Sales people have a hard time managing clients all day. A recent study shows that, on average, a salesperson generates roughly one appointment or referral from every 209 cold calls. In return to this daily delivery of hundreds of email, making calls, and meetings, your sales team face more rejections than you can imagine.
Objection handling means responding to the buyer in a way that changes their mind or alleviate their concerns. Some reps argue with their prospects or try to pressure them into backing down but this isn't true objection handling. Prospects typically end up more convinced than ever of their position; worse, salespeople lose the trust and rapport they have built up. Instead of telling your prospect they are wrong, help them come to a different conclusion of their own accord. And if you can't persuade them, that is a good sign they are a poor fit.In this
In the field of marketing and sales, knowing your customers is good, but knowing about their behavior is not only good but great.
Regardless of the industry, product, or services, your customers are the most crucial element of your business. If you can understand the customer's behavior, it will be a sure yes, that your campaign will work out well, followed by increased sales and revenue.
But if you fail to understand, the whole process will fail. This article establishes the relation between customer behavior and the aspects involved in the sales process. In this article, we will look at common types of objections and how to handle the. These includes:
- Customer & Purchase Behaviour
- What is Objection Handling
- Why is Object Handling Important?
- 4 Ps of Objections
- Common Objections
- Types of Objections
- Strategies to overcome sales objections
- How can customer feedback helps to handle sales objections
- How can Deskera help with handling customer feedback
Concept of Customer Behaviour and Purchase Behaviour
The concept discussed in the overview is Customer behavior or Consumer Buying Behaviour. The process refers to the actions taken by the customers and potential customers involved in buying and using the products. In other words, it is a decision process to understand the purchasing behavior of the customers in terms of need and how much value they get after fulfilling those needs.
This concept is also known as buying behavior of the consumers that is the driving force behind any marketing and sales process.
What is Objection Handling?
There is no doubt that selling is a complex process. Sometimes, even high-profile companies find it challenging to close sales. Many factors drive sales, and when it comes to imparting sales techniques, there are numerous challenges for which companies aim to conquer. Still, one of the most underrated techniques is overcoming the objections to the sale. It's essential to know how to handle sales objections and address customer concerns through objection handling.
Through objection handling, salespeople can develop the confidence, insights, and ability to handle these sales objections that can help them understand the consumer's behavior and, as a result, separate them from the rest.
Why is Objection Handling Important?
Objections come in all shapes and sizes; whatever the type of objection, it's essential to prepare for all.
Every ignorance can cost you big, so it's better not to underestimate the key to objection handling.
Don't believe me?
The following three reasons can highlight the importance of objection handling and explain how proper the technique can be for your customers.
- Whenever you get objections, you can note them down, and this will keep on revolving your thoughts about how you can respond to the same, and the next time, you will be ready with your solutions.
- Listen to the objections as it might lead to realizing the wrong person, team, or technique. With this, you can find out what you need to know to push you to make constructive decisions.
- Objections help to qualify prospects, such that you don't waste time reaching a non-targeted group of customers that decreases your closing rate. Instead, allow the targeted ones to increase your closing ratio and provide insights into the product's genuine interest.
Remember,
What are the 4Ps of Handling Objections?
The 4 Ps of handling objections divides into the following:
- Personalization
- Perceived Value
- Performance Value
- Proof
This 4-P model fits into the place and is known as a good strategy and a more tactical approach in handling the objections.
Let's discuss the 4Ps in detail:
1. Personalization
Personalization means customizing the message based on the consumer's needs and style.
Let's understand the concept through the following example!
The sales representative listens to the customer regarding their requirements to include a thank you note while delivering the product. Still, at the time of delivery, the sales representative ignores this aspect, and as a result, the product gets returned to him.
Personalization is essential to reduce the psychological distance between the customer and the seller. The message reflects the buyer's need and can help in the customization of the message.
2. Perceived Value
Perceived value builds anticipation and raises the expectations of the buyer. In simpler terms, the sales representative provides the opportunity to the customer to put their step forward through sales objections.
It's simple!
If your package arrives cleanly and professionally, the customer will always be in awe of it. It makes the customer feel good about their decision.
3. Performance Value
Just as perceived value excites the customer, performance value satisfies the customer. In other words, it is the value that your product or services do to the customer.
Let's say,
If your products clean the house within 10 minutes, demonstrate and present the same to the customer. Please give them a trial run to understand the product and know about the quality too.
4. Proof
Could you show us the results?
Everything comes to a halt if you don't show the relevant proof. It would be best to show how you dealt with the sales objections through customer satisfaction surveys, research, and customer testimonials. You can also add evidence of feature benefits that can build the trust of the concerned.
Remember,
What are the Common Objections to Sales?
Till now, we have understood that handling and keeping track of objections is the most valuable and practical method that can help your sales go.
Accordingly, it is also essential to counter and pose a few of the common objections that the sales representative and the customer can encounter.
Let's dive into the 15 most common sales objections:
- It's too expensive
- I can get a cheaper version somewhere else.
- I will talk to my team and get back to you.
- I am satisfied with the competitor.
- I don't have the requirement for this product, or the product doesn't work without the current setup. I don't want to lock myself with the contract.
- Call me back next quarter
- How did you get my information? I don't know you.
- I am not authorized to make the decision.
- We only work with the people we know.
- I had a bad experience with the product before
- I am not ready for the buyer conversation.
- Your product is too complicated.
- We can't invest in the product.
- That's fine, but I have heard rumors about your company.
- Does your product offer X, Y, or Z points?
What are the Types of Sales Objections?
Out of the 15 common sales objections, it is crucial to identify the five significant sales objections and overcome them.
The objections, from the consumer perspective, can be discussed below:
- Genuine Sales Objections
- Stalls and Put-Offs
- Misconceptions
- Biases & Prejudices
- Unsolvable
Let's discuss the above objections in detail:
1. Genuine Sales Objections
This is the most common type of objection, which is the genuine one. If the sales objection laid by the customer is legitimate, then you need to consider them in the following presentation such that next time, you can take this forward.
For example, if a customer states that "Your overall services cost $400K, our budget spending is only $200K". The above example is a genuine objection because the customer is genuinely interested in your product/service but isn't ready to invest that much.
In this case, you can have the opportunity to shine by giving them the alternatives that can match the customer's budget and end up closing the deal.
2. Stalls and Put-Offs
A customer can use this type of objection where they feel that the series of events are going too fast and they find it challenging to handle altogether. Sometimes, customers don't have the authority to buy the product/ services, which delays the sales process.
For example, a sales representative explains the product description in detail, genuinely clears the customer's doubt, making it away towards a closed deal but just at the time of payment, the customer becomes reluctant. You call them for different processes, but they delay the conversation and the process every time.
It is a sign of put-offs where the customer deliberately stretches the process without even the intention to buy.
3. Misconceptions
This type of objection is related to the customer's hesitation to move forward with the product or service, just because it is new in the market and doesn't have a significant footfall. It can be due to uncertainty and doubt regarding the product, and the customer is reluctant to give it a try.
For example, suppose there is a new organic Shampoo in the market. In that case, the customers might have the misconception of not using every kind of organic product for their hair, or maybe they don't want to experiment with the new shampoo.
In this process, you need to educate the people and bust their myths and conceptions, explain the objections and then correct the misinformation.
4. Biases and Prejudices
In this objection, the customer is confirmed with the thought that you won't solve their problem. This objection directly means that you have missed something in the initial process that has led to your product's biases.
For example, if the customer purchased your product and contacted customer support for their issues after their purchase, then maybe your customer support didn't help the way it was supposed to be. This might have ended with customer's distress with your system, and they might declare that your product has the worst customer support system.
So it is essential to go back and diagnose the gaps between the customer and you. By doing so, you can build their trust again.
5. Unsolvable Objections
These are the kinds of objections that are practically impossible to solve. You put in a lot of time and effort, but still, you cannot solve the problem.
For example, you have a meeting with your customer to sell your equipment, and they say, "The kit looks very good to us, but unfortunately, we have recently purchased the same item, and we use a different set of models in our office.
Under these conditions, you won't be able to close the deal. So it is advisable to perform the discovery and identify these situations to save your time and energy in investing your sources.
What are the Strategies to Overcome Sales Objections?
Let us look at some of the strategies you can use to overcome sales objections:
1. Show Gratitude
If the customer objects, look at this positively. Try to empathize with the customer and then relate with their position. Acknowledge the customer's viewpoint and then provide the information to help you close the deal.
Like this,
"I didn't expect you to be not interested. But it’s ok if you feel the same way. I understand your concern for not buying the product immediately but, can you please give your two minutes to listen about the product”
2. Understand Your Customer
Here, connect with your customers on a personal level and listen to their objections carefully. This method shows that you value the customer's opinions before selling out.
Like this,
"That's right, Mr. A. I understand your interest. One of our clients Mr. Y told the exact same thing, and now he is using our solution to improve their closing rates. I understand that your suggestion will help us increase our metrics. Thank you for sharing your points with us”
3. Dig Deeper into the Conversation
It is essential to ask the customers an open-ended question to gain more insights into their objections. It is crucial to understand what's stopping them from being such that you can use the information to perform the sales well.
Like this,
"I'd be happy to email our information to you. I have a product feature eBook that I can email you, but do you mind if I ask you just a couple of quick questions so I can only send you that part that you'd be most interested in?"
4. Confirm the Objections
Always note the objections and restate them in your understanding of words and language. You can also crop-inspect with the customer regarding the protests.
Like this,
"I have noted down all the points, Mr. A. Our team will get back to you with all the updates soon, and thank you so much for making us understand the pain points. We will consider this in all our new products and services."
5. Explain Your Unique Value Proposition
Here, it would help if you showed what sets you apart from your competitors and what value addition you provide, among others. This method can help the customer know about your uniqueness that might interest them in buying your product.
Like this,
"I am not forcing you to buy the product immediately. I'll just demonstrate some of the reasons why thousands of customers are showing trust and using this product. After that, you can decide if it applies to you or not. You can decide yourself."
6. Offer Solutions
If the customer is not able to purchase, offer them the services equivalent to their price. Align with the benefits that can solve the customer's pain points.
Like this,
"Our app helps the customers to provide products that solve their problems. From cleaning to mopping, our product does it all. It's very convenient and easy to use. I can refer you to any number of customers we've helped make successful. But don't just take our word for it—sign up for our free trial now and see for yourself."
7. Share Your Customer Stories
Sharing testimonials, customer feedback, and updates from other customers enhance the sale process. This method helps to overcome objections and give customers confidence in your products and company.
Like this,
"I understand that you like features X and Y about our product. We have helped clients improve their key metrics by 20%. In the past. If you don’t mind, I can share our works with you so that you can make your decision well.”
8. Be Honest In Your Approach
Honesty attracts better than anything else. Skip the used sales pitch and make it fresh according to the customer's needs and converse accordingly. Also, ensuring the relevance and customer's objections can help build a good rapport with them.
Like this,
"Ms. A, as per my knowledge, the industry has witnessed major changes. These shifts are the reason why our customers signed up with our application. If you want, I can demonstrate the same with you and provide a customised solution for you"
9. Be Proactive In Bringing In The Objections
During the sales preparation pitch, refer to the CRM to learn about the objections that have been encountered earlier. You can use this to answer them proactively, which can help win the customer's confidence.
Like this,
"Yes, last time we encountered the same question of yours by some other customer. We worked over the objections and came up with this solution to automate the whole process, which was earlier done manually."
10. Offer an Incentive
Introduce and encourage your customers to take advantage of the incentive offered by you. Depending upon the type of business, you can customize it. This can give a chance for both parties to work together and build trust.
Like this,
"Not a problem, Mr. X. Just to share, we are giving a free trial of the product to the first 20 customers. Please take a look and experiment with our product to help you make the right decision."
Overcoming the sales objections can be tricky but is not impossible.
It's just important to understand the customer's behavior and perspectives and get prepared to handle the objections.
How can Deskera Help with Handling Customer Feedback?
Deskera CRM is an easy-to-use, all-in-one platform that will assist you in contact and deal management, sales pipeline, email marketing campaigns, customer support, and ticketing management, to mention the important ones.
Deskera can also help with customer relationship management, customer feedback management, HR, attendance, and payroll management software
With Deksera CRM, you can manage contact and deal management, sales pipelines, email campaigns, customer support, etc. You can manage both sales and support from one single platform. You can generate leads for your business by creating email campaigns and view performance with detailed analytics on open rates and click-through rates (CTR).
Deskera is an all-in-one software that can help your business bring in more leads, manage customers, and generate more revenue.
Deskera CRM is an easy-to-use, all-in-one platform that will assist you in contact and deal management, sales pipeline, email marketing campaigns, customer support, and ticketing management, to mention the important ones.
Deskera CRM will ensure proactive customer service with all the tickets stored in one place. These would be categorized based on their priority, assignee, and status.
Your business can also connect your customer support email in Deskera to receive and respond to customer issues and queries.
It will make digitizing customer service a smooth transition for you by giving you insights and analysis of working and not working. Deskera CRM will also make your support staff more efficient and productive by having all the data on one platform
Deskera Books is online accounting software that can help your company save time by automating the process of creating journal entries. For each sale and purchase business transaction in debit and credit terms, the double-entry record will be auto-populated. The transaction data is consolidated into each ledger account by Deskera. Their values will be instantly transferred to the corresponding financial reports.
You can have access to Deskera's ready-made Profit and Loss Statement, Balance Sheet, and other financial reports in an instant.
Key Takeaways
In this article, we can go through:
- Understanding of customer’s purchase behavior drives marketing and sales
- Objection handling is an underrated technique, but it’s a gold mine that separates the method from the rest
- The three reasons that highlight the importance of objection handling
- An objection is not a NO!
- Personalization, Perceived Value, Performance Value, and Proof are the 4 Ps of handling objections
- There are 15 common objections to sales that the sales representative goes through
- Major 5 types of sales objections include Genuine, Stalls, Misconceptions, Biases and Unsolvable Objections
- Ten strategies can help you to overcome sales objections along with the solutions
We hope this article got you familiar with the concept of customer behavior, sales objections, and the proven steps to overcome them.
Remember, as soon as you encounter the sales objections and process, the more you will handle objections well and keep your customers safe with you.
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