Objections happen, no matter how clearly you convey your solution to clients and prospects. Whether prospects question the price, can’t decide if they’re ready to buy right away or raise some other reason for not wanting to move forward, it’s important to know how to respond effectively. Your goal, after all, is to move prospects away from a “no” or “maybe” to an enthusiastic “yes!”
According to Craig Wortmann, CEO of Sales Engine, Inc., your approach to sales objections makes all the difference. He says sales professionals should follow a four-step approach when responding to objections. These steps include encouraging and questioning, confirming understanding, addressing the concern, and checking.
In this issue of Promotional Consultant Today, we discuss Wortmann’s four steps in more detail.
1. Encourage and question. Many sales professionals face pushback on the price of their product or service. However, you should not immediately explain the ROI of your solution, says Wortmann. It’s better to encourage the objection and ask open-ended questions.
Try saying something like, “Tell me more. Is your concern the outright expense, or is your concern the longer-term impact of the cost?” Wortmann says that handling the objection this way builds your credibility by letting the prospect know you care about their point of view. It also allows you to understand the objection and get a better feel for the prospect’s concerns.
2. Confirm understanding. The next step in handling sales objections is to make sure you understand where the prospect is coming from. Wortmann recommends saying something like, “It sounds like since this solution was not considered in the original budget, the funds are just not there for it. Your team has allocated the funds to other projects, and this is not one of them. Am I understanding that correctly?” This shows that you are listening, which adds to your credibility.
3. Address the concern. According to Wortmann, you need to know how to justify your solution and help your prospect prioritize this solution against the others under consideration. You could do this by recognizing the short-term budget impact and then building urgency by showing the longer-term ROI.
Say something like, “I know it’s tough to pull away funds from other projects. However, as we move into the next few months, we believe the positive impact of this solution will begin to be felt in X and Y ways. And as we look out six to nine months, the ROI tips in your favor because of A and B. So, I recommend we look at this against your other solutions. Does that make sense?” By taking this step, you have demonstrated how your solution may be more attractive to others on the table.
4. Check. The last step when handling sales objections is to check for any lingering reservations. Consider saying, “We discussed the short-term challenge and the longer-term benefit. It sounds like you are considering the priorities of various solutions. Should we move on to the next part of our conversation or do you have other questions about this?”
While objections are never enjoyable to receive, they give you an opportunity to hear your prospect and understand their situation. Instead of immediately presenting your solution, slow down and follow the four steps above. When you take time to encourage and question, confirm understanding, address the concern, and check for any additional hesitation, you build credibility and lay the groundwork for future conversations.
Compiled by Audrey Sellers
Source: Craig Wortmann is CEO of Sales Engine Inc., a clinical professor of innovation and entrepreneurship in the Kellogg Innovation and Entrepreneurship Initiative, and founder and executive director of the Kellogg Sales Institute.