March 18, 2011 — Often timeshare developers take a lot of flack from consumers, legislators, the main-stream media, regional bloggers and timeshare owners like ‘Tuggers’ (mostly non-business owners whining about the cost of doing business, aka: Marketing), as well as from sales reps with their own list of gripes.
Sometimes these people have legitimate grievances but there is one inescapable truth that cannot be disputed, which is that timeshare developers, unlike the vast majority of other ‘sales-driven’ businesses, put cold hard cash on the line every day of the year to generate prospects for their sales staffs and the sales reps often overlook that critically important benefit of being a TS rep.
Anyone in sales knows that ‘Leads’ (aka: prospects, sales guests) are the lifeline of any successful sales rep and/or organization. In the popular 1992 Movie “Glenngary Glenn Ross” that topic is discussed by “Blake” (played by Alec Baldwin) during an ‘ass-chewing’ meeting with the company’s few sales agents.
Blake, like one or two timeshare sales managers we’ve all met, seems to believe that the only way to increase sales and motivate reps is by beating them down, as is evident the second he kicks off the meeting, growling at one rep: “Put that coffee down! Coffee’s for closers only. You think I’m f****** with you? I’m not f****** with you.”
Throughout the demoralizing session the foul mouthed, mostly wrong Blake (‘a motivator’) continues spewing out more venom such as: “You call yourself a salesman, you son of a bitch?”
“You can’t close s***, you are s***, hit the bricks pal, and beat it, ’cause you are going out!”
Then, at the end of the stimulating meeting, Blake omits or simply lies as he dangles a stack of hundreds of ‘leads’ proclaiming: “These are the new leads. These are the Glengarry leads. And to you they’re gold, and you don’t get them. Why? Because to give them to you would be throwing them away. They’re for closers.”
However, what Blake doesn’t tell the reps is the cost of those hundreds of so-called ‘new-gold-leads’ (for just four reps). Most likely, in the real world, those are just ‘penny’ (cost a few pennies to a dollar or two each) ‘leads’ with just a name, phone number and address.
Conversely, a timeshare developer actually spends hundreds of dollars to pay the OPCs, ancillary marketing entities, etc. just to generate one (each) prospect and then, unlike in the movie where the reps make outbound phone calls, set appointments, etc, the prospects must actually show up at the timeshare sales reps ‘office’ (aka: sales center).
Plus the timeshare developer also bears the cost of premiums, overhead etc. and although there have always been issues with our industry’s often wasteful marketing model the fact of the matter is too many reps carelessly play ‘spin-to-win’ and, industry wide, burn through tens of thousands of these costly ‘leads’ every day/month/year.
Plus the timeshare developer also bears the cost of premiums, overhead etc. and although there have always been issues with our industries often wasteful marketing ‘model’ the fact of the matter is to many reps carelessly play ‘spin-to-win’ and burn through, industry wide, tens of thousands of these costly ‘leads’ every day/mth/year…
A more productive system would be for developers to improve their marketing schemes and qualifications, etc. But before they can ever do that they need to instill a ‘love the one you’re with’ mentality (policy) among their sales teams.
With the primary and absolute requirement being that each sales rep (and manager-T/O) must take the time required to deliver and complete a full, thorough informative upbeat professional sales presentation, including all steps required for a proficient ‘close’. And they must do so with each and every qualified (gold) ‘lead’.
Whether that will ever happen industry wide is for others to decide but if today each properly trained timeshare rep (and manager-T/O) had to actually pay the cash upfront required to generate every hand they will be shaking, well, I suspect a dramatic increase in closing ratios, higher VPG’s and lower rescissions would be the end result.
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©2011 Inside The Gate