & Associates has direct control over the entire process. With the Video Profile, we continue our reputation of offering the best evaluation service in the industry. All our work is in-house, including a state-of-the-art editing suite. The end result? Quality videos by people who know the housing industry. Sorry . . . we don't do hamburger joints. Give us a call! Interviewing Sales Professionals: A Search for the "Right Attitude" By Manny Schatz, MIRM Home Front: Manny, one of the most frequent telephone calls I receive is the anguished search for a good sales agent. Providing a sales manager can find a sales agent, what general advice do you recommend? Manny Schatz: I am often asked for the one "secret" that will help in the interviewing process. While it is not necessarily a secret, I look for a very basic attitude grounded in the philosophy of our training, "If you serve well, you will sell well." HF: I guess the next obvious question would be, how does one find those who have an attitude of serving well? Top of page MS: It begins in the hiring process with a clear and concise understanding of the functions to be performed and the tasks required to complete these specific responsibilities. It is imperative that the focus on the applicant's ability to do the job is the prime consideration. When we interview candidates for sales positions, we invariably look for basic qualities that usually contribute to their ability to succeed. These key characteristics include: An
enthusiastic and positive attitude. MS: Admittedly, we seldom find candidates who excel in all of these basic traits, so we need to make reasonably sound compromises. The objective is to attract, recruit and retain those who have the best chance of succeeding in the selling environments we create for them. HF: How important is past experience? Top of page MS: Past experience is one of the important evaluation factors. What have they accomplished? Do they have strong track records because they truly understood and practiced the process using their knowledge of the basic skills, or were the merely in the right place at the right time? HF: This is one of the most difficult messages to get across during this type of strong selling market. I will inevitably hear "Sales are great. We do not need to evaluate our team. They are doing a terrific job". While there is truth in some aspects of this type of statement, we also know the market is being driven by circumstances beyond the strength of the agent. How does a sales manager guard against just the number of sales a candidate will boast about? MS: Any manager must not be fooled by statistics. In a good market, many borderline sales agents can easily achieve glowing sales records in terms of units sold and dollars earned. But these same agents would find it very difficult to survive in a slow market when their sales skills are needed most. The true test is whether they can fit into your system and meet or exceed your sales and closing expectations. All the while adhering to your company's standards of performance. HF: What do you recommend for the second interview? MS: It is best to conduct second interviews at your sales center. Give the candidate about 15 minutes to prepare, and then enter as a prospective buyer. Their objective is to sell you the home. Your focus should be on their approach to the sales process and the demonstration of essential skills. It is also interesting to ascertain their level of interest in terms of how much research they may have done, if any, by way of learning about the area and/or shopping your competition. Top of page HF: Any final thoughts on the interview/ hiring process? MS: I prefer to hire based on attitude and then train the candidate in sales skills, keeping in mind that ongoing sales training and self-improvement is required for any successful sales professional. It is far easier to hire people with a positive attitude and train them than to hire based on skills and attempt to adjust their attitudes. Manny Schatz, principal of Professional Builder Services, Inc. in Danville, CA, has been involved in nearly every aspect of home building. He holds a general contractors license, a brokers license, and both the MIRM and CMP certifications. In addition to his many professional affiliations, Manny was an associate of the Stone Institute, having worked closely with the late Dave Stone. For further information contact Manny Schatz at (925) 837-1937. Customer Service: Paying Lip Service, Paying to Cure, or Paying More for Sales? By Dave Harding As more and more builders talk about giving outstanding customer service, we need to ask how serious they are. Is customer service only a refrain? Does it begin after closing? Who pays for it? Who decides whether a warranty claim is honored? Why? Top of page With competition becoming more fierce, and margins under more pressure, every effort must be made to reduce the costs of all operations. We regularly tell ourselves that the best and least expensive sale is a repeat or referral sale. Then we attempt to prove our legitimacy by pointing out to a customer all the disclaimers in our boilerplate language. We win. Actually, we lose. To truly increase repeat and referral sales, we need to take a more "Nordstrom" approach. In some operations, this means that the Warranty component of customer service be accountable to the Sales/Marketing team and NOT Operations/Construction. In the case of some of our construction crews, by definition, they believe that when the home was delivered it was perfect. No defects. No need for warranty claims to be honored since they are likely the result of owner neglect or mismanagement. To minimize the cost of construction/warranty, the incentive is to contend with the customer. "What is the cost of fixing the problem?" We often hear that the cost of correction will be too high to justify. We deny the claim. We save that cost. We win. But actually, we lose. Top of page If the ultimate decision of whether to honor a claim is left to the senior M&S executive, a different calculation will be made. "What is the cost of NOT honoring the customer's request for service?" When we calculate the warranty costs as a cost of (future) sales, we will err on the side of the customer. How Nordstom! The customer may NOT always be right, but the customer will always be the customer. And have the ability to impact other potential customers - positively. Who is the usual customer advocate? Who sees the customer in the sales office after the sale has closed, the mortgage has funded, the check has cleared? How often do our customers call or visit the sales office for warranty matters? Even after we go to great lengths to give them the Warranty hot line number, an 800 number, self-addressed claim forms, 24-hour direct lines to warranty technicians, etc? Does this not constitute a message from the sole source of revenue that a merchant builder has: the customer? The customer is telling us that customer service is a process that began at the point of original contact with us. It continues until the customer says it ends. Customer service need not include rebuilding the home 10 years after construction. But it must be based on a consistent approach to setting expectations and communicating with the customer, in the forum and fashion they have become comfortable with. Top of page The customer does not want to be departmentalized or compartmentalized. The customer believes that service is part of the sales process. WE should treat it as part of the sale's COST. The cost of new referral and repeat sales. By doing so, we put a different spin on the whole equation. We need to remind ourselves that we are in the retail business and must take a retailer's approach rather than a manufacturer's. Let's do more to earn the next sale that can result from great service. Let's acknowledge that the customer likes our salespeople and wants them to advocate the customer's position. How much more successful will we be when the sales crew can arrange the "yes, we will" response. And be accountable for the costs of that decision. And ask for the referral sale every single time. After all, a closed customer contact is much better than a cold call. The customer we satisfy has spent a great deal of money to ally himself with our company. Let him be part of our marketing efforts. After all, he wants to justify his own decision to choose us as his new home builder, and can easily be our unpaid public relations arm. It only takes a slight change in our thinking to produce great changes in our success. Are we ready for that change? Dave Harding, CMP is a national trainer and educator in new home sales and marketing. He has been a senior M&S executive with a number of national and regional builders. He can be reached at 520.241.3935 or via E-mail at d.lharding@worldnet.att.net. Vision Quest Sherlock Holmes and Dr. Watson decide to go camping. After a nice dinner and a bottle of wine, they climb into their tent and go to sleep. Some hours later, Holmes wakes up and with his elbow, awakens his faithful friend. "Watson. Look up and tell me what you see." Watson replies, "I see thousand of stars." Top of page Holmes asks, "And what does that lead you to deduce?" Watson thinks for a few minutes, then says, "From an astronomical point of view, there are billions of galaxies, and potentially billions of planets. From an astrological point of view, I observe that Saturn is in the constellation of the Lion. From a time's point of view, I deduce that it's around a quarter after 3. From a theological point of view, I see that God is potent and that we are but small and insignificant beings. From a meteorological point of view, I presume that tomorrow will be a beautiful day. "And what do you deduce, Sherlock?" Top of page "Watson. You're an idiot. Someone stole our tent!"
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