April 1, 2008

 
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Sales Teams Should Beat the Bushes for New Contacts
Joshua Nester
With the days of prospective home buyers stampeding the doors of sales offices long gone, salespeople will have to spend more time out of the office beating the bushes to drum up new leads and traffic, according to panelists in an NAHB “Back to Basics” teleconference last month on how to ramp up sales and marketing.

“Your sales team is going to have to generate more of their own traffic,” said Ross Robbins, MIRM, of the Lee Evans Group, an operations and marketing consulting firm based in Littleton, Colo. He added that builders may want to keep shorter sales office hours so that the sales staff won’t get tied down staffing the office.

It is not unusual to see traffic of 10 to 15 per week and only one to two on weekdays, Robbins said. “Maybe being in the sales office is not where the staff should be.”

(At no charge, NAHB members can access the audio conference, "Ramp Up Your Sales and Marketing in a Changing Market,” by clicking here.)

Be Prepared to Deal With Prospects’ Fears

Not only are there fewer customers visiting sales offices, but those who do come in are coming in “terrified,” Robbins pointed out.

“They think that this is the worst time to buy because the newspapers and television have been telling them that for a year,” Robbins said. They are fearful that prices will drop and that they are making a bad investment.

“In fact, most people seem to be paralyzed with this fear to the point that they will avoid making a bad decision instead of taking a good opportunity when it fits,” he said.

To counter and lessen buyers’ fears, Robbins said sales teams first have to acknowledge their customers’ fears and then shift the conversation from making a deal into fulfilling the customer’s dream. If the sales team can’t bring the conversation back to the dream home, “it’s over, you're doomed, it’s done,” he said.

Builders cannot assume that their salespeople will know how to sell this way. They will need training and monitoring.

“You need to create these dialogues, rehearse these dialogues, train to these dialogues and then you need to use them and monitor them,” Robbins said. “Make sure they are selling just as you trained them.”

Hold the Sales Team Accountable

Not only should builders initiate specific training for their sales teams, they should also put systems in place that hold their salespeople accountable.

Robbins suggested that builders develop a reporting system where salespeople are kept accountable for their progress with potential clients or to have them explain why prospects have lost interest.

By keeping a scorecard for them, Robbins said, a builder or sales manager also will be able to track who’s going to survive with the company.

“Some of your people aren’t going to make it,” said Robbins. “You need to figure out who those people are, and you need to encourage the people who are willing to change and learn to work in a new manner.”

Builders will have to be willing to let go salespeople who can’t rise to this challenge.

“It’s going to be a matter of survival for both you and them,” Robbins said. Those sellers who can succeed in a slow market will be the sales leaders and managers in a rising market.

Four Simple Steps on How to Deal With Abusive Customers
By Tracey Gundersen

Abusive clients are, unfortunately, a part of the new home customer service process, a tiny part, but a part nonetheless.

Establishing a procedure on how personnel should deal with abusive clients nurtures better long-term customer relationships. Look at a situation involving an upset and enraged customer as a chance to improve your product and service.

A written procedure guides your staff, reduces stress and may keep you out of legal hot water. After all, one enraged customer can drag down your entire warranty service department. Left unchecked, an irate customer can turn vengeful and destroy a company.

When encountering abusive clients, Carol Smith, author of numerous best-selling new-home customer service books including “Meetings With Clients: A Self-Study Manual for a Builder's Frontline Personnel,” recommends the following four steps in order to avoid stressful situations:

  • Always conduct yourself in a business like manner.
    Instead of sarcasm, respond with healthy detachment. Avoid engaging in an argument and provide a realistic outlook. Don’t yell, use self control.
  • Establish boundaries and empathize with your client.
    Tell them in normal voice tone, “I understand that you're angry. I'm here to help. I do have limits on how we communicate. If you will stop (using that language, threatening me, intimidating, etc.), we can continue talking. Otherwise, I'll end this conversation and will call you tomorrow.”
  • If the client continues, end the conversation by calmly leaving the meeting or gently hanging up the phone.
  • Document the call on an incident report.
    Make sure to date and time the incident. Mark your calendar for a follow up call.

Defusing a potentially nasty situation allows everyone to get their emotions under control and think rationally. We're here to solve problems, not compound them.

Now, doesn't that feel better than a swollen vein on your head?

Tracey Gundersen is the founder and CEO of Warranty Management Technologies, LLC, of Burnsville, Minn. The firm provides warranty process management software, consulting services and fully-outsourced customer service to new home builders. For more information, e-mail Gundersen, call her at 952-707-0725 or visit www.homsoft.com.


‘Meetings With Clients’ Tackles Issues Confronting Front-Line Personnel

Meetings With Clients: A Self-Study Manual for a Builder's Frontline Personnel,” available at BuilderBooks.com, covers four major issues confronting a builder’s front-line personnel: pre-construction meeting, frame stage tour, new home buyer orientation and warranty service.

Master each of these issues with step-by-step instructions on policies, procedures, predictable situations and how to handle problems that arise during orientation.

“Meetings With Clients” also serves as the self-study guide for candidates of certification as a customer relations professional. [return to top]

Register Online for Spokesperson Training
Online registration is now available for NAHB Spokesperson Training sessions at the upcoming NAHB spring board meeting in Washington D.C. in May.

With NAHB's new, faster and more convenient registration process, members can now register securely with a credit card for one or both of the Spokesperson Training sessions — Interview Skills and Presentation Skills.

Through the Interview Skills session of the Spokesperson Training program, NAHB members learn how to give clear, concise answers in a high-pressure, spur-of-the moment interview.  It helps participants master strategies for broadcast and print interviews, including message development.

Members who attend the Presentation Skills session learn how to confidently prepare and deliver dynamic presentations to any audience. "Presentation Skills" focuses on how to organize and deliver a speech and presentation with accompanying question and answer sessions.

Spring Board Spokesperson Sessions:

  • Interview Skills — Thursday, May 1
  • Presentation Skills — Friday, May 2

Both one-day sessions are from 9:00 a.m.-4:00 p.m. Registration is limited to 12 participants.

The fee for each seminar is $495 per person.

For more information and to register, click here.

Each seminar is led by professional communication consultants who have more than 30 years of experience training NAHB members on the critical issues they face every day.

More than 15,000 NAHB leaders have taken Spokesperson Training since the program began in 1979.   

For more information, e-mail Brooke Fishel at NAHB, or call her at 800-368-5242 x8061. [return to top]

Building for Boomers & Beyond Symposium Coming to New Orleans May 19-21
Households headed by some ages 55 and older account for 21% of new home sales and 18% of the total new home buying market. Although the housing market is facing challenges, the 50+ housing market is faring well, with many builders reporting little to no change in sales and traffic.

Find out more about this growing market at Building for Boomers & Beyond: 50+ Housing SymposiumSM coming up May 19-21 at the Sheraton New Orleans Hotel in New Orleans. The Symposium provides valuable resources for today’s builders and other housing professionals through exceptional education sessions, dynamic speakers and unlimited opportunities to network.

Attend and discover ways to:

  • Refine marketing concepts. What attracts buyers who aren’t retiring? How do you market to people who won’t be making a decision for another year or more? Learn how to capture the imagination of all kinds of prospects.
  • Refresh design ideas. Around 77% of age-qualified buyers chose their new home based on the room layout and design of the unit. Find out what they’re looking for.
  • Renew sales confidence. Learn techniques that work for this completely different buyer.
  • Revolutionize your knowledge of the latest trends. New technologies and lifestyle choices are transforming the way we live. Find out what’s new, what’s now and what’s coming.

There are 35 education sessions in all. Check out the following programs:

  • Creating the Mindset to Move: Turning Prospects into Sales
  • Make Greenbacks By Going Green
  • The High-Tech Advantage in Active Adult Living
  • 3-D’s of the New Boomer Community: Diversity, Density, Design
  • “Hey, I’m Not Old!” Subtle Age-in-Place Design for Senior Boomers

In addition to education programs, you can work toward the Certified Active Adult Specialist in Housing (CAASH) designation by completing the three CAASH courses – Designing for the Active Adult, Selling to Active Adults and Trends & Research Methods to Define the Active Adult Lifestyle – all offered at the Symposium. Find out more about the pre-conference courses.

Check out other special events like the Best of 50+ Housing Awards Gala, the New Orleans Recovery Tour, the Rebuilding Together Community Service Project and much more. [return to top]

Speak Your Mind
Are you interested in speaking on a topic of interest to residential home builders? The NAHB University of Housing receives requests from local home building associations, members and organizations seeking speakers for a variety of residential building topics.

If you are interested in being listed as a speaker, please visit www.nahb.org/speakerdirectory  and complete the form.

The listing is free to members. There is a minimal fee to non-members.

  [return to top]

Submit Comments by June 1 to Update ‘Performance Guidelines’
Builders and contractors are encouraged to submit comments by June 1 to update the “Residential Construction Performance Guidelines (RCPG) — the industry's most widely accepted reference on how homes should perform.

The current RCPG, available through BuilderBooks.com, contains more than 300 guidelines in 12 major construction categories, including cabinets, cement board siding, concrete, countertops, drainage, driveways, drywall, landscaping, water infiltration and more. It was created for builders and remodelers to help them successfully manage customer expectations — and protect the bottom line — while delivering high-performance homes. It is also popular among consumers.

The RCPG work group, part of the Business Management and Information Technology Committee, is overseeing the development of the new edition of the guidelines. Members of various NAHB committees and councils were chosen to serve on the work group.

To Submit Comments

NAHB members can submit comments for the updated guidelines through the NAHB Web site. A comment form is available at www.nahb.org/rcpgcomments

The new edition of the RCPG is slated for publication in 2010.

For more information about the RCPG review process, e-mail Joshua Nester at NAHB, or call him at 800-368-5242 x8461. [return to top]

For more information or to contact us directly, please visit www.NAHB.org l ©2008, National Association of Home Builders

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