In May, my son graduated Magna Cum Laude with a degree in marketing. As a high school senior, he set a national sales record for one of North America’s largest electronics retailers. The kid is smart. But when it came time to purchase a new car last weekend, he and his fiancée (who also has a business degree) were novices. Not that they hadn’t researched vehicles online. Not that they didn’t know what was important to them in a new vehicle. Not that they didn’t know what they could afford. It’s just that neither had ever purchased a brand-new vehicle. Rebates or lower APR? Extended warranty? Rustproofing? “Sport” edition? Price negotiation? Then there was the high-pressure sales tactics…
Similarly, how many of your prospective home buyers took classes in home design, home building, or buying a new home when they were college students? With such a monumental decision, how do you help buyers choose you?
Listen…and build rapport. The first salesperson my son met couldn’t wait to demonstrate the vehicle. He quickly identifed the model he thought would most interest this young couple, then spent quite a bit of time showing them the many features. This was followed by the customary test-drive during which the sales person spent most of his time texting.
I’ve met new home sales pros who likewise want to get right to touring visitors through their model home. Most are superb at highlighting the hot-button amenities. But people want to buy from someone they like, someone who cares about them, someone they can trust, and that takes time getting to know them and listening to what they want.
Edu-sell. Price is always important, but selling via lowest price is both difficult and lazy. Difficult, because there are only so many corners you can cut, so many suppliers you can bully into dropping their price. Lazy, because the consumer doesn’t have to think and the salesperson doesn’t have to deal with educating the customer, quality, or other “intangibles.”
The salesman who won my son’s business quickly established rapport over their mutual admiration for Apple products. He segued that into introducing Apple Car Play, found in some of their vehicles. He took the time to discuss all-wheel drive options, various trim levels/options, and what was included, such as explaining the pros and cons of leather seats.
New home buyers don’t know what they don’t know. Your ability to modify standard designs; delightful new amenities prospects didn’t even know existed; product upgrades ideally matched to their priorities; these are all ways to empower buyers to make the best decisions, within the budget they have established for themselves, making you their advisor who has their best interests at heart.
Make the process easy, fun, and (relatively) stress-free. For my son and his fiancée, their salesman turned car shopping into a process of discovery. The vehicle they ultimately purchased was not even on their radar screen initially. From the big touch screen display with back-up camera, to the “Vehicle Protection Package,” to sorting through the business office/finance options, this dealership understood how to respect their customers.
Your homes are designed. Your home building system was designed. Your customers’ new home purchase experience should be designed, too. Looking at the purchase experience through the eyes of the customer is the place to start, rather than what’s efficient for you. Concentrate especially on the areas which can be stressful (e.g., finalizing the design, product selections, and the purchase agreement). Above all else, focus on clear communication, because ambiguity is no one’s friend!
Author: Paul Foresman, VP Business Development, Design Basics, LLC