Friday, January 30, 2009

4 Steps to Overcoming Objections


I saw this last week at the Mantra.com website:

Overcome Sales Objections Using These 4 Strategies

By Larry Prevost

About 6 months ago, I was in the market to upgrade my Internet service. I was using one of the Phone Company's DSL service packages and decided that maybe the service offered by the local cable would be a step up. I had a prior experience with another cable provider and wasn't all that thrilled with the level of service that they provided. But with this new cable provider, I was anxious to try them out. The fact that they offered double-digit broadband speeds was very enticing incentive.

So I went to the local office of this cable provider and started the sales process by talking with one of their reps.

Now mind you, I was already convinced that I wanted this service. I had several reasons for getting it and I had the resources to make it happen. In fact, I had walked myself through the entire sales process and had done all of the heavy lifting. The only thing left for the sales rep to do was say, "sign right here" and it would have been a done deal.

Near the end of the process, just as I was getting ready to sign on the dotted line, I said, "...and I can get the billing for the broadband service separated out from the cable television, right?" to which she responded, "No, it all comes on one bill. That's the way we do it."

Now, for me, this was a true objection, and it stalled the sales process. I wanted the billing separated for accounting and tracking purposes. She, however, didn't want to hear any of it. A gutsy sales rep would have said something like: "I can appreciate that. You are one of the few people who have come in and requested this kind of arrangement. I'm kind of curious to know what this will do for you."

A cushion like this would help determine the nature of the outcome I wanted to achieve and it would have given the sales rep a better idea of how to address the concern before addressing the objection. Remember that I've already sold myself. I already knew that this was the service that I wanted. This small billing challenge was the only thing standing in the way of moving the process to completion.

At this point she could have said: "We consolidate accounting on one bill to reduce the amount of paper that is generated. Most of our clients like it that way. But each bill has everything itemized out for your convenience."

She could have said: "We can sign you up for online billing so that you can handle your account online and be able to track it more efficiently."

She could have even said: "Hold on, let me check with my manager."

Instead, she reiterated her reply more emphatically: "No. It all comes on one bill. That's the way we handle billing."

At this point, this objection had turned into a major roadblock. The sales process had stopped completely, and it wasn't going to move forward until this was resolved. Either I was going to decide that I could live with everything on one bill and handle all of the tracking and accounting on my end or I was going to walk away. On her side, either she was going to decide to explore this challenge a little further to keep the sales process moving forward or she was going to take a hard-line approach and move to the next customer.

In the end, she decided that the company didn't need my money, and while I could have absorbed the extra accounting work and dumped the Phone Company, I decided that I really didn't like her approach and her inflexible position on the subject. So we didn't do business.

There comes a point in the sales process where we have our prospect's attention. They view us as a trusted resource and we have determined that there is a need and they have the ability to buy. So when there is a snag in moving the sales forward, we need to be able to identify our prospects' major concern over the minor ones, and we need to be able to address these concerns effectively.

What do you do when you come across a real objection? Here are four methods you can employ to address an objection:

  1. You can deny it. If the client has misinformation or is operating from FUD (Fear, Uncertainty, and Doubt), then it's best to set the record straight. But recognize that flat out denial or stating that "you are wrong..." is often a quick way to validate the falsehood and allow your prospect to become more entrenched in their thinking.

    So being able to cushion a response before invalidating the falsehood is a must. Often, you can weaken this type of objection simply by asking more probing questions. "When you say our delivery times are terrible, how do you mean?" or, "I'd be curious to know how you heard that our delivery times are terrible." This gives you more information before you lay out your supporting facts to repudiate the objection. When addressing their claim, avoid statements like, "That's not true." Instead, cushion with a neutral statement like "I can appreciate your concern" followed by an example of how your delivery times have helped another client meet their goals or statistics comparing your delivery times against the industry as a whole. The point here is to recognize that everyone has their own beliefs and stating that "You're wrong" in any fashion is a quick way to build walls, not bridges.

  2. You can admit it. If a client is putting up an objection that is based around an event or knowledge of your company that happens to be a fact, it's best to admit it quickly and emphatically before going into how you have resolved the concern. Again, use a cushion to acknowledge that you heard them and then use your evidence to show how you have resolved the challenge or show how the challenge will not impact their application. In one of our communication classes, we had a technical sales rep that succeeded in landing a large account, something all of his predecessors failed to do. What was the difference that allowed him to succeed? All of his predecessors failed to acknowledge a problem that the client kept bringing up. He, however, went in, acknowledged that this was a legitimate concern and outlined a plan and a timetable to address the concern. He was the one who walked away with a $50K order for equipment.

  3. You can explain it. If you have determined that the objection is real, then you can use the information already gathered to address the objection directly. You've already performed an in-depth analysis of their application and have offered a solution based on that analysis. So if they raise an objection that signifies that they don't quite understand your offering, all it takes to address this concern is to rearrange the information in a form that is more suitable for them. In many cases, using an analogy will assist your client in gaining a better understanding of how your product or service can help them.

  4. You can reverse it. Sometimes, the reason that your client states as an objection can be the very reason to move forward with the sale, if you know how to reframe the objection from a different perspective. This is often the case when clients mention that your price is too high. If price is a real concern, helping your client compare the one time cost of the offering over the lifetime cost of not implementing your solution can help them gain a better picture of the value you bring to the table.
Alternately, you can show the revenue generating potential of your solution over the lost income for everyday that they delay in moving forward to help motivate them to take immediate action. In order to reverse an objection, review the big picture and understand how your offering will impact your client's performance throughout the company and over time. Typically, your client is looking at your offering through a limited and narrow lens. By helping them expand that perspective, you can help them see that the very reason that they are holding back can be the reason that they should move forward.

Encountering objections is a natural part of the sales process. For those individuals that are truly engaged, an objection is a sign of interest. They are trying to fit your solution to their particular application. On the other hand, having the prospect blow us off even before we have a chance to conduct a fact finding session for a proposal is not an objection. They are either indifferent to what we have to offer or they are still preoccupied with something else. When we get those types of encounters, we need to go back to the sales stage to get their attention and generate enough interest from them before moving forward.

Remember that all obstacles you encounter won't be objections and out of all of the objections that you do encounter, some won't be the real reason for holding back. Use the steps outlined in last month's article to identify the real objection, and then use your communication skills to effectively address the objection and move the sale process to completion.

Larry Prevost is an instructor and an IT consultant for Dale Carnegie Training of Ohio and Indiana.

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