Pat’s Blog

I’ve been getting a lot of questions about the recently created Consumer Financial Protection Bureau (CFPB) and their interest in grading an originator during the sales process. While no one knows exactly how the CFB will accomplish and evaluate an effective sales call, one thing is certain: a lender’s sales process and the interface between customer and sales person will be under much closer scrutiny.

Do you know the quality of your originator’s sales call? Are you sure that the right message is being delivered consistently at the point of sale? One way to measure how knowledgeable your producers are when executing the selling process is testing their consultative selling knowledge .

In Fall 2011, we conducted an in-depth study of mortgage loan originators at four national firms to find out what originators really knew. The results were surprising to say the least.

The study tested more than 100 LOs on six critical components of the sales process: Prospecting, First Meeting, Probing, Overcoming Objections, Influencing and Closing. Most of the originators in the study had years of experience in the business.

Our research showed that the number one training issue for originators is prospecting. Of the six areas, scores for Prospecting sales knowledge were the lowest, averaging 3.63 out of a possible 10.

To view the entire study results, download the PDF.

If you would like more information on the study or how to objectively measure your sales staff’s sales knowledge, please contact me.

“Knowledge without skill is unproductive.” — Peter Drucker

If you haven’t started planning on how to succeed in 2012, don’t wait another day. Early industry reports indicate that the year ahead promises to be just as tough as 2011. What will it take to move forward in 2012? In my opinion, it will be mandatory for companies to have sales professionals who are not only knowledgeable about consultative selling but experts at executing each part of the sales sequence.

To truly grasp and address the issue, companies need to first determine what the sales professional knows — and doesn’t know. Then targeted sales training can be applied.

“The more the individual grows as a person, the more the organization can accomplish.”— Peter Drucker
Today’s consumers have access to an unprecedented amount of information when purchasing a house and shopping for a loan. This shift of power to the buyer of services requires a higher quality sales person to successfully capture the business. This means that it is imperative that the sales person “wow” the customer on the first contact. Whether it’s on the phone or face-to-face, a customer’s first impressions of a LO can literally determine whether a loan transaction happens or not. Do your sales professionals possess the sales knowledge to “wow” the customer and make a great first impression?

“All that effective executives have in common is the ability to get the right things done.”— Peter Drucker
Too often, I see companies taking a “one-size-fits-all” approach to sales training. However, educating the entire sales force on the same topic can be a waste of valuable time and training dollars. The reason is that every sales person is different. A more effective strategy is to measure the LO’s sales knowledge to find out what the individual knows — and doesn’t know — and then use customized sales training to target the specific areas that need to be improved upon.

“Anticipate the future and be a change leader.”— Peter Drucker
Historically, the mortgage banking industry has been based on a “field of dreams” approach: If you build it, they will come. In recent years, that old paradigm has shifted from a “push” market to a “pull” market. Today, customers are more knowledgeable than ever and come to the sales person having already investigated the options. This means that in order to win the business, the sales person must be at the very top of his or her game. Does your sales force have what it takes to succeed in a “pull” market?

“Management must enable the enterprise and each of its members to grow and develop as needs and opportunities change.”— Peter Drucker
What does it take to retain top sales performers? While it may seem that compensation is a primary factor, there are many other reasons top producers move to another company. One often-overlooked component is the quality of the first-line managers. The best first-line managers know how to coach sales professionals — from newcomers to seasoned veterans — to reach optimum results. Do you have the right managerial talent in place to take your sales staff to the next level?

“Take responsibility for your own career.”— Peter Drucker
It’s been said that change is the only true constant and that maxim certainly applies to the financial services industry. Top sales producers tend to thrive in times of change because they realize that what worked yesterday may not work today. Their willingness to let go of old behaviors and learn new ways of selling is critical to their continued success. Has your sales staff made a commitment to improve or update their skills? What training investments still need to be made to help sales professionals sell better in today’s marketplace?

“Outline the skills required in your work. Analyze and refine these skills for optimum quality and productivity.”— Peter Drucker

Every completed sale is the result of countless small steps taken by the sales person to move the sales process to fruition. These sales activities can be grouped into six primary categories that are critical for success. They are: prospecting, pre-qualifying, presenting, overcoming objections, influencing/convincing and closing.

Top producers excel at each part of the sales sequence while poor performers tend to lack skill in one or more of these important areas. Which areas has your sales staff mastered? In what areas does your sales staff need improvement?

“There is only one valid definition of business purpose: to create a customer.”— Peter Drucker
The housing finance marketplace is more challenging than ever before. Tough competition, tighter profit margins and changing industry regulations have cranked up the pressure on sales professionals. Many feel as if they have a seemingly endless to-do list with little to show for it. One sales activity that pays off in terms of time and effort is prospecting.

Selling is really about new customer acquisition. Make sure your prospecting process is in gear to generate new customers and build future referral sources.

“People determine the performance capacity of an organization.”— Peter Drucker
In my travels, one of the main complaints I hear from sales managers is that their sales professionals don’t prospect enough. Selling is about new customer acquisitions and prospecting is critical to long-term success in our business. While lack of prospecting may seem like a training issue, it really is a hiring issue. It is up to managers to hire sales professionals who possess the innate drive to network and expand their contacts. Assessment testing is one tool that can help managers determine which sales candidates have the personality characteristics needed to excel in consultative selling.