Winning Hearts, Minds & Wallets of High Net Worth Individuals

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 [email_address]

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 SALES
SEMINAR: 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.
*

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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)?

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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.

Customer Product Knowledge “ You/your requirements” “ Us/our product” Emphasis “ Helping to buy” Selling Key skill Consultative selling Product description & order-taking Methodology Acquisition + relationship Acquisition Sales goal Value Price, price, price Money Buyer’s market Seller’s market Environment More assertive, knowledgeable about alternatives, conscious of their value Eager to buy Customers Prospect requirements for value Product features Focus Today Yesterday SALES: YESTERDAY VS. TODAY

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. ”

IOI HNWI SALES * Adapted from Forrester Research ** Not including primary residence AFFLUENT: WHO ARE THEY* RM35,000,000 + UHNW (Ultra High Net Worth) RM5,000,000 + Penta-millionaires RM1,500,00 - RM5,000,000 HNWI (High Net Worth Individuals) RM250,000 - RM1,500,000 “ Mass” or “emerging” affluent Investable** assets

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?

AFFLUENT: WHO ARE THEY? “ Top performance, lightning speed and impeccable service” “ Safety, comfort, respect” Requirements for value “ The more you have, the more you think you need to have” “ More than today/ ability to spend without worry” “ What is rich?” Connoisseurs, sensualists, trend setters/followers Varied Types Status Security Concerns Job + investments + family Mainly job Income sources Home + investment Home Ownership goal Quicker Cautious Decision-making Moderate to high (depending on age) Low Tolerance for risk Affluent Low/middle class

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

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: Definition
Consultative 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)
* TIME

IOI HNWI SALES
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.
Establish trust & rapport
?
?
?
?
Suspicious of sales people
?
?
?
How to deal with them Challenges

IOI HNWI SALES “ Can I find other opportunities?” Why take action now? “ I’m richer and smarter than you. What can you deliver better than me?” Can you solve my problem? “ I’ve heard every sales pitch in the world.” Do you understand my problem? “ Everybody wants to make money off me.” Why should I trust you or your company? “ I can buy from anybody, and everybody wants my business.” Why should I listen to you? What they feel What they think SALES TO AFFLUENT: CHALLENGES

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
“ 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?”

IOI HNWI SALES
“ 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
“ 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
“ 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.”
* Agree: Clarify: Legitimize: Customer procrastination statement #2 Agree: Clarify: Legitimize: Customer procrastination statement #1 Response Procrastination

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

IOI HNWI SALES
“HIGH SERVICE EXPECTATIONS:” Discuss
What 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

IOI HNWI SALES
“ 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

IOI HNWI SALES
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: Motivations
Avoid criticism
Avoid loss of possession
Avoid pain
Avoid loss of reputation
Avoid loss of money
Avoid trouble
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 others
Take advantage of opportunities
Desire to avoid loss Desire to gain

IOI HNWI SALES
SMART LISTENING: Summarization
Summarization : 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

IOI HNWI SALES
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.

IOI HNWI SALES 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. 15% 38% Tone of voice 53% 7% Words 32% 55% Body language Business setting Social setting IMPACT OF BODY LANGUAGE

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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.”

IOI HNWI SALES
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?”
*

IOI HNWI SALES
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

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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: Homework
Read the following articles and be prepared to discuss next week:
“How the Super-Rich Buy Homes”
“How High-End Brokers Market Luxury Homes”
*

IOI HNWI SALES
THANK YOU!
See you next session!
Questions or comments:
[email_address]

Winning Hearts, Minds & Wallets of High Net Worth Individuals

by University Technology Malaysia on Aug 17, 2009

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Winning Hearts, Minds & Wallets of High Net Worth Individuals — Presentation Transcript