Responding to Objections

2. Responding to Objections CHAPTER 11 • How should salespeople sell value and build relationships when responding to objections? • When do buyers object? • What objections can be expected? • Which methods are effective when responding to objections? • How do you deal with tough customers? Some questions answered in this chapter are: 11-2 McGraw-Hill/Irwin

3. “I had to learn not only to handle the objections in my new job, but also how to bring objections out of the buyer.” ~Peter TroupJaffee Insurance Concepts 11-3 McGraw-Hill/Irwin

4. The Goal is to Build Relationships and Sell Value • Proper attitude is shown by: • Answering sincerely • Refraining from arguing or contradicting • Welcoming objections • Salespeople must assume the attitude of helper, counselor, and adviser and act accordingly • Objections present sales opportunities • Arguing and contradicting won’t build relationships • Maintaining a positive attitude toward objections goes a long way toward building goodwill 11-4 McGraw-Hill/Irwin

5. When do Buyers Raise Objections? • Setting up an initial appointment • Most common when products, services, or concepts are foreign to the buyer • The presentation • Usually show the prospect’s interest • Attempting to obtain commitment • May reveal a poor job up to this point • After the sale • Carefully respond to these objections 11-5 McGraw-Hill/Irwin

6. Common Objections • Objections related to needs • I do not need the product or service • I’ve never done it that way before • Objections related to the product • I don’t like the product or service features • I don’t understand • I need more information 11-6 McGraw-Hill/Irwin

7. Common Objections (continued) • Objections related to the source • I don’t like your company • I don’t like you • Objections related to the price • I have no money • The value does not exceed the cost 11-7 McGraw-Hill/Irwin

8. Value: The Relationship Between Costs and Benefits 11-8 McGraw-Hill/Irwin

9. Common Objections (continued) • Objections related to time • I’m just not interested today • I need time to think about it • Other objections • We have no room for your line • There is no demand for your product • Sorry, but I just don’t do business with blacks or women • I’ve heard complaints from my friends who use your product. • I prefer to do business with Arab-owned firms. • It’s a lot of hassle in paperwork and time to switch suppliers. 11-9 McGraw-Hill/Irwin

10. Behaviors of Successful Salespeople • Anticipate objections • Prepare helpful responses • Forestall known concerns • Raise objections beforebuyers have a chanceto raise them • Very important inwritten proposals Forestall Prevent by doing something ahead of time. 11-10 McGraw-Hill/Irwin

11. Behaviors of Successful Salespeople (continued) • Relax and listen – do not interrupt • Listen first, then answer the objection • Do not interrupt with an answer • Plan to relax as buyers offer objections • Evaluate objections • Objections may be classified as unsatisfied needs or excuses • Circumstances can provide clues • Always tell the truth • Lying and deception are not a part of a successful long-term relationship 11-11 McGraw-Hill/Irwin

12. Effective Response Methods • No perfect method exists for answering all objectives completely • In some instances, spending a lot of time trying to convince the prospect may not be wise • Probing method • Can be verbal or nonverbal • Blunders occur when the salesperson: • Does not understand the question • Answers the wrong question • Fails to fully answer the objection 11-12 McGraw-Hill/Irwin

13. Common Methods for Responding to Objections 11-13 McGraw-Hill/Irwin

14. Effective Response Methods • Direct denial • The salesperson makes a relatively strong statement to indicate the error the prospect has made • Appropriate only when the objection is blatantly inaccurate • Should never be used if the prospect is merely stating an opinion • Indirect denial • The salesperson denies the objection but attempts to soften the response • The salesperson must recognize the position of the customer who makes the objection and then continue by introducing substantial evidence 11-14 McGraw-Hill/Irwin

15. Effective Response Methods (continued) • Compensation method • Buyers may object because the salesperson’s product is less than perfect • The salesperson should acknowledge the validity of the objection and then proceed to show any compensating advantages • Also use when the prospect tries to put off closing the sale • Referral method • Feel-felt-found method 11-15 McGraw-Hill/Irwin

16. Effective Response Methods (continued) • Revisit method • Salesperson turns the objection into a reason for buying (boomerang method) • Works with most personality types • Acknowledge method • Buyer voices opinions or concerns to vent frustration • Salesperson listens, acknowledges, pauses, then moves on • Should not be used if the objection is factually false 11-16 McGraw-Hill/Irwin

17. Effective Response Methods (continued) • Postpone method • Buyer raises objections the salesperson would prefer to answer later in the presentation • The salesperson should ask permission to answer the question at a later time • Most useful when a price objection occurs early in the presentation • Using the methods • Salespeople often combine methods • Sometimes several methods can be used in one answer 11-17 McGraw-Hill/Irwin

18. Effective Response Methods (continued) • Objections when selling to a group of buyers • Seller should rephrase the question and try to get a sense of whether other buyers share the concern • Throw the concern back to the group • Any response should be directed to all buyers, not just the one who asked the question • Make sure that all buyers are satisfied with the answer 11-18 McGraw-Hill/Irwin

19. The Price Objection • Use up-to-date information • Salespeople should ensure they have the most current pricing information available to them • Establish the value • Establish product value before discussing price • Try to look at the objection from the customer’s point of view • Sell value and quality rather than price • Intangible features • Use communication tools effectively • Show customers quality and value 11-19 McGraw-Hill/Irwin

20. Dealing With Tough Customers • Sellers need to maintain a positive attitude, even with rude, hard-to-get-along with prospects. • It may be appropriate to point out the prospect’s rudeness. • The buyer’s culture often dictates their response to a seller. 11-20 McGraw-Hill/Irwin

21. Summary • Responding to objections is a vital part of a salesperson’s responsibility. • Successful salespeople carefully prepare effective responses to buyers’ concerns. • Buyers object for many reasons. • Effective methods of responding to objections are available, and their success has been proved. 11-21 McGraw-Hill/Irwin