| Date post: | 20-Oct-2014 |
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WINNING HEARTS, MINDS& WALLETS OF
HIGH NET WORTH INDIVIDUALS
Selling and developing relationships with the affluent
Real estate module (Session 1 of 5)
A 5-part program
By Nick Wreden, MA, MS
IOI HNWI SALES
SEMINAR: Goals Provide knowledge to help you become more
confident & professional Provide tips, techniques & systems to help
make selling to affluent easier Provide practice and peer support Help you make more sales -- and more
valuable sales -- in less time Have fun!
IOI HNWI SALES
SEMINAR: Rules Turn off handphones, etc Avoid interruptions Participate!
Enjoy the interactive exercises Ask questions Provide personal examples & stories Be enthusiastic, motivated, confident
Close your books unless asked to open them!
IOI HNWI SALESSEMINAR: Rules Choose a partner
You will work with this partner for role-plays & other exercises
Be realistic during role-plays (like typical prospect)
Note: In some cases, 3 people will work together, with one person as an “observer”
The most important rule? “There are no wrong answers & no
mistakes!”
IOI HNWI SALES
AFFLUENT SALES: Process & schedule Relate: Establish positive first impression & trust
& rapport Session 1 (Oct. 13): Listening & observation
Investigate: Gather relevant information about prospect & requirements for value
Session 2 (Oct. 15): Smart questions Educate: Inform about your ability to provide a
solution that meets requirements Session 3 (Oct. 20): Persuasion, not “hard sales”
IOI HNWI SALES
AFFLUENT SALES: Process & schedule Close: Overcome objections & move to next
step Session 4 (Oct. 22): Objection handling
Relationship: Develop & strengthen Session 4-5 (Oct. 22-24): Leveraging 1 sale
Communicate: Presentation Session 5 (Oct. 24): Showing value
IOI HNWI SALES
HNWI SALES: Course objectives Understand emotional & investment
characteristics of affluent Relate to the affluent
Understand issues and requirement for value Establish trust & rapport Communicate value Overcome objections
Learn effective sales process Develop & enhance relationships w/affluent Apply lessons learned
IOI HNWI SALES
SESSION 1: Objectives Sales skill & knowledge baseline The new sales environment
“You,” not “we” Characteristics of Asian affluent
What do they want from you Dealing with delay and deferment Smart observation & smart listening
IOI HNWI SALES
Exercise #1 -- Rate Sales Skills
One partner will be the sales person, the other the prospect based on a profile provided by the instructor. The sales person will attempt to sell the prospect an IOI property, who will answer questions based on the profile.
The remaining attendees will grade the sales skills on a scale of 1-10 by circling one number in each category. (1 is lowest, 10 is the highest.) Be prepared to discuss your scoring.
*
IOI HNWI SALES
KEY QUESTIONS: Discuss What is sales? How has real estate sales in
Malaysia changed in past 5 years? Why do customers buy from you? From IOI? What is your goal when talking with a
prospect? What is a prospect’s goal when talking with
you? What is the single most important word (or
concept) in sales (from prospect perspective)?
IOI HNWI SALES
AGREE OR DISAGREE? WHY?“Your job [as a sales person] is to understand the issues that matter to your clients. You have to feel their problems just the way that they feel them. You have to sit on their side of the table & look at issues from their point of view.”
- Neil Rackham, Spin Selling
IOI HNWI SALES
Exercise #2 -- Sales essentials
Answer the true/false questions in your workbook. Do not discuss with others while answering.
Session 1 13
SALES: YESTERDAY VS. TODAY
Yesterday Today
Focus Product features Prospect requirements for value
Customers Eager to buy More assertive, knowledgeable about alternatives, conscious of their value
Environment Seller’s market Buyer’s market
Money Price, price, price Value
Sales goal Acquisition Acquisition + relationship
Key skill Selling “Helping to buy”
Knowledge Product Customer
Emphasis “Us/our product” “You/your requirements”
Methodology Product description & order-taking
Consultative selling
IOI HNWI SALES
AFFLUENT: Who are they?
F. Scott Fitzgerald: “The rich are different than you and me.”
Ernest Hemingway: “Yes, they have more money.”
AFFLUENT: WHO ARE THEY*
Investable** assets
“Mass” or “emerging” affluent
RM250,000 - RM1,500,000
HNWI (High Net Worth Individuals)
RM1,500,00 - RM5,000,000
Penta-millionaires RM5,000,000 +
UHNW (Ultra High Net Worth)
RM35,000,000 +
IOI HNWI SALES
* Adapted from Forrester Research** Not including primary residence
IOI HNWI SALES
MASS AFFLUENT TRENDS: Citibank Mass affluent segment in Asia Pacific is growing
about 15% annually New trend of circular movement is emerging with
people working in one country for 1-2 years and then moving on, either to another country or back home
Rapidly growing trend of Asia Pacific executives are taking on job responsibilities that result in short- or long-term overseas assignments
Asia Pacific consumers today are the dominant demographic in the travel and financial sectors
IOI HNWI SALES
AFFLUENT TRENDS: Private banking results Findings: Private Banking Asia 2008 Conf.
Wealth of Asia-Pacific HNWI = $8.4 trillion in 2006; globally, 9.5 million individuals
Japan = 44%; China = 21% Singapore, India, Indonesia fastest growing
2006: Singapore = 55,000 HNWI Wealthiest Chinese only invest 1% of wealth in Asia;
Indians, much more India 3X growth in millionaires compared to China
30% of China’s millionaires are female! Asia creating more millionaires than anywhere else
(6.7% a year through 2010)
IOI HNWI SALES
AFFLUENT TRENDS: 2008 Conf results Before, wealth inherited; now, entrepreneurs
40-50, “street-smart,” international sophistication, western educated
Like to have control over finances Performance-driven
“investment time horizon shorter than Europeans” Willing to take risks “Difficult to offer investments that can match the
returns available to them from additional investments in their own businesses.”
What are the implications of this?
Session 1 19
AFFLUENT: WHO ARE THEY?Low/middle class Affluent
Tolerance for risk Low Moderate to high (depending on age)
Decision-making Cautious Quicker
Ownership goal Home Home + investment
Income sources Mainly job Job + investments + family
Concerns Security Status
Types Varied Connoisseurs, sensualists, trend setters/followers
“What is rich?” “More than today/ ability to spend without worry”
“The more you have, the more you think you need to have”
Requirements for value
“Safety, comfort, respect”
“Top performance, lightning speed and impeccable service”
IOI HNWI SALES
Breathing, food, water, sex, sleep, excretion
Safety, job, morality, family, health, property
Friendship, family, intimacy
Self-esteem, confidence, achievement, respect of others
Morality, creativity,
spontaneity, knowledge,
problem-solving
Mass
Affluent
Needs• Esteem• Growth• Aesthetic• Body• Safety• Social
Session 1 21
Mass
Affluent
IOI HNWI SALES
GOOD NEWS, BAD NEWS: Use of advisors Affluent comfortable with advisors
Financial, legal, educational, business, etc Hurdles to becoming advisor
Competition is intense Bad experiences Difficult to establish trust & rapport Like to control their own finances
What are the implications of this?
IOI HNWI SALES
CONSULTATIVE SALES: DefinitionConsultative selling is an organizational system of consistent processes & sales force skills, all dedicated to maximizing the number & value of sales, minimizing the time & effort involved & benefiting the customer so that a long-term relationship is built.
IOI HNWI SALES
MOST IMPORTANT WORD: “You” What’s more important?
IOI reputation or prospect’s interests? Property features or prospect’s family? Amenities or prospect’s goals?
Personalize by using prospect’s name frequently
Not “our features,” but “your benefits” Body language, words, tone of voice must
“mirror prospect”
IOI HNWI SALES
CONSULTATIVE SALES: Power of “you”Tom Hopkins, legendary sales guru
“When I attended a huge banquet for top salespeople the speaker introduced someone and said, ‘This man earned twice the national average in sales last year…’
“Then he added: ‘... and he’s totally blind.’
“The speaker said, ‘I’m sure that many of us are wondering how you sold so much with your handicap.’ The blind man got up to answer…
How did a blind man sell so much??
IOI HNWI SALES
CONSULTATIVE SALES: Power of “you”The blind man replied, “I don’t have a handicap, I have an advantage. I have never seen what I’ve sold, so I have to sell through my client’s eyes. What I do is what all of you sighted people should do to serve clients better and make more money.”
The point: You must see benefits and features from the buyer’s viewpoint. Use their values, not yours. Your opinion of the product, your company, and of yourself as a sales professional is not important or relevant. Then you can concentrate on your job of serving them. You will be able to empathize with their situation, specific needs, and radiate the confidence that you can help them.
IOI HNWI SALES
CONSULTATIVE SALES: Why practice? IOI mystery shop: “Excellent product knowledge
Very successful salespeople have adequate product knowledge, but superior knowledge of customers
Sales people with highest product knowledge don’t make the most sales
If forced to choose, buyers are more likely to deal with those who best understand their needs than with those that best understand products
IOI HNWI SALES
CONSULTATIVE SALES: 5 steps Relate to customer/Establish rapport
Create partnership Don’t sell; “help to buy”
Understand their goals &/or constraints Solve their problems & issues
Meet objections Involve the entire organization
Move to next step/close Provide service & help
Follow-up (satisfaction, cross-/upsell, referrals)
*T
IME
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CONSULTATIVE SALES: Foundations Attitude
Goals Confidence, enthusiasm, motivation Willingness to help buy
Image Dress & courtesy
Knowledge Product & processes Customer Market & competition
Skills Listening Questioning Silence Observation
Tools Planning Information & education Contact management Time management
IOI HNWI SALES
Exercise #3 -- Challenges of sales to affluent
Based on your experience, list the issues, concerns, and obstacles associated to the affluent. Be prepared to discuss them, including how to deal with them.
Challenges How to deal with them Suspicious of sales people ? ? ?
Establish trust & rapport ? ? ? ?
IOI HNWI SALES
SALES TO AFFLUENT: CHALLENGES
What they think What they feelWhy should I listen to you?
“I can buy from anybody, and everybody wants my business.”
Why should I trust you or your company?
“Everybody wants to make money off me.”
Do you understand my problem?
“I’ve heard every sales pitch in the world.”
Can you solve my problem?
“I’m richer and smarter than you. What can you deliver better than me?”
Why take action now? “Can I find other opportunities?”
IOI HNWI SALES
SALES TO AFFLUENT: Major challenge Willingness to defer gratification
Future-oriented vs. “I want it now” Generational view Worried about opportunity cost Risk-averse Inertia is always the easiest
Common objection “I’ll think about it.” ““Send me the information”, etc. etc. etc.
IOI HNWI SALES
DELAY: Dealing with procrastination 3-step process
Agree Find something to agree with Gives acknowledgement to the prospect
Clarify Ask 1-2 questions about current situation, decision-
making process, constraints, etc. Legitimize
Determine if the prospect is sincere Ask questions to uncover next possible step (eg. “After
presenting to you the proposal, what do you see happening next?”)
IOI HNWI SALES
DELAY: Dealing with procrastination “Send me the information”
Agree: “I would be glad to forward you some information”
Clarify: “What specific information would be of particular interest to you?”
Legitimize: “I will send you the requested information shortly. Assuming you need time to look through it, when would be the best time to call you back?”
“What do you think will happen after you have reviewed the information / proposal?”
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DELAY: Dealing with procrastination “I need to talk it over with my boss”
Agree: “Great, I’m happy to hear that you will follow through on that.”
Clarify: “Based on what I’ve presented to you, what do you like most?”
Others: “When will you be discussing the proposal with him?”
Others: “Would we be able to meet together with your CEO to discuss this matter?
Legitimize: “When you present to your boss, what exactly will you share with him?”
IOI HNWI SALES
DELAY: Dealing with procrastination “Call me back in three months”
Agree: Fix a date and time for you to return that call.
Clarify & legitimize: “For me to best prepare the next follow-up call, what
exactly will we be discussing?” “What will be happening between now and the next
three months?”
IOI HNWI SALES
DELAY: Dealing with procrastination “You really should be talking to someone
else” Agree: “Great, I’d love to talk to John” Clarify: “Based on your past experiences
working with John, how do you think he would react to my proposal?”
Legitimize: “Let’s say John has read my proposal, can you think of any concerns he might have?”
IOI HNWI SALES
Exercise #4: Dealing with procrastination
How you respond to these delaying tactics?
Then write down 2-3 delaying tactics used by your customers, and write down statements to “agree, clarify & legitimize.”
*
Procrastination Response
Customer procrastination statement #1
Agree: Clarify:Legitimize:
Customer procrastination statement #2
Agree: Clarify:Legitimize:
IOI HNWI SALES
THE AFFLUENT: Requirements for value Service expectations: Extremely high
Competition not other developers Competition = Ritz-Carlton, 1st class Emirates,
Trump Tower penthouse, etc. What they expect from you
24/7 immediacy Knowledge & process expertise Experience that is seamless, easy, painless &
proactive
IOI HNWI SALES
THE AFFLUENT: What they hate Neglect Poor service Complacency/inefficiency Inconvenience Technical deficiencies Telling, & not listening Impersonal relationship Excuses
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“HIGH SERVICE EXPECTATIONS:” DiscussWhat do we mean when we say affluent have high service expectations? What elements of service do the affluent want?
IOI HNWI SALES
“HIGH SERVICE EXPECTATIONS:” Define Easy to do business with
Giving them what they want, when they need it Knowledge
How to solve their problems/meet requirements Proactivity
Anticipate their requirements Reliability and dependability
Delivering on the brand promise Predictability
Consistent, effective and efficient
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“HIGH SERVICE EXPECTATIONS:” Define Breadth and depth
Ability to meet multiple client/prospect requirements
Knowledge, competence, and follow-up No mistakes; ability to answer questions
Willingness to work on behalf of customer when problems arise
Be their advocate Early notification of problems
How does IOI deliver high levels of service?
IOI HNWI SALES
“KNOWLEDGE & EXPERTISE:” Sales skills What are the 4 most important sales skills
and why? ?? ?? ?? ??
IOI HNWI SALES
“KNOWLEDGE & EXPERTISE:” Sales skills What are the 4 most important sales skills,
and why? Smart observation Smart listening Silence Smart questioning
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SMART OBSERVATION: 3 elements Observe: How fast do they speak? What
vocabulary do they use? Do they consult with spouse? How are they dressed? Etc.
Determine: What type of person are they? Driven? Low-key? Family-oriented? Status-conscious? Conservative? Etc.
Follow: Speak at same speed and use the same kind of words they do.
Why do you want to observe and follow these elements?
IOI HNWI SALES
SMART LISTENING: 3 elements Ideally, you should be listening (and observing) 70% of time during initial meets
What to listen for Sense of personality Motivations/requirements for value
Prove you’ve listened Summarization Mirroring (“calibration”)
Body language/other feedback
No interruptions!! (questions, phone, etc)
IOI HNWI SALES
SMART LISTENING: MotivationsDesire to gain Desire to avoid loss
Make money Save time and/or avoid effort Achieve comfort Have health Be popular and/or in style Be praised Have beautiful possessions Attract opposite sex Emulate othersTake advantage of opportunities
Avoid criticism Avoid loss of possession Avoid pain Avoid loss of reputation Avoid loss of money Avoid trouble
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SMART LISTENING: SummarizationSummarization: Recap of prospect’s point of view/comments
Lets prospects know you’ve been listening Lets them know you understand Increases trust/rapport (builds relationships) Gathers information for sales and decision-making Lays groundwork for presentation & objection-handling Verifies your understanding of prospect requirements Allows you to evaluate accuracy & importance of
information
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Role play -- Summarization
One partner will spend 1-2 minutes talking about a spouse or a child. The other partner will summarize what was said in 1-4 sentences.
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IMPACT OF BODY LANGUAGE
Social setting Business setting
Body language 55% 32%
Words 7% 53%
Tone of voice 38% 15%
SMART LISTENING: Body language
Body language: Facial expression, eye contact, hand movement, posture, physical distance, dressing etc.Tone of voice: Volume, pitch, clarity, pace, etc. Words: Fluency, choice of words, etc.
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SMART LISTENING: Mirroring Reflect the postures, gestures (arms
crossed, hand motion, etc.) and rate of speech of others (not obvious!)
Reflect language of prospect Selling property to accountant
“I’ve analyzed your interests and think you should boost your portfolio of high-end property. The figures show that the returns on this investment will be great. When you add up the potential, I’m sure you will agree.”
Selling property to architect “I’ve drawn some conclusions and see the need for you
to structure your purchase for a better financial foundation. As you review our blueprint, I’m sure you will agree.”
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SMART LISTENING: Language/feedback Listen with feedback
Reflection: Repeat, or “reflect”, key words used by prospect
“I’m driving my company on the road to profitability.” “Allow me to steer you to something that might provide
a roadmap.” Affirmation: (“Yes, that’s right!”, “I agree,” etc.) Confirmation: Confirm with closed (yes/no)
questions “I want an open floor plan.” “Isn’t an open floor plan best for entertaining?”
*
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SMART LISTENING: Language/feedback Case study - Negotiation
One group of MBA students was told to mirror the prospect while negotiating a business deal while another group was instructed not to
Results: 67% out of the group who mirrored the prospect got
the deal 12.5% out of the group who did not mirror their
prospect got the deal
IOI HNWI SALES
Exercise #5 -- Listening Test - Part A
Did you listen? Write the 3 most important sales skills.
Listening Test - Part B
Summarise what you’ve learned so far in 3-4 bullet points.
Listening Test - Part C
The instructor will role-play a prospect. Mirror the role-play, both in body language and in speech. (If time, role-play smart listening w/partner)
*
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SILENCE: Valuable sales tool Silence puts pressure on prospect to say
something & make a decision If you keep talking after prospect has agreed, he
may find reasons NOT to buy Silence increases attention
Pauses make listener listen Pauses make answers sound more “intelligent”
Silence gives opportunity Moment to reflect -- and remember -- information Opportunity for you to think about next step
*
IOI HNWI SALES
Role play -- Use of silence
The instructor will ask a question. Wait 10 seconds before replying. (Hint: Look like you are thinking about response.)No looking at watches!Partner A will ask a question of Partner B. Partner B will wait 20 seconds before responding. However, Partner A can ask another question when he feels 20 seconds is up. First one to speak AFTER 20 seconds is up wins. Speaking BEFORE 20 seconds is up loses.
IOI HNWI SALES
SESSION 1: Review What is consultative selling? How does it
compare to yesterday’s sales methodology?
What are the 5 steps to consultative sales? What is the one most powerful word to use
in sales? Why? Product knowledge is important, but what is
a more important knowledge? Why? What are ways to get this knowledge?
*
IOI HNWI SALES
SESSION 1: Review Describe some characteristics of affluent.
What is one major way affluent differ from masses?
What are some obstacles in dealing with affluent?
How do you deal with procrastination? In service terms, who is IOI’s competition? What are four vital sales skills? Describe
each?
*
IOI HNWI SALES
SESSION 1: Review What was the most interesting or useful
information you learned today? How will you apply that knowledge? What
will you do differently or better in future? What do you want to learn more about in
the areas covered, and what would you like to practice more?
Any other questions?
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SESSION 2: HomeworkRead the following articles and be prepared to discuss next week:
“How the Super-Rich Buy Homes” “How High-End Brokers Market Luxury
Homes”
*
