The 4:2 Formula

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The 4:2 Formula by Mind Map: The 4:2 Formula

1. SECTION 3: The 4:2 Sales Formula

1.1. Ch. 12: Standardized Scripting vs. Strategic Structure

1.1.1. Sales professional must know sales presentation so well they don't need to think about it.

1.1.2. You're free to understand your client at a deeper level.

1.2. Ch. 13: Why vs. What

1.2.1. We instinctively think of "what" questions - must practice to focus on "why" questions.

1.3. Ch. 14: The 4:2 Formula

1.3.1. Establishes mutual purpose - a shared vision of where you are and where you're going - so you can become trusted advisor

1.4. Ch. 15: Discovery Category #1: Trust Building

1.4.1. Likeability increases sales

1.4.2. Likeability standard: am I coffee worthy?

1.4.3. must build rapport

1.4.4. "Permission to question" is effective bridge from "rapport" questions to "discovery" questions.

1.4.5. Can I ask you a few quick questions so I can lead you in the right direction?

1.4.6. Key components

1.4.6.1. "Can I" communicates respect - client calls the shots.

1.4.6.2. "few quick questions" - process will be painless and won't take long.

1.4.6.3. "so that" - this process is for the client, not for me.

1.4.7. Summary of "Influence" by Robert Chaldini: https://ashishb.net/book-summary/book-summary-influence-the-psychology-of-persuasion-by-robert-b-cialdini/

1.5. Ch. 16: Discovery Category #2: Motivation Questions

1.5.1. Lead with "why" open-ended questions - gets to "what" info faster.

1.5.2. Key to asking motivation question is to ask it conversationally.

1.5.3. Should be so ingrained in you that you don't have to think about it.

1.5.4. Practice this 3 step process: 1) rapport building - trust-building question 2) permission to question 3) motivation question

1.5.4.1. Final section of this book lays out practice regimine for this portion of the sales process

1.6. Ch. 17: Discovery Category #3: Current Dissatisfaction

1.6.1. There is no such thing as a "tire kicker" prospect.

1.6.2. Everyone compomises

1.6.3. Must gauge "acceptable level of dissatisfaction"

1.6.4. Must find out: 1) What's wrong with the home they're in now; 2) Why can't they stay there? 3) What would they change if they were going to stay? 4) What caused them their frustration, angst and emotional dissatisfaction?

1.6.5. 2 Important things to know: 1) Sometimes buyer's motivation and current dissatisfaction are one and the same. 2) You can't understand buyer's current dissatisfaction until you understand it on an emotional level.

1.7. Ch. 18: Discovery Category #4: Future Promise

1.7.1. Future Promise encompasses the solution to their problem. Represents their dream and their vision.

1.7.2. Clients have been thinking about their future promise for months/years.

1.7.3. If clients can't come away with clear vision of future promise - no sale.

1.7.4. Understand the "why" behind the future promise.

1.7.5. A compelling future promise can increase current dissatisfaction.

1.7.6. Understand client's "must haves" vs. 'nice to haves"

1.8. Ch. 19: The Summary Questions

1.8.1. Must understand client's mission

1.8.2. Summary questions rephrase the client's mission

1.8.3. Powerful summary of everything you've learned from clients

1.8.4. 3 advantges: 1) Bring clarity of thought and focus on what matters; 2) Proves your interest in understanding client and that your understanding is correct; 3) They lock in place current dissatisfaction and future promise and demand an action response. Clients agree with themselves that they must take action.

1.9. Ch. 20: The Summary Question #1: The Summary to Satisfaction Question

1.9.1. Recaps pain and confirms why change is necessary.

1.9.2. "Let me make sure I'm clear on this..."

1.9.2.1. you're resetting with client

1.9.3. "if you stay where you are..."

1.9.3.1. directing clients to what they've said before

1.9.4. "you'll have to put up with..."

1.9.4.1. make client feel the pain

1.9.5. "(list dissatisfactions)"

1.9.6. "did I get that right?"

1.9.6.1. This is a closing question. It's not enough to merely state it, must have client agree with it.

1.10. Ch. 21: The Summary Question #2: The Summary Solution Question

1.10.1. Recaps most important things your clients are looking for presented in an exciting, promising manner.

1.10.2. Question asked immediately after summary to satisfaction question.

1.10.3. "So I need to show you something that offers..."

1.10.4. "(list features)"

1.10.5. "did I get that right?"

1.10.6. If you do this right, you'll reach coveted goal of "trusted advisor" working toward "mutual purpose."

1.11. Ch. 22: Filling in the Information Gaps

1.11.1. "why"questions often lead to the "what" answers.

1.11.2. But they may not lead the all the "what" info you need - must fill in the gaps.

1.11.3. "Based on what you've told me, I have a home I want to show you. It has 4 bedrooms and 2,300 sq. ft."

1.11.4. "is that what you were hoping to find?"

2. SECTION 1: The Basis for Why People Move

2.1. Intro

2.1.1. If you know your clients well enough, they will show you how to sell them a home.

2.2. Ch. 1: Why Do People Move

2.2.1. Single most motivating factor in home-buying decision: Dissatisfaction.

2.2.2. Critical Path method (greet, qualify, demonstrate, close) doesn't work: it's about how seller wants to sell. We want to know how buyers will buy.

2.2.3. If you understand buyer at deep enough level, the sales path should role out right in front of you

2.2.4. Understanding the buyer at a deep level requires greater sense of partnership than ever.

2.2.5. Partnership requires a lot of trust and insight into the dissatisfaction the buyer is feeling.

2.3. Ch. 2: Understanding Dissatisfaction

2.3.1. The greater the level of dissatisfaction, the greater the sense of urgency.

2.3.2. The greater the sense of urgency, the more the buyer will sacrifice to remove dissatisfaction.

2.3.3. To understand how to get the buyer off the fence, need to understand what got them on the fence.

2.4. Ch. 3: Types and Degrees of Dissatisfaction

2.4.1. Dissatisfaction can be caused by life change, i.e. new job, divorce.

2.4.2. Dissatisfaction can be caused by shortcomings of the home, i.e. leaky roof, noisy neighbors.

2.4.3. Dissatisfaction is dynamic - it increases over time.

2.4.4. Today, because of economy, there's a lot of pent up dissatisfaction.

2.4.5. Today, dissatisfaction must be very high for buyers to "get on the fence" and start looking.

2.4.6. Buyers can try to disguise their dissatisfaction, "everything is fine, just looking." Don't believe it.

2.5. Ch. 4: The Power of Why

2.5.1. Buyers don't share dissatisfaction at first because they don't want to appear desperate, needy or like failures.

2.5.2. A buyer's dissatisfaction is personal and can be hard for them to share.

2.5.3. Trust is the key that unlocks the door to understanding the buyer's dissatisfaction.

2.5.4. Deep curiosity is the most overlooked and under appreciated trait of successful salesperson.

2.5.5. Surface problems are only part of story, focus on root of dissatisfaction.

2.5.6. Ask "why" questions not "what" questions.

2.5.7. Most important question: "why are you thinking about moving?"

2.6. Ch. 5: The Why behind the Why

2.6.1. Use "why" questions to probe for the buyer's emotional trigger for dissatisfaction.

2.6.2. Use question "tell me more about that" and say "thanks for sharing".

2.6.3. What is most frustrating about your home?

2.6.4. Trust is built with caring curiosity.

2.6.5. Need to plumb the depths of the buyer's dissatisfaction.

2.6.6. 3 levels of "why" questions

2.6.6.1. Level 1) Broad facts

2.6.6.2. Level 2) Narrow detail

2.6.6.3. Level 3) Emotional result

2.6.7. Need to get to Level 3 to get the buyer off the fence.

2.7. Ch. 6: Boldness in Questioning

2.7.1. To be successful as salespeople, have to be able to deal with tough questions in understanding our clients.

2.7.2. Need to ask yourself 2 questions: 1) Do you have the guts to ask the deeper questions? 2) Are you prepared to exercise your curiosity and dig even deeper?

2.7.3. Thorough discovery is not always comfortable.

2.7.4. How deeply do you want to serve your clients?

3. SECTION 2: The Formula for Change

3.1. Ch. 7: Motivation Factor #1: Current Dissatisfaction

3.1.1. Focuses on what client is moving from.

3.1.2. Client on a mission to make their life better.

3.1.3. Key is to understand client's current dissatisfaction at an emotional level.

3.1.4. People buy because of an emotional response to their dissatisfaction.

3.1.5. People don't buy products, they buy the solutions the products represent.

3.1.6. The 3 Whys: think of questions to dig down to 3rd level of understanding. This is the level where the emotion resides.

3.2. Ch. 8: Motivation Factor #2: Future Promise

3.2.1. If compelling current dissatisfaction exists, there's also a compelling future promise

3.2.2. Represents hopes and dreams of new home and new life.

3.2.3. Also represents solution to the pain of the current dissatisfaction.

3.2.4. Future promise not always clear in the clients mind.

3.2.5. Must understand future promise on emotional terms.

3.2.6. Every "what" question demands a "why" question follow-up

3.2.7. Future promise can drive dissatisfaction.

3.2.8. "I know it when I see it" looking at homes can sharpen the client's focus on future promise.

3.3. Ch. 9: Inhibitor Factor #1: Cost

3.3.1. Represents every price the client will have to pay, both monetary and non-monetary: money, time, hassle...

3.3.2. Focusing on price can backfire, especially discounting - leads client to devalue the home.

3.4. Ch. 10: Inhibitor Factor #2: Fear

3.4.1. It pays to know you're client's deepest fears. Better to acknowledge and discuss fears than to ignore or downplay them.

3.4.2. Key is openness and honesty

3.5. Ch. 11: The Buying Formula

3.5.1. People buy when: current dissatisfaction x future promise > cost + fear

3.5.2. `Formula is sequential - start with current dissatisfaction.

3.5.3. Be aware left side of equations is multiplication. If one number is "0", then whole left side is zero.

3.5.4. A tie goes to the inhibitor

3.5.5. If all variables are large, left side wins.

3.5.6. The variables in the formula can change over time.