“I am not sure if we need this product or service offered by you”
“We are already using a similar product”
“We don’t have the budget for what you are offering”
Have you heard these responses from the prospects you are following for weeks? If yes, then you are at the right place. These responses may not be sure signs that such prospects will not buy/subscribe to your product or service. There are ways you could convert these sales objections into considerations.
- What are sales objections?
- Ways to Structure your Sales Approach
- How to be prepared for some common sales objections?
First, let us understand What are Sales Objections?
Sales Objections are like barriers between you and your prospects. It is a clear signal from the prospect that they do not want to use your products or services. As a sales rep, you need to personalize and connect with prospects to remove the chance of such barriers.
Sales objections are not the dead end. You can still overcome them by building a relationship with your prospect. Few tips on responding to prospects are below:
- Understand why it arose in the first place?
- Have you communicated the value to the prospects?
- Were they able to understand the value provided by your product or service?
- Does the value communicated align with their requirement, or is it something different that hasn’t been communicated yet?
- Are you talking to the correct decision-maker, or do you need to talk to someone else who can make the purchasing decision?
- If you need to talk to someone else, how will you get their contact details?
- What information will be required by them?
As per reports 80% of the sales require 5 follow-up calls. At the same time it has been observed that around 44% of the sales reps do not follow through after 1 follow-up call.
As per Hubspot Sales Enablement Report 2021, 50% of the prospects are not a good fit for the products or services you have.
These are just a few tips to consider but the process of converting leads is long and requires dedication and personalized information.
In this guide, we will help you handle sales objections in a structured manner to convert prospects into clients.
Ways to Structure your Sales Approach
- Identify the decision-maker:
- Build trustable relationship with prospects:
- Understand what the prospects are saying:
- Communicate your value proposition:
It may happen that the person you have been in contact with and explaining the decision is not the final decision-maker. It may happen that they analyze different options, prepare a report, and submit it to their manager who will make the final decision. In such cases, you would rather reach out to the manager itself.
Instead of selling your product or service from the first call, try to solve their problems or fulfill their requirements. and you are not contacting them only to sell your product. At this stage or any time in later stages, you can push the solution but don’t push your product. 61% of buyers believe that their sales experience can be more positive if sales reps are not pushy for what they sell.
Listening but not understanding what prospects on the other side of the table (in recent times on the zoom calls) aresaying can turn out to be blunderous. You need to discover the reasons behind their objections. And if you have not listened or understood about their organization, needs, culture, budget, etc. you will limit the value of your product or service which may lead to sales objections. 69% of buyers believe that sales reps should listen to their needs and then provide the relevant information.
You want to make a deal. So you must clearly communicate how your product or service is solving their problems, how it is going to improve their productivity level, or how it is going to make their organization better. For example, one of the common sales objectives faced by sales reps is budget constraints and 42% of sales reps believe that overcoming the price and budget constraints is important to complete the sales. But what is the underlying barrier when such barriers are thrown at the sales reps. You have not communicated your value proposition clearly.
Following the fundamentals of building a relationship with prospects is not enough. You need to know there can be different types of sales objections. Some sales objections may be true while some could be a way of . You need to learn how to deal with these sales objections based on the particular context with each prospect. If you are in the B2B sales or even in B2C sales, you may have realized that there are some common themes the sales objections follow as mentioned at the start of this blog.
How to be Prepared for Some Common Sales Objections?
1. Be prepared with the responses to possible objections the prospects might have:
Because you listened to the prospects and understood them, you will have an idea about what their needs are. How can you solve their problems? What is their budget? Who are the decision-makers? This understanding will also help you in predicting some of the sales objection’s prospects might have. Based on it you should be better prepared with the possible answers which can make them reconsider your product.
We tried to build a framework that you can use to understand where you are in the sales process and what should be your next step, particularly when a sales objection has been raised by the prospect. This is a general framework and you need to adopt the framework according to the industry you are working in. For example, asking for referrals may not work in B2B cases but may work in B2C cases.
Let’s try to understand the sales objection handling framework:
After you have told the value proposition, you get to hear sales objections. You should listen to all the sales objections because based on this you will be making further communications. One thing you need to keep in mind is that you need to accept the sales objections, only then can you go forward with providing the solutions. Otherwise, if you don’t accept objections you probably would not be able to establish two-way communication between you and your prospect.
Now, align yourself and your product or service’s value proposition with the sales objection and give them some answers, reasons to believe about your product. From here three things may happen:
- You will make a deal
- You will get a rejection
- Another sales objection may come and you need to repeat process 1 as shown in the framework.
2. Learn how to use the responses by focusing on the context of the situation:
As you have the common response in your hand, you also need to understand the context in which you can use these responses.
For example, if your prospect is saying “they don’t have the budget for the product”, you may not want to focus on the competitors and compare your product. You may want to understand how much is their budget? What are their needs? And, how can you provide the solution with the budget they have? Does your company provide customized products and services to such clients? And, can these custom packages solve their problems? You probably want to focus along these lines rather than focusing on how your products are better or cheaper than your competitors.
3. Now is the important step, you need to confirm if you had solved all the objections they had:
After doing all the hard work, you would not like to miss out on the sale opportunity for not confirming if you have solved all the queries the prospect had. For this, you need to ask them to ascertain the reasons behind their objection. You should have deep dived in understanding the reasons, and in the responses, you try to resolve the root of the issue.
While reading the blog you may have seen that we have provided you with a simple framework you can use to:
- Not get a sales objection in the first place.
- If you get the sales objection, you can prepare your response based on where you are in the sales process.
Also, you need to understand that not every prospect you meet will be converted even if you follow this guide, but we believe it will help you.