In the past, sales associates have emphasized building a relationship with prospects to break the ice and reduce resistance to closing. This “relationship building” focused on being nice, having a likeable personality and “connecting” with prospects though “connecting” was never defined particularly well.
The relationship model can work (with the emphasis on “can”) in a market environment characterized by lots of demand, limited supply and low complexity of sale. The reason for this is that in such an environment very little influence is needed. The salesperson is more of a process manager than anything else.
Studies show that in more complex and competitive environments, the traditional relationship model – while still the dominant model in play across industries, and especially in MFH – breaks down and does not support strong performance. A study carried out by the Corporate Executive Board (CEB) in 2009 established five selling styles employed by salespeople, and further identified the dominant style associated with top performance.
The Challenger Sales Model
CEB used statistical “cluster analysis” to identify these styles and gauge their effectiveness in closing apartments. The styles identified were:
The research further found out that any kind of sales approach can achieve average results. However, sales associates that were considered “high performers” were those that fell into two clusters; the Lone Wolves and the Challengers. Lone Wolves are gifted with their in-born talent, so this “talent driven” model isn’t really trainable. The Challenger Sales approach, however, is skills-based and thus can be trained and coached.
However, perhaps the most important revelation of the study is that Relationship Builders were barely represented among high performance. In fact, Relationship Builders came a distant fifth (out of the five styles) among high achievers, representing only 7% of high performers.
MFH companies looking to improve their closings should teach their associates the key things that the Challenger Sales Associate does. These are:
To close sales in today’s competitive housing industry, sales associates need a different approach to relationship building. Their goals for the relationships they build with their prospects should no longer be based on being “likable,” but instead, on being valued by their prospects. They can accomplish this following the Challenger Sales Style.