Professional Development Meeting Series | 2024
"The Challenger Sale" for Real Estate Agents
Meeting Number PRODEV060524
Category: Professional Development
Materials Needed: Handouts Included with Meeting, Flip Chart
Estimated Time: 30 – 45 Minutes
PowerPoint Available: Yes
Meeting Objective: To educate real estate agents on the principles of ‘The Challenger Sale’ and how to apply these principles in their day-to-day business.
Introduction to Today’s Meeting: This meeting is adapted from Matthew Dixon and Brent Adamson’s book The Challenger Sale: Taking Control of the Customer Conversation.
Dixon and Adamson’s book, a revered resource in the sales industry, offers unique insights into successful selling techniques, particularly in creating and delivering effective sales presentations. The ‘Challenger’ sales model, a key concept introduced in the book, stands out for its emphasis on teaching, tailoring, and taking control of sales conversations. Although this may be a huge paradigm shift for most sales associates, this model is designed to help you learn how to provide valuable insights, craft compelling value propositions, and deliver presentations that truly resonate with consumers.
STEP #1
In advance, set up a quick text poll at Poll Anywhere, Mentimeter, etc., to set up an interactive poll for your team to use with their smartphones. You can also just ask for a show of hands to record the responses on your flip chart.
You can show the following with your PowerPoint, or you can copy the handout from your meeting documents for your team to read and circle the choice that most correctly describes their sales style.
Explain – In the book, Matthew Dixon and Brent Adamson explain that most sales representatives will fall into one of five types:
The Five Types of Sales Reps are the
1. Hard Worker
2. The Lone Wolf
3. The Relationship Builder
4. The Problem Solver
5. The Challenger
Have your team choose which type they most likely see themselves as.
- The Hard Worker is diligent and persistent, relying on sheer effort and a high volume of activity to achieve their goals. They are highly committed but may lack the strategic insight to differentiate themselves.
- The Lone Wolf is independent and confident, following their instincts and often achieving results through unconventional methods, but they can be difficult to manage and may not work well in teams.
- The Relationship Builder focuses on creating strong personal connections with customers, fostering trust and loyalty but sometimes avoiding challenging conversations that could drive new sales.
- The Problem Solver is detail-oriented and reliable, excelling at managing customer issues and ensuring satisfaction, though they may spend too much time on problem resolution rather than proactive sales efforts.
- The Challenger brings valuable insights, confidently challenges customers’ assumptions, and guides the conversation to drive successful outcomes.
STEP #2
Lecture the following details from the book, using the PowerPoint slide show or simply reading the details about each sales rep. type as outlined.
Remind your team that there is nothing wrong with any of the sale types noted. However, understanding your sales type and how you might be able to incorporate more “challenger” traits could enhance your sales career.
- The Hard Worker Profile
Characteristics: Diligent, persistent, and self-motivated. Often the first to arrive and the last to leave.
Strengths: Highly committed, doesn’t give up easily, and consistently makes a high volume of calls and follow-ups.
Weaknesses: They may lack the strategic insight to differentiate themselves from competitors and might not always push customers to think differently.
Summary: The Hard Worker is dedicated and puts in a lot of effort. They rely on sheer persistence and a high volume of activity to achieve their goals. While their hard work often pays off, they might not always provide the unique value that sets them apart. - The Lone Wolf Profile
Characteristics: Independent, confident, and follows their own instincts. Often seen as a maverick within the organization.
Strengths: Highly self-reliant, can effectively close deals, and often achieves results through unconventional methods.
Weaknesses: Can be difficult to manage, often disregards company policies, and may not work well in team settings.
Summary: The Lone Wolf operates independently and trusts their own instincts over company guidelines. They can be highly successful, but their lack of adherence to processes and teamwork can be challenging for the organization. - The Relationship Builder Profile
Characteristics: Focuses on building and nurturing strong relationships with customers. Known for being friendly, reliable, and supportive.
Strengths: Excellent at building customer trust and loyalty, which can lead to long-term relationships and repeat business.
Weaknesses: They may avoid challenging conversations or pushing customers out of their comfort zones, which can limit their effectiveness in driving new sales.
Summary: The Relationship Builder excels at creating strong personal connections with customers. While this can lead to loyalty and repeat business, they may struggle to drive change or introduce new perspectives that challenge the customer’s status quo. - The Problem Solver Profile
Characteristics: Detail-oriented and reliable. Focuses on addressing and solving customer issues and ensuring smooth transactions.
Strengths: Excellent at managing details and ensuring customer satisfaction through problem resolution. Highly trusted by customers.
Weaknesses: May spend too much time on problem-solving and not enough on driving new business or pushing customers to consider new opportunities.
Summary: The Problem Solver is highly skilled at resolving customer issues and ensuring satisfaction. They are trusted and reliable, but their focus on problem-solving can sometimes prevent them from being proactive in driving new business and challenging customers. - The Challenger Profile
Characteristics: Insightful, assertive, and teaches customers new perspectives. Confidently challenges customers’ assumptions and guides the conversation.
Strengths: Provides unique insights and perspectives that add value to the customer. Excellent at tailoring their message and taking control of the sales process.
Weaknesses: Can sometimes come across as overly assertive if not balanced with empathy and understanding.
Summary: The Challenger stands out by bringing valuable insights to customers and challenging their thinking. They tailor their approach to each customer’s needs and take control of the conversation to guide customers toward better decisions. This approach has been shown to be the most effective in driving sales and customer satisfaction.
STEP #3
Below, you will find six different questions for you to choose from. You can pick one or use all five (or create your own) to debrief with your team on how a challenger might react to the specific questions. You can perform this section of the meeting as a town hall or put your agents into groups to discuss and then debrief together.
Encourage your team to “think” like a challenger. Remind them that a Challenger stands out by bringing valuable insights to customers and challenging their thinking. They tailor their approach to each customer’s needs and take control of the conversation to guide customers toward better decisions.
- Market Insights and TrendsScenario: A buyer is focused on a specific neighborhood because they believe it is the best option.
Challenger Approach: The agent presents data showing that another nearby neighborhood is rapidly developing and offers better value for money.
Push Out of Comfort Zone: The buyer might be reluctant to consider other areas, but the agent’s insights highlight potential benefits they hadn’t considered.
Teaching: “I understand why you like this neighborhood, but let me show you some data on how this other area is expected to grow significantly in the next few years. You might find better investment opportunities there.”
ASK – How can we effectively gather and present data to show buyers the potential benefits of considering a rapidly developing neighborhood over their preferred choice?
ASK – What strategies can we use to address and overcome a buyer’s reluctance to consider neighborhoods outside their initial preference while maintaining their trust and confidence in our expertise?
2. Financial Benefits of a Written Agreement
Scenario: A buyer is hesitant about signing a written buyer’s agency agreement.
Challenger Approach: The agent explains how a written agreement can lead to more competitive offers and better negotiation outcomes.
Push Out the Comfort Zone: The buyer might be wary of formal agreements, but the agent’s explanation helps them see the long-term financial benefits.
Teaching: “Many buyers are concerned about signing agreements, but here’s how it actually works to your advantage. With a written agreement, I can negotiate more aggressively on your behalf, potentially saving you thousands.”
ASK – How can we clearly and effectively communicate the long-term financial benefits of signing a written buyer’s agency agreement to buyers who are initially hesitant?
ASK – What approaches can we use to build trust with buyers to help them feel more comfortable and confident about entering into a formal agreement?
3. Highlighting Overlooked Property Features
Scenario: A buyer is focused on specific home features that are not realistic within their budget.
Challenger Approach: The agent shows how alternative features can meet their needs or exceed their expectations.
Push Out of Comfort Zone: The buyer may be fixated on certain features, but the agent helps them see other valuable aspects they hadn’t considered.
Teaching: “I know having a large backyard is important to you but let me show you a property with a smaller yard and a fantastic community park right next door. It offers similar benefits and fits within your budget.”
ASK – How can we effectively identify and present alternative property features that meet or exceed a buyer’s needs, especially when their initial preferences are not feasible within their budget?
ASK – What techniques can we use to help buyers appreciate the value of overlooked features, such as community amenities or nearby parks, that they might not have initially considered?
4. Emphasizing the Benefits of Professional Negotiation
Scenario: A buyer is considering handling negotiations themselves to save on commission fees.
Challenger Approach: The agent explains the complexities of real estate negotiations and how professional expertise can lead to better deals.
Push Out of Comfort Zone: The buyer might be confident in their negotiation skills, but the agent’s expertise and examples of successful negotiations can change their perspective.
Teaching: “Negotiating a real estate deal can be complex, and mistakes can be costly. Let me share a recent example where my negotiation skills saved a customer 5% off the asking price, which more than covered my commission.”
ASK – How can we effectively demonstrate the value of our professional negotiation skills to buyers who believe they can handle negotiations themselves?
ASK – What are some effective ways to use real-life examples and success stories to illustrate how our negotiation expertise has led to better deals for customers?
5. Addressing Misconceptions About Market Conditions
Scenario: A buyer believes they should wait for market prices to drop before purchasing.
Challenger Approach: The agent provides evidence that waiting could lead to higher costs due to rising interest rates or decreasing inventory.
Push Out of Comfort Zone: The buyer may be hesitant to act now, but the agent’s insights help them see the potential risks of waiting.
Teaching: “I understand your concern about current prices but consider this: interest rates are expected to rise, which could increase your overall cost even if home prices drop slightly. Here’s some data to help you make an informed decision.”
ASK – How can we effectively educate buyers about the risks of waiting for market prices to drop using current data and trends?
ASK – What strategies can we use to address a buyer’s hesitation and help them understand the potential long-term costs delaying their purchase decision.
6. Introducing Virtual Tours and Remote Viewings
Scenario: A buyer is uncomfortable with the idea of virtual tours and insists on in-person viewings only.
Challenger Approach: The agent demonstrates the effectiveness and convenience of virtual tours, especially in a fast-moving market.
Push Out of Comfort Zone: The buyer might be unfamiliar with or skeptical of virtual tours, but the agent’s demonstration shows how it can save time and provide a comprehensive view of properties.
Teaching: “In today’s fast-paced market, virtual tours can be a game-changer. Let me show you how detailed and interactive these tours can be. This way, you can quickly shortlist properties and then visit only the top choices in person.”
By using these strategies, a Challenger real estate agent can push customers to consider new perspectives and make more informed decisions, ultimately leading to better outcomes for both the buyer and the agent.
ASK – What are some effective ways to address and overcome a buyer’s skepticism about virtual tours, and how can we demonstrate their value in a fast-moving market?
ASK – How can we best showcase virtual tours’ detailed and interactive features to help buyers understand their convenience and efficiency in shortlisting properties?
Conclusion
The authors of “The Challenger Sale,” Matthew Dixon and Brent Adamson, do encourage salespeople who might naturally fall into one of the other four categories (Hard Worker, Lone Wolf, Relationship Builder or Problem Solver) to incorporate Challenger skills into their approach.
They believe that while natural strengths should be acknowledged and leveraged, developing Challenger skills can significantly enhance a salesperson’s effectiveness. This approach allows salespeople to bring unique insights, tailor their messaging, and confidently guide their customers, ultimately leading to better sales performance and customer satisfaction.
Closing
Closing Quote:
“The best salespeople don’t just build relationships with customers. They challenge them.” – Matthew Dixon and Brent Adamson, “The Challenger Sale”
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The Challenger Sale - Taking Control of the Customer Conversation
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