We all know that one of the main reasons people don’t like selling is the resistance they face from customers. One of the reasons the resistance is there is that customers object to the sales and have various types of objections. In this article, we discuss all about such sales objections.
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What are Sales Objections?
Sales Objections are concerns or issues pointed out by a potential buyer that stand as a barrier or hurdle restricting their decision to purchase from you. It signals that additional considerations or aspects in the buying process require more attention than you may have initially estimated.
Sales objections usually originate from a perceived inadequacy or shortfall on the part of the potential buyer. This shortfall could be a lack of sufficient resources, no need or interest, or an inability to purchase at a lower price at that specific time.
Objections during a first sales call or discussion can be challenging and exasperating, but they are not conclusive deal breakers. Sales objections should be seen as potential roadblocks that must be navigated wisely and convincingly to close the deal successfully.
Think of sales objections as a real-time exam situation where your problem-solving abilities are tested. Addressing and overcoming these objections tactfully can turn your prospects into happy customers.
Objection Handling: A Simple Explanation
Objection handling refers to handling sales objections in which a salesperson appropriately manages a potential client’s concerns or doubts regarding a product or service they’re pitching. It’s an essential part of any sales structure as it allows the salesperson to move the deal forward by resolving the client’s objections, which often revolve around the product’s cost, suitability, or comparison with competitors’ options.
The key to effective objection handling isn’t to belittle the client or prospect’s business concerns or apply excessive pressure on them to back down. This approach often backfires, solidifying the prospect’s objections and damaging the carefully cultivated relationship between them and the salesperson.
Key Steps to Objection Handling
- Situational Awareness: Understanding the unique circumstances of each potential client is pivotal in handling their objections. A salesperson needs to understand where they are in their sales process, the specifics of the deal they are negotiating, and the needs and interests of the prospect.
- Thorough Background Research: In-depth knowledge of the prospect’s company and its challenges and understanding the potential client’s role and responsibilities is crucial in tactfully handling objections.
- Empathizing with the Client: Maintaining an empathetic approach to sales is vital. Most objections stem from genuine concerns, so handling these with patience and understanding can strengthen the sales relationship and make it easier to anticipate and address any objections.
- Asking Open-Ended Questions: Open-ended questions allow the salesperson to gain deep insights into the client’s needs and potential obstacles, which provides valuable context and helps them address concerns effectively.
Remember, accurate objection handling demonstrates to clients how your product or service can best solve their problems, not compelling them to purchase simply for your financial gain.
Types of Objections in Sales
Objections are hurdles that salespeople often face while trying to secure a deal. They are predefined reasons that prospects use to delay or avoid a purchase. Understanding these objections can help the sales representative to anticipate and address the concerns proactively. The four broad categories or types of sales objections usually revolve around:
- Budget
- Trust
- Need
- Urgency
This term, commonly referred to by sales reps as BANT (Budget, Authority, Need, and Timing), forms a part of the routine qualification process in sales. Let’s delve into these objections in a simplified manner:
- Lack of Budget: This is the most common objection where a prospect believes the product or service is costly. It means they perceive the financial risk as more significant than the benefit. To overcome this, a salesperson must demonstrate the value and reframe the conversation as a comparison between risk and reward.
- Lack of Trust: Another frequent objection that salespeople encounter is the prospect’s unfamiliarity with the company. Trust is crucial in sales as people prefer to do business with those they know and trust. Addressing this objection requires emphasizing the organization’s expertise and credibility, thereby reinforcing the value it provide.
- Lack of Need: At times, a prospect might need to see a direct advantage of your product or service. This scenario could be an opportunity in disguise, allowing you to ask open-ended questions to better understand their needs and demonstrate how your solution fits in.
- Lack of Urgency: When a prospect states that the problem your solution is built to solve isn’t a priority, it could indicate a lack of urgency. The trick here is to figure out if the timing is an issue or if the prospect is just avoiding the situation. Further questions can help uncover hidden opportunities or help you decide to revisit the prospect in the future.
By understanding these common objections, and knowing how to manage them, salespeople can not only help prospects overcome their initial resistance but they can also build stronger relationships based on trust and perceived value.
How to Overcome Sales Objections?
Here’s a simplified explanation of how to overcome sales objections:
- Practice active listening: When your prospect shares their concerns, focus on understanding what they say rather than planning your response.
- Repeat what you hear: After your prospect states their objections, rephrase them to ensure you’ve understood correctly. This helps build trust.
- Validate your prospect’s concerns: Show empathy and acknowledge your prospect’s point of view. Offer solutions that address their concerns rather than downplaying the issue.
- Ask follow-up questions: Keep the conversation going by asking open-ended questions and encouraging your prospect to share more information about their concerns.
- Leverage social proof: Share success stories of other customers who had similar concerns and went on to benefit from your product. For B2B sales, mention success stories from the prospect’s competitors when applicable.
- Set a specific date and time to follow up: If your prospect needs more time to think, respect their decision, but schedule a follow-up to address any additional questions or concerns.
- Anticipate sales objections: Be prepared for objections by developing strategies to address them. Regularly practice your responses and refine them based on feedback.
In summary, overcoming sales objections involves active listening, building trust, empathizing with your prospect, and offering genuine solutions to overcome objections. Be well-prepared for objections, and continuously practice and improve your responses.
Objections vs. obstructions: What are the differences?
Understanding the differences between objections and obstructions in sales can help you significantly navigate business situations. These terms are central to a salesman or sales rep’s daily grind but differ significantly in meaning and approach.
Sales Objection
A common sales objection arises when a potential client or customer is unsure about your product or service. It can stem from several factors, such as uncertainty about the product’s utility, potential complications, costs, or other perceived downsides.
For instance, if a prospect says, “I don’t know how this will help me,” they are essentially expressing skepticism about the value of your proposition, thus raising an important objection here. In this case, they want to be convinced about the value they are getting in return for their investment.
Sales Obstructions
Sales obstruction is simply a prospect’s excuse for being unable to do something, which is essentially a stalling technique rather than a direct type of sales objection or refusal.
When a prospect says, “I don’t have time for this,” it showcases a sales obstruction. The client isn’t necessarily saying they’re uninterested or don’t see value. Instead, they’re creating a barrier, a logistical obstruction, preventing them and sales team from moving forward.
A Sales objection is more about limitations or concerns about the product or service, whereas a sales obstruction is more about procedural or personal hindrances that prevent the potential client from proceeding with the transaction.
Navigating both objections and obstructions requires a different set of strategies. For objections, your goal is to reassure and convince the prospect of the value and benefits of your product or service. For obstructions, the aim is to help overcome the barriers preventing the prospect from moving forward.
In essence, objections demand providing clarity and sharing more information, while obstructions call for understanding, patience, and flexibility to help the prospect move forward at a pace suitable to them.
20 of the most common sales objections and responses
When you are in the business of selling, you have to be prepared for all possible objections a client might have. To help you in your preparation for overcoming objections, the following are 20 of the most common sales objections and potential responses, inspired by a competitor’s research:
1. Objection: I don’t want to sign a long contract.
Response: That is completely understandable. Let’s talk about alternative contract options that will align with your preferences.
2. Objection: We’re using your competitor.
Response: That’s absolutely fine. As part of my research, I’d be curious to know why you chose to go with them and how their services have worked for you.
3. Objection: Your competitor is cheaper.
Response: Cost is definitely a crucial aspect. However, it’s important to understand that we offer additional features that provide great value, balancing out the cost.
4. Objection: I don’t see any ROI potential.
Response: Let’s schedule a detailed call where we can discuss how our product/service can provide significant ROI for your business.
5. Objection: I’m not interested.
Response: It’s okay if you feel this way now. May I send over some information that could potentially address your needs and concerns?
6. Objection: I’m busy.
Response: I respect your time absolutely. Could we schedule a quick chat at a time that suits you better?
7. Objection: How did you get my information?
Response: We came across your website and saw a match with our product/service. We thought it would be a good idea to reach out.
8. Objection: I’ve never heard of your company.
Response: We understand, and we’re here to introduce our company and the ways we could assist your business.
9. Objection: This looks too complicated for my team to learn.
Response: Could you please share the areas that seem complicated? We can provide a detailed walkthrough of those aspects.
10. Objection: We’re using this budget elsewhere.
Response: Budget allocation is vital; However, investing in our solution could potentially lead to ROI that allows you to direct revenue towards other areas.
11. Objection: Can you call me back next quarter?
Response: Absolutely! Might I ask if you’ll be considering new investments in the next quarter?
12. Objection: This is too expensive.
Response: We understand the concerns about cost. However, our product/service can address specific challenges….
13. Objection: You don’t have this feature.
Response: We partner with another platform that integrates seamlessly with ours and provides that feature.
14. Objection: I’m going to get some quotes for comparison.
Response: That makes perfect sense; consider all your options thoroughly. Could I know which companies you are considering?
15. Objection: We’re happy with the way things are.
Response: It’s great to hear you’re satisfied! Out of curiosity, how are you currently addressing specific pain points?
16. Objection: We don’t have a big enough team for this.
Response: Our solution aims at adding value and alleviating the pressure off your current team. We can explore the scope further.
17. Objection: Connection dropout.
Response: I’m sorry for the interruption in our call. Let me know a convenient time to connect again to continue our conversation.
18. Objection: Can you email this over?
Response: Indeed, I’d be glad to. Is there anything specific you’d like detailed information on?
19. Objection: I saw a bad review of your company.
Response: We appreciate your honesty, and we’ve taken steps to resolve the issue addressed in that review.
20. Objection: Voicemail message
Response: Hi, I wanted to discuss how our solution can address specific problems. Please let me know what time you’ll be available. Thanks!
The overall lesson here is to prepare, empathize, respect the client’s time, and always drive home the value your product or service can bring the potential client.
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