How To Encourage Cynical Buyers To Make A Purchase
Hello, people. Welcome to the REH Real Estate Youtube channel. With a high level of interest in the market and a lack of clear predictions on price increases, many homebuyers are struggling to find the reality they’re hoping for. Our procedures will help you present your reality in a way that your likely homebuyer can achieve their expectations.
Many consumers have been frustrated about the availability of housing for purchase. Some have had trouble finding a home in the area or were frustrated with the competition of other listings. As real estate agents navigate through today’s ever-changing circumstances, brokers need to know how to adapt and remain aware of buyer sentiment–which at the moment may be colored by frustration or exasperation. If you want more of this content, Real Estate Heaven fan, subscribe to the REH Real Estate Youtube channel and hit the notification bell.
I will share several methods agents can engage in to literally create a keepsake of their time with would-be buyers. Using props and memories that were shared on walks will help them come back with all the feels. And they’ll definitely want to save those.
Keep in touch and share marketplace shifts, which are happening quick
With more opportunities in the market, buyers can negotiate over what they can pay and the rates will likely be at a premium. Factors such as development in the manufacturing process are becoming slower, and consumers will be able to finally negotiate.
In recent news, nationally the sales of homes for sale have jumped 2 percent and show promise for potential buyers. Additionally, the median sale price dropped 0.4 percent nationally in June. This is just one example of a trend that all industry professionals should know about and share with their buyers either in an instant message or email, or on a regular basis through a blog post.
Your content material is king. Share it often
Sharing standard posts to your social media accounts or sending out emails, is an excellent way to keep in touch with past, present-day and potential clientele, even though nurturing those people associations with helpful information and perception.
The crucial to writing blog posts is remaining digestible for the audience, and providing a useful, optimistic take. For instance, you can connect with a recent article about desired costs or marketplace shifts but include your own take on what this news might mean for customers in your location.
Within your blog posts, do your best to use straightforward wording so readers that are different can come in and feel like you’re imparting useful data. To assist construct an audience, share excerpts of your email on social media with a link to sign up.
This style of engaging content can enable your website to build trust through confident, personal conversations. Your links and insightful information will create a connection with your readers and make them feel more confident in trusting your opinion.
Really encourage consumers to get pre-qualified
Becoming pre-skilled means that consumers have a high understanding of what they are getting — which implies you, the agent, can usefully steer them to residences they have a greater possibility of buying with a smart renovation.
Choose sensibly when deciding on households to present your potential buyers
You want your customers to be excited, impressed, and relieved by the experiences you plan. Disappointment and stress are natural responses when we encounter challenges or setbacks — and there’s no reason to speed up these feelings in your customers by showcasing homes outside their buying ability.
Be very clear on the requirements of this particular client, appreciate their desires but also recognize their limitations, and provide viable options that will satisfy them. If they do not find a suitable solution, acknowledge it clearly as you go to explain and offer your solution.
Motivate but really don’t rush the system
Remind your clients that the market is balancing out, but that doesn’t mean inventory is low. In this case, remind them to take their time in the market, and to not be discouraged by the lack of homes they can afford — stressing that you are still actively involved with their search.
Stay in touch with sellers to provide them with positive feedback and ask questions about listings. Also, be sure not to flood or overwhelm their inbox; just show that you are still emotionally invested in their search process. Then, after all, you are in it for the long haul.
For many buyers, cynicism is paralyzing. Customers often don’t want to deal with sales that would lead to benefits for them.
The research focused on how the buyer reacts when they buy from an in person seller versus a computer. It found that buyers will be more receptive to sales pitches in-person than they would if they were coming from a computer.
When communicating with a person and making a decision, people were equally likely to make the “value-maximizing decision” 79 percent of the time. When talking with a computer, however, buyers displayed different behavior and made decisions that reflected their best financial interest in over half of the cases.
In this seller-centric setting, buyers only made value-maximizing decisions 45 percent of the time. With that data, buyers passed up more than half of the deals that favored them.
The computer was better than the person at closing the sale.
The Hidden Card Game
Researchers designed the study to study how buyers and sellers of an item could predict price. There was a deck of cards marked consecutively from 1 to 100. The seller pulled two random cards from the deck. The buyer was permitted to see the card with the lower value of the two. Additionally, the buyer knew that they were seeing the lowest value card of the pair by having this information revealed before they made their purchase. They were then given the option to make an offer of “100 experimental dollars” to buy both cards. If this offer was accepted, then it would be impossible for the next player to predict which will be low or high because prices are equal between players in that round if one accepts and one does not accept.
There are cases in which buying pairs of cards could be more beneficial than an experiment has predicted. In these situations, the buyer would be better off buying the cards.
However, with a human seller present most buyers walked away. They left money on the table.
Despite the information about the card being revealed to be valuable, buyers considered a human more reliable than a computer when purchasing the card. When showing the buyer the value of their card, this required some sort of human assistance—which people perceived to be more trustworthy.
The Persuasion Context
The researchers wanted to learn more about why the buyers did what they did. The researchers had a hunch that “a persuasion context seems to draw more attention to the persuader’s motives and makes buyers act more conservatively.” Buyers knew that the sellers were trying to convince them, which made them hesitant.
The research uncovered that the sellers’ marketing tactics backfired on them, and buyers may have lost interest in them because of this. The buyers ended up being skeptical about the cards, and didn’t buy as often as they would have without their skepticism. Despite having been discouraged from buying by the sellers, the buyer’s withdrawal from use meant that no loss of revenue was a result for either party.
The buyers tried to assess the sellers’ trustworthiness, but were unable to do so effectively because the mere presence of a seller made the buyers cynical.
In contrast, when people purchased a product online, they often got unclear information about the services and delivery required. As a result, buyers usually felt that they were being taken advantage of.
The researchers understood that buyers didn’t trust themselves and buy what they saw, so they wanted to understand the specific factors that impacted their decision. So, they devised a second experiment.
Measuring the Real Value of Talk
In the second experiment, researchers once again set up two scenarios. In the first, a seller and a buyer played the playing card game described above. In a new scenario, a seller and a buyer played the game in silence. This was the “no-talk” version of the playing card game.
In both the talk and no-talk situations, 55 percent of buyers in the study bought pre-defined cards that maximize customer value.
Researchers say that most sellers feel that talking too much would lead to more sales. That’s because people are more likely to buy from sellers in person and if a seller is constantly talking, they’ll dilute the impact of their message.
Although the seller is human or computer, whether they are talking to the buyer during the auction affects the rate of selling. The problem is communication.
Overcoming the Buyer’s Cynicism
When a buyer becomes cynical, they are less likely to buy as much as it would cost them, which means the seller has lost value. Silence is an effective tactic, but sellers cannot rely on it alone. To overcome this problem, the researchers suggest that sellers:
Reduce Informational Advantage
The authors suggest that selling is best when both parties hold the same information and share it with each other. They cite studies showing that communication doesn’t work when the seller holds more pertinent or detailed information. Sellers should be open with their potential buyers and make themselves an easy encyclopedia of expertise.
Focus on Relevant Information
Lack of relevant information can lead to wasted time, miscommunication and dissatisfaction. The content of a communication is a valuable tool for trust, cooperation and understanding. Studies show that relevant information builds trust through communication, leading to more productive working relationships.
Acknowledge the Limitations of Perspective
Most sellers made the reasonable decision to take the buyer’s perspective, which allowed them to effectively sell goods and services. However, this decision may have limited their ability to sell goods and services. The reason: “sellers who tried to take the buyer’s perspective picked up on an illusion that buyers are more likely than they really are to be persuaded.” When considering the buyer’s perspective; sellers should remember that their insight is limited–their knowledge about buyers is limited since they’re only looking at their own point of view without any way of fact-checking what the actual truth is.
It is clear that this study supports the idea that the best way to be convincing in your writing is to put it all out there.
Sellers are more likely to succeed when they reveal all of their information and intentions. Keeping secret (and exclusive) details behind can destabilize a sale. Buyers often start from a default position of cynicism, while sellers often assume they have the buyers’ trust. Sellers must erode this impasse and earn the buyers trust in order to succeed.
Up your game.
An increased awareness of the customer is one side effect of the general shift in buying. Reps have to understand the changes and use them for their purposes.
The researchers found that buyers were more likely to purchase from a computer seller when the buyer would benefit, demonstrating that Oscar Wilde’s witticism about cynics is true. Buyers were four times more likely to purchase something from a human seller with communication allowed. Interestingly enough, two-thirds of sellers who were not allowed to communicate believed they could sell more effectively without the ability to communicate.
The implications of artificial intelligence are fascinating and could have far-reaching consequences if applied to the sales field. It lends credence to the idea that AI will increasingly take over transactional aspects of sales, as there’s an attendant belief that the AI, being a program, has no ulterior motives and nothing to gain from the sale. This forecast already occurring in some companies means that future sales reps might need to be more like relationship building and consultative sales when they’re selling–as they are transactional, they’ll be replaced by the cheaper, quicker and more effective AI. The findings also demonstrate that sales reps often tend to overestimate their own capabilities.
But the biggest takeaway is that the very act of a sales conversation can bring cynicism to the table and that sales reps will need to take this wariness into account. More significantly, they’ll have to elevate the relationship to trusted advisor status and erase the ingrained cynicism if they want to be successful in not only their short-term customer relationship but also in their long-term customer relationship.
One surprising revelation of the aforementioned experiment was how distrustful buyers are even when sellers reveal all relevant information and disclose their full financial situation. Another important conclusion is that in order to build trust the conversation must be early stage focused on relationship building, not sales. Part of the trust-building process is gaining the buyer’s understanding and enabling them to control as much of the conversation as is ideal for fostering trust. These days a lot about building rapport (building a great relationship) comes from understanding what kind of person you’re talking to and knowing how to foster that reporting – such as having polite small talk or discovery conversations.
Ask relevant questions. Design your sales conversations to include discovery questions, taking your customers’ temperature, or verifying their understanding of your product and process. Be sure to turn them into a back and forth dialogue.
When addressing “skepticism” in a sale, don’t hide your awkwardness. For example, you can say something like “Of course I know you must have had plenty of these conversations with other sales reps, so let’s talk about your concerns and I will answer them honestly and openly because I want to do what’s best for you. And we can take this opportunity to get to know one another—because it is a bit weird to be thrown together like this.” By laughing at the situation and forcing people to introduce themselves, you make the sale more personal.
The product or service is typically the most important aspect to persuade a person to buy, with customer service playing a lesser role. Telling the truth and defending yourself are essential aspects in building trust and mutual benefit.
Zig Ziglar, a well-renowned American motivational speaker once said, “If people like you they will listen to you, but if they trust you they will do business with you.” This is advice that works and it’s true; a quality product or service alone isn’t enough. If you can earn customer trust with five-star service, you might just secure their loyalty too.
5% increase in customer retention can boost your profits by 95%. The benefits of gaining and maintaining customer trust are enormous.
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