Whenever a sales person tries to propose a product or service, the prospect raises objections. An objection is a psychological or logical resistance. Learning to handle objections is one of the key skills to be acquired by the corporate sales team. Objections should never be ignored but rather addressed or resolved positively and with confidence. The team should anticipate and prepare for objections in advance in order to address them effectively. Impromptu responses to objections are rarely successful and drastically reduce the chance of closing a sale. Most objections are common and can be anticipated in advance. Some of the most common objections are related to cost, timelines, specific client requirements, and lack of authority. These and other types of objections are to be expected. Presenters need to listen to objections positively and answer in a manner that helps reduce a prospect’s anxiety and builds trust. Some specific techniques appear below.
- Satisfaction with the existing vendor—When faced with this obstacle, it is best to ask questions about the current vendor and try to understand situations where the prospect would consider switching to a new vendor. To do this, the team needs to do its homework before setting up the meeting with the prospect. It needs to research the current vendor and its weaknesses, current business challenges faced by the prospect, and any other relevant information that can gain the attention of the prospect. A prepared sales team can then start a presentation by suggesting solutions for problems or limitations. This can help prevent the prospect from speaking positively about the current vendor.
- High price—Most buyers note price as their primary concern with a product or proposed solution. Sellers who talk about their products or services at the beginning of a conversation will likely end up facing a price objection. Therefore, sellers should focus on the benefits of a product at the beginning of the presentation to avoid this type of objection. In addition, it is a good practice to inform the prospects about the cost savings achieved by using the company’s products or services.
- Budget constraints—With experience, the corporate sales team knows the time of year when prospects set their budgets. The team should meet prospects ahead of the budget cycle to get money allocated in the next budget for their product or service. If that does not happen, the team should try to explain the importance and advantages of the proposed product or service to the prospect. It is possible to get money allocated from the existing budget by diverting funds from lower priority projects.
- Too busy—With so many sellers approaching buyers regarding different types of products and services, it becomes impossible for buyers to listen to each and every proposal. When faced with this obstacle, the seller needs to generate interest by telling prospects about products or services that can make a significantly positive difference to their business. This requires a thorough knowledge of the value proposition.
- Undisclosed objections—Objections that are not stated by prospects need to be understood. These are objections that are noticeable by hesitations or implied reluctance as shown by the prospect’s tone or expressions. It is the responsibility of the seller to ask the prospect questions to encourage the prospect to talk about such objections. The seller can only address these objections when they are revealed.
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