Tokyu Real Estate

Tokyu Real Estate

Tokyu Real Estate

EXECUTIVE SUMMARY


“BRANZ” condominium developer Tokyu Real Estate. Currently providing housings which suit various needs of customers through an “integrated manufacture and sales” business model. The issue identified is, how to sell fast and at high price, in order to maximize the project’s profit. Here, we interviewed members of the company about the training of group leaders, who manage the sales site for various properties, and of chiefs, who are in charge of sales site for around a period of 6 months, which was conducted on the topic of improving the precision of matching of the timing between “customer attraction peak” and “sales ability peak”.

Members interviewed


Director of Sales Management Department & Director of 1st Sales Division, Tokyo Area Residential Business Division & Operating Officer

Mr.Tomoyuki Sato
Director of 2nd Sales Division, Tokyo Area Residential Business Division

Mr.Jun Yamaguchi
Sales Management Department, Sales Management Group, Group Leader

Mr.Shiota Koutarou
Sales Management Department, Sales Management Group, Section Leader

Mr.Hisazu Rinta
Sales Management Department, Sales Management Group,

Ms.Saito Tomomi

Please tell us the circumstances which led to this training


Our company has been developing a condominium business mainly in the Tokyo and Kansai area, and previously we have separated the functions into two group companies, Tokyu Real Estate, which is a developer, and Tokyu Livable, which is in charge of sales. However, when considering business profitability and growth speed, we decided that an integrated manufacturing and sales business development has high future prospects and made a big change in the policy. Which is done by having a sales department inside Tokyu Real Estate. What followed was the increase in the importance of the role of the chief, who is in charge of the sales site of the project. Until now, the person in charge of manufacturing and sales had been different people, however, due to the integration of manufacturing and sales, sales group leader and chief now took part from the product planning step, up to the sales step. This also means that the degree of participation and responsibility towards the project also increases. Thinking about how to maximize the profitability of the project became more important, not only simply, “If the product sells, then it’s fine” as before.

Therefore, we decided to use this opportunity to embark on a project for mainly chief members, which would allow them to rethink about the desired sales style of our company. Nevertheless, we think that new ideas are difficult to be created from only our company alone, and we decided to consult Mr.Katou from Lib Consulting, who had previously assisted us at the Kansai branch store, and requested a training program.

What is the number one aim of this training?


Also, the number of visiting customers also peaks at the very beginning of the sales, then gradually declines as time goes by. In another word, the beginning of the sales is the climax. However, from the point of view of the salespeople, there are problems such as, not having enough time to prepare before the beginning of the sales, or the sales talk differs from person to person and the property’s true value could not be sufficiently conveyed to the customer. Until now, sales scenario and sales talk were brushed up as the sales proceed, and therefore, the sales ability’s peak lied in the latter half of the sales process. This is actually a loss of opportunity. Because, in the sales of detached house and condominium, it is important to go on with full force right from the beginning.

Therefore, the question is, how to match the sales ability peak and the customer attraction or customer’s purchase desire peak. The answer of which, is to move the sales ability peak forward. In order to do so, we realized that the important thing is for the person in charge of sales to participate in the implementation of the project from an earlier stage, create a sales story, transfer it into the tools and talks, and train rigorously to prepare for the beginning of the sales. The integrated manufacture and sales system also promoted the easy participation of person in charge of sales at an early stage.

Were there any ideas which were the keys in revising the sales story?


Were there any ideas which were the keys in revising the sales story?
The first is “the purchase psychology”. Especially, the “framing” element. Even though I think there were members who were naturally aware of the purchase psychology during their talks, by creating a theory and learning the ideas, a common axis in creating a sales story was formed. Right now, I began to hear conversations where chiefs ask the members “whether they have thought about the framing talk”.

The other idea is, the step in which the property’s concept is reflected into the sales story. Until now, sales activity had also been conducted after understanding the property’s concept, however, the perspective on the “purchase psychology” had been lacking, and there was room for improvement for communicating effectively. The method in creating a story which could effectively increase the customer’s purchase desire had been clarified, and I think that a “sales equation” which could be applied to any properties had been completed.

What do you think is the biggest achievement of this training?


At the beginning, we set 5 KPIs as the success indicator. The first two, “Number of visitors divided by total number of properties”, and “Number of requests for document divided by total number of properties” concern the strengthening of presales activity. The remaining three, “rate of repeating”, “rate of recontract”, “yield (rate of success)”, concerns the strengthening of the sales story. After carrying out the project for half a year, all KPIs were observed to be increasing.
The main reason behind that is probably because, inside the sales division, a common axis in formulating the sales strategy had been created. During the Tokyu Livable time, there were also opportunities to receive sales training, however, I was “taught and that’s the end of the story”. I felt like there were so many things which could not be applied on-site. However, in this project, even though it was mainly supervised by LiB Consulting, it was conducted in a discussion-oriented style in which we identified the problems, and think about how to solve them by ourselves, therefore, i think that the degree of acceptance is high. Making us wanting to practice the strategies on-site immediately. I think the way the project was implemented worked out extremely well. Also, for the chiefs, being able to know what the others are thinking, and the others’ working style also played a big part. The truth is that, previously, even though the vertical relationship was strong, the horizontal one was not. I think that formation of the horizontal relationship was also a chance for everyone to expand their scope of thinking.

Lastly, what are the future developments you are thinking of?


The most important thing is, to take what we received from this project, put it into practice on the new upcoming project, and make it successful. It is necessary to practice it on-site, and make sure we get a grasp on it. We would also continue to receive LiB Consulting’s support and carry on creating big results in the future.

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