Addressing Concerns and Earning Commitment

1. 8 Addressing Concerns and Earning Commitment

2. Learning Objectives Explain why it is important to anticipate and overcome buyer concerns and resistance. Understand why prospects raise objections. Describe the five major types of sales resistance. L L L 1 2 3

3. Learning Objectives Explain how the LAARC method can be used to overcome buyer resistance. Describe the recommended approaches for responding to buyer objections. List and explain the earning commitment techniques that secure commitment and closing. L L L 4 5 6

4. Key Thoughts • Buyers will raise objections, but if the salesperson did a good job qualifying the buyer, the resistance shouldn’t be insurmountable. • Perhaps the most essential component of handling buyer resistance is listening. • Buyer’s want to perceive a net gain in value from the exchange (purchase) before committing to it. • Making a purchase is inherently risky; finding ways to reduce perceived risk will increase the probability ofthe buyer committing to the purchase. • The purchase decision is a true testof the extent to which the buyertrusts the salesperson.

5. Objection (Sales Resistance) Anything the buyer says or does that slows down or stops the buying process.

6. Sales Resistance Buyer’s objections to a product or service during a sales presentation.

7. Q. 1. Why do prospects raise objections?

8. Reasons WhyProspects Raise Objections • The prospect wants to avoid the sales interview. • The salesperson has failed to prospect and qualify properly. • Objecting is a matter of custom. • The prospect resists change. • The prospect fails to recognize a need. • Prospect lacks information.

9. Summary of Reasons WhyProspects Raise Objections

10. Q. 2. What are the types of objections?

11. Major Categories of Objections 1 1 No Need 2 2 Product or Service Objection 3 3 Company Objection 4 4 Price is Too High 5 5 Time/Delaying

12. Major Categories of Objections

13. Responding to Need Objections

14. Responding to Product/Service Objections

15. Responding to Company/Source Objections

16. Responding to Price Objections

17. Responding to Time Objections

18. Q. 3. What is the LAARC method of handling objections?

19. Handling Buyer Resistance L A A R C Confirm Listen Assess Respond Acknow-ledge

20. Ethical Dilemma

21. Q. 4. What are the other methods of handling objections?

22. Other Methods for Handling Buyer Resistance • Forestall– Introduce the source of the objection before the prospect brings it up. • Direct Denial – A rather harsh response that the prospect is wrong. • Indirect Denial – Softening the blow whencorrecting a prospect’s information. • Translation or Boomerang – Turn areason not to buy (the source of the objection)into a reason to buy. • Compensation– Counterbalance theobjection with an offsetting benefit.

23. Other Methods for Handling Buyer Resistance • Question – Ask the buyer assessment questions to gain a better understanding of the what they are objecting to. • Third Party Reinforcement – Use the opinion or data from a third party source to help overcome the objection and reinforce the salesperson’s points. • Feel-Felt-Found – Salesperson relates thatothers actually found their initial opinions to beunfounded. • Coming-to-That – The salesperson tells thebuyer that he or she will be covering theobjection later in his or her presentation.

24. Commitment Often referred to as “closing,” gaining commitment refers to the prospect’s willingness to make a purchase from the salesperson.

25. Q. 5. What are the guidelines for earning commitment?

26. Guidelines for Earning Commitment • Look for Commitment Signals • “That will get the job done” • “I didn’t realize you delivered everyday.” • “The price is lower than I thought it would be.” • Ask Trial Commitment Questions • “What do you think about what we’ve discussed?” • “Do you see how this will helpyour organization?”

27. Guidelines for Earning Commitment • Resolve “Red Light” Statements Made by the Prospect • “I’m not sure that will work." • “The price is higher than I thought it would be.” • “Your delivery schedule does notwork for us.” • “I don’t see the advantage ofgoing with your proposal.”

28. Q. 6. What are the techniques for earning commitment?

29. Techniques to Earn Commitment Direct Commitment Success Story LegitimateChoice Summary Commitment Balance Sheet

30. Techniques to Earn Commitment

31. Techniques to Avoid

32. Ethical Dilemma

33. Dealing with Yes! • Obtain the customer’s signature • Provide a plan of action (i.e., answer the question “now what?”) • Answer any remaining questions. • Assure the buyer you will follow-up • Thank the customer for the business Yes!

34. Dealing with No! • Evaluate the customer’s explanation • Maintain the relationship foundation • Understand rejection is a fact of life • Evaluate your performance • Learn from the situation • Make improvements No!