How to Handle Objections

How to Handle Sales Objections

Nothing defeats inexperienced (and often experienced) salespeople faster than unexpected objections from existing customers and new prospects. While most salespeople invest significant time perfecting their sales presentations and product demonstrations, they give little attention to handling the complaints and objections that inevitably come with them. They end up losing deals because of statements like “I do not have time,” “I need to think about it” and “We do not have budget.” They do not have the necessary process or prepared rebuttals to effectively handle them.

Eighty percent of “objections” are actually complaints and will not materially impact the sale if handled correctly. In fact, only 20% of objections are truly objections. Great salespeople always treat objections as complaints first. They acknowledge the compliant, but give it no value. They know that if they treat a compliant like an objection, they validate it and turn it into something that it is not. The more a complaint is validated, the more it becomes real to the prospect. According, below are five steps to effectively handle complaints, as well as objections.

  • Step 1 – Acknowledge the “objection.” When the prospect says, “Your price is too high,” the salesperson should say, “I understand.” Acknowledging the prospect makes them feel heard.
  • Step 2 – Treat the “objection” as a compliant first. Keep moving or say, “Can I address that issue at the end of the presentation?” Eighty percent of “objections” will disappear.
  • Step 3 – Only address an objection if it is brought up twice by the prospect. When an objection is brought up twice by the prospect, it is a real, actual objection.
  • Step 4 – Isolate the objection. For example, “Is X your only concern?” If yes, proceed to Step 5. If no, ask the prospect to prioritize their other concerns and address them accordingly (Step 5).
  • Step 5 – Address the objection with a thoughtful, well-practiced rebuttal. Objections fall into four categories: money, product, stall and time. Handle them by classification.

Money: We do not have budget.

Rebuttal: “I understand. We do not expect you to buy anything today. We would like the opportunity to share with you how we are helping other companies do X, and to see if it would be valuable to your company. What date and time work best for you this week?”

Product: I have used X at another company and do not need to receive a demonstration.

Rebuttal: “Thank you for your interest in using X again, we appreciate it. We have invested a lot of resources into adding new capability and value to the product. Even our existing customers say they benefited by taking 10-15 minutes to review them with us. How does <date> and <time> work for you this week?”

Stall: I need to think about it.

Rebuttal: “Of course you need to think about it. I will take personal responsibility for not giving you enough information to not think about it. Let me quickly give you some additional information about what an evaluation [or proposal] might look like, so you can think about it and make an informed decision.”

Time: I do not have time.

Rebuttal: “I understand that you are busy. Many of our current customers initially said that they were too busy as well. However, after we took 10-15 minutes to discuss X and how to effectively solve it, the ‘cost’ of waiting became too expensive for them. Are you open to me sharing with you what I shared with them?”

All contents copyright © 2017, Josh Lowry. All rights reserved.


Leave Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: