How do you overcome customer objections?
There are many reasons why customers raise objections. It could be:
1) A misunderstanding
2) Lack of information
3) Natural sales resistance
4) Needs have not been identified
5) Fear of making a decision
When considering all the reasons for not buying your product or service you soon realise there is a common theme. The sales person’s approach to dealing with these ‘obstacles’ It should be understood that an objection is simply a buying signal. All too often the sales person will see it as an attack on the Company, our products or services or own personal integrity.
Our natural response is to defend and then justify.
Customer objections are usually couched in broad terms to start with. ‘It’s too expensive’ ‘It’s not quite what we were looking for’ ‘You are not known to me’
Before we can overcome this customer resistance we need to firstly clarify the reasons for raising the objection(s). Is it real or is it false? Most initial objections are designed to ‘stall for time – don’t want to make a decision’ ‘need to justifying the decision – second opinion or ‘not convinced you are on my side – have not ‘bought into you as a person’
The structure below sets out a logical approach to handling objections:
- Listen
- Pause
- Ask a Question (open / closed / probing)
- Re-phrase the objection in question form
- Isolate and confirm
- Answer the objection - Easy objections – directly by giving proof
Difficult objections - by maximising the benefits and minimising the objection
- Gain acceptance and close.
A
good tip here is to pause and remain silent (anagram of listen) The advantage of this is that:
- It gives you time to think
- It shows the prospect you are genuinely concerned with their problem
- It gives them time to add to their statement, which may expand upon their original point.
- They may answer his own objection
The strength of confirm and isolate is that it separates the objection as being the only one and if it can be handled correctly the prospect will go ahead and commit. It also helps to identify any false objections they may have.
Easy objections - are usually doubts expressed by the customer of your products' capabilities or the service you offer, which can be easily proved.
There are many ways in which you can do this:
- Third party references / testimonials / case studies
- Demonstrations / presentations
- Site visits (other customers / your place)
- Press cuttings
- Promotional material such as web site / photographs etc
- Salesperson's sincerity (remember: They buy you first)
Difficult Objections – are usually based around your competiveness and price. This is where you will stress the benefits your product and company can offer over and above your competitors.
EXAMPLE OF HANDLING A DIFFICULT OBJECTION
Customer Objection: You’re more expensive than your competitors’
Salesperson's Reply You're obviously concerned about the cost. What is specifically concerning you? (open question)
Customer: I can't understand why I have to pay more for
something which is the same as XYZ Co."
Salesperson's Reply So you feel we are charging more for a product which
(Testing Understanding): you consider being the same as XYZ Co -is that correct?"(closed question)
Customer: Yes that's right’ (statement)
Salesperson If I can show you as to why we charge a 5% premium for our product, then would you be in a position to confirm the order?’ (confirm and isolate)
Customer: Yes I would’ (if no – ask for reasons why without using the word ‘why’ – and then reinforce the benefits)
Salesperson: ‘Well, let's first of all look at the benefits (Answer Objection) that our product will offer you and try and quantify these for you - in monetary terms".
minimise the objection
‘Now let’s look at how little it will cost you to obtain these benefits"
Gain Acceptance
‘Does that satisfy your earlier concern?’
and close
Customer: Yes it does’ (confirming statement)
.
Salesperson So can we have your authority to go ahead?’
If the objection is based solely on price then you will need to break this figure down into a context which they can relate to (weekly / over a specific period / volume versus price etc) When justifying your price against a competitor remember only to justify the difference.