welcome your prospect’s objections chapter 11 mcgraw-hill/irwin copyright © 2007 by the...

Welcome Your Prospect’s Welcome Your Prospect’s ObjectionsObjections

Welcome Your Prospect’s Welcome Your Prospect’s ObjectionsObjections

Chapter

Chapter

11

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

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Chapter

Chapter

11

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Main TopicsMain TopicsMain TopicsMain Topics

The Tree of Business Life: Objections Welcome Objections! What Are Objections? When Do Prospects Object? Objections and the Sales Process Basic Points to Consider in Meeting Objections Six Major Categories of Objections

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Main TopicsMain TopicsMain TopicsMain Topics

Techniques for Meeting Objections Technology Can Effectively Help Respond to

Objections! After Meeting the Objection—What to Do? In All Things Be Guided by the Golden Rule

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The Tree of Business Life: Objections

Guided by The Golden RuleThe Golden Rule: Welcome objections. Remember that objections may allow you

to answer the prospect’s concern(s). Realize your product or solution may not

be for everyone. If it is not for a particular customer, thank

him and politely leave If it would benefit the customer, politely,

professionally, and ethically show how the product could be useful

Handling objections truthfully shows you provide ethical service in order to build true relationships.

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PresentationDiscuss ProductPresent Marketing PlanExplain Business PropositionSuggest Purchase

Selling Process Buyer’s Mental Steps Prospecting

Preapproach

Follow-up & Service

Approach

Presentation

Trial Close

Determine Objections

Meet Objections

Desire

Conviction

Present Marketing PlanAvailability, Delivery,Guarantee, Merchandising,Installation, Maintenance,Promotion, Training, Warranty

Explain Business PropList Price, Shipping Cost,Discounts, Financing, ROI,Value Analysis

Suggest PurchaseProduct, Quantity, Features,Delivery, Installation, Price

MoneyAuthorityDesire

Action

(Purchase)

Attention

Discussion SequenceDiscuss ProductShow FeatureExplain AdvantageLead into BenefitLet Customer Talk

Interest

Trial Close

Close

The Parallel Dimensions of Selling*

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Welcome Objections!

Accept objections as a challenge.

People do not want to be taken advantage of.

Learn to overcome objections – do not fear.

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What are Objections?

Opposition or resistance to information or the salesperson’s request is an objection.

Prospect who presents

objections is often more

easily sold.

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A prospect may object at any time during sales call.

Always be ready to handle a prospect’s objections.

Quickly determine what to do.

When Do Prospects Object?

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Exhibit 11-1: When Objections Occur, Quickly Determine What To Do

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Basic Points to Consider in Meeting Objections

Plan for objections.

Anticipate and forestall.

Handle objections as they arise.Postponement may cause a negative mental

picture or reaction

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Basic Points to Consider in Meeting Objections, cont…

Postponement of objections may result in:Prospect may stop listeningProspect may feel that you have something to hideYou also feel that it’s a problemYou cannot answer because you don’t know the

answerMay appear that you’re not interested in prospect’s

opinion

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Basic Points to Consider in Meeting Objections, cont.

Be positive.Use positive body languageDo not take objections personally – no hostility

Listen – hear them out.Listening Guidelines – Chapter 4

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Basic Points to Consider in Meeting Objections, cont…

Understand objections: Request for information A condition

Objection that turns into a condition of the saleNegotiation can overcome a condition “Hopeless”

Major or Minor objections (true objections) Practical (overt) or Psychological (hidden) objection

A real objection is tangibleThe salesperson must uncover hidden objectives and

eliminate them

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Exhibit 11-2: What Does a Prospect Mean by an Objection?

Is the prospect’s response a...

Is the prospect’s response a...

Condition?Condition? Hopeless objection?

Hopeless objection?

Request for moreinformation?

Request for moreinformation? True objection?True objection?

Minor?Minor?Major?Major?

Psychological?Psychological?Practical?Practical? Practical?Practical? Psychological?Psychological?

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Exhibit 11-3: Examples of Objections

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How Do You Handle Sales Objections?

The sales objection may:Ask for informationGive strong resistance

Remember you want to help the person.

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Exhibit 11-4: Six Major Categories of Objections

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Six Major Categories of Objections

1. The hidden objection

2. The stalling objection (“I’ll think it over…”)

3. The no-need objection (“…but I’m not interested now.”)

4. The money objection

5. The product objection

6. The source objection

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1. The hidden objection – prospect who asks trivial, unimportant questions or conceals his feelings beneath a veil of silence

a. Salesperson must ask questions and carefully listen in order to smoke out prospect’s real objections

b. Smoke out hidden objections – ask questions, observe, “read between the lines” – prospect may not know what the objections are; as last resort, may have to ask what objections are

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Hidden objections, cont…

Consider the following questions:1. What would it take to convince you?

2. What causes you to say that?

3. Tell me, what’s really on your mind?

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2. The stalling objection – prospect says, “I’ll think it over,” or “I’ll be ready to buy on your next visit,” must determine if truth or smokescreen designed to get rid of you – common tactic

a. One of toughest to overcome arises when selling a new product

b. Buyer says she has to get approval from someone else. Buyer’s attitude toward product will influence buying decision – make it positive

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2. The stalling objection, cont…c. Let buyer know you are on her side and help her

with her objections. If she does not respond give her multiple choice question to display genuine attitude of caring

d. Do not get demanding, defensive, or hostilee. Goal is to help prospect realistically examine

reasons for and against buying nowf. Main idea is not to be satisfied with false

objection or stall. Bring out any or all main selling benefits and KOS

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3. The no-need objection – prospect says, “…but I’m not interested now,” and he stays as he presently is

a. This is widely used because it gets rid of the salesperson

b. It is tricky because it also includes a hidden objection or a stall

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4. The money objection – encompasses several forms of economic excuses and is simple for the buyer to say

a. Respond by saying that it is risky to discuss price until it can be compared to product’s benefits. Once you convey product’s benefits, price becomes secondary factor which usually can be dealt with successfully

b. Quote price and go right on selling

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4. The money objection, cont…c. Price/Value formula

1. Used to determine if prospect is or is not convinced price is too high

2. Price/Value = Costa) Cost – comparison of what is received to money paid

b) Value – what prospect sees the product doing for them

c) Price – set at headquarters; not subject to change

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5. The product objectiona. Not everyone likes the best selling product

b. Your reaction must be positive

c. You can use guarantee, testimonial, independent research results, or a demonstration

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6. The source objectiona. Some prospects say they are happy with their

current supplier

b. Try to find out exactly bothers prospect and call on her routinely over a long period of time

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Salespeople often encounter the same objections from customer to customer.

After a sales call, ask yourself:What were the objections?How did I handle them?How should I handle them next time?

Be prepared for the same objection to arise again!

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Once Again! What Are Objections?

Opposition or Resistance to: InformationThe salesperson’s request

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Salespeople Need To Be Good Communicators, but How?

Handling objections can be challenging:Done incorrectly, you may appear rude.Done correctly, you appear professional.

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Techniques for Meeting Objections

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Exhibit 11-7: Techniques for Meeting Objections

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Techniques for Meeting Objections1. The dodge neither denies, answers, nor ignores.

2. Don’t be afraid to pass up an objection.

3. Rephrase an objection as a question. Easier to answer question than objection Exhibit 11-8). Acknowledge prospect’s viewpoint Rephrase objections Obtain agreement Feel-felt-found:

“I understand how you feel…” “Bill at XYZ felt the same way…” “…but he found after reviewing our products…”

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Exhibit 11-8: Examples of Rephrasing Objections as a Question

Back to 12-23

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4. Postponing objections is sometimes necessary. If you judge the objection will be handled to

satisfaction by your customary method That prospect truly willing to wait until that time

later in presentation You may politely forestall Tactfully used forestall can leave you in charge

of presentation

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5. Send it back with the boomerang method. Be ready at any time to turn an objection into a

reason to buy Convince the prospect that her objection is in

fact a benefit Requires good timing and quick thinking

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6. Ask questions to smoke out objections: Five-question sequence (Exhibit 11-10)

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Exhibit 11-10: Five-Question Sequence Method of Overcoming Objection

Back to 12-23

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Techniques for Meeting Objections This series of questions keeps the

conversation and gets the real objections out in the open – which helps increase sales

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7. Use direct denial tactfully Incomplete or incorrect objections should be

acknowledged from the prospect’s viewpoint and then answered with complete and correct facts

Tact is critical Do not say, “You’re wrong.” Closes prospect’s

mind. Try, “You know, you’re right to be concerned

about this. Let me explain.”

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8. Indirect denial works It initially appears as agreement with customer’s

objection, but moves into denial of the fundamental issue

Done in in natural, conventional way, salesperson will not offend prospect

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9. Compensation or counterbalance method Sometimes a prospect’s objection is valid and

must be overcome Calls for compensation method Present advantages to counterbalance the

objection

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10.Let a third party answer Answer it by referring to a third party and using

his experience as “proof or testimony” If source is reliable or reputable, can easily be

successful even with expert or skeptical prospect

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Technology Can Effectively Help Respond to Objections!

Data stored in handheld computers or laptops, or obtained using a telephone modem or satellite transmission, can provide information to overcome buyer’s objections.

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After Meeting the Objection–What to Do?

First, use a trial close – ask for opinion.

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Exhibit 11-12: The Procedure to Follow when a Prospect Raises an Objection

Prospect raises an objection

Prospect raises an objection

Response to the objection

Response to the objection Use a trial closeUse a trial close

Move into your presentation

Move into your presentation

Close the saleClose the sale

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What Does the Trial Close Do?

Does it ask for the order? Does it ask for an opinion?

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Yes, the Trial Close Asks For An: Opinion or feedback about what was just said

or shown

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The Trial Close Is a Powerful Communication Technique that Can Produce:

Two-way communication Participation from the other person

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A Challenge!

Use the trial close in normal conversation to: Improve your communicationStimulate others to participate in the conversation

Simply ask an occasional opinion-type question: “Is that a good place to eat?” “What did you think about the movie?” “How does that sound to you?”

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Let’s Review! When Is It Time to Use a Trial Close?

After making a strong selling point in the presentation

After the presentation but before the close After answering an objection Immediately before you move to close the

sale

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Let’s Review! What Does the Trial Close Allow You to Determine?

Whether the prospect likes your product’s FAB – the strong selling point

Whether you have successfully answered the objection

Whether any objections remain Whether the prospect is ready for you to

close the sale

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Why Do You Use a Trial Close After Answering an Objection?

To see if you have answered the objection!

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What is an Example of a Trial Close Used to Respond to an Objection?

“Does that answer your question?” “With that question out of the way, we can go

ahead – don’t you think?”

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Once You Have Satisfactorily Responded to the Objection, What Should You Do Next?

Make a smooth transition back into your presentation: “As we were discussing…”

Move to close the sale if you have completed your presentation.

Move to close again if objection was after a close.

If You Cannot Overcome the Objection, What Are Three Alternatives to Consider? (#1)

Return to presentation concentrating on new or previously discussed FABs of your product.

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Admit it. Compensate for it by showing how your

product’s benefit(s) outweigh the disadvantage(s).

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If 100% sure the customer will not buy:Go ahead and closeAlways ask for the orderAllow the buyer to say “no” – don’t say it yourselfYour competitor(s) may not be able to overcome

the objection(s) either A competitor may make the sale because he/she asked

for it

Be professional, not pushy. Leave the door open for a return visit.

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If After Your Presentation You Received a Positive Response to Your Trial Close, What Would You Do?

Approach

Presentation

Trial Close


Meet Objections

Trial Close

Close

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If After Your Presentation You Received a Negative Response to Your Trial Close, What Would You Do?

Approach

Presentation

Trial Close


Meet Objections

Trial Close

Close

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If After You Meet the Objection You Received a Positive Response to Your Trial Close, What Would You Do?

Approach

Presentation

Trial Close


Meet Objections

Trial Close

CloseCloseCloseCloseCloseCloseCloseCloseCloseCloseCloseCloseCloseCloseCloseClose

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Approach

Presentation

Trial Close


Meet Objections

Trial Close

Close

If After You Meet the Objection You Received a Negative Response to Your Trial Close, What Would You Do?

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Let’s Review By Taking a Closer Look at the Interactions Within the Sales Presentation

Presentation

Trial Close


Meet Objections

Trial Close

Close

Approach

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In All Things Be Guided By the Golden Rule

The reason to use the many communication techniques in this chapter is to serve others from your heart, not from your pocketbook.

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Summary of Major Selling Issues

Be prepared to logically and clearly respond to your prospect’s objections.

Basic points to consider in meeting objections: Plan for them Anticipate and forestall them Handle them as they arise Listen to what is said Respond warmly and positively Make sure you understand Respond using an effective communication technique

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Summary of Major Selling Issues, cont…

Objections are classified as hidden, stalling, no-need, money, product, and source.

Objections help you determine if you are on the right track to uncover prospects’ needs and if they believe your product will fulfill those needs.

Objections show inadequacies in a salesperson’s presentation or product knowledge.

welcome your prospect’s objections chapter 11 mcgraw-hill/irwin copyright © 2007 by the...

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