The most proper way I know of is to use triggers and the call CharacterLookFromTrigger
Pick your point trigger and click this button with right click:
http://i.imgur.com/7580lMQ.jpg?1The little arrow will show up. That's what direction CharacterLookFromTrigger will make the NPC look.
However if I have global objects in the area I'll often take the lazy way out and use them instead:
CharacterLookAtItem