Thursday, 24 May 2012

sales objections



How to Beat the Budget Objection

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Communications - Sales Objections
Written by Jim Domanski   

The 'budget' is one of the most ambiguous - and consequently, most frustrating- objections in the world of telephone sales. If you can learn how to effectively master the budget objections you'll close more sales, plain and simple.

Here's the problem: there are several ways to interpret the "it's not in the budget" objection:

Is your client saying, there's budget available but your price exceeds that which has been allocated? Or,
Is your client saying, there is no budget for this particular item at all? Or,
Is your client saying, we've got budget - maybe lots of it- but wants to chisel the price down? Or
Is the client really saying, "I am not interested" but is being nice about it? Or,
Is the client hiding another objection behind the budget smokescreen?

Clearly you can't tackle the budget objection without some clarification. There are 3 steps to get you started:

Step #1: Pause

This is a bit theatrical but very effective on the phone. When you hear the budget objection pause for a brief second. This will do two things for you. First, it buys you a little more time to formulate your response and second, it gets your clients attention; they hear the silent gap and zero in on your next string of words.

Budget objectionStep #2: Acknowledge the Objection

After you've paused respond by saying , "I understand," or "budgets are important" or something similar. By doing so you've acknowledged you have heard the objection and that you're not dismissing it. You legitimize it. This reduces tension between the buyer and seller. It relaxes them and makes them open to further probing.

Step #3: Clarify if budget is indeed the true objection.

Here are some ways you can clarify if the 'budget' is the real issue or something else:

"Chris, suppose budget was not an issue would my product/service provide the fit you're looking for?"

"Pat, when you say budget do you mean that the price of (your product) exceeds the amount you have set aside for such a purchase?"

"Kelly, apart from budget is there anything else that would hold you back from purchasing?"

If Budget is not the objection....

Obviously what you are trying to do is determine if budget is truly the issue that is preventing the sale. By isolating the budget the client must articulate further. If there are other issues that are holding them back this is where they'll crop up. Usually you hear things like,

"Ah ... well... you know...we've been buying from ABC for 15 years now and ..."

"Well ... I'd really have to check with my boss on that ..."

"Budget's important but we are really quite comfortable with our current system..."

"I ...er... am a little concerned maybe it's a little too much for what we need..."

The good news is that now you know it's not really an issue of budget (or it might be budget PLUS something else). At this stage you need to pursue a new line of questioning to determine if the latest objection is also a smokescreen. But whatever the case may be, you are beginning to peel back the onion and are getting down to the core objection.

If Budget is the true objection

If your client pipes up that he/she loves the product and it would work wonders for them but the money is not there, you can respond in a couple of ways:

Budget Buster Option #1: Work Within Their Budget

Again, turn to questioning to help you respond. Go ahead and ask your client what they do have established as a budget. You might frame it like this,

"Jeff, I'd like to see if there might be a solution here. Let me ask, what do you typically budget for this type of product?" (or, "What do you have budgeted for this project?") If the client is seriously interested in your offer they'll usually cough up a number because they want a solution.

Once the number is out there you can try to work with it. There are several ways to do just that:

Do you have a 'lite' version of your solution (same product but perhaps with less features, bells and whistle) that fits their budget

Is there an alternative product (a different make or type ) that will do the same job?

Can you reduce the quantity to meet their immediate requirements?
 
Budget Buster Option #2: Find the Budget For Them

In this scenario, you act as a 'consultant' helping the client look for extra dollars or value. Here are a few ideas;

Outline the additional benefits of your offer (i.e., show the value of the product; for instance, the productive capacity is 18% greater which offsets the cost over the long run)

In a similar manner, toss in something extra to 'sweeten' the deal (which stretches the budget dollar further e.g., a warranty)

Ask if there are other departments or groups that can help with the budget; perhaps they derive some benefit as well?

Ask about 'contingency' funds or special reserves that most companies have for situations exactly like these

Offer financing to 'ease the financial strain' over a period of time

Determine if there is a 'higher court of appeal' i.e., find out who can approve the deal if there's a case to be made

Perhaps offer a discount

Summary

Budget objections don't have to be deal breakers. If they are legitimate you can make a stab at overcoming them. If they are not legitimate, you have another shot at finding out the true objection. Either way, you are further ahead then you were.

 

Overcome Objections and Close the Sale

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Communications - Sales Objections
Written by John Boe   

Unfortunately, the first two orders many new salespeople receive are "Get out and stay out!" It is only natural for your prospect to procrastinate when asked to make a decision involving money. As a general rule, people are hesitant to commit to purchasing a product or service until they have convinced themselves that they need it and are assured they are getting it at a fair price. Research indicates a prospect will say no on average five times before they actually buy. As a professional salesperson, it is important to remember that an objection is not a rejection of you personally.

Believe it or not, objections are a good sign and you should actually look forward to them. After all, if your prospect was not interested in your product or service, they wouldn't be asking questions. Simply put, an objection is nothing more than a request for additional information. Top producers not only expect objections during the sales process, they actually anticipate them.

Typically, a prospect's objections will fall into four major categories; no money, no perceived need, no hurry, or no trust. If you haven't built trust and rapport with your prospect, qualified them financially, and conducted a thorough needs analysis, you can expect them to use objections to derail the sales process. When addressing an objection, don't dump the whole bale of hay. The majority of salespeople have a tendency to overwhelm and bore their prospects by over educating them. Many salespeople lengthen the appointment and use up their valuable fall back positions in an attempt to show how knowledgeable they are. Occasionally your prospect's objection may be disruptive and therefore, you might want to delay answering it until a more appropriate time. When you make the decision to delay your response, I recommend you write their question down and ask them, "Would it be ok to address this question later on in my presentation?" However, if the same objection comes up twice, you should stop and address it immediately.

Steps for Addressing an Objection

Step 1 - Hear them out and write it down

When your prospect voices an objection, show concern, treat it with respect, and hear them out. Interrupting when you should be listening not only presents a bad first impression, but it also destroys trust and rapport. Learn to be an active listener by giving your prospect your full and undivided attention. Avoid the temptation to think about your response while your prospect is speaking. An active listener is not only listening to what their prospect is saying, but is also trying to discover the meaning behind their words. Research indicates that 65% of our communication is nonverbal. Therefore, it is vitally important to pay attention to body language and listen for voice inflections. In addition to observing your prospect's gestures, you must learn to be mindful of your nonverbal signals as well.

Before you begin responding to your prospect's objection, it is vitally important that you understand their specific concern. Even though you may have heard the same objection many times before, you must avoid the temptation to begin addressing their concerns prematurely. Otherwise, you run the risk of shooting yourself in the foot by voicing an objection they had not even considered. I recommend you get in the habit of restating the objection in your own words to gain agreement prior to responding. In this step it is important to remember that your intention is not to address their concerns, but simply to hear them out and write them down without comment. Never argue or even register disappointment with their objections, just acknowledge them. It is a good idea to take notes and occasionally nod your head affirmatively to let them know that you are tracking with them.

Once you have listed all of your prospect's objections, conclude this step by saying, "Bob and Mary, if your concern(s) can be addressed to your complete satisfaction, at this point, can you think of anything else that might keep you from going ahead with this decision today?" If additional objections are brought up, add them to the list and ask the question again to gain commitment. Obviously, it does not make sense to go to step two if there is reluctance to go ahead with the decision.

Step 2 - Feed it back for clarification

Feeding the objection back in the form of a question provides your prospect an opportunity to expand upon their concern. For example, if your prospect said they don't have the money in their budget, you would simply feed it back in a nonjudgmental way by saying; "You don't have the money in your budget?" This technique greatly reduces the perception of pressure. By giving your prospect the opportunity to explain their statement, they will frequently answer their own objection. Another good reason to clarify the objection is to make certain you are addressing their exact concern and not inadvertently creating a new one. Some objections are of greater importance to your prospect than others. A prospect will often use insignificant objections in an attempt to stall or delay the closing sequence. After you have clarified the objection, ask your prospect how important that concern is to them. After all, not every objection is really important.

Step 3 - Answer the objection and "Touch Close" the Sale

When addressing an objection try to stay big picture, but be prepared to provide details upon request. Use graphs, charts, numbers, and or testimonials if the big picture approach isn't effective. During this important step, pay particular attention to your prospect's body language gestures. Once your prospect agrees that their objection has been resolved, let them watch you cross it off your list. Continue this deliberate process until each and every objection has been resolved. Complete this step by asking, "At this point can you think of anything else that might keep you from going ahead with this purchase today?" If they say no, proceed with confidence to the final step and ask them for the order.

Step 4 - Ask for the Order and Expect a Decision

Transition into this step by saying, "Bob and Mary, am I correct in saying that it appears you both have convinced yourselves in the merits of this purchase?" If you sense the least bit of hesitation, excuse yourself by saying, "Bob and Mary, I can tell that you need a moment to discuss this information in private, so I am going to get a cup of coffee and give you time to make your decision." This technique dramatically reduces the likelihood of your prospect taking the information home to "think about it." Keep in mind that you may have to ask for the order several times before you get the sale; so make sure to vary your closing questions. The key to overcoming objections and closing the sale is to remain professional and be persistent without becoming argumentative or defensive. Knowing how to effectively address your prospect's objections brings you closer to their final question, "Where do I sign?"

 

How to Handle the “I don’t have the Time” Objection

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Communications - Sales Objections
Written by Mike Brooks   
no timeWelcome to the New Year!  So, are you ready to start cold calling, prospecting and reaching out to prospects?  If so, you’d better be prepared for what is sure to be one of the biggest brush off objections this year: “I’m too busy/don’t have the time to talk to you now.”

Because of the personnel cuts over the last 24 months, you’ve probably noticed (even at your own company!), that many companies have laid people off and more work is required of those who are still employed.  What that means to you is that you must be prepared for this and even more so, you must be equipped with the right scripts to handle this objection.

As I’ve written over and over, the sales reps who are going to be successful in today’s market are those who are prepared for the objections and selling situations they will find themselves in 90% of the time.  The other 80% of sales reps?  They will continue to struggle because they will insist on ad-libbing it and making it up as they go along.

To help you be prepared for the “I don’t have the time” brush off, memorize these scripts below and be prepared to use them every time you get this objection:


Response #1:
“I know that feeling; my desk is full of things I need to do, too.  I’d be happy to schedule a time to call you back, but I don’t want to bother you if you’re really not interested.  Let me ask you a quick question and be honest with me:

If I could show you a (system/product/service) that is proven to (reduce your overhead, generate more sales, etc.), would it be worth it for you and I to take for just 5 minutes to see how it could work for you?”

If NO: “No problem.  Before I go, who else do you know that might be able to use a system like this?”

If Yes: “Terrific.  Do you have 5 minutes right now?”

If No:  “I’m looking at my schedule, what is a good time later today?”

Response #2:
“___________ you probably get a lot of calls like I do, and my initial reaction is to say I’m too busy as well.  But I can explain this to you in just 3 minutes and if you think it can help you we can schedule more time later - and if you don’t we can part friends, is that fair?”

Response #3:
“I’m with you.  Before I schedule time to get back with you, just a quick
question: Is it a priority for you to (fix or improve what your product or service will do for them) this quarter?”

Response #4:
“I’m glad you’re busy, that means that you don’t have the time to waste looking at things you have no intention of taking advantage of.  Quick
question:  If I could show you a proven way to (get the benefits of your product or service), is that something that you would invest 5 minutes learning more about?”

Response #5:
“No problem.  I know what it’s like to be interrupted.  Would it be better to call you back right after your meeting, say in about a half hour, or would you prefer to set up a quick 5 minute call for tomorrow morning?”

Can you see how much more effective you will be by being prepared with and using these kinds of scripts?  Believe me, it will separate you from the majority of your competition.
 

The Best Kept Secret for Handling Brush Off Objections

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Communications - Sales Objections
Written by Jim Domanski   

Don't you just hate those "brush off" objections that seem to derail your selling effort just when you think you've gained a head of steam?

Brush off objections typically occur at the end of your call and leave you wondering because they could be legitimate or they could be a brush off. Do these sound familiar?

"let me think about it,"
"send me something in the mail/e-mail?"
"it's a bit too pricy"
"call me in a couple of weeks"
"sounds great but it's not in the budget right now."


Responding to these objections is a complete and utter waste of time if they are not authentic.  Your attempted response is meaningless if the objection is false. Left alone at their face value, these objections will lengthen your call cycle and leave you frustrated and discouraged. Don't become a victim of these ambiguous and frustrating objections. Take action by using one the best-kept secrets for objection handling.

The "I'm not sure I understand..." Technique

This technique is extremely versatile. You can use it for a large variety of brush off objections and get stunning results. Best of all, it's easy to learn and use because there are only five words:

I'm not sure I understand

This objection handling technique is extremely effective at getting the client to 'open' up and further expand on the objection. By doing so, you are able to determine if the objection is indeed real and genuine or if it is false and hiding something else.  If it is genuine, you can respond accordingly and confidently. If it is false, you can probe until the real and authentic objection rears it's head.

How to Make it Work for You


There are three steps to getting the most out of this objection handling technique.

i. Pause

First, the moment you encounter a brush off objections such as those listed above, pause for a second. The pause creates a silent gap that in turn gets your client listening. It also gives you a moment or two to think about your response.

ii. Apply the Technique

Next, simply say these words,

"I'm not sure I understand..."

Simple, eh? That's all there is to it.

iii. Watch Your Delivery and Tone

Delivery and tone are vital to maximize your results.   The words should be uttered sincerely and with sense of confusion in your voice. In effect, you want to sound surprised or bewildered when the client 'wants to think about it' or 'wants to wait a couple of weeks' or whatever.

Then let silence work its magic. Don't elaborate. Don't speak further. Silence on the phone is perceived as three to six times longer than it really is. In a non face-to-face environment, silence creates a sense of discomfort. Your client will literally itch to fill the void and say something.

Your words, your tone and your silence will work collectively on your client and almost immediately, he'll feel the need to expand on the brush off objection. He will feel the need to justify it or to explain further so that you will better understand. And in doing so, the client will often give you the real reason for the objection or if the objection is indeed authentic, they'll discuss if further.

Whatever the case may be, you now have better and more accurate information by which to gauge your response.

Summary

This technique is truly one of the best-kept secrets.  Master it and you'll get phenomenal results. Good Selling!

 

 

How to Overcome “Brush Off” Objections with the 1QQ Techniques

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Communications - Sales Objections
Written by Jim Domanski   

1QQAre you frustrated with prospects that shut you down and brush you off after you’ve finished your opening statement?

You know the type of objection I am talking about: you barely utter your name and the prospect says, “We’re happy with our present supplier,” or “I’m in a meeting,” or “I am busy right now,” or “Just send me something in the mail,” or any number of other brush offs. And just like that, the call is over.

But it doesn’t have to be that way.  You can reduce the impact of brush off objections and speak to more decision makers if you apply a smart little technique called “1 Quick Question” (1QQ).

Brush Off Objections

As the name implies, a brush off objection is a reflexive objection that typically occurs at the beginning of a call. They occur because the prospect was not expecting your call and the automatic response is to toss out an objection.  They do so out of the compelling need to protect themselves “from being sold” and out of the desire to get rid of you as soon as possible. Most tele-sales reps oblige them by lamely mumbling an apology and hanging up.

Sound familiar? Don’t be a victim.

How to Deal With the Brush Off

Three are three steps to dealing with the brush off  objections.

Step #1: Empathize

When you hear a brush off your first step is to empathize with the client. Say something like, “I understand,” or “I appreciate that.”  This does two things. First, it acknowledges the prospect’s objection. It shows you have listened to the remark and that you understand. Second, it buys you a second or two to collect your thoughts and respond.

Step #2: Ignore the Objection

Ignore what you hear. Don’t fall for the objection. It’s a mistruth. You know it’s a brush off and so does the prospect. Responding to the stated objection is therefore a waste of time. So don’t honor it with a retort. Ignore it.

Step #3: Ask “1 Quick Question”


Apply the 1 Quick Question (1QQ) technique. The 1QQ is simply a way to forge ahead with the call before the prospect hangs up. It is extremely easy to apply. Here are some examples to give you a feel for how it works:

Example #1:

Prospect:    “I’m in a meeting right now!”

Rep:        “I understand completely. Just one quick question before I go…”

Example #2:

Prospect:    “I’m happy with our present supplier.”

Rep:        “I’m happy to hear that. Jeff, one quick question if you don’t mind…”

Example #3:

Prospect:    “We don’t need anything right now.”

Rep:        “I appreciate that. Before I go one quick question.”

You can see the pattern. The rep empathizes but does not directly respond to the objection. Instead he uses the 1QQ technique. It works because the majority of prospects realize that they have been a bit dismissive and possibly rude.  By politely asking ‘one quick question’, many prospects feel the need to soften up a bit and give you a quick answer before they terminate the call.

Now here’s the interesting thing. Depending on the nature of your question, one quick question often leads to two or three or more questions. Think of it as a wedge in the door. The better your question, the greater the opportunity to get your prospect to open up further. 

How to Create Your 1QQ

The key to making the 1QQ work for you is your question. Your first step to developing 1QQ is to identify a pain, a problem or a predicament that the prospect typically experiences and that you can solve.  You only have one shot at getting the wedge in the door so your question has to go directly to an issue that is significant to the average prospect.

Developing your 1QQ will take some time and thought but once you have it you’ll be able to use it with virtually every call. So think hard: what is the number one problem your clients experience?

For example, suppose you sell magazine subscriptions to educators that help the teachers plan their curriculum. The problem that many teachers experience is time and it takes to develop new, creative and effective class plans. Here’s one quick question that might work.

“Mr. Gunderson, one quick question before I go: do you find it frustrating and time consuming to prepare a daily curriculum for your classes?”


The second step is to have another question prepared. If possible, create a question that quantifies the problem. For instance, if Gunderson does find it frustrating and time consuming to prepare a daily curriculum your next question might be:

“If I may, roughly how much time do you spend preparing…say, on a daily basis?”

By doing so, the prospect begins to see the magnitude of their problem and may get curious enough to let you continue.

The third step is to pursue your line of questioning, identify the need and proceed as you normally would.

Summary

The 1QQ technique gives you an edge by helping to create an opportunity. While not every client will answer your one quick question some will and that’s the strength of the technique.

 
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