Welcome Your Prospect’s Objections Chapter 12 Welcome Your Prospect’s Objections

Welcome Objections! Accept objections as a challenge People do not want to be taken advantage of Learn to overcome objections

What are Objections? Opposition or resistance to information or the salesperson’s request is an objection

When Do Prospects Object? Prospect may object any time during sales call Always be ready to handle a prospect’s objections

Objections and the Sales Process Objections can occur at any time When objections occur, quickly determine what to do

Basic Points to Consider in Meeting Objections Plan for objections Anticipate objection before it arises Handle objections as they arise – postponement may cause a negative mental picture or reaction Be positive Listen – hear them out

Handling Customer Objections SECTION 14.2 Handling Customer Objections Why It's Important Anticipating and planning potential answers to objections will help you feel more confident in your responses to customers. Selecting the most appropriate method for handling those objections will set you apart from other salespeople who do not have that expertise.

Handling Customer Objections SECTION 14.2 Handling Customer Objections Understanding Objections Objections are concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase. Objections give you an opportunity to present more information to the customer. Excuses are insincere reasons for not buying or not seeing the salesperson.

Handling Customer Objections SECTION 14.2 Handling Customer Objections Welcome and Plan for Objections Objections can guide you in the sales process by helping you redefine the customer's needs and determine when the customer wants more information. Prepare yourself for most objections by completing an objection analysis sheet, which lists common objections and possible responses to them.

Handling Customer Objections SECTION 14.2 Handling Customer Objections Common Objections Most objections are based on key decisions the customer must make before buying: need product source price time Slide 1 of 3

Handling Customer Objections SECTION 14.2 Handling Customer Objections Common Objections Need The customer does not have an immediate need for the item or wants the item but does not truly need it. Product The customer is concerned about such things as construction, ease of use, quality, color, size, or style. Slide 2 of 3

Handling Customer Objections SECTION 14.2 Handling Customer Objections Common Objections Source The customer has had negative past experiences with the firm or brand. Price The customer does not want to spend so much money. Time The customer is hesitant to buy immediately (sometimes an excuse). Slide 3 of 3

Handling Customer Objections SECTION 14.2 Handling Customer Objections Four-Step Process for Handling Objections Successful salespeople have learned to use a very basic, four-step strategy when answering all objections: Listen carefully. Acknowledge the customer's objections. Restate the objections. Answer the objections. Slide 1 of 4

Handling Customer Objections SECTION 14.2 Handling Customer Objections Four-Step Process for Handling Objections Listen Carefully To demonstrate sincere concern for your customer's objections, be attentive, maintain eye contact, and let the customer talk. Slide 2 of 4

Handling Customer Objections SECTION 14.2 Handling Customer Objections Four-Step Process for Handling Objections Acknowledge the Customer's Objections Acknowledging objections demonstrates that you understand and care about the customer's concerns. This makes a customer feel that his or her objections are understandable, valid, and worthy of further discussion. Slide 3 of 4

Handling Customer Objections SECTION 14.2 Handling Customer Objections Four-Step Process for Handling Objections Restate the Objections To be sure you understand the customer, paraphrase the objections (restate them in a different way), but don't change the meaning of the customer's objection. Answer the Objections Answer each objection tactfully. Think of yourself as a consultant, using the objections to further define or redefine the customer's needs. Slide 4 of 4

Basic Points to Consider in Meeting Objections, cont… Understand objections Request for information A condition (negotiation can overcome a condition) Major or minor objection Practical or psychological objection

Practical vs. Psychological Price Product not needed Prospect has overstock Delivery schedules Psychological Resistance to $$ Pre-determined beliefs Negative image of company/sales force

Categories of Objections Hidden Unwilling to discuss true objections Ask probing questions Stalling I’ll think it over I’ll be ready to buy later this month

Categories of Objections No-Need Objection I’m not interested Thanks for coming by Money Objection Costs too much/price too high Price Value Formula Price/Value = Cost

Categories of Objections Product Objection Risks/competition Source Objection May not like you or your company

Exhibit 12.10: Five-Question Sequence for the Smoke-Out Back to 12-23

Techniques for Meeting Objections, when they are incorrect…. Use direct denial tactfully The indirect denial works ‘I agree’ ‘Yes’ Compensation/counterbalance method Show the benefits/value in profits Third party answer Proof of testimony

Let’s Review! When Is It Time to Use a Trial Close? After making a strong selling point in the presentation After the presentation but before the close After answering an objection Immediately before you move to close the sale

Let’s Review! What Does the Trial Close Allow You to Determine? Whether the prospect likes your product’s FAB – the strong selling point Whether you have successfully answered the objection Whether any objections remain Whether the prospect is ready for you to close the sale

What is an Example of a Trial Close Used to Respond to an Objection? “Does that answer your question?” “With that question out of the way, we can go ahead – don’t you think?”

Make a smooth transition back into your presentation Once You Have Satisfactorily Responded to the Objection, What Should You Do Next?* Make a smooth transition back into your presentation “As we were discussing…” Move to close the sale if you have completed your presentation Move to close again if objection was after a close

If you Cannot Overcome the Objection, What Are Three Alternatives to Consider? (#1) Return to presentation concentrating on new or previously discussed FABs of your project.

If you Cannot Overcome the Objection, What Are Three Alternatives to Consider? (#2) Admit it Compensate for it by showing how your product’s benefit(s) outweigh the disadvantage(s)

If 100% sure the customer will not buy If You Cannot Overcome the Objection, What Are Three Alternatives to Consider (#3) If 100% sure the customer will not buy Go ahead and close Always ask for the order Allow the buyer to say “no” – don’t say it yourself Your competitor(s) may not be able to overcome the objection(s) either A competitor may make the sale because he/she asked for it Be professional, not pushy Leave the door open for a return visit

Exhibit 12.12: The Procedure to Follow when a Prospect Raises an Objection Move into your presentation Close the sale Prospect raises an objection Response to the objection Use a trial close

Approach Presentation Trial Close Determine Objections Meet Objections If After Your Presentation You Received a Positive Response to Your Trial Close, What Would You Do? Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close

Approach Presentation Trial Close Determine Objections Meet Objections If After You Meet the Objection You Received a Positive Response to Your Trial Close, What Would You Do? Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close Close Close Close Close Close Close Close Close Close Close Close Close Close Close Close

Approach Presentation Trial Close Determine Objections Meet Objections If After Your Presentation You Received a Negative Response to Your Trial Close, What Would You Do? Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close

Approach Presentation Trial Close Determine Objections Meet Objections If After You Meet the Objection You Received a Negative Response to Your Trial Close, What Would You Do? Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close