Welcome Your Prospect’s Objections 11 Chapter McGraw-Hill/Irwin ABC’s of Selling, 10/e Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Main Topics The Tree of Business Life: Objections Welcome Objections! What Are Objections? When Do Prospects Object? Objections and the Sales Process Basic Points to Consider in Meeting Objections Six Major Categories of Objections Techniques for Meeting Objections Technology Can Effectively Help Respond to Objections! 11-2

Main Topics, cont... After Meeting the Objection—What to Do? In All Things Be Guided by the Golden Rule 11-3

The Tree of Business Life: Objections Guided by The Golden Rule: Welcome objections Remember that objections may allow you to answer the prospect’s concern(s) Realize your product or solution may not be for everyone If it is not for a particular customer, thank him and politely leave If it would benefit the customer, politely, professionally, and ethically, show how the product could be useful Handling objections truthfully shows you provide ethical service in order to build true relationships T T T Ethical Service T T T T T T T T Builds T r u e Relationships T C I 11-4

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

What are Objections? Opposition or resistance to information or the salesperson’s request is an objection 11-6

When Do Prospects Object? Prospect may object any time during sales call Always be ready to handle a prospect’s objections 11-7

Objections and the Sales Process Objections can occur at any time When objections occur, quickly determine what to do 11-8

Exhibit 11-1: When Objections Occur, Quickly Determine What To Do 11-9

Basic Points to Consider in Meeting Objections Plan for objections Anticipate and forestall Handle objections as they arise – postponement may cause a negative mental picture or reaction Be positive Listen – hear them out 11-10

Basic Points to Consider in Meeting Objections, cont… Postponement of objections may result in: Prospect may stop listening Prospect may feel that you have something to hide You also feel that it’s a problem You cannot answer because you don’t know the answer May appear that you’re not interested in prospect’s opinion

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 A real objection is tangible The salesperson must uncover hidden objectives and eliminate them 11-12

Exhibit 11-2: What Does a Prospect Mean by an Objection? Is the prospect’s response a... Request for more information? Condition? True objection? Hopeless objection? Major? Minor? Practical? Psychological? Practical? Psychological? 11-13

Exhibit 11-3: Examples of Objections 11-14

Once Again! What Are Objections? Opposition or Resistance to: Information The salesperson’s request 11-15

Six Major Categories of Objections The hidden objection The stalling objection (“I’ll think it over…”) The no-need objection (“…but I’m not interested now.”) The money objection The product objection The source objection

Six Major Categories of Objections The hidden objection – prospect who asks trivial, unimportant questions or conceals his feelings beneath a veil of silence Salesperson must ask questions and carefully listen in order to smoke out prospect’s real objections Smoke out hidden objections – ask questions, observe, “read between the lines” – prospect may not know what the objections are; as last resort, salesperson may have to ask what objections are

Six Major Categories of Objections Hidden objections, cont… Consider the following questions: What would it take to convince you? What causes you to say that? Tell me, what’s really on your mind?

Six Major Categories of Objections The stalling objection – prospect says, “I’ll think it over,” or “I’ll be ready to buy on your next visit,” must determine if truth or smokescreen designed to get rid of you – common tactic One of toughest to overcome arises when selling a new consumer product Buyer says she has to get approval from someone else. Buyer’s attitude toward product will influence buying decision – make it positive

Six Major Categories of Objections The stalling objection, cont… Let buyer know you are on her side and help her with her objections. If she does not respond give her multiple choice question to display genuine attitude of caring Do not get demanding, defensive, or hostile Goal is to help prospect realistically examine reasons for and against buying now Main idea is not to be satisfied with false objection or stall. Bring out any or all main selling benefits and KOS

Six Major Categories of Objections The no-need objection – prospect says, “…but I’m not interested now,” and he stays as he presently is This is widely used because it gets rid of the salesperson It is tricky because it also includes a hidden objection or a stall

Six Major Categories of Objections The money objection – encompasses several forms of economic excuses and is simple for the buyer to say Respond by saying that it is risky to discuss price until it can be compared to product’s benefits. Once you convey product’s benefits, price becomes secondary factor which usually can be dealt with successfully Quote price and go right on selling

Six Major Categories of Objections The money objection, cont… Price/Value formula Used to determine if prospect is or is not convinced price is too high Price/Value = Cost Cost – comparison of what is received to money paid Value – what prospect sees the product doing for them Price – set at headquarters; not subject to change

Six Major Categories of Objections The product objection Not everyone likes the best selling product Your reaction must be positive You can use guarantee, testimonial, independent research results, or a demonstration

Six Major Categories of Objections The source objection Some prospects say they are happy with their current supplier Try to find out exactly what bothers prospect and call on her routinely over a long period of time

Six Major Categories of Objections Salespeople often encounter the same objections from customer to customer. After a sales call, ask yourself: What were the objections? How did I handle them? How should I handle them next time? Be prepared for the same objection to arise again!

Salespeople Need To Be Good Communicators, but How? Handling objections can be challenging Done incorrectly, you may appear rude Done correctly, you appear professional 11-27

Techniques for Meeting Objections

Exhibit 11-7: Techniques for Meeting Objections 11-29

Techniques for Meeting Objections The dodge neither denies, answers, nor ignores. Don’t be afraid to pass up an objection. Rephrase an objection as a question. Easier to answer question than objection Exhibit 11-8). Acknowledge prospect’s viewpoint Rephrase objections Obtain agreement Feel-felt-found: “I understand how you feel…” “Bill at XYZ felt the same way…” “…but he found after reviewing our products…”

Exhibit 11-8: Examples of Rephrasing Objections as a Question 11-31

Techniques for Meeting Objections Postponing objections is sometimes necessary. If you judge the objection will be handled to satisfaction by your customary method That prospect truly willing to wait until that time later in presentation You may politely forestall Tactfully used forestall can leave you in charge of presentation

Techniques for Meeting Objections Send it back with the boomerang method. Be ready at any time to turn an objection into a reason to buy Convince the prospect that her objection is in fact a benefit Requires good timing and quick thinking

Techniques for Meeting Objections Ask questions to smoke out objections: Five-question sequence (Exhibit 11-10)

Exhibit 11-10: Five-Question Sequence Method of Overcoming Objections 11-35

Techniques for Meeting Objections This series of questions keeps the conversation and gets the real objections out in the open – which helps increase sales

Techniques for Meeting Objections Use direct denial tactfully Incomplete or incorrect objections should be acknowledged from the prospect’s viewpoint and then answered with complete and correct facts Tact is critical Do not say, “You’re wrong.” Closes prospect’s mind. Try, “You know, you’re right to be concerned about this. Let me explain.”

Techniques for Meeting Objections Indirect denial works It initially appears as agreement with customer’s objection, but moves into denial of the fundamental issue Done in in natural, conventional way, salesperson will not offend prospect

Techniques for Meeting Objections Compensation or counterbalance method Sometimes a prospect’s objection is valid and must be overcome Calls for compensation method Present advantages to counterbalance the objection

Techniques for Meeting Objections Let a third party answer Answer it by referring to a third party and using his experience as “proof or testimony” If source is reliable or reputable, can easily be successful even with expert or skeptical prospect

Technology Can Effectively Help Respond to Objections! Data stored in handheld computers or laptops, or obtained using a telephone modem or satellite transmission, can provide information to overcome buyer’s objections 11-41

After Meeting the Objection–What to Do? First, use a trial close – ask for opinion.

Why Do You Use a Trial Close After Answering an Objection? To see if you have answered the objection! 11-43

What is an Example of a Trial Close Used to Respond to an Objection? “Does that answer your question?” “That’s the answer that you’re looking for, isn’t it?” “That clarifies this point entirely, don’t you agree?” 11-44

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 11-45

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. 11-46

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) 11-47

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 11-48

Exhibit 11-12: 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 11-49