In a perfect world, prospects will accept your sales pitch without reservation and come to an agreement about price and other factors, becoming a revenue-generating customer. However, we know that negotiations rarely work out that way – otherwise there would be little need for sales training and the art of negotiation.
We know that one of the toughest parts of the sales negotiation process is overcoming objections to making a purchase or moving into the next step of the funnel. By effectively knowing how to address sales objections, you will be better equipped to engage your average prospect and turn them into a buyer. Here’s what you need to know about overcoming objections in sales.
The Most Common Sales Objections
The type of objection that you encounter may vary widely depending on the customer, product, or business model. However, some of the most widely accepted sales rebuttals include versions of the following:
1.“We don’t have the money for it.”
Budget is one of the biggest detractors from a successful sale. Many sales reps have the reflexive reaction to simply lower the price, but this isn’t necessarily the best scenario. Immediately lowering the price can bring about questions regarding your product or service’s value, diminishing your authority.
2. “I don’t have the authority to make that decision.”
In some cases, a sales objection might arise because the person you’re speaking to has to consult with a boss, a partner, or even a spouse before making a final decision. This can seem like an outright dismissal, but you can see it as an opportunity to follow up with other decision makers involved.
3. “I don’t really need it.”
In some cases, a client will say that he or she is happy with the status quo, but what this really means is that fear of making a change may be dictating their decision-making process. Sometimes, this objection arises simply from being ill-informed about the value of a product or service.
4. “Now is not a good time.”
Another version of this might include, “Get in touch with me again when I have the budget.” Overcoming this objection is about more than demonstrating value, it’s about creating urgency, and making a proposition so compelling that they might feel regret if they pass up the opportunity right now.
5. “I need more time to think about it.”
This can be a particularly tricky scenario to navigate because it combines several of the previous objections at once: It may concern budget, authority to decide, need, and the timeliness of the proposition. Chances are, the customer simply doesn’t see the value of the product or service you’re trying to sell.
Best Practices for Overcoming Objections
Now that we know what the most common sales objections are, how can we overcome them? We recommend a four-point process to get the sales negotiation process back on track:
1. Acknowledge the Objection
First, it’s important to understand where the objection is coming from. As we highlighted in the sections above, the most common sales rebuttals might mean something else. For some customers, it’s failing to understand the value of the product. For others, it’s complacency or fear of making the change. Still for others, it’s a simple lack of information. By acknowledging the objection, you’re better suited to counter and overcome it.
2. Probe to Clarify
Asking simple questions about the customer’s reasoning is the next step in overcoming objections. Open-ended questions tend to work best, as they help you better understand what’s keeping a customer from a purchase. For example, if a customer says they simply need to think about it, ask yourself: what might be holding them back from making this purchase? From this brainstorm, you can help create a trustworthy relationship and establish value by introducing specific benefits of a product or service, such as a guarantee or return policy.
3. Respond to the Objection
Next, take steps to respond to any sales objection by clarifying your value proposition or showing how your product or service can deliver value to a customer. For example, if a sales objection arises due to decision-making authority, don’t wait for a customer to “get back to you.” Instead, use this as an opportunity to identify the concern and keep the process moving along by setting up a joint meeting with the authority that’s holding the prospect back from a sale.
4. Refocus the Objection
The last step in overcoming objection is reframing it to arrive at the best solution. The approach to this will depend on the nature of the objection involved. For example, an objection rooted in complacency or perceived lack of need might simply require a targeted pitch of the benefits of your product or service. In many cases, demonstrating unique value, backed by specific examples of how a product or service will solve customer pain points, will effectively quell an objection.
Overcoming objections is a matter of asking the right questions, understanding the real reason for the sales rebuttal, and refocusing to drive value. It’s a process that requires plenty of practice, but these tips should help. Additional training can also be helpful in overcoming objections for further increased sales and revenue.