Consistency and Reciprocity
Two Key Elements of Sales Psychology
by Bob Hafer
According to the Commerce Department, new home sales have plunged to their lowest level in over 16 years, and prices have fallen by the widest margin in 38 years. But I'm willing to bet we could turn this around if every new home salesperson across the country would ask every prospect he or she meets to buy a home.
If you've been around the real estate block a time or two, you know the secret of new home sales: If salespeople ask for the order, there is a chance they will make a sale, but if they fail to ask for the order, chances are they will not. Therefore, you must ask yourself, "Are my salespeople asking for the order every chance they get?"
You may believe that the answer is yes, but after 25 years studying the field of new home sales, my answer to that question is a resounding "No!" In fact, most salespeople fail to close because they don't ask for the sale.
There are many reasons for this failure; however, it can often be traced to a single root cause. Salespeople see themselves as administrators. They don't get into the selling game and participate; instead, they show up every morning for work and hope something good happens. And if someone who really wants to buy a house happens to come by, they will assist them and administer the sale.
The all-stars who break sales records are not administrators; they are participators. They get into the game the instant they meet the prospect. By participating with a buyer, they open up opportunities to get prospects to say "yes." The more often prospects say yes, the more likely they are to say yes when the salesperson asks them to purchase a house. As participators, they understand that when they ask for the order, they provide customers with the motivation they need to take action. They earn the right to ask for the sale and the honor of hearing the prospect say yes. Participation is the key. Salespeople cannot close what they don't open.
Robert Cialdini's book, Influence, the Psychology of Persuasion (a groundbreaking contribution to the science of selling), provides six ways salespeople can participate and persuade. The book has sold over one million copies and been translated into 20 languages. A classic work of marketing and psychology that sheds much needed light on why we are so vulnerable to persuasion, and in the process, reveals much about human nature. This article examines two of Cialdini's "weapons of influence:" reciprocation and consistency, and offers several ways you can harness Cialdini's ideas to turn around dwindling numbers in new home sales.
People generally return favors.
When someone gives another person something of perceived value, that person will respond with a strong desire to give something back. Cialdini calls this "reciprocity." Reciprocity influences everyone. Chances are you can recall instances when you have felt obligated and compelled to do favors for others after they have done some selfless deed for you. This may not necessarily be human nature, but it is definitely a result of conditioning we've received from early childhood. It is very difficult to deny the impulse reciprocity generates.
Cialdini tells the story of a university professor who conducted an interesting experiment. He sent Christmas cards to a sample of people he did not know?perfect strangers! Although he expected some reaction, the response he received surprised even him. Holiday cards addressed to him began coming in from the strangers who received his cards. A high percentage of those returning a card never inquired into the identity of the professor. They received his holiday greeting card unexpectedly, yet they replied with a card. By virtue of reciprocity, people feel obligated to repay favors, gifts, etc.
So, how does this relate to sales?
Using reciprocity in new home sales can pay huge dividends. Prospects feel strongly obligated to repay in kind what a salesperson has provided?even small gestures. Some salespeople employ these methods:
Provide free refreshments (soft drinks, water, cookies, candy) for customers to enjoy during their visits.
Have coloring books and crayons available for customers' children and encourage the children to take them home. Ask the children to bring back their drawings so you can display them in the sale office.
As customers leave, give them a small token of your appreciation. One salesperson purchased bags of microwave popcorn and attached a message: "Thanks for popping in."
Call each prospect and thank him or her for visiting the model home. If the prospect is not in, leave a short message to that affect. This phone call should be placed immediately following the visit and contain a call to action.
Send a bouquet of flowers to a customer who signed a contract or to a Realtor who assisted with a sale. Follow up with a phone call asking for a referral. Take a Realtor to lunch or hold an open house at which you serve food. Follow up the luncheon with a referral request.
When salespeople employ reciprocity, prospects feel they are being treated in a very special way. Every time they do something extra, they are building a greater sense of obligation. This is what participation is all about. The more salespeople participate, the more obligated prospects feel. Closing is easy when salespeople participate. It is unfortunate that most salespeople administrate rather than participate.
Be consistent.
When people commit themselves verbally or in writing to any position, they will strongly defend their position regardless of its accuracy, even in the face of overwhelming evidence to the contrary.
Like Cialdini's other "weapons of influence," this one lies deep within a person's psyche. It directs actions with quiet power. It is quite simply a person's nearly obsessive desire to remain congruent with what he or she has already done or said. Once a person makes a decision or takes a stand, that person's behavior will remain consistent with that commitment, and this internal pressure will often cause someone to respond in ways that justify earlier decisions.
The innate desire to be consistent is what is behind small "yes" decisions leading overwhelmingly to that large "yes" decision?the purchase of a new home. People are creatures of habit; they like what is familiar. The human brain seeks patterns, and having established a pattern, it continues the pattern if possible. Cialdini discovered that when someone says "yes" three times, he or she is far likely to say "yes" a fourth time.
When you get a prospect to agree, you are establishing a pattern of logic. People don't say yes to things they don't want. Hence, it would be illogical to say yes to a particular home and home site and then say no when the salesperson asks for the order. A key to sales is to find ways to get prospects to say yes. Then it is likely they will to stick with their decisions in order to be consistent.
Working on this principle, make sure your salespeople:
- Ask tie-down questions throughout the sales presentation, especially during the demonstration of home and home site. When using tie-downs, the salesperson finishes positive statements with phrases like, "Don't you agree?" "Isn't that so?" "Wouldn't you say?" Tie-downs encourage prospects to get involved in the buying process and answer "yes."
- Use trial close questions to check the progress of the sales presentation. A trial close is any question that requires a prospect to make a conditional commitment or decision. For example: "If you were buying a house today, which color cabinets would you choose?" Trial close questions test the prospect's mindset. Once a pattern of "yes" is established three times, ask for the order.
The key to the effectiveness of consistency lies in a salesperson's ability to get people to make a decision. It's less likely for a prospect say no when he or she has repeatedly said yes. Doing so would be inconsistent.
If salespeople do not close early and often, they run the risk of losing a customer's respect. Customers know why they are there; they expect to be asked for the sale and they even expect the salesperson to close repeatedly. In fact, if sales people do not ask for the sale, customers may view them as weak and unprofessional.
When salespeople attempt to close repeatedly, customers respect their drive and tenacity?even if they don't buy and even if they complain that salespeople are pushing too hard.
Inspect what you expect.
Inspect what you expect and do it often. The best way to know if your salespeople are closing is through mystery shopping. Mystery shopping works; what you measure is what you improve. Over the years, I have listened to and watched thousands of mystery shops. The one thing that is consistent is that the salesperson who asks for the order is always the top sales performer.
Closing is the name of the game. Who knows? If everyone involved in new home sales woke up tomorrow and began to participate and create a "yes" pattern that leads to a close, we could witness an amazing recovery in new home sales.
Bob Hafer, MIRM, CSP, has worked in the homebuilding industry providing consulting, management, administration, sales, marketing, merchandising, research and sales training. He has been a speaker and panel member at numerous NAHB conventions, an active member of the Institute of Residential Marketing, chairman of the Dallas Sales and Marketing Council in 2001, and the McSAM chairman for the Dallas Homebuilders Association in 2002.
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www.BobHafer.com
