Even the best salesperson encounters a customer with whom all his/her techniques fail. Despite active interest, an attempt to be flexible and a searching inquiry into the customer's reaction, the customer maintains a closed mind and the sale is lost. There seems to be certain kinds of customers for whom each salesperson has a special feel and others for whom it is lacking. LIFO theory promises not only to explain the whys of salesperson-customer compatibility but also to provide ways and means for winning the incompatible ones too!
The theory emphasizes that each of us develops a unique style which helps us cope with life's problems. We have styles which operate under favorable conditions and other ones which emerge under high pressure and crises (e.g. customer resistance). Each style develops values, attitudes and skills which center around a common theme. More important, the styles often bias new acceptance of various approaches so that salespeople may not be understood or received favorably unless their selling styles can match the style needs of customers. While each style is a blend of many components, there are four basic styles: Supporting/Giving-In, Controlling/Taking Over, Conserving/Holding-On and Adapting/Dealing-Away.
Each of these styles will be illustrated within the context of selling real estate:
Salesperson: Bill Jones, a distinguished Realtor is a warm and kindly gentleman, prides himself on his integrity and sense of service to buyers. Bill likes to feel he is selling a service not a product and, using his knowledge and experience, looks for the best fit between what's available on the market and what meets the buyer's needs. He tends to trust both sellers and buyers - to take their statements at face value. Many of his buyers felt they were as important in determining the direction of the sale as he was. They experienced his interest and involvement and felt their special needs were understood. Bill is always willing to hear the buyer's position and to extend himself to do what is fair and right by the buyer. Presses hard, he will be willing to make concessions, even if it occasionally costs him some money out of his own pocket to do so.
He has been criticized from time to time for bending over backwards and failing to close sales which could have been made - but he has a loyal following of former buyers. Sometimes there have been sales lost which were puzzling to him - apparently where he had been deceived. At such times he was deeply hurt by the event but remained optimistic, that in the long run his way of life will win out. Bill is not an active door-knocker. He is best when people call on him and request his help.
Buyer: Martin Johnson, a teacher, has been looking for a home for some time. Wary of the high-pressure salespeople who will try to sell you anything and don't mind stretching the truth to make it happen (he's been stung before), he looks for someone who is sincere and willing to help. Somewhat on the serious side he is highly family centered (insists on having his wife along while house hunting) and seems to be searching for a house that best represents their image of life. A house that will have recreational possibilities for everyone, a good area for dining, a cozy den, a pleasant backyard, near good schools and in a neighborhood where there are children close to the same age as his own. He seems to have difficulty making a decision - he has come close to buying several houses but waivers at making the final commitment - always finding fault with something. The Realtor, however, feels he seems to be dependent upon the Realtor's judgment and is almost waiting for someone else to finalize the sale.
Salesperson: Judith Howard is known as a "go-getter". Outgoing and confident, she enjoys the challenge of difficult situations and buyers. She takes the initiative in making contacts, calls repeatedly and probes hard to find hidden resistances. She usually develops a plan of sale - presents it to her buyers and proceeds to move swiftly along with them. "Time is money" as she is fond of saying - so she is always on the move. If she senses nothing is happening, she tries to find out quickly why and proceeds to exploit this information. She can always thing of still another house that might just work and present a positive and glowing picture as to why. She is not likely to take "no" for an answer.
Customers feel comfortable that they are in someone's capable hands and that they are not likely to waste time. Some have complained, however, that she glossed over some pertinent details and that they felt overly pressured by her or that she never fully understood them and their needs.
Buyer: Mabel Wilson, wife of a prominent lawyer, came into the office with a request to see a specific house. When told it could not be shown that day, she insisted on knowing who the owners were, called them and arranged for a visit. This was much to the amazement of the startled Realtor. When the Realtor asked her what she was looking for, Mabel gave a fairly precise and clear-cut set of specifications. Attempting to set up some other visits, the Realtor was told.."Let me see the listings and I'll tell you what I want to see!". Mabel insisted on driving her own car because the house was close to where she lived and she didn't want to bother with going back to the realty office. In visiting the house, she asked a number of questions and probed into all the closets and private areas - even ones which seemed to be out-of-bounds. She made an offer and when it was apparent she couldn't get her price, proceeded to look at other homes - often preparing a list and calling the Realtor to make appointments which she desired. The Realtor commented that when he finally sold her a house, he felt as if he had merely serviced her. He was chagrined when talking to a friend who sold luxury cars that the friend had a different experience. When she came in she told his friend that she wanted to buy their cheapest model and he would not let her do that. He pointed out that a woman in her position could not afford to do that and provided her with an argument, buttressed by facts, to prove that the most expensive one was really the best buy - and she bought it! She told the car salesman, that she admired his confident approach.
Salesperson: Charlotte Barnes had been in the real estate business for years. During that period of time she has built probably the most extensive file of information on the houses in the northeast section of the city. Working with one of the local professors, she devised a visual display and information-retrieval system that really gives potential buyers a good feel for a house before they visit. Similarly, she uses a "Buyer Checklist" form to help her sort out the best possibilities. Charlotte tries to live within a schedule. The office always knows where she is and the state of progress of her sales. She has a reputation for providing buyers with thorough information, is knowledgeable about construction, taking pains to point out special features and details or faults that exist in a home. She believes in respecting other people's time as well and will not engage in contacts with sellers unless she has a written offer and a check in her hand.
Some buyers appreciate her dedication and comprehensive attention to detail. 0thers feel she is sometimes unresponsive to their urgency and too attentive to procedures, explanation and details, too slow to respond. Even is buyers seem disinterested, she insists on showing them all of the features of the house anyway. When pressured or encountering resistance, she tries to respond objectively and calmly to the buyer's objections but fails to notice their feelings.
Buyer: Tom Riley, an engineer, almost drove the Realtor crazy with his requests for information on three houses he was considering. In one instance, where he brought in four different parties to study the foundation and other structural details, the owner complained bitterly to the Realtor. Tom compared each house feature by feature, making careful surveys and inspections. He studies market trends in the area for the previous ten years and held firm with his first bid until the owner accepted. Always punctual, neatly dressed, he seemed composed and objective. He was hard to get to know, careful to avoid expressions that would indicate his feelings and reluctant to discuss his objectives.
Salesperson: Jack Andrews is a sociable man, fashionably dressed and, said by some, to be able to charm anyone. He can put people at ease readily and project a friendly and interested manner. There is usually laughter coming from his office.
Jack has many friends and seems to have the ability to convince both buyers and sellers that he is really on their side. Highly flexible, he can usually find creative ways of getting around objections or suggesting additions, decorations or remodeling that can help the house become what the buyer desires. He seldom tries to force people to buy, but rather deals with their resistance with a light touch, sensitively looking for the vital factors involved and then trying to find the solutions to them. Even if people don't buy, they go away feeling Jack is a friend.
The owner of the realty firm sometimes feels that Jack spends too much time on socializing and not enough on selling. It is hard to keep track of Jack and he is often later for appointments. Sometimes people don't express their objections because they feel he doesn't seem to take them seriously enough. He can also make a number of promises which may fail to be kept - simply because he wanted to keep the buyer happy. Details occasionally have a way of being overlooked by him and fall between the cracks.
Buyer: Jane Ellington, an attractive and friendly woman came to the office with her friend Mary. They were "window shopping" for a new home which should be in the best possible area. Their husbands, young executives, were both men on the way up and they wanted homes to reflect their success. Although amiable at seeing many houses, they responded best to those with lavish and striking features - often commenting about how their friends would be impressed. The visit often felt like a picnic. They were easy to talk to and fun to be with. Nevertheless, it was difficult to get them to focus on any particular house - they seemed readily and easily attracted to many and reluctant to offer negative comments except when the homes were clearly unsuitable. They appeared to be willing to listen to the Realtor's suggestions but only rarely followed through by asking their husbands to join them.
While these vignettes may seem all too familiar, the salesperson may ask: What can be done when the "wrong" styles meet or when you inadvertently use the wrong selling approach? Obviously, when things are going well and sales are assured one doesn't need any help. When it isn't, there are several important factors that the LIFOŽ theory would suggest you consider and develop strategies to deal with:
Recognize That Sales Strengths Can Be Overdone. There is an old adage worth keeping in mind:"A little bit goes a long way." When resistance is encountered it is tempting to rely on our best tool and thereby provide too much explanation, too much force, too much detail, or too much conversation and joking. The more that occurs, the more customers will feel threatened, put-off, or reluctant to buy.
Check The Customer Style When You Encounter Resistance. What assumptions are you making about the customer's style (e.g. that he/she is just like you?). Are you communicating on the customer's wave length? Do you understand their specific decision preferences, needs and fears? You don't have to be a style expert but you do have to find out why you're not being received the way you want to be. See the table on page 7 accompanying page for some suggestions.
Be Flexible And Use Another Approach. If you've identified the style and it is different from yours, shift to one that matches the other person and reflects understanding. If you're unable to shift, you may want to consider working with another colleague or shifting to another person who can better work with that kind of customer (even learn how to classify customers so that they can be directed to specific salespeople who have the best chance to achieve success with those kinds of customers). LIFOŽ Sales Training seminars are designed to help you develop such diagnostic skill and flexibility.
The advantage of the LIFO approach is its ability to provide practical ways of identifying and dealing with customers, using the sales skills and experience you already have and assisting you to optimize them in your many sales opportunities.