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Let's think about this scenario: your sales team has a prospect whose profile fits perfectly with your company's buyer persona.
Based on your observations and previous conversations, you know that your product or service would be perfect for him. But when you propose to close the deal, your prospect refuses.
If this has happened to you, don't worry, it's completely normal.
Objections are the arguments that prospects give you for not buying your product or service. But this does not mean that you should end the conversation; on the contrary, it is an opportunity to clarify doubts and try to reach a sale in the future.
When you successfully address your prospects' objections, your chance of success is 64%. Here's how to respond smartly to the most common objections
What are the 4 types of sales objections?
We cannot count the number of possible objections, but we can group them into 4 groups based on the BANT method (Budget, Authority, Need and Time).
1. Lack of budget
Example: "It's very expensive."
Objections based on price are the most common, as purchases involve a degree of financial risk. As a seller, you must acknowledge their fear and demonstrate the value of your service. Establish a balance between the risk and the reward or benefits you will get from your offer. In some cases, purchasing your service will save you money in the long run.
2. Lack of confidence
Example: "I have no references from your company"
If you do not yet have extensive experience compared to your competition, this could be a common objection. People prefer to do business with what they know, because they feel the risk would be less.
You can reduce this possibility by constantly interacting with your prospect and nurturing them before requesting closure. And in the face of this objection, be sure to emphasize the authority your organization has in the marketplace. If you have numbers, use them!
3. Lack of need
Example: "I don't see how this will help me."
This is an excellent opportunity to offer more information about your service. During the prospecting stage, make sure your contact really knows his or her problem and has the need to solve it.
If the time comes to close and you are faced with this objection, share case studies where similar clients have been successful. Your prospect may need a boost to overcome the fear of change.
4. Lack of urgency
Example: "(X problem) is not important at the moment"
It is important to identify if the prospect really wants to solve his problem soon. You can tell by asking his priorities and listening carefully. If you receive this objection, simplify the process and offer attractive terms that are only available for a specific period of time.
If this is simply a bad time to talk, schedule another day to make the call.
How to create reports that demonstrate the valueof your marketing efforts.
How to deal with objections during prospecting?
You may find these denials long before the application for closure. In fact, they may appear during the early stage of prospecting and make you wonder how to continue the conversation, or whether it is really worthwhile.
Here are some of the most common ones and how you can respond to them.
1. "I only want the information by mail"
- Before we talk about the value proposition: "Can we talk for a few seconds to explain what we do and let you decide if it fits your needs?"
- Before qualification: "Can I ask you a couple of questions to see how we can help?"
- After the qualification: "People usually find it most useful to see how it works in a demo."
2. "We are already working with (competition)"
"We do not seek to displace anyone. Many of our customers still use or used (competitive product). We would simply like to show you our differentiator and how we have brought additional value to our buyers. We can show you a success story through a call/meeting.
3. "Call me next quarter"
"Sure, if it's a bad time to talk, we can do it another time. However, I would like to schedule a 5 minute call to show you what we are doing and how we can help you. If you're not interested, we'd be happy to call next quarter. When would be a good time to talk?"
4. "We don't have enough budget"
"It's okay. We don't expect you to buy anything right now, we just would like the opportunity to share what we do and see if it's valuable to your company. Can we schedule a call for the next few days?
5. "Can your product achieve X, Y or Z?"
"I'm glad you asked. I think it would be helpful if I could answer these questions and more together with a specialist. When would be a good time to talk?"
6. "Sorry to cancel the call. I'll get back to you when it's a better time."
"Usually, when someone cancels and says they'll contact us later, they really mean they're not interested in what we have to offer. Is this your case?"
7. "Hi, you've reached (name of prospect)"
Some prospects do not have the authority or confidence to make a purchase decision. In this case, try communicating with the decision maker.
"Have you ever purchased this type of product/service?" "Who is in charge of the purchasing process?" "Could you please put me through to that person?"
According to Gong Lab, it is important that every conversation is enjoyable and does not become a debate. Remember that the prospect needs someone who understands their problem, so avoid creating further stress.
Being prepared before objections are raised will increase your chance of success and the knowledge you demonstrate to your prospective buyer. If you want to know other techniques to close more sales, our team is ready to help you. Ask for a free consultation now!