Follow-Up. Your First Customer Service Test
I recently attended a Nicky Joy seminar. What a powerful speaker! Nicky had a phrase that was extremely relevant. “Follow-Up is your first customer service test.”
How true! So many sales executives have trouble following up after a motivated buyer has graced their doorstep. With that being the case, one can only assume that all of those internet and phone leads are not getting the royal treatment they deserve.
Buyers are more than a little reluctant right now to walk through that door considering the economic climate. But they are still shopping! Add that to an already busy schedule full of soccer games, dance recitals and limited family time and it becomes obvious why doing their initial research on the web has become so prevalent. Your new customers are using the internet to shop, research, compare and narrow down their choices. Ultimately, they use the process of elimination to narrow down their selection to an average of 2-3 builders or homes. Then, they’ll probably reach out to you digitally and ask those final comparison questions.
It is at this critical moment that you have an opportunity to gain—or lose—a customer. You are being tested. How you follow-up is setting the standard for both you and your company. Do you follow-up immediately? Do you follow-up professionally? Do you follow-up with a friendly and assisting tone? Consider these questions and then ask yourself if you would pass or fail the follow-up test.
I know that managing your current clients as well as new leads is time consuming. But I guarantee, that if you respond in a timely, friendly and consistent fashion, you will pass the customer service test and convert more of those internet shoppers into satisfied customers.
Record Your Phone Calls - Increase Your Conversions
I’ve had plenty of sales associates (even a sales manager) tell me, “I do better selling face-to-face, it’s hard for me to connect with people over the phone or by email.” The problem is that customers aren’t shopping face-to-face, they’re shopping online, and the primary forms of communication during the “shopping phase” are email and phone. It is critical you become great at communicating by email and especially over the phone.
It is amazing what happens when you record and listen to your phone calls. Once you get over the initial shock of how weird your own voice sounds, you can start to dissect the conversation and pinpoint ways to improve your delivery.
The first step, of course, is to take the time to record yourself talking with a customer. Ask others whom you trust to analyze it with you to constantly improve your methods. Also, be sure to record every message you leave. You will hone your phone skills as you do this. Remember, most messages are relayed through non-verbal communication, such as facial expressions, posture, etc, when you speak on the phone, you are relying solely on your verbal communication. It is imperative that you are not focusing on what you should say next but how you will say it. The way you can overcome this is by memorizing proven scripts that will help you speak effectively on the phone.
In addition to memorizing and utilizing scripts, here are some excellent tips that lead to better phone communication:
• Maintain good posture.
• Smile when you talk – it comes through on the phone.
• Slow down your speech.
• Listen to the customer – do not interrupt.
• Ask multiple and engaging questions.
• Prepare in advance.
Sales managers - if you are worried about your staff not recording their calls - do it for them. Use a service like Callsource or Whoscalling to record, track answer rates and use the results for training.
Measuring Success - Tracking Appointments and Contracts
One of the key benefits of an Online Sales Program is the ability to track and quantify actual results. Because you can measure results in every area, it is imperative that you spend time understanding the statistics so you can test and change the program to produce better results.
One of the important areas to track is the Appointments and Contracts - which will help you measures the effectiveness of both your OSC and your Online Sales Program. This is one area that should be easy to track. Your OSC is paid from the result of these measurements so s/he should be able to stay on top of it fairly well. The key areas for tracking are:
- Appointments Set
- Appointments Kept
- Appointments Missed
- Contracts from Appointments
- Closings from Appointments
- Ratio of Online Contract vs. Onsite Contracts
- Ratio of Online Closings vs. Onsite Closings
- Leads who visited but did not schedule with OSC
- Percentage of Leads from Unique Visitors
The OSC will track the initial appointment set and will need a confirmation from the onsite agent after the appointment is held to verify that the prospect visited the community. If the leads management software you choose does not have the ability to let the onsite agent update the status of the appointment, the OSC can send a quick e-mail after the appointment time verifying that the prospect made it to the appointment. This is also a good time to make sure the prospect liked the neighborhood and does not need further information. A well-trained OSC will follow up with the lead if the appointment was missed or they did not like the neighborhood and will try to set another appointment.
By comparing and tracking the percentages of sales driven from your Online Sales Program, you will be able to justify the amount of marketing dollars spent to acquire these customers.
I recommend creating two reports for both the appointments set (to be used for commission tracking) as well as the conversion ratios for the leads. Many CRM tools have tracking integrated into the software, if not, you can use a multi-page report created in Excel that combines data from each report in the different areas.
The Prospecting Machine
Prospecting: defined.
I recently heard a “business definition” that made me stop in my tracks.
Why? Because it applies DIRECTLY to our roles as Online Sales Counselors.
The definition was of the word “prospecting.” Simple enough, right? From a business perspective, it’s defined as “Finding new potential customers who have the ability, authority and willingness to purchase.” All good things, right?
Think about it this way: at any given time, there is a certain percentage of the population looking to purchase a new home. From there, a certain percentage of those folks will respond to your builder’s promotional information—and respond by submitting an online lead or calling directly.
From there, you’re officially in PROSPECTING mode—and the good news is that the entire strategy for success can be boiled down into a few simple steps:
1. Start QUALIFYING prospects.
Your first job is to find out if a potential customer is a “true prospect” or not. That’s pretty simple; just start a conversation—either offline or online—and proceed with qualifying questions such as area, timeframe, authority, wants/needs and financing. The longer you’ve been in business, the easier it’ll be to pick up on the signs that a customer is the real deal or not. Many of your “leads” may not respond at all, and that’s fine—you’re looking for the ones that DO.
2. Good information = good business.
Once you’ve whittled your prospect list down to the truly interested customer base, your next job is to provide them with quality information. Your goal is two-fold—to both build value to the potential client in your presentation and to weave your primary selling points into the conversation. Above all else, have your questions prepared, which will make it easier to listen to your prospect’s specific wants and needs.
3. Follow up—and be persistent.
Don’t be impatient; home-buying decisions are among the most important in people’s lives, and they take time. Just because a prospective customer doesn’t call back immediately doesn’t mean that they never will. Like any good sales associate, just do your absolute best to stay in touch and provide the right amount and quality of information. A sale is a moving target, and your job is to keep “firing away” until each target is in a position to buy—because then, they’ll think of you first.
4. Go for the appointment.
There’s only one logical place to go from here—and that’s asking for the personal, face-to-face appointment. As the saying goes, “if you can’t SITE the prospect, you can’t WRITE the contract.” Think about it. Would YOU make one of the most important financial decisions of your life without even meeting a salesperson or company face to face? It’s absolutely crucial to get each prospect in front of a living, caring sales executive—and your homes—to get them to take the next step.
It all starts with a pile of leads, and it’s our job to:
1. Narrow the list down to a subset of true buyers as quickly as possible.
2. Steer them to the right community, right home and right decision.
3. Always see “the big picture”—not just setting appointments, but nurturing prospects along the entire sales cycle.
Sounds fairly simple, right? It is.
All you need to do is get out there and start PROSPECTING—just like its defined.
What are your “Calls to Action”
Seth Godin put it best in his book Permission Marketing, “Your website should be 100 percent focused on signing up strangers to give you permission to market to them.” This can be achieved by providing specific “calls to action” on every page. Here are some great examples you can use:
• Contact us
• Request information
• Schedule an appointment
• Request current pricing
• Online Chat
• Ask the OSC a question
• Register for the builder online portfolio
• Sign up for the e-mail newsletter
• Request an eBrochure
• Priority registration for “coming soon” neighborhoods
• Realtor registration
Brainstorm ways to get customers to interact with you. What information do they want? What have they asked for the most in your previous interactions? Make sure that your “call to action” is clear and every page has some way for the customer to interact with you.
A standard conversion average to keep in mind is between .5 to 2 percent of your unique visitors. For example, if you have 1,000 unique visitors per month, you should expect to see between 5 and 20 people contact you, sign up for an online portfolio, register for a newsletter, etc. This is just a standard to start with as you strive to get those conversion rates up as high as possible. Make it your goal to get between 2 and 5 percent. Consistently tweak and test to determine what works best.
Remember, focus on increasing those conversions. While it is good to drive as much traffic to your website as possible, sometimes all it takes is a slight change in wording or “calls to action” to increase that conversion percentage – and usually that does not cost much. With only a slight increase in your conversion percentage, you can almost double the amount of leads you receive!
OSC Compensation & Salary Structure - Part 5 of 5
One of the questions I am most frequently asked by a builder or sales manager is, “How much should I pay an OSC?” Usually, there is a slight cringe on their face because this is a new position that they will have to work into their budget. In fact, this is a large barrier for most builders. Typically, they are planning on hiring an administrative-type person who will handle the leads in addition to other tasks. They are planning on trying to keep the cost of salary as minimal as possible. That may work for smaller builders with leads less than 50 per month; but if you really want to convert more sales, you need to compensate the OSC in the same range as an Onsite Sales Agent.
Remember, this person has many of the same responsibilities as the Onsite Agent and will be increasing your sales 5 to 10 percent and ensuring that you do not lose sales to your competition. This is a new breed of salesperson and needs to be compensated accordingly.
You may be questioning my recommendations, but I have seen the difference in conversion rates of the OSC who is an “information giver” and those professionals who focus on “closing appointments.”
There are many ways to structure a compensation package for an OSC. You can either set up a straight commission package or a base salary plus commission. Commissions are to be paid per appointments (that are kept) and per contracts. By paying for appointments set and kept, the OSC will be motivated and focused on setting the appointment. This is the number one factor that leads to a sale.
Determining a salary structure is complicated and based on many factors that vary for each builder, such as the cost of living in that area and the job responsibilities of an OSC. Ultimately, you need to make sure the OSC is continually motivated by the commission structure and has a fair compensation that’s equal to an onsite sales agent.
Do not take the bonus out of the Onsite Agent’s commission.
This breeds contempt for the OSC and will taint the appointments. The OSC should be every Onsite Agent’s best friend. They should treat the appointments from the OSC like a Solid Gold, A++++, Super Hot Lead.
Over time, as the program grows, you will need to revisit the pay structure to confirm that it is fair. Also, there could be times where an OSC is not pulling his or her weight. You should be able to determine job effectiveness through tracking and reporting. I review measuring the effectiveness of your program in Chapter 12 of the my manual - Browsers to Buyers.
Read Part 4 of 5 - Hiring an Online Sales Counselor >>
Hiring an Online Sales Counselor - Part 4 of 5
You should use a similar process to hire an Online Sales Counselor as you do for an Onsite Agent. There are a couple of tactics to use that will insure you find the right person:
- Conduct the beginning phases using only e-mail correspondence and insure prompt response.
- Require all resumes and questionnaires to be sent by e-mail.
- Conduct follow-up interview strictly by phone. Remember that buyers will never see the OSC; only talk with him or her by phone.
- Ask your candidate to answer sample e-mail requests based on information about your builder.
You will be able to eliminate about 95% of applicants by observing e-mail skills and promptness. As I said before, you are not looking for a computer geek, but you do need someone who is proficient in using computers and e-mail.
OSC Work Schedule
I am always asked what hours an OSC should keep. Just as Onsite Agents are in the model when people are out looking, an OSC should be manning e-mail and phones when people are browsing online. Ironically, that is usually during normal business hours – with a higher concentration during lunch time. Because of the ability to work in the office or remotely, an OSC can respond to leads from any location with a high-speed internet connection.
The speed of the initial response greatly affects the conversion ratio. This requires an “on call” approach to this position. An OSC needs to be flexible and willing to answer the calls and e-mails promptly. In turn, the builder will need to take a flexible look at the hours in which an OSC is required to work.
Read Part 3 - OSC Job Functions
Up Next - OSC Compensation & Salary Structure
OSC Job Functions - Part 3 of 5
A dedicated OSC is ultimately responsible for handling all incoming leads. Even if you are only receiving a small amount of leads right now, there should be one person handling those leads quickly and efficiently. If you are a smaller builder with 100 leads or less, you can give the OSC additional responsibilities to help justify a full-time position. As you grow, you can adjust responsibilities accordingly. Keep in mind, the OSC must have the right tools and process (we’ll discuss this later) in order to handle the high lead volume. You can expect an OSC to be able to handle, on average, about 200 leads per month before you will need to hire additional support. The higher the lead volume, the less ancillary work you can expect to be accomplished by this person.
Most common job functions for an OSC are to:
- Respond quickly and personally to all electronic leads
- Handle all incoming phone leads
- Provide persistent and targeted follow-up
- Qualify the lead based on individual wants and needs
- Set and schedule appointments for onsite sales agents
- Maintain database of leads with updated information and customer notes
- Track and report on conversion statistics
Secondary functions that most OSCs can handle if work load permits:
- Update and maintain inventory on website and third-party referral sites
- Conduct e-mail marketing campaigns
- Manage or track Search Engine Marketing
- Continually research new sources for online advertising
- Maintain online marketing budget and conversion statistics
The OSC handles the lead until the appointment is set and then turns the responsibility over to the Onsite Sales Agent. Some relocation buyers may request more information from an OSC and want to go through the entire sales process. Don’t allow the process to go too far. Turn the lead over to the Onsite Agent when the leads have been properly qualified.
Some builders have an OSC position set up to handle a lead all the way to closing. That will limit the effectiveness of the online sales program and this position. An OSC cannot properly handle any volume of leads if s/he is expected to work with a client through the whole process. If your OSC is spending time getting financing together, following up on paperwork, updating the buyer on the construction, putting out fires or holding the deal together, s/he will not be able to respond quickly to the new leads arriving daily. This is, in essence, the Onsite Agents difficulty in handling leads and the reason the OSC position was created in the first place.
Unlike a busy salesperson, an OSC who is focused and trained will ask for the appointment every time and repeatedly “close” the lead until achieving the final result – an appointment. As you know, it is very unlikely that a sale will occur without the prospect visiting the neighborhood.
Think of all the calls and e-mails you will miss in one day when your OSC is selecting a homesite, preparing the contract, writing it up and closing the deal. (This has happened to me a few times when I have manned a model home in one of our communities and I was not nearly as quick or effective.)
Also, this will put an OSC in direct competition with the Onsite Agent. This type of competition is unhealthy. If you keep it separate and have the OSC setting up appointments for the Onsite Agents, everyone will be happy and you will sell more homes.
Read Part 2 - OSC Qualifications and Characteristics
Up Next - Hiring an Online Sales Counselor
OSC Qualifications and Characteristics - Part 2 of 5
Think of an OSC as another sales agent. You need someone with the same propensity and drive for helping customers, but with a burning desire to succeed. The main difference between an Onsite Sales Agent and an OSC is that an OSC is focused on setting appointments as opposed to “closing the deal.” However, the same closing techniques used for a sale can be used to “close” the appointment. In fact, only someone who has the courage to ask for the appointment (every time) will truly be successful. Many leads will have a laundry list of objections as to why they don’t want to visit a community, give their e-mail address, receive your newsletter, or why they simply want to “think about it.”
To have an OSC who is comfortable responding to these situations, you need to seek a person who handles objections well, is willing to continuously work on self-improvement and is eager to learn valuable scripts and techniques that will overcome the common objections, whether they arrive via e-mail or over the phone.
Many sales managers say to me, “It is hard to find a sales-oriented person who has a technology background.” That’s fine. I understand that, but you don’t need a computer geek. You need a salesperson.
There are plenty of companies you can enlist to set up the Online Sales Program for you. Once you have a process in place, almost anyone with desktop computer skills can manage this program. Don’t expect your OSC to handle the website development, search engine optimization, marketing and/or the e-mail campaign programs. It is truly hard to find an individual who has both strong sales skills and strong website development and marketing skills. Also, with a high volume of leads, they will simply not have time to focus on these other areas.
Here is an ideal list of qualities to look for in an OSC:
- Sales background - An OSC is a salesperson first.
- Strong computer skills – Most of their job functions are conducted on a PC. Your candidate must be familiar with most Microsoft Office programs and be comfortable conducting business online.
- Excellent phone skills – When a lead responds, it is usually by phone. There is rarely any face-to-face selling.
- Pleasing demeanor and people skills – Your OSC must be a natural when interacting with all types of people.
- E-mail composition skills – Most communication is through e-mail conversations, so your OSC must be able to respond professionally as a representative of your company.
- Motivated by commission – This is where salespeople excel, right? An OSC must be excited about the endless opportunities this profession offers.
Read Part 1 - The Online Sales Counselor >>
Up Next - OSC Job Functions
Guest Article: How to Treat Your Leads as Be-Backs
How many times has someone suggested that you treat your Internet leads differently from your normal physical traffic? Pundits and sales trainers often tell you this. Since these buyers have already visited you online, you have to treat them differently. They tell you to treat them as a Be-Back.
The explanation for this prescription is quite logical. First, the Internet is an integral part of more than 80% of shoppers’ new home searches. Second, it is annoying and a waste of time to go through all the general information about the community that these prospects already know. Finally, you are wasting a tremendous opportunity to move the dialogue and sale along by not treating these folks differently.
These prospects have already read about the community and looked at plans and inventory, and may already be comfortable with the location, product and price. Well, those pundits and sales trainers are right. What they rarely explain is how you should treat these Internet savvy buyers differently.
This month, I share with you what it means to treat Internet traffic as Be-Back. I loosely paraphrase from a script Myers Barnes delivered at IBS in 2006. Myers is a friend, so I hope he will forgive me for butchering his carefully crafted script. What he had to say was quite profound, because it is a short-cut to improving your Internet-related closing rates. Here it goes:
Salesperson: Welcome to Winding Creek. Thank you for coming in today. May I ask you a question?
Prospect: Certainly.
Salesperson: Our marketing department tells us that a large percentage of our customers visit our website before visiting this location. Did you happen to visit us online before coming in today? [I know it seems to be far too leading of a question]
Prospect: Why, yes, we did.
Salesperson: Great. So, we could say that this is more like your second visit to Winding Creek. Isn’t that right?
Prospect: I guess so.
Salesperson: Welcome back. Tell me. When you visited us online, were there any plans that you remember particularly liking?
Prospect: Well, there was one. I think you call it the Collette.
Salesperson: Fantastic. We happen to have a model of the Collette available here to see. Should we have a look?
Prospect: That would be great.
That wasn’t too bad, was it? You will have to practice, and a little role playing will go a long way to making it natural. You will soon be cutting short the critical path and jumping ahead into your product demonstration. More importantly, you will close more sales.
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Blair Kuhnen publishes FloorPop. He is VP/General Manager for Builder Homesite’s Consumer Business Unit which includes the Web’s leading home builder portal, NewHomesource.com .
He can be reached at 817-658-7698
And thanks to Myers Barnes for the great ideas - visit his blog at www.MyersBlog.com
