9: Overcoming Objections
Especially in business-to-business, sales is never a straightforward process of presenting product information to an enthusiastic customer who buys immediately and without asking a single question: they raise concerns, and a salesman who is highly effective at presenting the product may fail on dealing with these objections.
One problem is repetition: you will hear the same old objections time and time again, and fall into the pattern of giving the same old responses - and getting the same old results. You can't count on the prospects to change their ways ... you have to change your own.
Ideally, the objections you have encountered in the past will be covered in your initial presentation, so that you are able to address any concerns before the client can bring them up. This is critical, because a customer must be interested enough to raise an objection to you, but he may not: instead, he may take it from your presentation that your product does not address his concerns and not bother to ask follow-up questions.
At the same time, you don't want to be too obvious about it: a presentation that is built to address one objection may not address the concern of a given customers. Also, going into length to discuss concerns about your product implies to clients that they ought to be concerned, so strive for a balance: answer concerns if a lot of prospects raise them, but don't try to cover every objection in the presentation.
(EN: Here, the author rambles a bit, covering other topics like appropriate dress to make a positive impression, not appearing too needy, etc. None of this has anything to do with the current topic, and much of it has been stated in earlier chapters.)
The author refers back to the "overcoming obligations sheet" he mentioned in a previous chapter - a list of questions that customers raise that suggest they are hesitant, along with answers that are researched in advance. He also suggests providing this sheet directly to clients to preempt their concerns.
The author also mentions setting expectations. Some prospects will want you to create a special or customized version of your product for their needs, others will want to haggle over price. His own approach is to lay out a firm line: this is what the product does, and this is the price we sell it for, and we don't negotiate because that is our best price. It seems harsh, and some companies fear that it will turn away sales, but the author suggests he typically gets a "yes" with small changes rather than a "no" unless you compromise.
The author also suggests that you consider a client's personality and communication style: "I need to think about it" can be, but is not necessarily, a smoke-screen to delay rejection or look for reasons not to accept the offer. Sometimes, they just need to think about it.
Also, when you encounter an objection, don't be too hasty to swat it down. Instead, ask for more information that will lead you to better understand the reason why. A brief note of caution about using "feel" and "thinK" appropriately for the personality of the prospect (never ask a thinking person what they feel, as they will be offended, or a feeling person what they think, as they will sense you don't empathize). Pausing to ask for more information may lead the prospect to reconsider whether it's important, or to better indicate their concerns so that you can more directly address them.
Being too quick with an answer seems dismissive. Better to wait patiently for the prospect to fully explain themselves, let them "vent" to show your concern for their needs, before giving an answer. This can be significant in giving the other person the sense of control they seek in a sales situation - people don't mind being helped to find information to make a buying decision, but they hate to be "sold" or fast-talked.
It's also important to provide credible evidence for your claims. Many concerns or objections prospects raise are on account of something the salesman said that didn't sound quite right to them, whether they have a specific reason to doubt it, or just a leery "feeling" in general may stem from their personality type, but a grand claim with little evidence, or suspicious evidence, is generalyl what set them off.
A stray note: a video or audio file, included in a presentation, carries much more weight than words on the screen. (EN: A nice idea, but prone to technical glitches - so be wary.)
The author represents objections as a struggle to determine "who is selling whom." If the prospect is able to convince you that his objections make your produce a bad fit for him, he has outsold you.
Objections are not to be entirely ignored. Any objection is a "red flag" that indicates an area in which the prospect needs more motivation. Raising questions might get them to withdraw the objection, but it is not as effective as addressing it - the prospect who withdraws an objection may not wish to talk about it, but it doesn't mean they have forgotten it.
The author defines five categories of objections:
- The prospect does not need the product. This is because the salesman has not helped the prospect to recognize the need, or the benefit ownership can provide.
- The prospect can't afford the product. The author considers budget to be an "excuse" and one of the most common ones used to brush off a salesman. In most instances, they do have budget, or can obtain additional budget, so don't fold. Especially with business sales, the product you sell will help their company earn more or spend less, which will ultimately give them more budget, and the longer they delay, the more money they will lose by not having it.
- The prospect does not feel a sense of urgency. Unless you have given the prospect a sense that he needs to act quickly, he will delay making a decision. The author suggests using deadlines, which motivate people to act quickly. This entails some risk (what do you do if they miss their deadline?) but the author indicates it's worked for him.
- The prospect has a lack of confidence. Lack of confidence in the product or your company is addressed by information that reassures them. Lack of confidence in the salesman is generally a matter of charisma - if you seem uncertain, they will be uncertain, so project an air of confidence.
- Key decision-makers or stakeholders have not been included. In retail, this is often the husband-wife dilemma - if you sell one spouse, they must convince the other, and will not be as effective or motivated to do so. The solution: make sure you get everyone together and pitch them, and never leave it to someone else to handle communications with a key decision-maker.
Arguably, there's a sixth form of rejection: unresponsiveness. The time between your presentation and their final decision is "sales jeopardy." Some salesmen will simply wait, either assuming that they have won the business and it's just a matter of time, or fearing that putting pressure on the prospect will annoy them out of doing business. If you're not taking action, you're losing the business.
One special case: a prospect objects to your price because they have seen a lower price elsewhere. Your immediate inclination would be to match that price - but your first tactic should be to defend your price. With a little investigation, you may discover the other item is not equivalent in value; or if it's the exact same item, there may be differences in the level of service. Immediately lowering your prices suggests that you tried to pull a fast one in the first place.
The author also suggests you avoid making concessions at all. Whenever you give something to the prospect in negotiation, get something in return for it. - get a favor for a favor, even if it's something as simple as asking for a testimonial or getting them to make an introduction for you, so that it's win-win. (EN: In general, negotiation tactics rarely include concessions, so it's generally good advice. But what is missing here is that you should consider your starting position carefully - if you can give something up easily, maybe you shouldn't have asked for it in the first place.)
What do you do when you don't close the deal? Get over it and move on. Naturally, the situation is upsetting, but you have to "lose" gracefully and graciously because there may, and likely will, be future opportunities to sell to the prospect you have presently lost. Cool off, send them a gracious letter to thank them for their time, and indicate you'd like to stay in touch should they need your services in future.
However, before you pack up and walk away, consider whether the buyer might be bluffing. A hardball tactic from the other side of the table is to walk away, expecting the other side will do something desperate to bring you back to the table in a disadvantaged position. His own tactic in negotiating a customer is simply to balk - "is that the best you can do?" without making any counter-offer. Generally, this gets them to lower their price immediately, as it implies that you will walk away if you don't get a better deal from them. So when that happens, don't be too quick to give up.
Of importance is to identify the reason the prospect has said "no." You shouldn't accept it at face value, but determine the reason - is your price too high, do they not see the value, have they got a better offer, etc. Until you know that, you can't assess whether the refusal is valid and insurmountable. Sometimes, it may well be, but there are very often reasons you can address to bring them back to the table.
The author suggests an "exercise" that can be done with sales staff: to present them with a potential objection and have them brainstorm what might be behind it and how they can address it. It gives them mental practice in doing this, and if you use your own products, it helps them develop material they can use when that objection is raised in a real selling situation.
Make note of the objections you encounter and use them to regularly update your sales sheets and presentations. Having "dusty" marketing tools - especially the "overcoming objections" sales sheet - is little better than having none at all. You can also refer to lists of client objections when gathering things such as testimonials and references.