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It takes a lot of effort to move down the sales pipeline. Any objection from the customer can be a big hurdle for the sales rep. It is essential to learn the ways to handle them effectively. Going forward, you will learn the common objections raised and how your sales team can find ways to rebut them.
What is a sales objection?
A sales objection is a concern raised by buyers that prevents them from proceeding to purchase from you. They may believe that your brand cannot satisfy their need or that they are short of money at the moment, etc.
Objections are challenges for the sales team. These objections have to be handled with care. The following gives you an idea of how to deal with the most important objections raised by the prospects.
What are some types of sales objections?
Some common types of sales objections are:
1. Budget constraints
This is the most common objection that the sales team comes across. However good the product may be, if the prospect has money constraints, it may be difficult to nurture them. Some prospective customers use this as a reason to avoid buying.
The sales team must delve deep into the real reason behind the hesitation. With this, they can guide the prospect to buy the product. If budget is the real constraint, you can follow up with the prospects and keep them in the loop so they may consider buying a little later.
2. Trust issues
Trust is the first thing you must sow in the minds of the customer. Only if the prospect believes that your business can satisfy their need, will they continue their connection. Trust issues may arise in two cases; when the prospect has no idea about your business or has heard bad reviews. Lack of trust needs to be sorted out immediately through better communication with the prospect and identifying the pain points.
3. Absence of need
The buyer may not have a genuine need when your sales team is prospecting. They should perceive some value from your product or service to consider buying. Lack of need acts as a barrier for purchase. The sales team can handle this objection by exploring the buyer's needs that can be satisfied with your product.
4. Uninterested customer
A customer may not show interest in your product either because of a lack of need or ignorance about the product. In such cases, your sales team can help by offering more information about the product and its usefulness to the prospect. Once an interest is created, the prospect can be nurtured to the next level.
5. Price comparison with competitors
One reason that most customers have for raising a sales objection is the price. Customers want products at the best price and would always compare the prices with the competitors. If the same features are available with a competitor at a better price, they would naturally be inclined toward the other brand. The sales reps should try to represent your product's benefits to justify your price.
6. Feature comparison with competitors
Prospects also compares the features of your brand with that of your competitors. There may be a specific feature the buyer is looking for that is not present in your brand. The sales team should consider this as feedback so as to convey the mind of the customer to the management. You can represent how good your product is even without that feature or how you are keen to include the feature to satisfy the buyer.
7. Lack of urgency
The buyer may not feel any urgent need to purchase at the moment and would cite this as the reason for objection. The sales team has to determine the buyer’s priorities to know the reason behind the objection. If the reason is genuine and they show interest in the product, your team should maintain communication with them. Your brand should be in their mind whenever they feel like proceeding.
8 Tips for handling objections in sales
Handling objections is not an easy process for a sales rep. They should balance between not promoting the products too much and listening to the valid reasons of the buyer. The following tips can help in this process.
1. Listen
Active listening is the foundation for a better understanding of the buyer. You should create an environment whereby the buyers are able to communicate their expectations, fears, etc.
Listening helps build trust in the mind of the buyer. They will be more open to the sales reps, and this gives way to creating an interest in buying the product/service. The sales team can make them understand how the product can be beneficial to them. Listening results in benefits for the buyer as well as the brand.
2. Communicate your understanding
When the buyers know that you have understood their views, they feel valued. Even if they do not have any urgent need and want to postpone buying, they will consider your brand when interest arises.
Communicating that you have understood the objection creates a good impression. You can develop a good understanding with the buyer.
3. Anticipate objections
Always anticipate objections and be ready with ways to handle them. Sales is not a straightforward task, and sales reps face a lot of challenges in convincing buyers. With experience, you know the common objections raised, and it is easier to keep them in mind while dealing with buyers. This makes it easier to move to successive steps in the sales pipeline.
4. Respond to objections
Listening to objections and not responding to them is a practice to be avoided. Buyers need to know that the business is aware of the objections raised and is working on ways to handle them.
If left unattended, they may move over to the competitors. Striking at the right time is very important for a sales rep. If the opportunity is missed, it becomes really difficult to go through the whole process again, since the buyer faces a shift in interest.
5. Explore the actual reason for the objection
It is easy for a buyer to give reasons to postpone or cancel buying. You may lose a valuable customer if you do not explore the actual reason behind the objection.
For example, to avoid buying, the buyer may cite budget as the reason. If you delve deeper and find the real reason, you may be able to complete the sale successfully.
Speak, explore, and do not stop at the objection. This is one of the important steps in handling objections because many sales reps do not consider proceeding after the buyer expresses disinterest.
6. Follow-up
Sometimes, a buyer may postpone the purchase. In such cases, the sales team should maintain communication and follow-up with the buyer.
Reminder emails may help here. It is important to constantly keep in touch so that the buyer is not diverted. Every prospective buyer is valuable to a business. Once you identify that the prospect shows interest, you must make sure you take steps to convert them into your customers.
7. Discuss the solutions
Maintain a good rapport with the buyer. This will facilitate easy communication by the buyer. When you identify the pain points of the prospect, the next step would be to find solutions. Once your sales team identifies the solutions, it is beneficial to discuss the same with the buyer.
The prospect gets a good impression that his concerns are addressed. Also, your sales team can identify if the solution helps in furthering the sales process. Alternate solutions should be kept ready to guide the buyer to the next step in the sales funnel.
8. Close the objection
When the hurdles are sorted, the sales team can close the objection. The buyer is one step closer to making a purchase.
The team should close the objection only after it is clear that the buyer has no unattended concerns. Listening to the objections, finding solutions, communicating, and finally closing the objection are the various stages that make the sales team successful.
12 Common sales objections and their solutions
Here are some common sales objections and ways to deal with them:
1. Sales objection
The price is out of budget
This is the budget constraint we saw above.
Solution: Assure them that the product is valuable for their company. Ask them about the range they are looking for. Get them to listen to know the exclusive features of your brand that make it worth the price.
2. Sales objection
We are not sure if your company is the right choice.
Here, the buyer does not have trust in your brand.
Solution: Speak to them to find out how much they know about your company. Explain how your brand can be their best choice to tackle their pain points.
3. Sales objection
We have received negative comments about your company.
This is a case where you must prove them wrong without being aggressive.
Solution: Thank them for the feedback and let them know the team is working hard to satisfy the buyer. Ask them what specifically they are concerned about and try to build trust.
4. Sales objection
Your product does not suit us.
This may be a case of proceeding with the wrong lead. Nevertheless, take it as an opportunity to learn more about the buyer.
Solution: Express apologies for your incorrect assumption of meeting the client’s need. Ask them more about their business and what exactly they are looking for. Let them know how you can help with their problem.
5. Sales objection
Your product is too complicated.
The customer does not have enough resources or support to use your product.
Solution: Hear them out. Identify their pain points and explain that you are ready to support them 24/7. Connect them with your support team and provide access to product usage information available in your portal. You should make them understand that the product is easy to use and remove their fears.
6. Sales objection
We do not think your product can bring the required ROI.
Here, you must present real situations where your product has helped other companies.
Solution: Results speak louder than words. Present them with case studies of how similar businesses have benefited from your product. Show your customers the numbers and let them see for themselves.
7. Sales objection
I’m not the right person to contact.
This may happen if the buyer does not give a clear indication of whom to contact.
Solution: Express regret to have communicated with the wrong person. Find out who is responsible for handling purchases. Connect with the concerned person to make a breakthrough in sales.
8. Sales objection
My boss should agree to this first.
Here, we come to know that the buyer does not have the authority to finalize purchases.
Solution: When you know that a senior person's approval is needed to finalize the sales process, you need to communicate with them. Explain the features of your product and how it can be helpful to their company.
7. Sales objection
Connect with me next month or quarter.
This is a case of deliberate postponement from the buyer’s side.
Solution: Say that you are ready to wait till the next quarter. Seek an explanation of what they expect in the next quarter to postpone this purchase. Let them know that buying the product then can help them accomplish their goals for the next quarter.
8. Sales objection
I’m not interested.
Some buyers do not even listen to the sales reps and dismiss the deal at the initial stages itself.
Solution: This should not put the sales team down. Give them time to think about it. You can send email communications in the meantime so that your brand stays in their memory. Offer them a free trial so that they can check how the product can bring about changes in their business.
9. Sales objection
Competitor X has quoted a lesser price.
Price comparison always happens, and your team has to act tactfully to make them turn toward you.
Solution: Your sales team should explain the special features of your product that are absent in the competitor’s brand. You should provide real examples of how companies have benefitted from your brand. Quote the name of a popular brand that is using your product. Tell them about your offers and free trials.
10. Sales objection
We are already in a contract with company X.
This is a tricky situation where you have to show an impressive benefit to shift to your brand.
Solution: Some sales reps are bogged down with this response. You should think of ways to get the prospect to enter into a contract with you. Ask them how they like the present product and what improvements they would prefer. Tell them that your product can be the best fit for them. Offer discounts for moving out of the other contract before time.
Conclusion
We hope that the above gives a deep insight into common sales objections and tips to handle them appropriately. Objections are common. It is the onus of the sales team to explain and make the buyer understand to come out of their apprehensions.
Objection handling is a very important skill that the sales team should develop. It lets them find out the root cause for several objections. Understanding your customers well can go a long way in improving the profitability of the business.
