Dave Shaby is chief operating officer ofRAIN Group, a Top Sales Training Company, and author of "Virtual Selling"
Are you the type of person who quickly deals with sales objections, providing answers immediately and trying to overcome any protests as quickly as possible in order to move the other party toward the close? If so, you're probably not:
• Taking the time to fully understand the objection and what’s behind it.
• Dealing with the issue thoroughly enough and to the satisfaction of the prospect.
• Presenting a compelling enough argument to overcome the objection.
Imagine you have a $450,000 deal on the line. You're at the altar. Six months have gone into this deal. You can see the finish line, but you just have to overcome the last few objections.
All too many sales fall apart late in the game because sellers are so anxious to rush through this crucial phase in the sales process. I've consistently seen objections mishandled because sellers simply don't understand the basis for the actual objection.
This is unfortunate because nearly all sales objections come down to one of these four things: need, urgency, trust and money.
1. Lack Of Need
A client must need what you’re selling. There may be times where there's nothing you can do to help the prospect. However, if the prospect looks right, but they don’t see the value in what you offer, you're the one at fault. Either you’re not resonating, not exploring all possible needs or not addressing the right need.
Here are things to think about when exploring needs:
• Focus on outcomes, not process. Nobody buys a process; people buy results. By focusing on the value you deliver and the outcomes you'll achieve, not the mechanics of how you'll achieve it, you set yourself apart.
• Educate yourself about the prospect’s business, industry and competitors. With this knowledge, you can get a good sense of where you can add value and how your services might help. By looking at what their competitors are doing, you gain valuable insights and ideas.
2. Lack Of Urgency
You've built the relationship, money isn't an issue and the client believes you can help. However, the prospect can’t move the project forward — they have a full plate and are waiting for the "right time."
When this happens, you haven't fully demonstrated the impact of your solution. Help the prospect see the value of how you can help by focusing on these two types of impacts:
• Rational impact. The rational impact is all about determining the ROI and building the business case for moving forward. If you've done your needs discovery properly, you should be able to present numbers that demonstrate the impact of your solution. The prospect must see a tangible dollar value. No ROI leads to a lack of urgency.
• Emotional impact. The emotional impact of a solution is just as important as the numbers. To uncover the emotional drivers, focus on what the prospect wants to achieve. Aspirations go beyond the pain, those things the prospectmustchange, and focus on the things the buyerwants to change as well as the potential rewards associated with them. Paint this aspirational picture by focusing on these key questions: If you’re able to do this, what would happen to your financial situation?If you delay, what consequences might you face?
3. Lack of Trust
Trust comes down to whether the buyer believes you can do what you claim. If they do, it mitigates risk and gets you closer to the sale. You build this trust the old-fashion way — you earn it. Here’s how:
• Start with research. The more knowledge you have about the prospect’s company and industry, the more confidence they'll have in your services.
• Be genuine and show interest. Relax, smile and have a positive attitude. Ask questions that show an interest in your prospect as a person, not just a business partner. People trust people they like.
• Balance inquiry and advocacy. Find the balance between asking questions and talking about your offerings. One of the best ways to advocate is by telling stories. Sharing relevant stories and examples also shows how you’ve helped similar businesses and is the best way to build credibility. Stories are an endearing and tangible way to demonstrate the intangible — just make sure to articulate outcomes and results.
4. Lack Of Money
The money objection is common. However, you can overcome almost any price objection, get your full fees and avoid discounting by following these guidelines:
• Listen fully and confirm if money is the issue. When your prospect raises a concern about money, listen fully to the objection and make sure it’s a money issue. Price objections often mask non-money issues that lie under the surface. Uncover the real objection by asking questions such as, “If money were no object, what would be your ideal solution?” If you and the prospect can achieve a common vision, it'll be easier to work out budget issues.
• Avoid talking about the cost structure.Often a prospect will ask you to break down the pricing into billable hours so they can understand it better. Don’t talk cost structure; it’s a slippery slope that will have you justifying your price and not your value.
• Reduce the scope to lower the price.Don’t lower your price without altering deliverables. Being arbitrary creates distrust. Review the parts of your solution and ask, “What part don’t you want?” This leads to either a reduction in scope or having the prospect realize the whole package is the best solution.
By understanding the common types of sales objections, you can recognize the real issues sooner. This will allow you to quickly apply a strategy to understand, address, discuss and ultimately overcome sales objections — allowing you to close deals faster. As Bo Bennet is often attributed as saying, "An objection is not a rejection; it is simply a request for more information." Make sure you are listening and providing that information — not just rushing to the close.
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