5 Custom Builder Sales Strategies Revealed

JANUARY 22, 2013 // 10:30 – 12:00 PM

Presenter(s):

Rick Storlie // New Home Sales Coach, Minneapolis, MN

Rune Haugseon // Ubix, Inc, Salt Lake City, UT

Jeremy Skogquist // NIH Homes, Minneapolis, MN

Starr Tingle // Sanctuary Homes, Louisville, KY

What This Program is NOT…

• No Cheer Leading

• No Sales Training

• No Specs

• No Old Stuff

The Moderator…

Rick Storlie

New Home Sales Coach

rh

Rune Haugsoen The True Norwegian

30 Years Building Business Systems

-2002 – Web Marketing Automation (WMA)

-2007 – Homebuilding Industry

-2010 – Partnering with HB Practitioners

Generating Sales Ready Opportunities

Closing more Business

Improving Processes

Our Panel… Starr Tingle

Sanctuary Homes

Louisville, KY

2011 Volume $918,000

6 Units

Avg Sale $153,000

Semi-custom, custom homes

(no models/inventory homes

Our Panel… Jeremy Skogquist

NIH Homes

Minneapolis, MN

2011 Volume $11 million

Units- 14 homes, 5 remodeling

Avg Sale $579,000

Semi-custom, custom homes

(1 - 2 models/ 3-5 inventory

homes)

Free E-book Resource Guide

Website Checklist

Case Study Samples

Personal Notes from

Rick

Much more!

Drop off your business

card up front at the end of

the program

Website Marketing Webinar Series

1. DIY Online Sales Counselor

2. Web Marketing Automation

3. Website Lead Generation

Drop off your business card

up front to be sent an

invitation…

Case Study Overview

2011 – 2012

Market Positioning

Lead Generation

Sales Conversions

1. Estimating

2. Purchase Orders

3. Scheduling

4. Accounting

5. Warranty

Why don’t we sell homes the way we

build them?

Challenges

Poor “Foundation”

• RWA Buyers

• Poor Online Presence

• B-backs

• Foreclosures

Weren’t “Framing”

Relationship

Challenges

• Not aligned

• Retail mentality

• Company-centric

Challenges

No Personalization

• Poor message

• Low ROE

Challenges

Closing to the

Wrong Process

• Solo

• Assumptions

• Too complicated

Challenges

No Way to

Pinpoint Weak Spots

• No metrics

• No tracking

A Bad Process

• No Detailed Specs

• Starting to frame without a

finished plan

• Installing finishes without

completed selections

• Trying to close with an

unfinished punch list

• Not tracking our costs &

variances

1. Online Leads

2. Value Creation

3. Technology

4. Update Process

5. Measure

Why don’t we sell homes the way we

build them?

RH

Au

tom

ate

Customer Lifecycle Journey

Goals 1. Create Value

2. Know Each Customer

3. Automate Communication

4. Best Practice

Contact

Lead

Prospect

Buyer

Owner

Stages

Customer Lifecycle Management

• Awareness

• Consideration

• Commitment

How do we measure results?

By Scoring Activity as a

Unifying Measure

Contacts

Leads

Prospects

Buyers

Owners

Database Example

Customer Scorecards

# % Score

98 41

56 55 116

42 41 74

4 4 217

76 15

Stages

Customer Lifecycle Management

Relevance

Nurturing

Partnering

Solution Intro.

Value

Creation

Process

Lead

Prospect

Buyer

Owner

Contact

Realtor

Influencers

Stages

Continuous

Process

Improvement

Best Practice

RS

1 2

3

4

5

Revolutionary or a Sign of the Times?

Rick- Background & Visual Examples

Jeremy & Starr- Personal Insight

Rune- System Overview & Data

Our Format Today

Step I- Building the Foundation for

Future Sales

“Who is my ideal buyer?

Tarket

Market Positioning

ST

“What do we do?”

Marketing Message

Market Positioning

Market Positioning

ST/JS

“How do you do it?”

Positioning Statement

Background

Relevant

“The Secret is…”

Market Positioning

USP ties into Marketing Message

Market Positioning

JS

Invisible Market & Women

Invisible Market

Visible Market

Invisible Market & Women

Your Market

Visible 10%

Invisible 90%

1. Available Homes

2. Photos

3. Design Library

4. Locations

Web Analytics

1. How Much/Pricing

2. What/Design

3. Where/Locations

Web Analytics

Virtual Model Home

Virtual Model Home

Virtual Model Home

RH

Step 1: Customer Intelligence

Lead Sources 40 – 75% from Website

- 85%+ Requesting Value

- 15% From Contact Us

Potential

Knowing Each Customer

Customer One-On-One

RS

Step II- Framing the Relationship through

Education

The Question…

“What’s your price-per-

square-foot?”

Who are Your Looking for?

A Prospect

B Prospect

C Lead

D Lead

Commoditization of Housing

90%+ Same

Difference between

quality perception and

price performance

Value Gap

Value Gap

Price

Performance

Quality Perception

Value Gap

Price

Performance Quality

Perception

>

Value Gap

Price

Performance Quality

Perception

>

Closing the Value Gap- Develop D’s & C’s

Creating Value

Invisible Market Invisible Active

Market

Close the

Value

Gap

Creating Value

RH

Lead-to-Prospect

Awareness

Consideration

Commitment

Lead

Prospect

Buyer

Owner

Contact Programs

Nurturing

Value Creation

Step 2: Communication

Stages

Lead Nurturing Program

20+

Touch

Points

Is the Lead Nurturing Program

Creating Value?

S2

Engaging

Educating

Differentiating

Closing the Value Gap

?

Lead Nurturing Program: Email Results

Are we Engaging?

Yes!

Lead Nurturing Program: Scoring Results

Are we Educating?

Yes!

Are we

Closing the

Value Gap?

Call-to-Action

Who Clicked

65%+ of CTA

Design, Pricing,

location

Yes!

JS/ST

Step III- Personalizing the Relationship

Lead-to-Prospect Conversion

Step III- Personalizing the Relationship

Leads

Prospects

Lead Management

Leads

Prospects

100 – 120 Leads/Prospects

Reading Buying Signals

Interests?

B-back?

Hot Buttons?

Online vs. Onsite Hot Buttons

Design

Location

Price

Technology allows us to Track…

Email

Open

Clicks

Web visits

When

What

How Long

Results Identify…

Lead Management

Leads

Prospects

2,000+ Leads/Prospects

RH

Step 3: Sales Funnel

• Who is active Now

• What is she doing online

• How great is the Potential

• Is sales Following Up

Output: Sales Ready Opportunities

Contact

Lead

Prospect

Goal: Increased Return On Energy

Sales Funnel

Getting to

Know Each

Customer

Customer One-On-One

RS

Potential

Commitment

Customer One-On-One: Emails Activity

Interests

Customer One-On-One: Web Activity

Customer One-On-One: Web Activity

Hot

Buttons

Does the

Sales Funnel

work?

Sales

Funnel

Hot

Sales

Funnel

not Hot

All

Others

How Sales Ready is Hot?

Conclusions: Hot compared to not Hot

Advances 20% Faster

Visits 12 times more often

Lasts 10 times longer

Shorter time between visits

Hot is

Hot!

100% Automated!

Continuous

Process

Improvement

Best Practice

JS/ST

1 2

3

4

5

Step IV- Closing for the Next Step

Prospect-to-Buyer Conversion

Step IV- Closing for the Next Step

Prospects

Buyers

Prospect-to-Buyer

Conversion Rate •Salesperson =

Return on Energy

(ROE)

• 50% conversion of

RWA prospects

• Focus on Prospects

most engaged

Salesperson Activities- 4 P’s

Preparation/Personal Development

9 hours or 23%*

Prospecting

12 hours or 30%*

Presenting 16 hours or 40%*

Partners 2-3 hours or 6%*

*Based on 40 hour work week

Prospecting*

*NOT social media!!

1. Email

2. Phone

3. Text

4. Mail

Presenting

1. Initial Meeting

2. Homesite Review or

Design Meeting

3. Plan Deposit

4. Purchase agreement

Partners (Networking)*

1. Realtor

2. Buyer/Owner

a. Facebook

b. Open House

Co

rpo

rate

Pro

gra

ms

RH

*YES social media!!

Step 4. Converting Prospect-to-Buyer

Hot

Sales

Ready

Referral Rewards

Event

Contacts

Leads

Prospects

Buyers

Owners

Referral Rewards

Open House

Facebook Project

Starr’s last Project:

• 57 followers

• 7 Appointments

Open Home / Model

Jeremy’s Events:

• 20 RSVS

• 10 Groups Attending

• 1 – 3 Appointments

Significant Prospects-to-Buyer Source

Sponsors

RS

Return on Energy Thoughts

Jeremy…

Starr…

Step V- Tracking Variances

Estimate vs. Actual

Step V- Tracking Variances

Leads

Source

Conversion Rate

Average Activity Score

Average “Hot” Score

Metrics

Prospects- How Many…

A, B?

Conversion Rate

Average Activity Score

Average “Hot” Score

Metrics

Sales Activities

Prospecting

Presenting

Partners

Company & Salesperson

Metrics

RH

Execution

Plan

Step 5. Process Improvement

Actual

Results

Goals and

Targets

Monthly Review

1.Customer Scorecard

2.Communication Analysis

3.Sales Funnel Results

4.Sales Action – Example

Scorecard Set Up: Sales

Sales Activity Scorecard: Sales Person

JS/ST

Free E-book Resource Guide

Website Checklist

Case Study Samples

Personal Notes from

Rick

Much more!

Drop off your business

card up front at the end of

the program

Website Marketing Webinar Series

1. DIY Online Sales Counselor

2. Web Marketing Automation

3. Website Lead Generation

Drop off your business card

up front to be sent an

invitation…

The Results…

2012 Volume $2.5 million

11 Units

63% Volume Increase over 2011

45% unit Increase over 2011

2012 Volume $15 million

28 Homes, 1 remodeling

27% Volume Increase over 2011

50% Home Increase over 2011

Speaker Contacts:

Rick Storlie

New Home Sales Coach

14041 Burnhaven Drive, #101

Burnsville MN 55337

952-895-5566

Coach@NHSalesCoach.com

Starr Tingle

Sanctuary Homes

Louisville, KY

502-648-7451

Starr@SanctuaryHomes.net

Rune Haugseon

Ubix, Inc

14041 Burnhaven Drive, #101

Burnsville MN 55337

952-895-5566

Coach@NHSalesCoach.com

Jeremy Skogquist

NIH Homes

Minneapolis, MN

763-441-1945

Jeremy@NIHHomes.com

IBS Education

National Association of Home Builders

1201 15th Street | Washington, DC 20005

800-368-5242 | ibsedu@nahb.org