Action Pack 3 Developing Sales Skills(1)

7/31/2019 Action Pack 3 Developing Sales Skills(1)

1/23Developing Sales Skills 3-1

MODULE OBJECTIVES

At the conclusion of this module, the sales professionalwill be able to:

1. Create a need-feature-benefit-agreement statement

2. Create a Cushion, Restate, Isolate and Question, Answer,

Commitment statement (CRIAC) in order to address and

overcome various objections

3Developing Sales Skills

Selling is an orderly process of uncovering the needs of buyers and sellers and finding practical

solutions to meet those needs. In this module you will learn basic skills and communicationconcepts in order to develop smooth-flowing sales dialogues and build confidence in your

ability to help people make good buying and selling decisions.

Tools and Resources

I Need-Feature-Benefit-Agreement worksheet

I Sample scripts

I Sample CRIAC steps

I CRIAC worksheet


2/23

Good sales skills begin with developing a sales sense. There are three stages of focus that sales

professionals progress through as they learn to develop their own sales sense.

1. Focus on the Product: In the beginning, new licensees feel that they must learneverything they can about real estate sales before they can present themselves credibly to

buyers and sellers. Their focus is on the product and the process, rather than the customer.

2. Focus on Self: At this stage, sales professionals are comfortable with the product, and

begin wondering, How am I doing? Their focus turns to memorizing scripts and

presentations and what to say in various situations. In conversations with buyers and

sellers, sales professionals tend to think ahead to the next question rather than listening

to the other person. They talk about themselves in sales presentations, putting themselves

at center stage.

3. Focus on the Customer: This is the final stage in the evolution of developing sales sense.

At this point sales professionals know the product so well that they dont have to talk as

much about it. They are comfortable with themselves and can allow someone else to

shine in their presence. Their attention is directed to their customers and they are keenly

aware of the how the presentation is going. They ask for, and welcome, feedback. They

constantly ask themselves How does the customer feel?

NOTES:

3-2 Developing Sales Skills

Developing a Sales Sense


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The sales process is sequential. It begins with prospecting, moves on to building relationships

and understanding wants and needs and motivation through presenting benefits, and

finallyclosing.

Prospecting

Prospecting is meeting people and asking questions to discover listing and selling opportunities.

Building the Relationship

Customers have relationship needs. Buyers and sellers will ask themself:

I

Do I like the sales professional? Sellers and buyers alike respond to the first impressionof the sales professional. They want to work with someone they can feel friendly toward,

as well as respect.

I Do I trust the sales professional? This is the most critical element in building the

relationship. If a buyer or seller trusts the sales professional, he or she knows that what

the sales professional says is credible and that the sales professional will act in his or

her best interest.

NOTES:

Developing Sales Skills 3-3

The Sales Process


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When you have created a comfortable climate of trust and rapport, buyers and sellers will want

to tell you more about themselves andwhat they need. This is your opportunity to help them

find solutions. Buyers and sellers will act on their emotions, so listen for their true motivation

beneath the words. This step is critical. Your task is to ask questions to find out why theywant it andwhy it is important to them.

For example, a purchaser may state:

Purchaser:

I want a home with a gourmet kitchen and plenty of storage space.

Sales Professional:

I want to make sure I understand your needs. Please describe what you

mean by a gourmet kitchen and tell me why that is important to you.

Purchaser:

I would like to have custom hardwood cabinets and either marble or granite

counter tops, a spacious center work-island, a top-of-the-line convection oven

and Sub-Zero refrigerator. I like to entertain. My old kitchen was too small and

outdated, which made it difficult to prepare large meals for family gatherings.

At the conclusion of this step, expressions of motivation should have told you why the

customer wants the product andwhy it is important to him or her.

I Why it is wanted Small and outdated kitchen

I Why it is important Entertain and prepare meals for large family

NOTES:


Understanding Needs and Motivation


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Without defined benefits, buyers and sellers may not be able to rationalize the decision to buy

or sell. Adding a benefit to a feature creates value in the mind of buyers and sellers, and you are

able to satisfy two important concerns:

1. How the product or service satisfies their needs

2. How the value received is greater than its cost

The basic guideline is to present the benefits of the product or service before discussing the

cost. By discussing benefits first, buyers and sellers can build an emotional attachment to the

product or service. If the emotion is strong enough, they will rationalize why the price is right.

The way to establish an emotional attachment to a product or service is to show buyers and

sellers the benefits, not just the features. Features are physical descriptions of the product orservice. Benefits describe what the product or service can do or how it will make the buyer

or seller feel.

I To a buyer, a gourmet kitchen is a feature. Being able to entertain and prepare large

meals for family gatherings is the benefit.

I To a seller, an open house is a service feature. The benefit is exposing the home to

more prospects, thus reducing the marketing time, so the seller can get settled in his

or her new home faster.

NOTES:


Presenting Benefits


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Presenting Benefits - Gain Agreement

Once you have presented a feature with an appropriate benefit, you need to test whether you are

on the right track with the customer by asking a trial close. In other words, is the feature/benefit

truly important to this customer? Is the benefit greater than the cost? A trial close is a question

that asks for an opinion or feeling toward something, and elicits small agreements or yeses.

The following are examples of trial closes:

How does that sound to you?

Do you feel that this would satisfy your needs?

Am I on the right track?

Does this sound like a good idea to you?

If you get negative answers to trial closes, change your approach, or present different benefits.

If you get positive answers, then ask for a decision.

Need-Feature-Benefit-Agreement Statements

Presenting benefits is an important step in developing sales skills. Follow this simple guideline

in creating a benefit statement.

1. Summarize the need that the customer has expressed

2. Describe the feature or fact

3. State the benefit

4. Gain agreement

NOTES:



7/23

Example #1

Summarize the need

You said you were tired of sharing a bathroom with your three children.

Describe the feature/fact

This home features a separate private bath off the master bedroom.

State the benefits

This additional bathroom will give you the privacy you are seeking and

provide added convenience to everyone in the house.

Gain agreement

The additional bathroom presents a great solution to your needs, doesn't it?

Example #2

Summarize the need

You mentioned that Internet marketing was important to you.

Describe the feature/factPrudential Real Estate and Yahoo! Real Estate have an exclusive, multi-year

marketing agreement that enables visitors to the Yahoo! Real Estate Web

site, looking for properties in our town, to connect directly to our companys

Web site.

State the benefits

The benefit to you is more exposure for your property, and more potential

buyer inquiries. The more buyer interest we generate in your property, the

sooner we should attract a buyer who will want to make an offer.

Gain agreement

Can you see how this added exposure could help your home sell faster?


Need-Feature-Benefit-Agreement Statements


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Listed below are various property and service needs that may be important to buyers and sellers.

EXERCISE:Create your own need-feature-benefit-agreement statement by using

one of the sample property or service needs.

Sample Property Needs Sample Service Needs

I Storage space for sports gear I Technically competent

I Play room for children I Focused on customer service

I Fenced yard for pet I Internet exposure

I Cul-de-sac lot for safety I National promotion

I Private home-business office I Knowledge of the area

I In-ground pool for summer I Outside area contacts

I Updated kitchen / large family I Strength of a national brand

I Space for in-law suite I Committed to my needs

Summarize the Need:

Describe the Feature:

State the Benefit:

Gain Agreement:


Creating a Need-Feature-Benefit-Agreement Statement


9/23

The final step in the sales process is the close for a buying or selling decision. For some sales

professionals, this step is the most difficult and requires both skill and confidence.

Methods of Asking for the Decision

Minor Point:

Ask for a decision on a minor point rather than on the entire sale. Gain agreement on one

issue. If the customer agrees on that issue, you might be ready to close for the sale. See

examples below.

I Is a closing date of June 8 OK with you?

I Did you want to ask the seller to assist with your closing costs?

I How soon do you want to schedule a home inspection?

I Shall we include the hot tub in your offer to the seller?

Provide Alternatives:

Another way to question on a minor point is to offer a choice. See examples below.

I Is a closing date of June 8 OK, or would the 15th be better for you?

I Is an earnest money deposit of $2000 agreeable or would $3000 be better?

I Do you want the seller to replace the carpet or take the property as is?

NOTES:


Closing - Obtaining the Buying/Selling Decision


10/233-10 Developing Sales Skills

Situation Analysis

Initiate Physical Action:

Either before or during your closing questions, begin filling out a purchase or listing contract.

When it is completed, turn it around, summarize it, and ask for the signature.

Stop Talking:

Once you have presented your case and asked for a decision, stop talking and wait for the

answer. The customer is thinking and justifying why he or she should sign the agreement. The

customer may be feeling tension, and the only way to relieve it is to make a decision. Dont

make a decision for the customer by talking.

Ask again:

If the answer is no, find another way to ask again. It takes time to make a commitment. The

easiest way for the customer to stall for time is to say no, even though the response might

actually mean, not yet, or give me more reasons to buy/sell.

Probe for reasons behind the hesitation and summarize the need. Describe other features that

meet the customers concerns and state the benefits of the solution. Gain agreement by asking

another minor point or alternative choice close.

If you truly understand the needs of the customer, and believe your solution is in his or her best

interest, then your persistence will be a reflection of your sincere desire to help the customer

make a good decision.

Be careful not to let your persistence frustrate the customer. If he or she is not ready to make a

decision, then take the concerns as an opportunity to gather more information and data. Repeat

the process of presenting benefits to help the customer make a decision. Remember, your role

is to support the buyer or seller during the decision-making process, regardless of the outcome.

NOTES:


11/23

It is typical for buyers and sellers to raise objections. An objection does not mean no sale

(or no listing). It does mean the buyer or seller needs your help in making a decision. An

objection indicates the buyer or seller is really thinking about purchasing/selling. He or she

would not raise a concern if there were no interest in moving forward.

Before you begin the process of handling an objection, pause for a few moments. The buyer

and/or seller may resolve their own concerns or voice additional ones. Remember, in the search

for logical justification to purchase or sell, the buyer or seller must feel free to raise concerns.

Five Steps for Handling Objections (CRIAC)

The following is a five-step approach for handling objections, calledCRIAC (Cushion,

Restate, Isolate, Answer, Commitment):

1. Cushion the resistance by offering a statement acknowledging the concern without

expressing agreement or disagreement with what has been said. You are simply indicating

that the buyer and or seller is being heard and that their concern is important to you.

2. Restate for clarification. By restating the objection back to the buyer or seller, you

demonstrate your willingness to listen.

3. IsolateThe purpose of this step is to draw out and clarify all concerns. Determine ifit is the only concern, or if there are other additional objections that must also be dealt

with. When asked, if the buyer or seller responds that he or she would make a positive

decision if the problem were solved, then you are in a position to move forward.

4. AnswerThere is a time when sales professionals must provide answers. This is done

only after you have completed the first three steps of the CRIAC process. You might

even ask if the buyer or seller has an idea for dealing with the concern. There are

several different ways that you can help answer the customers concerns. Your role will

be to help provide options that lead the buyer or seller to an agreeable outcome.

5. CommitmentIf the buyer or seller agrees that the problem is solved, then ask for a

decision. If this was the first objection or concern raised, remember you may have more

underlying resistance to deal with.


Objections


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1. Cushion:

I I understand how you feel.

I Thats a reasonable position to take.I I appreciate your concerns.

I Thats interesting.

I Im glad you brought it up.

I I agree.

I You probably have good reasons for feeling that way.

I Thats a good question.

I A lot of people in your position share that same concern.

I That really is an important point.

I _____________________________________________

I _____________________________________________

I _____________________________________________

2. Restate:

I As I understand it, you feel

I If I understand you correctly youre saying

I Does this mean that

I It sounds like (state concern) is important to you.

I So that I completely understand, what youre saying is

I The real question is

I Your feeling is that

I ____________________________________________

I ____________________________________________

I ____________________________________________


Sample CRIAC Steps


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3. Isolate and Question:

I If we could resolve this, do you feel

I Other than that, is there anything else?I Is this the only reason

I If it werent for ____ would you

I What is it about ____ that concerns you?

I Why is that important to you?

I ______________________________________

I ______________________________________

I ______________________________________

It is important to clarify the objection and to pin down exactly what it

is the buyer or seller is objecting to. Always question the customers

position, and never defend yours. By questioning the objection, the

buyer or seller is forced to justify the logic behind that decision. If the

objection is invalid, then the buyer or seller will be unable to justify it.

This saves you the trouble of answering objections that are really stalls

for time. The buyer or seller also has an opportunity to answer his or her

own questions.

4. Answer the Objection:

Reverse It: Reverse the power of the objection by demonstrating the

benefit of the item and showing why the buyer or seller needs it.

I can pay a lower commission to ABC Realty down the road.

Yes, I agree that our fee is higher than this company. Thats the very

reason why you should list your property with us.As demonstrated, our

standards of performance are also higher as well as our commitment to

get your property sold.



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Admit It: Simply admit that what the buyer or seller is objecting to is

correct and why it is important.

You wont promise to advertise my property in the paper each week?

Youre right. Thats a promise I dont need to make.You see, our

marketing program is designed to catch the attention of buyers who

will be attracted to your property. By promoting your property on the

Internet, we have the capability to attract thousands of potential buyers

every day in addition to our print advertising.

Reduce the Difference: When objections pertain to measurable items,

discuss only the difference, not the whole amount. Measurable items

would include: price, payments, costs, room sizes, distances from things,

time, lot size, etc. Refer to the additional size of the bedroom area, or the

extra $20 per month in payments, or the 8 minutes more of driving time.

I wont accept anything less than a full-price offer of $215,000.

You are currently paying mortgage payments of $1500 per month. If the

house should happen to stay on the market for an additional three months,

which it could, you would be out far more money than you would by

accepting this offer for only $3000 lower than the listed price. By accepting

this offer, you actually stand to gain an additional $1500.And theres no

guarantee that another offer somewhere down the road will be any higherthan this one.

Explain It: Often an objection is a cry for information. By providing an

explanation, many objections resolve themselves.

Im not sure I want a lock box on my front door.

Let me explain how the lock box works and demonstrate its safety features.

Deny It: If the objection is unfounded or untrue, demonstrate and showwhy the buyer's or seller's perception might be misguided.

XYZ company seems to sell most of the properties in this area.

I can understand why you might get that impression. However, the fact is

that our company sells 72% of all the properties it markets. That is currently

higher than any other company in our MLS. Let me show you the data.



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5. Commitment:

If the buyer or seller agrees that the problem is solved, then ask for a

commitment. Try any of these methods.

Assumptive: Give a positive statement assuming the answer is yes.

Im looking forward to going to work for you in the marketing of

your property.

Minor Point and Order Blank: Having the buyer or seller agree to a

minor point in writing or to fill in the blank is also an indication of

their agreement.

Since your only other concern was having enough time to arrange forthe move, should we include in the listing agreement that you require a

minimum of 45 days to close?

Alternative Choice: Give the buyer or seller a choice between two options

in which agreeing to either of them would indicate an agreement.

Would it be better to include the appliances as part of the asking price,

or would you rather leave them open to negotiation?

Ask Their Opinion: By asking their positive opinion on a point of value,it justifies the reasoning to say yes.

In your opinion, is this the type of service you expect from the sales

professional you hire to market your property?

Tie-Downs: Use phrases like Isnt it? Doesnt it? Wouldnt you?

Dont you agree?

A property this spectacular doesnt come around very often, does it?

Feel, Felt, Found: This is a simple method to bring objections into focus.

I know how you feel. Recently I had buyers who felt the same way;

however, they found that the pre-qualifying process gave them a

stronger negotiating position when making an offer.



16/23

Sales Professional: If we set a closing and possession date for the end of next month,

would you be able to move in?

(OBJECTION)Purchaser: Well, wed really like to think this over first.

(CUSHION)

Sales Professional: I can certainly appreciate that.

(RESTATE)

It sounds like you want to be very sure about your decision,

is that right?

Purchaser: Yes, we would.

(ISOLATE & QUESTION)

Sales Professional: Does the fact that you want to think it over mean that youre

seriously considering this home?

Purchaser: I guess. Were just hesitant not knowing what the payments would be.

(ISOLATE & QUESTION)

Sales Professional: If you felt the payments were reasonable, and that the lenderwould approve them, would you feel comfortable in this home?

Purchaser: Yes, wed feel good about that.

(ANSWER)

Sales Professional: I have a new rate sheet provided by your lender. Based on your

initial investment, and amortizing this amount over 30 years at this rate,

your payments would be this amount. How do you feel about that?

Purchaser: That sounds pretty good.

(COMMITMENT)

Sales Professional: In that case, which amount is better for your initial deposit,

$2,000 or $3,000?

Purchaser: Lets go with $2,000.


Sample CRIAC Script


17/23

You will handle many buyer and seller concerns in your real estate career. Now that you know

how to handle buying and selling objections, you can prepare scripts to help address some of

these common objections.

BUYER OBJECTIONS (property concerns / making an offer / negotiating)

I Wed really like to think it over first.

I This seems to be a little out of our price range.

I This house is too far away from (work, school, church).

I This house needs too much work.

I The (yard, kitchen, bedroom) is too small.

I Were going to make a low offer and see what they do.

I Weve given everything we can. We simply cant come up any higher on the price

than this.

SELLER OBJECTIONS (listing presentation)

I We want to think it over first.

I Another company said they would list for __%. Will you reduce your fee?

I Wed like to talk to other companies before making a decision.

I We have a friend in the business.

I We dont want to be tied to a long commitment.

I Another sales professional said they could get us more from the sale of our property than

what you are indicating.

I We cant sell it unless we can get $____ out of it.

I We dont want to put more money into this place. We want to sell as-is.

SELLER OBJECTIONS (low offer / contract negotiations)

I This offer is insulting. Lets just reject it.

I I think we should counter with a full-price offer.I The_____ (item) is simply not negotiable.

I We cant take any less for this house than what weve already offered.

I This is our bottom line. We cant go any lower.

I Were not budging. If they want this to work, they will have to come up in price.

I What will you and your company do to make up the difference?


Other Objections


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The Concern:

Cushion:

Restate:

Isolate and Question:

Answer:

Commitment:


CRIAC Worksheet

EXERCISE:Select one or more of the listed objections. Using the CRIAC

worksheet, develop your own CRIAC.


19/23

Feedback Awareness

Feedback is return communication from your buyers and sellers, your accountability coach, and

fellow sales professionals. You get feedback in two ways:

1. Look and listen for it.

2. Ask for it.

Feedback will show you:

I How youre doing in this business.

I If youre doing the job correctly.

I When to move to the next step in the selling process.

I When you have rapport.

I When youve uncovered a customers true motivation.

I If your customer trusts you.


RESOURCE:See the Resource Tab for an additional copy of the CRIAC

Worksheet. Make copies as needed.


20/23

Professional salespeople are responsible for uncovering the needs of buyers and sellers while

building trusting relationships. Then they identify the product or service that meets these needs.

The last step is to present benefits, answer any concerns and support the customers decision

to purchase or sell.


Summary


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1. The sales process is sequential. It begins with prospecting, moves on to building

relationships and understanding wants and needs through presenting benefits, closing

and f inally, overcoming objections.

J True J False

2. Customers have relationship needs. For buyers and sellers to agree to work with you,

they need to like you and trust you.

J True J False

3. In understanding needs and motivations, its not enough to know what customers want,

but why they want it and why it is important to them.

J True J False

4. Underline the four steps for creating a benefit statement.

a. Summarize the need

b. Speak to the problem

c. Describe the feature

d. Tell them its important

e. State the benefitf. Gain agreement

g. State the cost

5. List the five steps in creating a CRIAC to help overcome objections.

a.

b.

c.d.

e.

Turn to the following page to check your answers.


Summary Questions


22/233-22 Developing Sales Skills

Answer Key

1. The sales process is sequential. It begins with prospecting, moves on to building

relationships and understanding wants and needs through presenting benefits, closing

and f inally, overcoming objections.

J True J False

2. Customers have relationship needs. For buyers and sellers to agree to work with you,

they need to like you and trust you.

J True J False

3. In understanding needs and motivations, its not enough to know what customers want,

but why they want it and why it is important to them.

J True J False

4. Underline the four steps for creating a benefit statement.

a. Summarize the need

b. Speak to the problem

c. Describe the feature

d. Tell them its important

e. State the benefitf. Gain agreement

g. State the cost

5. List the five steps in creating a CRIAC to help overcome objections.

a.

b.

c.d.

e.

Cushion

Restate

Isolate the Question

Answer

Commitment


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Sales Professional Action Plan

The following activities are to be checked off as you complete them. When all activities

are finished, schedule an appointment with your accountability coach to review your

accomplishments.

J Continue to preview your office listings.

J Schedule an appointment with your accountability coach and create a weekly schedule

utilizing the Weekly Work Plan located in the Resource Tab.

J From your completed Weekly Work Plan, schedule your next day using the Daily

Work Plan. Review your activities at the end of the day and be prepared to show yourappointment book to your accountability coach. Demonstrate how you plan to follow

your plan for each day of the week.

J Log onto PREA Center and locate the eCard site under Sales Professional Tools.

Complete the WebEx eCard independent study course by clicking on the link to the

onlne demo on the eCard home page.

J On the eCard site, set up your account profile and begin to import and enter your

database of potential contacts.

Review

Need-Feature-Benefit-Agreement

J Review the information on creating need-feature-benefit-agreement statements

and create a statement for each of the samples given and review with your

accountability coach.

CRIAC

J Review the CRIAC process with your accountability coach and create CRIAC

scripts for three common objections and review with your accountability coach.

Module 3 Developing Sales Skills

Action Pack 3 Developing Sales Skills(1)

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