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Objection Handling and Closing Sales
What is a sales objection?
A sales objection is an explicit expression by a buyer that a barrier exists between the current situation and what needs to be satisfied before buying from you. In other words, it’s a clear signal that you have more work to do in the selling process. – RAIN Group
The word “no” can be the trigger to some real angst in sales, can’t it?
In sales, you might be looking to bring in an extra deal before the end of the quarter to make your number or get your bonus.
The word “no” is too often interpreted as a personal slight and this is perhaps the biggest issue I have with how sellers deal with objections.
It’s not personal. It might be no. Deal with it…move on.
Moving on might mean that you have to use the sales skill of handling the objections.
A skill that’s we might consider is being lost if the biggest decision in sales is “no decision“ at a whopping 43% according to Forrester.
Easier to blame the quality of lead or suggest that the Prospect didn’t get really get it anyway and they were just going around the houses.
But before we throw marketing or the Prospect under the bus, let’s look at brushing up your objection handling skills.
Sales objections can actually be a good thing if you don’t ignore them and understand what is motivating them.
Four Types of Sales Objections
Objections can be generally classified into four types:
Price, cost, budget, or ROI concerns all fall into this category. Price objections are often really about risk. If the seller has justified the cost by building value during the interaction, the customer will be less worried.
2. Quality of Service
If the customer is concerned about the quality of your products or services – e.g., they express doubts about product quality, the training of your personnel, speed or responsiveness of service, or compatibility – these are examples of the quality of service concerns.
The customer might be concerned with the legitimacy or credibility of you or your company. (This indicates that a good relationship has not been established between the salesperson and the client.)
Customers sometimes attempt to stall their decision. The closer the sale is to closing, the more pressure the customer feels, and if there is any remaining conflict or anxiety (or no sense of urgency) they may try to stall.
If you have anticipated and prepared for the four types of objections, you won’t panic when an objection comes up.
Remember that the customer is behaving quite normally for anyone about to take a risk and make a purchase.
The customer is uncertain about making a change and needs reassurance.
The best course of action is to direct their focus back to the larger context in which the purchase is being made.
Recapping clear and logical reasons to buy will help stabilise the customer’s emotions.
Your response to an objection should be an attempt to reframe the objection so that the customer understands the bigger picture.
Bring up benefits to your clients that outweigh any deficits or provide countering evidence or missing information.
Reframing Sales Objections
Reframing has four parts:
1. Question to understand the customer’s reasoning and determine his emotional state: “Why do you feel the price is too high?”
2. Minimize by reframing the objection using closed questions to get him back on track: “So you are saying you’re concerned about ROI. Are you looking at the impact on your overall costs?”
3. Compare risks and benefits previously agreed to or provide evidence or missing information using a FAB statement: “We’re offering a custom solution that will help you better meet your customer’s needs and eliminate downtime, which will have a tremendous positive impact on your bottom line.”
4. Question his acceptance using closed questions: “Do you feel that this custom solution will help your relationship with your customers? Will that be of value to your company?”
Handling sales objections will move you forward in the sales process and take you closer to to the “Close” phase in SPANCOP.
Below are four sales closes that could help you as you stay in control of the sales process.
Don’t forget it’s your job to apply the appropriate pressure to help your Prospect become a customer.
Four Sales Closing Techniques
The close you choose should be based on what you know about the prospect and the type of close you believe they will be most open to.
It’s important to choose your words wisely.
Using the right persuasive language in your closing technique can have a big impact on the outcome of a deal.
Here are 4 highly effective sales closing techniques:
1. The assumptive close:
This technique involves using a phrase or language that assumes the close is a done deal. For example, you could close with, “What day do you want to receive your shipment?”
2. The option close:
Similar to the assumptive close, rather than asking for a prospect’s business directly, you ask them which option they prefer. For example, you could close with, “Do you want your shipment delivered on Wednesday or Friday?”
3. The suggestion close:
If you have a good rapport with the prospect and they view you as a trusted expert, a suggestion close is a good approach. You could close with, “Based on what you have told me about your operations, I would suggest you receive orders on Fridays. Does this work for you?”
4. The urgency close:
Creating a sense of urgency places pressure on the prospect to make a decision, especially if you have identified that the client needs to make a decision quickly and is working on a short timeline.
Think of the “limited time offer” as an example. However, unlike other closing techniques, this should only be used occasionally and by experienced sales reps who have a strong relationship with a client.
We ❤️ Sales Objections and know how to use them
You should now want to seek out sales objections as I hope you now see that they are a good thing and help you navigate a sales process.
The more you do to handle objections through the sales process the more value you’ll add to the relationship and the higher your close rates will be!
Funny thing hey 👍🏼
Objection handling training in action!