Chapter 12 Sales "Objections"

Flashcard maker : Thomas Alday
Non- Complainers
Unhappy customers will tell 9 to 10 other people. Happy customers only tell 3 to 4.

Golf Industry – 80% to 85% of unhappy customers to do not verbally complain – they just don’t come back.

Objections
is anything the prospect says or does that presents an obstacle to the smooth completion to the smooth completion of the sale
Welcome to objection s
Learn to accept objections as a challenge, which when handled correctly will benefit you and your prospect
If you fear objections you will fumble your response, often causing you to fail

“when you don’t have an objection, you don’t have a client”

When does objection occur??
At any time during your sales call… from your first introduction up to the time you try and close.
More on objections
-objections are buying signals
-They are the verbal/nonverbal signs of sales resistance that give you the chance to discover what the prospect is thinking (later leverage for closing)
First task
Calm the prospect’s emotions by proving that you are open to reason
Pause before replying
Empathy
“Remove objection without being objectionable”

Do not argue
It should turn out as a win win situation
Never force someone
Let it be their own idea to buy (or act like it was)

Why to objections occur?
Because there are doubts or unanswered questions in the mind of the prospect.

Because the prospect wants to buy or is interested in buying, but needs clarification, wants a better deal, or must have a third party approval.

Because the prospect does not want to buy.

You will get objection if….
You have not completely qualified the buyer (Is he the real decision maker? Can he really afford it? What is the need and interest level?

You have not established need.

You have not established rapport.

You have not established credibility.

You have not established trust.

You have not found the prospect’s “hot button”.

Your presentation was weak.

You have not anticipated objections in your presentation & overcome them before the prospect can raise them.

Main categories of objections or sales resistance
Product itself
Need for the product
Objection to the salesperson
Objection to your company
Don’t want to make a decision
Service objection
Price objection (possibly hiding real objection)
Timing
The stall or put-off (types of objections)
Prospect is simply trying to avoid making a decision
You may not have presented a compelling reason to buy
Handling the stall is a test of your attitude
Look for the true meaning behind their words
The searcher (types of objections)
Often prospects just want more data. They have mentally decided they want to buy.
They just want to be convinced. So convince them!
Hidden request for additional info
The hidden objection (types of objections)
More difficult to overcome
Prospect will not reveal the real reason
Often quite personal, so prospect feels uneasy
Like the iceberg lurking below the surface
When the answer fails to make sense
The Stopper (types of objections)
An objection for which no solution can be found
Not every prospect is a fit for what you have to offer
The prospect has a legitimate reason for not buying… so move on.
Deciding when to answer objections
Anticipate and Forestall Objections
Incorporate objections and the answers directly into the presentation
You should be certain that the objection will arise
Prevents a confrontation and communicates objectivity
Objection may come up again—but it will have less impact the second time
Weave into your presentation factual answers to anticipated objections (OBJECTION PREVENTION)
When question you should not answer right away
PRICE QUESTION
should be answered near the end of the presentation when need, value, and benefits have been discussed.
Objection Prevention
Prevent objections by discussing them in your presentation before the prospect has a chance to voice them.
* Identify all possible objections.
* Write them down.
* Script objection responses with closing questions for each.
* Develop sales tools that enhance & support every response.
* Rehearse the scripts in role play.
* Tweak the scripts.
* Try them out on customers.
* Make final revisions based on real world situations.
* Keep documents in a master notebook.
* Meet regularly as a group to discuss revisions

Stay ahead of the “objection curve”
-Also make sure that your prospect is a viable prospect. That the prospect matches your ideal customer profile.

More types of objections
product, objection to salesperson (hidden), Company objections, aversion to decision making, service objection, price objection (possibly hiding real objection)
Top ten attitudes you should have before entering a meeting w/prospect
1.) Sales attitude
2.) Value first attitude
3.)Relationship attitude
4.) winning attitude
5.) profit attitude
6.) Service attitude
7.) Loyalty attitude
8.) Money attitude
9.) Success Attitude
10.) Five year attitude
When an objection is raised early in the presentation
two advantages: objection has much less impact the second time
You may recall the original answer, expand upon it, and then move on into a close or back into the presentation if necessary
Postpone the answer (till later in the presentation)
Acknowledge the objection
Employ empathy
Gives you time to present more benefits
Allows you to maintain control
Gives you time to think about your response
Promise to get back to the question, and write it down
If prospect absolutely insists, then answer it when it comes up
Used mostly when price concerns are stated before you are ready to answer.
Answer immediately
Allows the prospect to concentrate on the rest of the sales story
Shows the prospect your sincerity
Prevents prospects from inferring your inability to answer
Of all the objections, the price question should be answered after need, value, and benefits have been discussed.
Answer until you are sure of the real concern, and once it is discovered, answer it in 30 seconds or less
Do not answer an excuse
When there is no relevancy…eff em
By acknowledging excused, you may actually turn them into real objections in the prospect’s mind
The six-step process for identifying objections
1.)Listen carefully; Hear the prospect out. LISTENING IS KEY (simply paying attention is key)
2.) Confirm your understanding of the objection
3.) Acknowledge the prospect’s point of view
4.) Select a specific technique
5.) Answer the objection
6.)Attempt to close – continue the presentation if you do not succeed
Why do salespeople need specific plans to handle objection?
Answer: maintaining control
Knowing that you have a strategy gives yea confidence
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2.)Confirm your understanding of the objection
Clarify and classify the objection
Restate the objection to make sure you are 100% understanding (use ur own words. Also helps you to formulate an answer)
Try to distinguish between genuine objections and excuses

To evaluate and isolate the stated concern.
Find out the reason for the concern (real reason, excuse, etc)
Evaluate the timing of your answer

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3.)Acknowledge the prospect’s point of
view
4.)
4. Select a specific technique – base your decision on:
The prospect’s social style
Phase of the interview
The prospect’s mood
The number of times the objection has been raised
The type of objection (excuse versus a genuine concern or question)
5.)
5.)Answer the objection – say just enough to answer it
Negotiation is persuasion, not manipulation
Don’t promise stuff you can’t keep
Your answer should include a benefit and should be shaped to fit the behavioral style of the prospect
Confirm your answer satisfied
6.)
6.)Attempt to close – continue the presentation if you do not succeed

If you successfully answered a major objection, you have created an opportunity to close, especially if you are near the end of a presentation.

Attempt a trial close (gets a prospect’s reaction without exerting any pressure for making a definite decision)

Five Specific Techniques for Handling Objections
1.) Feel, felt, found
2.) Compensation or counterbalance method
3.) Ask “why?” or a specific question
4.) Deny the objection
5.) Boomerang Method
6.) Curiosity Method
7.) Deflection Method
Feel, felt, found
Answer it by referring to a third party and using that experience as your “proof or testimony”
If the source is reliable or reputable, this can be especially successful
Provide new facts which allow the prospect to reevaluate your proposition

The whole ” I understand how you feel…some of my other clients have felt…and they found..”

Compensation or counterbalance method
Admit the objection is valid
Describe some counterbalancing benefit
Relate a case history or testimonial—describe the experience of a client whose situation is similar to that of the prospect
Ask “why?” or a specific question
Excellent for separating excuses from real objections
Ask questions that turn a broad general objection into a specific concern that can be answered
Deny the objection
Direct denial involves refuting the opinion or belief of a prospect
Considered a high risk method of handling buyer resistance
If buyer resistance is not valid, there may be no other option than to refute it by providing accurate information
Be firm in stating your beliefs; be sincere and
don’t be defensive
Attitude is critical for this but know that you will not be intimidated.
Boomerang method
Allows you to agree with your prospect yet show them that their objections need not prevent a purchase
When they lack complete info
Tongue in cheek method is an adaptation of the boomerang method ..It uses a bit of humor that may soften up the prospects and turn away their anger.
Curiosity method
This works best inside this relationship-driven approach.
Like question to question
so if they raise an objection say “I wonder why that is?”
The sales person with the “why” shows curiosity
Deflection Method
Sometimes they bring up things that don’t relate or to take control of the meeting
“yes, I see what you mean..how interesting. As I was saying”
5. Indirect Denial
Sometimes prospect’s objection is valid, or at least accurate to some degree
Best approach is to acknowledge that the prospect is correct
It initially appears as agreement with the customer’s objection
If done in a natural, conversational way it will not offend the prospect
Rephrase or have the prospect rephrase
Blame yourself
Give the facts that answer the objection
A Mindset for Negotiating Price Resistance
Don’t apologize for the price
Do add value with a cluster of satisfactions
Unbundle
Don’t make price the focal point of your presentation
Do point out the relationship between price and quality (VALUE)
Do explain the difference between
price and cost
People usually don’t mind spending money when the value is really great. So establish quality and value.
Price vs. Value vs. Cost (handling price objections)
Your job is to establish value, not price
Look at the price-quality-value mindset
Talk about the initial price versus the ultimate costs.
1.) Price break down
Break the price down—by day, week, or month (lowest denominator).
Compare the one-time price of your product to the amount of money the prospect will save after years of using it.
(your job is to establish value, not price)

Price represents the initial amount paid for the product; cost is the amount the buyer pays as the product is used over time

2. Presumption of Exclusivity
Stress the special features than only your product can offer
Sell quality and uniqueness if the buyer argues price
Must be an expert about your industry and product line
Make your price seem unimportant in comparison to the value received
Draw the picture clearly and convincingly—most buyers are fair-minded

Definition of Presumption of Exclusivity: concentrate on those features that are unique until prospect feel that only you can satisfy their needs.

3. Comparison method
When prospects are mentally comparing their present product with your product, make a complete comparison of the two
A demonstration can give a convincing answer to an objection
Comparison of your product’s features, advantages, and benefits against competitors
Do a comparison of long-run costs and savings
Use your company’s reputation to build trust and justify the higher price

Case histories histories and testimonials are useful
or demonstration

4.) Sell down method
The common law of business balance prohibits paying a little and getting a lot
Be patient, focus on the benefits, and let the buyer tell you what features he can live without
There is a price point below which the buyer will not want to go
All prospects have a purchasing or buying range. Find it!
Unbundle

The common law of business balance prohibits paying a little and getting a lot = it can’t be done

How to Deal with Price Concerns During Formal Negotiations
Do clarify price concerns with questions
When you say we are higher, could you be more specific, please?
What did you anticipate the price would be?
If you had the budget, would you buy this product?

Do add value with a cluster of satisfactions
Emphasize other benefits besides price they will be getting.

Do not make price focal point
Emphasize the win-win benefits of the product.

Do not apologize for the price
Emphasize value or overall cost.

Negotiation Defined
“Working to reach an agreement that is mutually satisfactory to both buyer and seller”

Negotiation is a process
Ability to negotiate problems or objections is a most effective way to create value
Part of a win-win strategy
Build trust

Negotiation and relationship selling
Negotiation in Selling
Successful sales presentations have twice as many objections as those presentations that are unsuccessful. Objections & questions show interest.
The negotiation process is a situation of mutual cooperation and mutual benefit.
Objections are a normal part of almost every conversation—not just in sales.
Relationship selling is a win-win proposition.
The decision to buy should be their idea.
Planning for formal negotiations
Anticipate buyer concerns.
Review common type of resistance.
Gather information (research) before the negotiation
Determine who to negotiate with.
Understand the value of what you are offering. Real value could be product knowledge, delivery time, good credit terms, reputation.
Determine your goals and financial objectives (what is your walk away number).
Prepare an agenda of what will be discussed.
Review adaptive selling styles.
Conducting the Negotiation Session
Understand the problem (both on same page). Get all points down on paper.
Create alternative solutions that can add value. After prospect speaks, follow up with validating question(s).
Periodically review acknowledged points of agreement.
Do not make concessions too quickly.
Be mindful of your timing (Pareto Law – final 20% of time allowed = 80% of results).
Know when to walk away
Working with Buyers Trained in Formal Negotiation
Budget limitation tactic
Possibly reduce price by eliminating some features (unbundling).

Take-it-or-leave-it tactic
Review overall superior benefits & value and attempt another closing. Know your “Walk Away” number.

Let’s-split-the-difference tactic
If not acceptable make counteroffer.

“If . . . .then” tactic
Tough decision, your knowledge of competition will be key

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