Addressing Concerns and Earning Commitment Module Eight

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment Learning Objectives 1.Explain why it is important to anticipate and overcome buyer concerns and resistance. 2.Understand why prospects raise objections. 3.Describe the five major types of sales resistance.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment Learning Objectives 4.Explain how the LAARC method can be used to overcome buyer objections. 5.Describe the traditional methods for responding to buyer objections. 6.List and explain the earning commitment techniques that enhance relationship building.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment Setting the Stage 1.What did the Merril Lynch salesperson quickly discover was his real job? 2.In the vingette, the Merrill Lynch sales representative describes an opportunity to develop a relationship with a very important client. Ultimately, the secret to gaining the customer’s commitment was to do what? Addressing Concerns

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment Objection (Sales Resistance) Anything the buyer says or does that slows down or stops the buying process.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment 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.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment Examples Major Categories of Objections Need Product or Service Features Company or Source Price Time 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. 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. 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? 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. 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. Category

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment LAARC Method for Handling Buyer Resistance isten cknowledge ssess espond onfirm

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment Other Methods for Handling Buyer Resistance Forestall Direct Denial Indirect Denial Translation or Boomerang Introduce the source of the objection before the prospect brings it up. Respond to the objection by telling the prospect s/he is wrong. Respond to the objection by providing evidence that helps the prospect realize s/he is mistaken. Turn a reason not to buy (the source of the objection) into a reason to buy.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment Other Methods for Handling Buyer Resistance Compensation Question Third Party Reinforcement Counterbalance the objection with an offsetting benefit. Ask the buyer assessment questions to gain a better understanding of the source of the objection. Use the opinion or data from a third party source to help overcome the objection and reinforce the salesperson’s points.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment Commitment The creation of an obligation between the seller and buyer. The seller obtains the buyer’s obligation to a specific action. The specific action is usually linked directly to one of the sales call objectives.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment What Constitutes Commitment An Appointment Agreement for next meeting Agreement for product demo A sale An Appointment Agreement for next meeting Agreement for product demo A sale

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment 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 though it would be.” –Your delivery schedule does not work for us. –I don’t see the advantage of going with your proposal.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment 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.” Ask Trial Commitment Questions –“What do you think about the what we’ve discussed?” –“Do you see how this will help your organization?”

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment 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

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment 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.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment 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

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 8: Addressing Concerns and Earning Commitment 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