From its four showrooms, the company sells European real estate. Their marketing division had been providing excellent lead generation of well-qualified couples in good quantities per week across the showrooms. Each showroom had salespeople and managers who helped close the sales. The showrooms were very well decked-out, creating an impressive ambience. They had been closing at an average of 6% across all showrooms producing an annual turnover of 16 million Euros. However, the closing rates suddenly dipped to around 3%, producing only 8 million annually.
The directors couldn’t figure out what the problem was and needed to find a solution and get back to normal turnover, or perhaps close two of the showrooms, keeping only the best salespeople and managers from the four showrooms to work in the remaining two.
The problem was the uncertainty of what closing rate they could produce using the best teams with only half the normal traffic of couples per week over the two showrooms i.e. would it still be at 3% meaning an annual turnover of only 4 million annually. Or could the best of the best, get the rate back up to 6% producing 8 million annually, but with much lower overheads.
Drummond quickly realised what had gone wrong and in several ways. Yes, the marketing numbers were still as before, but for a six-week period, the closing rates had dipped because something had gone wrong because the qualification levels of the couples were much lower than normal, making them far more difficult to close. Marketing had got to grips with that hiccup reasonably quickly and corrected it within eight weeks, but we evidenced that the salespeople had now adopted a mental attitude that they would try their best, but the clients were not good enough anymore.
That rot had been allowed to set in, to the extent that most of the salespeople were now hoping for rather than expecting a sale. In addition, the salespeople had been used to quite easy sales during the times of high market demand for foreign homes and now that things were a bit harder they needed to work a lot smarter.
Drummond kept the four rooms open and introduced new training that made sure the four teams began closing right at the very beginning, which under our supervision was heavily monitored by the showroom managers to ensure there was no longer any prejudgment of prospective buyers. Daily sales meetings were set up to re-establish highly positive-minded teams, by continually addressing pre-judging issues and daily positive affirmations from every salesperson.
Other Drummond strategies and techniques were implemented across the board including a Qualification for Decision speech habit. We also tied the company up to a major international bank with more favourable repayment structures so that non-cash-rich consumers could still buy. Within three months this, plus the direct training of the salespeople on things they never knew existed, led to not only the retention of the four showrooms but an even higher closing rate from 3 to 14%, increasing the annual turnover to 34.2 million.
Sales up by 460%.