In New Home Sales, Process Equals Growth

Flow chart strategy diagram blackboardIf you want to freak out certain personality types, just start throwing around words like process, systems, tracking and accountability — words that might invoke a few “four-letter-word” responses.

However, everyone can master these properties, but some of us require more support than others to get there.

My 19-year-old son recently got into the toughest sales business of all: Door-to-door sales. He has no preset appointments. However, his team leader is teaching him to measure key metrics and, in doing so, he has seen a 50% improvement in his conversions in just two short weeks.

My son knows exactly how many doors he must knock on and how many people he must speak with and sit down with to make a sale. He now understands his “critical path” and what happens when he varies from his consistent process. If a sale doesn’t happen, he can tell you why it didn’t.

If a 19-year-old on his first sales job can learn this, we all can. Yet I wonder how many of us truly understand the key metrics to measure and track them fully to improve and grow.

For instance, in the new-home sales process, conversion rate is not a straight-line formula between the amount of reported traffic to the number of sales. Are you getting the right kind of traffic? Are they ready, willing and able to buy your homes, or anything at all, for that matter? Where are the qualified ones coming from?

Does your sales team understand that “drive by” doesn’t really mean drive by? What made them pay attention to your sign and turn into your community?

Then, once your sales team does get in front of a qualified prospect, are they asking the right questions to build the rapport that builds trust? If they can’t close the sale, are they scheduling specific follow-up appointments? Or are they simply waiting on the prospect to come back to them?

This is all about tracking the process of both the sale and the sales funnel. There is a process here, and when each of your sales team members are following it, the buyer is the one who wins because they will have a great and consistent customer experience right from the beginning.

All the items listed above — and many other key metrics — can be measured on a one-page planned encounter form or incorporated right into your CRM to give you the visual reporting tools you need to grow your business.

It’s not about being complicated. It’s about simplifying. Once you realize you can create a process, you can let go. Your team will have the tools they need to soar. You remove the guesswork and you remove the clogs in your funnel of only a few people being able to make decisions because the process will have already guided them in the direction of success.

This NAHBNow guest post is courtesy of NAHB Board Member, NSMC Trustee, and PWB member Kimberly Mackey, founder of New Homes Solutions.



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Comments (2)

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  1. Dave says:


    So what is the process to track sales and leads?



    • NAHB Now says:

      Kimberly says, “I use and recommend a planned encounter form that is filled out weekly by the sales person. That form becomes the basis for the weekly planned encounter with each sales person to gauge how they are doing against their goals and the company budget. It tracks the activities they are doing to drive their own business and looks at top prospects (or all prospects engaged in the customer funnel).

      “It also measures traffic and sources of the traffic, when a sales team is properly trained to use it as a business planning tool rather than a traffic reporting form.

      “Again, if using a CRM, most of these metrics can be programmed, but I still recommend that the information is aggregated into one or two reports at the most because there is inherent value in the visual that provides.”

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