Ideally, sales prospects should convert into customers. But in the real world, sales objections are more common than you think.
Are you trying to funnel sales leads through the pipeline and turn them into closed customers?
Then, you must know how to convert a ‘no’ into ‘yes’ and handle objections well. The idea is to resolve the objections fruitfully to operate your business successfully.
So, what is a sales objection?
It is typically a concern raised by a prospect that becomes a roadblock in the sales interaction and obstructs the sales process. These objections could be anything from budget constraints to lack of inclination towards the product, or wrong timing.
Here are some of the common sales objections every B2B sales rep hears at some point during the selling process:
Most salespersons fail to learn how to react to and deal with such objections. But to become successful you should be prepared to handle any concerns that could arise in your prospects’ minds about the product or service.
The next step then is to respond to the concerns in such a way that the sales interaction moves along the funnel. In other words, handling a sales objection involves changing the buyer’s mind without letting any objections get in the way.
When faced with an objection it is natural to get impulsive but, that’s exactly what you should avoid. Here are some strategies that will help you respond appropriately and give you a better chance to speak to and convert prospects.
When running a business, you are looking at closing sales deals. You are not there simply to hear the buyers rant about their issues unless you can solve them.
When a buyer is spelling out his concerns, carefully listen to them so that you can anticipate and analyze what objections may arise later. This approach will help you pre-empt specific misgivings he may have and give him the confidence that your business is the right fit for his business needs.
Paying attention and listening to buyers' concerns, will assure them that your business is actually there to help. This aspect will increase your chances of closing a deal with the buyer.
While this sounds easy, it may not be. Listening to the buyer’s concerns is one thing; understanding them is an art.
While listening to the buyer’s concerns, extract the information necessary for you to interpret in a way that you can address their needs. Instead of cutting off the buyer mid-sentence, you can even paraphrase what they say. This approach will enable you to confirm that you and the buyer are both on the same page.
For example, after listening to the buyer’s concerns regarding the pricing structure, you could repeat, “Just so we are clear, you find the onboarding cost to be a bit high. Is that correct?”
This will show the buyers you understand them and thus increase trust between the parties.
Not all the issues laid down by the prospects may be concerning. But the point is to address the worries that could become roadblocks to closing the deal. Acknowledge each of their concerns to give them the confidence that you understand what they are looking for. Assure them you can assist them in solving their major worries.
It will help them know that you are taking their concerns seriously and bring you a step closer to closing the deal.
Similar to the previous point, confirming the concerns helps you lock in the buyer’s perspective. At this stage, you need to give the buyer the confidence that you will be able to overcome their objections and confirm that they are planning to move ahead with the deal.
Quick Tip: Be attentive to the buyer’s concerns; ask them questions to go in-depth into the issue they are facing, and suspend any judgment when addressing their concerns. You may request clarifications as and when they may be necessary and be conscious of their requirements.
Here are the common types of objections in a sales interaction. The section also includes tips on objection handling in sales.
1. Your product/ service is out of our budget
Price objections are difficult to handle. You need to justify why your product or service has a specific price to the other party.
How to handle: Try to unearth the entire concern of the buyer: why are they conscious about the price point?
Have they had a bad experience with a similar business in the past and, therefore, have trust issues?
Or, do they not have enough knowledge about industry standards to understand how your product is valued?
When it comes to price, just be reassuring and focus on the USP your business has to offer.
2. We are presently engaged with a different vendor
If your prospect has contractual engagement with a different third party, you can handle it by understanding if they are facing any specific concerns.
Handling this sales objection: Understand what is going on in your prospect’s mind.
Ask if they have a long-standing relationship with a different vendor. Understand how the experience has been so far and if you can do something differently so that they can reap better results.
3. It is not a good time for us right now
Businesses generally are busy and lack time to deal with new vendors.
How to overcome this sales objection: Find out if the prospect is brushing you off or genuinely lacks time. Find an opening to reach out to them later, in a specific way.
For example, you may ask the prospect, “How does a quick 15 minutes video call on Thursday sound?”
4. How did you find out about our business?
Some businesses, especially small ones or those that have recently started, are conscious of their market presence. They might question salespeople about where they may have heard about their brand name and why the sales business is approaching them.
Objection handling for this sale: Handle this situation kindly, based on your assumption of the individual’s temperament at the other end.
Are they generally curious, or are they taken aback?
Remain calm when speaking to the prospect; get them on an equal footing by being honest and telling them why your business looked for theirs.
5. Please send me the information, and I’ll get back to you
Check your marketing to make sure your leads are qualified.
6. Please allow me some time to run this by the management/my boss
The prospect probably doesn’t have the authority to sign off on the sales deal.
Try to understand who you can speak to for getting the deal closer to the bottom of the sales funnel.
7. We need to get some more quotes from the market and get back
Use a script when dealing with such standard questions - buyers/prospects typically use such statements to deter the sales process and brush it off.
If the prospect is genuinely looking around the market, don’t push them; you may tick them off by incessant pushiness.
8. A similar product is cheaper
Understand the other product the prospect is talking about, and try to find out why it is cheaper.
Then explain where your product or service justifies its value.
9. What about X features?
Businesses these days offer a high level of customization when it comes to selling products and services.
Your prospect would likely have heard about specific features or customizations that other businesses are willing to offer.
Try to understand their concerns and see if you can provide the same/ more - or address why the same isn’t possible.
10. We heard about some negative reviews about your business
Instead of avoiding the issue, ask your prospect what the review was about and where they heard it.
Let them know how you have worked around the issue or why the particular client faced the same, without defaming them. It will help address questions and fears.
11. We need to use budgets elsewhere/we presently don’t have a budget for this
Normally, a business will try to earmark money for a different requirement.
However, tell your prospect how your business can help them and why they should allocate you that specific budget.
12. We are in the process of downsizing
Thank the prospect for speaking to you and wrap up the entire deal. There is not much that you can do in this situation.
Instead of pushing them, try to find out who else you can speak to.
13. We have not heard about your company
Give your prospect enough information to help build trust with your company.
Share information that addresses specific concerns or requirements.
14. We are already doing well in this area/taking care of it in-house
Suppose the prospect objects and states that the reason for which you are reaching out is being taken care of in-house.
Don’t give up yet. Tell them how you can be different and help them achieve results in a more cost-efficient manner.
15. We do not want to address these problems right now
Ask the prospect to elaborate on their priorities and their business’s focus.
It will give you more insight into what they are looking for and give you an opening to discuss any concerns that you may be able to address.
16. We are not sure how your product can help us
This point is where you step in to provide reassurance to convert the prospect to a buyer.
Talk to them about the challenges their business is going through and how you can address them.
17. We do not have the internal capacity to implement this product
Tell your prospect you understand their concern, and then crisply tell them how you can help them implement it in a resource-efficient way.
18. This product/ service is complicated
Ask the prospect what part of the business is confusing and specifically address the same.
Talk to them about your business in a result-oriented way. Use numbers, if possible.
19. You do not understand our business.
Instead of incorrectly assuming your client’s needs, talk to them.
Employ the listen, understand, respond, and confirm techniques.
20. We are happy with the way we are running our business
While the buyer’s business may be going well, there is always room for improvement.
Prove to them how you can make changes in a cost-effective manner and add to organizational results.
21. We do not understand your product
Ask the prospect what part of the business is confusing and specifically address the same.
Talk to them about your business in a result-oriented way. Use positive statistics.
Handling objections can be frustrating, but it is a very common aspect of sales. The idea is to thoroughly understand the prospect’s woes and interact with them appropriately.
Now that you are all set to handle any objections that come your way, why don't you put it to practice with Outplay? Wondering how? With our multi-channel outreach feature reach out to prospects on different sales channels and ace all kinds of objections. Request a demo here and let one of our reps walk you through the platform.
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