Addressing Concerns and Earning Commitment Chapter 8 Addressing Concerns and Earning Commitment

Objections defined! Reasons as to why a prospect will not buy or make a commitment to your product, service or organization

Reasons Why Prospects Raise Objections The prospect wants to avoid the sales interview. The salesperson has failed to prospect and qualify properly. Objecting is a matter of custom. The prospect resists change. The prospect fails to recognize a need. Prospect lacks information.

Major Categories of Objections Examples Category We can’t afford it. I can’t afford to spend that much right now. That’s 30% higher than your competitor’s comparable model. We have a better offer from your competitor. I need something a lot cheaper. Your price is not different enough to change suppliers. Your company is too small to meet my needs. I’ve never heard of your company. Your company is too big; I’ll get lost in the shuffle. How do I know you’ll be around to take care of me in the future? Your company was recently in the newspaper. Are you having problems? I need time to think it over. Ask me again next month when you stop by. I’m not ready to buy yet. I haven’t made up my mind. I don’t want to commit myself until I’ve had a chance to talk to engineering. I don’t like the design, color, or style. Maintenance agreement should be included. Performance of product is unsatisfactory. Packaging is too bulky. Specifications don’t match what we have now. The product is poor quality. I have all I can use. I don’t need any. The equipment I have is still good. I’m satisfied with the company we use now. We have no room for your line. Need Product or Service Features Company or Source Price Time

Handling Objections Effective salespeople are able to: Anticipate objections Answer them with confidence Probe for more concerns Quickly get back to motivating the prospect/customer to make a decision in favour of purchasing/trying the product Why do most salespeople say that they welcome objections? Don’t objections get in the way of the sales?

Objection-Handling Techniques Forestall the Objection Compensation Boomerang/translation Direct Denial Indirect Denial Postpone in presentation Third-party reference or support Applying the URT, through disclosure and proof providers LAARC is a method for handling resistance should be engaged.

LAARC Method for Handling Buyer Resistance Listen Acknowledge Assess Respond Confirm

Buyer Commitment The creation of an obligation between the seller and buyer. The seller obtains the buyer’s obligation to a specific action. Examples of commitment include: An Appointment Agreement for next meeting Agreement for product demo A sale The specific action is usually linked directly to one of the sales call objectives.

Guidelines for Earning Commitment Look for Commitment Signals “That will get the job done” “I didn’t realize you delivered everyday.” “The price is lower than I thought it would be.” Also non-verbal messages Ask Trial Commitment Questions “What do you think about the what we’ve discussed?” “Do you see how this will help your organization?”

Guidelines for Earning Commitment Resolve “Red Light” statements made by the prospect I’m not sure that will work. The price is higher than I thought it would be.” Your delivery schedule does not work for us. I don’t see the advantage of going with your proposal.

Techniques to Earn Commitment T-Account or Balance Sheet Commitment Summary Close on Paper Success Story Commitment Salesperson tells a story of a Business that successfully solved a problem by buying his or her product.

Techniques to Earn Commitment Ask for the Order/Direct Commitment Simply ask for the order Legitimate Choice/Alternative Choice Give the prospect a limited number of choices Summary Commitment Summarize all the confirmed benefits that have been agreed to.

Closing Mentality A completion mentality emphasizes the point that all sales presentations must reach some type of conclusion, which may or may not result in a transaction On average, it takes five sales calls on a business prospect to complete a transaction

Traditional Closing Techniques Professional salespeople often use more than one technique during a presentation

Additional Closing Techniques No risk close (guarantee) Ask for help close Standing-room only close Pretend-to-leave close Continuous yes close Price reduction close Trial/Puppy dog close

Employing Closing Techniques Although traditional closing techniques can be effective under the right circumstances, salespeople should use them judiciously Many prospects find it difficult to make decisions Prospects want to make the right decisions, but complete certainty in buying never exists* Many prospects will postpone decisions if salespeople let them After a sales presentation, prospects often feel confused and hesitant *relates to the URT

Dealing with Yes! Obtain the customer’s signature Provide a plan of action (i.e., answer the question “now what?”) Answer any remaining questions. Assure the buyer you will follow-up Thank the customer for the business Partnering mentality - A partnering mentality changes the salesperson's primary goal from one of just completing the transaction to one of beginning a partnership with the prospect

When to Walk Away It is helpful for businesspeople to establish in advance at what point they will walk away Disagreement during a particular negotiation does not necessarily mean that the partnership dissolves Often such business relationships are reconciled and become very successful partnerships

Dealing with No! Evaluate the customer’s explanation Maintain the relationship foundation Understand rejection is a fact of life Evaluate your performance Learn from the situation Make improvements

Video Discussion Questions What types of objections did Mark raise? What technique(s) did both Jim and Lisa use to handle the objections put forth by Mark? What closing techniques are present in both video clips? If you were Mark, who would you buy from and why?