A dejected new homes sales person can be the result of some easily-fixable techniques. But it starts with secretly auditing the sales encounters.
What the data revealed
New Home Sales Connection ran a series of mystery shops across various new home communities. The findings were quite revealing. Despite heavy investments in training and development, a significant number of sales professionals didn't take the step to ask potential buyers to make a purchase. Here are a few eye-openers from the study:
- Missed closing opportunities: Over 87% of the sales professionals didn't directly ask for the sale at the end of their presentation.
- Lack of setting a next step: About 80% of the agents didn't set a clear, actionable next step with customers before they left the model.
These stats underline a serious gap in the sales process that could be costing new home builders a lot of revenue.
Understanding the root causes
There are several reasons why sales professionals might hesitate to seal the deal:
- Lack of confidence. Confidence is key in sales. If salespeople aren't confident in their product knowledge, their pitch, or their ability to handle objections, they're less likely to make the ask. Training needs to not just focus on product knowledge but also on boosting confidence through role-playing, real-life simulations, and ongoing feedback.
- Fear of rejection. Fear of a "no" can stop even seasoned sales pros in their tracks. Teams should be trained to see rejection as a step closer to yes, not as a personal setback.
- Inadequate training. While basic training is common, ongoing and specialized training often falls short. Effective training should be dynamic, incorporating the latest sales techniques and insights from mystery shopping data to address specific weaknesses.
- Misalignment of sales strategies. Sales strategies that don't align with the buyer's journey can lead to pitches that focus too much on features and benefits without connecting to the buyer's needs. Training should stress the importance of understanding and aligning with the buyer's journey.
- Assumptions. Making assumptions about what the customer thinks can deter sales professionals from asking for the sale. It's better to ask directly and then adjust the approach based on the response.
The key that unlocks the home sale: implementing effective solutions
Improving in these areas involves a multi-faceted approach:
- Enhanced training programs. Training should be ongoing and cover not just the basics but also advanced sales techniques and customer psychology. Data from mystery shops can tailor these programs to tackle specific performance gaps.
- Building confidence. Regular role-playing and simulations can build confidence. A culture of positive reinforcement and constructive feedback also helps.
- Structured sales process. A clear, structured sales process with defined steps and milestones guides sales professionals through each stage of the sale. This should be adaptable to different buyer personas but consistent enough to ensure every salesperson knows what to expect.
The insights from New Home Sales Connection's mystery shops show a big chance for betterment in new home sales. By digging into why sales professionals aren't asking for the sale and applying targeted solutions, sales teams can boost their effectiveness and increase their conversion rates. In the competitive market, the ability to confidently ask for the sale and close deals distinguishes the best salespeople from the rest. Investing in the right training, tools, and processes is essential for the success of new home sales teams.
