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The final step in the sales process is to overcome objections. A solid objection-handling strategy will go a long way towards closing a sale and increasing customer satisfaction with your product or service.
The “how to handle objections in sales examples” is a blog post that provides examples of how to address common concerns.
Objections will almost always arise at some point throughout the sales process. Sales agents that aren’t properly prepared may have doubts or give up too quickly, but overcoming objections is critical to maintaining your sales funnel filled, moving, and closing more transactions. Fortunately, overcoming objections and reviving what could otherwise be a lost transaction is as simple as pre-planning responses to typical concerns.
What Is a Sales Refusal?
Any reason why a lead does not want to go to the next step of the sales process is referred to as a sales objection. Sales objections may occur at any point throughout the sales process, from cold contacting to present a product or service to the very end, when a prospect raises an issue after receiving a business proposal or right before a contract closes.
Typical Sales Refusals
The particular reasons for a lead not going ahead on a buy opportunity may arise at any point, just as an objection can occur at any level in the sales process. The following are some of the most common reasons why a lead does not progress to the next stage:
- Budgetary constraints: The decision-maker or lead doesn’t think it’s worth the money, or they have a certain budget that they can’t go beyond.
- Fear of change: The prospect (or firm) is content with the way things are done and is concerned that implementing a new solution would be tough.
- Prefers a more known brand: The lead is interested in the solution being given, but is unfamiliar with your brand and is hesitant to choose a supplier they don’t know.
- Satisfied with present supplier: While the prospect might benefit from your service, they are content with their current provider.
It’s critical to distinguish if a lead objects for a reason that can be fixed or because your ideas aren’t applicable to them. Improve your prospecting research to locate leads who are more suitable for your goods or services in the latter situation. Learning effective tactics for overcoming sales objections, on the other hand, may help you complete more purchases.
Common Objections and How to Overcome Them
Identifying frequent objections and preparing your team for various sorts of objection situations is an important part of sales management. The aim might be to seal the transaction right away, or it could be to keep the lead engaged and active throughout the sales funnel.
Regardless of the reason, being ready to overcome Typical Sales Refusals before they are raised is a must. Depending on the type of objection, your sales reps should also be prepared to share logical proof, like statistics or a real-world story in their communications to discredit or disprove the objection.
In addition to being a proven sales tactic, emotional selling is a very successful tool for overcoming obstacles. Role-playing exercises should also be used by your team to develop and improve these abilities.
Actively listening to the lead, validating objections, and asking questions to understand the extent or cause of the issue are all tactics you should utilize in any contact with your prospect. It’s also a good idea to repeat back what you hear to demonstrate that you’re paying attention and that you’re grasping the lead’s worries accurately.
When doing sales training for your personnel, get into tactics for overcoming objections. Check out our post on the nine top sales training strategies to prepare your team for success for more information on how to do sales training.
Here’s how to put together a communication strategy for dealing with frequent objections:
1. Budgetary Constraints
Budget concerns or restraints are both typical and understandable reasons for objecting to a purchase. This issue often arises at the start of a sales process, such as when you present your company through email or phone call and the lead says they aren’t interested due to cost. This is true in certain situations, and it is a factor that disqualifies the candidate.
At the proposal stage of the sales funnel, budget-related sales objections might also arise. When a lead requests price, the product or service turns out to be more costly than expected.
When financial constraints are the source of sales objections, you’ll often hear things like:
- “Right now, it’s simply too pricey for us.”
- “We’re on a limited budget, and this isn’t going to work.”
- “At this point, I don’t want to spend any more money.”
When it comes to overcoming financial concerns, the key is to emphasize on the value that your product or service can provide. Statistics on return on investment (ROI), or how a solution saves money or boosts productivity, are helpful in this situation. Begin with validating the issue, then asking questions and preparing an objection response based on the responses.
The following is an example of a dialogue to overcome budget or cost objections:
Prospect: We’re on a limited budget, and this isn’t going to work.
Salesperson: I completely understand. Many of the customers I deal with are in the same boat as you, operating on a limited budget [repeating what was said], so it’s totally understandable [confirmation]. If I may ask, are you more concerned about the present cost or the risk that this investment may not be worthwhile in the long run? [questions]
Prospect: It’s a little bit of both, to be honest.
Salesperson: So there’s the immediate expenditure as well as the concern for long-term worth. So, what I can tell you is that buying [insert your solution] may be seen as a solid investment that can [value derived from solutions such as cost-cutting or enhanced productivity]. In fact, all of our customers in comparable industries enjoy an average of [return on investment, better productivity, lower costs, more sales, and so on].
You might even provide the lead with a case study or other evidence. You may be able to alleviate further worries about purchasing by offering a discount or a free trial, or by delivering a persuasive demo or other sort of consultation. Keep in mind that if you can’t demonstrate the value to the prospect or overcome the spending issue, the lead may not be a good fit for your goods or services.
Pro tip: The BANT Method (Budget, Authority, Need, Time) is a procedure you may use to qualify leads so you only contact individuals who are a suitable match for your goods and services. Check out our post on how to score and rank qualified leads using the BANT approach.
2. Aversion to Change
Many criticisms stem from a lack of operational comfort. Despite demonstrating interest in the solution and having the financial means to acquire it, a lead may want to terminate the sales process because they are concerned about a major shift your solution may bring about. Change phobia is understandable, but it can also be overcome.
Some popular comments that suggest a fear of change objection are as follows:
- “I’m content with my present configuration and have no desire to modify it.”
- “We like how we’ve been doing things and the [solution] we’ve been using.”
- “Right now, I don’t want to make this sort of adjustment.”
In addition to logical explanations, emotional selling strategies may be used in this situation. In this circumstance, for example, provoking jealously by outlining how the prospect’s competition (or even a comparable sort of firm) has just embraced the solution and is now experiencing strong results might be useful.
This is how a discussion on this exact issue would go:
Prospect: We’re happy with the method we’ve been doing things and the [solution] we’re using right now.
Salesperson: I completely understand. Making significant operational changes may be frightening at times. Many companies, in my experience, are content with the way they’ve been doing things because they believe it’s working. If I may ask, are you aware of any of the recent changes made by [insert rival or comparable sort of business]?
Prospect: I’m afraid I can’t say I am.
Sales rep: They were afraid of change as well, but they were able to [facts about the value it brought them] and found the transition to be lot simpler than expected.
Focus on how you or a service representative will interact with them at each stage of the process throughout a major shift. You may also continue the discussion by demonstrating to them that change does not have to be a bad thing, that their industry is continuously developing, and that they must adapt in order to stay up with their competition.
Pipedrive, a customer relationship management (CRM) program, organizes and records lead information and activity. Lead profiles also enable you to take notes in which you may chronicle the reasons for their objections in their record for future reference.
Notes on a Pipedrive contact profile (Source: Pipedrive)
3. Prefers a Name That Is Easily Recognized
Because they are unfamiliar with your company, a qualified lead interested in shopping for a solution you provide may protest to purchasing. This is frequent in third-party sales in brokerage and agency-style sectors (such as insurance), as well as for startup and fledgling firms. It may also happen in distribution-style sales, such as when a distributor is launching a new product line into an area.
The following are a few examples of utterances that allude to this objection:
- “I’ll be honest, I don’t know much about you folks and don’t have a lot of knowledge.”
- “I’d want a more well-known brand that I’m familiar with.”
- “I like to deal with a restricted group of suppliers.”
This objection should be seen as an opportunity rather than a roadblock. It’s your opportunity to convey your unique selling proposition and demonstrate how your company (or product) differs from the competitors. You may also use emotional selling to appeal to the prospect’s pride by informing them that adopting the product or service would allow them to be an early adopter, pioneer, or industry leader.
Managing this issue requires knowledge of industry rivals in addition to a deep grasp of the brand or product. This allows you to demonstrate how your product outperforms more well-known competitors or fills market gaps that can’t be supplied by current goods.
This is how a sales discussion regarding this objection may go:
Prospect: I’d rather go with a more well-known brand that I’m familiar with.
Salesperson: I completely understand. We’re a tiny company that focuses on extremely specific issues and solutions. Would you mind listing some of the companies you like to work with?
[Says particular corporate names or traits, such as huge, international, and so forth.] Prospect:
Sales rep: Got it, so one thing I’ll add is that we do have customers that have worked with those types of organizations before and had problems with [possible concerns]. [unique selling feature] is what sets us apart and has shown to be a desirable quality for new enterprises.
Follow up with a request to send them an email with further information after this sort of chat. Client testimonials or independent product evaluations are excellent ways to demonstrate your legitimacy to leads. Offering a risk-free trial, complete product demo, or free consultation to early adopters or sweetening the offer with a free add-on for early adopters may also be compelling in driving the lead ahead.
4. Content With Current Service Provider
Your lead may find the solution you’re offering beneficial (or even necessary), but they’re normally satisfied with their present supplier. In this case, you may have sufficient information to persuade them to consider your offer.
If not, attempt to retain them in the future sales funnel. Request permission to contact them again a few months later, such as a month before their contract expires or at the start of the following fiscal year, when capital spending choices will be made.
The following are some examples of popular sales objections:
- “Thank you,” I say, “but we already have a supplier in place for this.”
- “To tell you the truth, I’m happy with our present service.”
- “I’m satisfied with my existing provider and don’t believe I need to make any changes at this time.”
- “We recently finished implementing our present system and won’t be altering it for a time.”
When a lead wants a better known brand, a method similar to this is implemented. Make a point of highlighting what makes your company or its solutions unique, with the goal of identifying any challenges the lead may be facing with their current supplier, big or little. Inquire about what further features or functionality they would like in the product “in an ideal world,” what may improve the value for the money, and so forth.
This is how a discussion on this issue may go:
Prospect: To tell you the truth, I’m happy with our existing service.
Salesperson: Thank you for letting me know; I completely understand. So, at this point, I’m not trying to persuade you to alter your mind about a transaction. I’d simply want to understand more about your requirements and discuss how we may be able to assist you in the future. Is there anything specific you’d want to discuss regarding issues you’ve encountered in [the business function your solution addresses] or things you’d like to see your existing supplier perform better?
Prospect: [Expresses a problem they’d want solved or a complaint about their present supplier]
The salesperson’s next comment will be strongly influenced by the response. If the prospect mentions anything they wish was different, such as reduced costs or a missing feature, an easier-to-use solution, or better customer service, explain how your solution can address those issues.
Deliver a sales presentation that delves into your unique value proposition and how you can be better at the area they are unsatisfied with if there is a direct problem with the existing supplier. If they refuse to change, take the next step, such as sending them an email with further information or setting an appointment to meet with them again in a few months.
Use the task management tools of a customer relationship manager to ensure that following up with a lead and providing them further information about your company doesn’t fall between the cracks (CRM). For example, HubSpot CRM enables you to create and manage pending tasks, schedule them, and see what has to be done each day.
HubSpot is a task management software (Source: HubSpot)
Conclusion
In every sector, overcoming objections is a necessary aspect of the sales process. The key to keeping a lead or prospect active in your pipeline is to be prepared to overcome sales objections at any level of the sales process. To convert more transactions and nurture future sales chances, use proven strategies for overcoming objections, such as active listening, asking questions, validating concerns, and emotional selling.
The “objection handling script” is a sales technique that helps to overcome objections. This technique can be applied in many different ways, and it can help to increase the conversion rate of your sales.
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