Re-Inventing the Wheel: A New Turn on the Critical Path

A: In physics, when a theory conflicts with experimental evidence, it is discarded. That's what happened to Newton's Theory of Gravity once Einstein formulated his Theory of General Relativity. Does the theory of sales success known as the Critical Path still work? The answer is yes, but taken in a new light, it can work even better.

Sales success must be based on a process. Too often salespeople fail because they think they can succeed just using their own creativity and personality without following a structured plan. This entrepreneurial approach succeeds in a seller's market when an imbalance between supply and demand substitutes for a sales process. And even in a balanced market or in our current buyers' market, creativity in the form of pure friendliness will make a sale, but it is a risky proposition.

The Critical Path is a child with many parents, but it has been widely used to manage demand for the last 30 years. Its guiding principle is that to achieve sales success, or closing, you must follow certain steps in a certain order and spend a certain amount of time on each step. Failure to follow the model will result in a troubled sale or no sale at all. When I learned the Critical Path 15 years ago, we were supposed to spend 10% of our time on the Meet and Greet phase, 20% of our time on Qualifying, and 30% on the Presentation, but the focus was on Closing, where we were instructed to spend 40% of our time.

Has anything changed in the new home marketplace in the last 15 years? Absolutely. Our buyers are better informed and our marketing is more targeted. We have added the Internet to our sales and marketing toolbox. The sales process is still a necessity, but the way we spend our time is upside down from previous years. To achieve sustainable sales success today we spend 40% of our time in the newly named Welcome phase. It is during our approach that we identify commonality, build rapport, act with empathy, and build trust and credibility. This credibility is necessary for the next phase, Discovery, where we devote 30% of our time. During this phase we ask the questions that permit us to make a diagnosis and determine the best fit for the prospective customer. During the Presentation phase we only need to spend 20% of our time, confirming our diagnosis while the prospect is at their emotional peak, and unearthing objections, the potential roadblocks to the sale.

When following this plan, the salesperson earns the right to close by matching the customer's wants, dreams, and abilities with a product perfect for them (or not). Formulating the right prescription after the diagnosis will result in a cure for the customer's problem. Prescription without diagnosis is sales malpractice. By the way, coming up with a diagnosis and failing to offer a prescription is another form of sales malpractice.

The aphorism about not trying to reinvent the wheel refers to the needless effort expended to discover a solution when that work has already been done. Following the old model of the Critical Path may result in a disconnect between the last closing and the next sale. To find the next sale, the salesperson must rely on the builder's advertising or their own personal lead generation. A focus on service is the missing link that connects the beginning and ending steps in the Critical Path and creates a more sustainable business model by emphasizing the importance of referrals. When one-third of your business comes from referrals, the builder spends less money on advertising and you spend less time in lead generation and more time face-to-face with qualified customers. Your conversion rate will rise dramatically. How much does it cost to create a referral?

Nothing when all of your efforts are targeted on delivering a dazzling experience to a delighted customer. The savings on traffic generation costs go right to the bottom line.

Using the Critical Wheel of Sales Success also embodies the reality every salesperson knows. The best time to make a sale is just after you've made one. The spinning wheel reminds us of the importance of momentum. It also reminds us that like the tire on a car, the essential part of any wheel is where the rubber meets the road. Although the salesperson is ever conscious of all phases of the Critical Wheel, the focus is always on where the customer is in the process. The wheel metaphor is also apt because as any engineer knows, what keeps the wheel from collapsing on itself are the spokes attached to the wheel's hub. Everyone knows that the spokesperson for the new home sales process is the proactive communicator, the highly trained and motivated new home salesperson. So let's take a new turn on the Critical Path and stop re-inventing the wheel. It's already been invented. Let's put it to use and work smarter and more effectively.

Gian Hasbrock, MIRM, CMP, CRS, ePro, is vice president of sales and marketing for OBC Real Estate in Kitty Hawk, N.C., and heads WOWISM (Walk On Water Inspired Sales & Marketing, Inc.). He was the 2004 recipient of the Trina Ripley Excellence in Education Award. Gian is an NAHB Master Instructor and a member of the IRM Faculty. He is the author of the IRM's newest course, Multicultural Sales. Reach him at gian@wowism.com.

From Sales + Marketing Ideas magazine, ©2007. Used with permission from the National Association of Home Builders/Sales & Marketing Ideas, 1201 15^th Street, NW, Washington, DC 20005-2800.