Welcome Your Prospect’s Objections Chapter 11 McGraw-Hill/Irwin Copyright © 2007 by The...
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Transcript of Welcome Your Prospect’s Objections Chapter 11 McGraw-Hill/Irwin Copyright © 2007 by The...
Welcome Your Prospect’s Welcome Your Prospect’s ObjectionsObjections
Welcome Your Prospect’s Welcome Your Prospect’s ObjectionsObjections
Chapter
Chapter
11
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
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Chapter
Chapter
11
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Main TopicsMain TopicsMain TopicsMain Topics
The Tree of Business Life: Objections Welcome Objections! What Are Objections? When Do Prospects Object? Objections and the Sales Process Basic Points to Consider in Meeting Objections Six Major Categories of Objections
11C
hapterC
hapter
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Main TopicsMain TopicsMain TopicsMain Topics
Techniques for Meeting Objections Technology Can Effectively Help Respond to
Objections! After Meeting the Objection—What to Do? In All Things Be Guided by the Golden Rule
11C
hapterC
hapter
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The Tree of Business Life: Objections
Guided by The Golden RuleThe Golden Rule: Welcome objections. Remember that objections may allow you
to answer the prospect’s concern(s). Realize your product or solution may not
be for everyone. If it is not for a particular customer, thank
him and politely leave If it would benefit the customer, politely,
professionally, and ethically show how the product could be useful
Handling objections truthfully shows you provide ethical service in order to build true relationships.
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PresentationDiscuss ProductPresent Marketing PlanExplain Business PropositionSuggest Purchase
Selling Process Buyer’s Mental Steps Prospecting
Preapproach
Follow-up & Service
Approach
Presentation
Trial Close
Determine Objections
Meet Objections
Desire
Conviction
Present Marketing PlanAvailability, Delivery,Guarantee, Merchandising,Installation, Maintenance,Promotion, Training, Warranty
Explain Business PropList Price, Shipping Cost,Discounts, Financing, ROI,Value Analysis
Suggest PurchaseProduct, Quantity, Features,Delivery, Installation, Price
MoneyAuthorityDesire
Action
(Purchase)
Attention
Discussion SequenceDiscuss ProductShow FeatureExplain AdvantageLead into BenefitLet Customer Talk
Interest
Trial Close
Close
The Parallel Dimensions of Selling*
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Welcome Objections!
Accept objections as a challenge.
People do not want to be taken advantage of.
Learn to overcome objections – do not fear.
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What are Objections?
Opposition or resistance to information or the salesperson’s request is an objection.
Prospect who presents
objections is often more
easily sold.
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A prospect may object at any time during sales call.
Always be ready to handle a prospect’s objections.
Quickly determine what to do.
When Do Prospects Object?
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Exhibit 11-1: When Objections Occur, Quickly Determine What To Do
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Basic Points to Consider in Meeting Objections
Plan for objections.
Anticipate and forestall.
Handle objections as they arise.Postponement may cause a negative mental
picture or reaction
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Basic Points to Consider in Meeting Objections, cont…
Postponement of objections may result in:Prospect may stop listeningProspect may feel that you have something to hideYou also feel that it’s a problemYou cannot answer because you don’t know the
answerMay appear that you’re not interested in prospect’s
opinion
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Basic Points to Consider in Meeting Objections, cont.
Be positive.Use positive body languageDo not take objections personally – no hostility
Listen – hear them out.Listening Guidelines – Chapter 4
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Basic Points to Consider in Meeting Objections, cont…
Understand objections: Request for information A condition
Objection that turns into a condition of the saleNegotiation can overcome a condition “Hopeless”
Major or Minor objections (true objections) Practical (overt) or Psychological (hidden) objection
A real objection is tangibleThe salesperson must uncover hidden objectives and
eliminate them
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Exhibit 11-2: What Does a Prospect Mean by an Objection?
Is the prospect’s response a...
Is the prospect’s response a...
Condition?Condition? Hopeless objection?
Hopeless objection?
Request for moreinformation?
Request for moreinformation? True objection?True objection?
Minor?Minor?Major?Major?
Psychological?Psychological?Practical?Practical? Practical?Practical? Psychological?Psychological?
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Exhibit 11-3: Examples of Objections
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How Do You Handle Sales Objections?
The sales objection may:Ask for informationGive strong resistance
Remember you want to help the person.
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Exhibit 11-4: Six Major Categories of Objections
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Six Major Categories of Objections
1. The hidden objection
2. The stalling objection (“I’ll think it over…”)
3. The no-need objection (“…but I’m not interested now.”)
4. The money objection
5. The product objection
6. The source objection
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Six Major Categories of Objections
1. The hidden objection – prospect who asks trivial, unimportant questions or conceals his feelings beneath a veil of silence
a. Salesperson must ask questions and carefully listen in order to smoke out prospect’s real objections
b. Smoke out hidden objections – ask questions, observe, “read between the lines” – prospect may not know what the objections are; as last resort, may have to ask what objections are
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Six Major Categories of Objections
Hidden objections, cont…
Consider the following questions:1. What would it take to convince you?
2. What causes you to say that?
3. Tell me, what’s really on your mind?
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Six Major Categories of Objections
2. The stalling objection – prospect says, “I’ll think it over,” or “I’ll be ready to buy on your next visit,” must determine if truth or smokescreen designed to get rid of you – common tactic
a. One of toughest to overcome arises when selling a new product
b. Buyer says she has to get approval from someone else. Buyer’s attitude toward product will influence buying decision – make it positive
11-23
Six Major Categories of Objections
2. The stalling objection, cont…c. Let buyer know you are on her side and help her
with her objections. If she does not respond give her multiple choice question to display genuine attitude of caring
d. Do not get demanding, defensive, or hostilee. Goal is to help prospect realistically examine
reasons for and against buying nowf. Main idea is not to be satisfied with false
objection or stall. Bring out any or all main selling benefits and KOS
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Six Major Categories of Objections
3. The no-need objection – prospect says, “…but I’m not interested now,” and he stays as he presently is
a. This is widely used because it gets rid of the salesperson
b. It is tricky because it also includes a hidden objection or a stall
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Six Major Categories of Objections
4. The money objection – encompasses several forms of economic excuses and is simple for the buyer to say
a. Respond by saying that it is risky to discuss price until it can be compared to product’s benefits. Once you convey product’s benefits, price becomes secondary factor which usually can be dealt with successfully
b. Quote price and go right on selling
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Six Major Categories of Objections
4. The money objection, cont…c. Price/Value formula
1. Used to determine if prospect is or is not convinced price is too high
2. Price/Value = Costa) Cost – comparison of what is received to money paid
b) Value – what prospect sees the product doing for them
c) Price – set at headquarters; not subject to change
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Six Major Categories of Objections
5. The product objectiona. Not everyone likes the best selling product
b. Your reaction must be positive
c. You can use guarantee, testimonial, independent research results, or a demonstration
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Six Major Categories of Objections
6. The source objectiona. Some prospects say they are happy with their
current supplier
b. Try to find out exactly bothers prospect and call on her routinely over a long period of time
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Six Major Categories of Objections
Salespeople often encounter the same objections from customer to customer.
After a sales call, ask yourself:What were the objections?How did I handle them?How should I handle them next time?
Be prepared for the same objection to arise again!
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Once Again! What Are Objections?
Opposition or Resistance to: InformationThe salesperson’s request
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Salespeople Need To Be Good Communicators, but How?
Handling objections can be challenging:Done incorrectly, you may appear rude.Done correctly, you appear professional.
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Techniques for Meeting Objections
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Exhibit 11-7: Techniques for Meeting Objections
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Techniques for Meeting Objections1. The dodge neither denies, answers, nor ignores.
2. Don’t be afraid to pass up an objection.
3. Rephrase an objection as a question. Easier to answer question than objection Exhibit 11-8). Acknowledge prospect’s viewpoint Rephrase objections Obtain agreement Feel-felt-found:
“I understand how you feel…” “Bill at XYZ felt the same way…” “…but he found after reviewing our products…”
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Exhibit 11-8: Examples of Rephrasing Objections as a Question
Back to 12-23
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Techniques for Meeting Objections
4. Postponing objections is sometimes necessary. If you judge the objection will be handled to
satisfaction by your customary method That prospect truly willing to wait until that time
later in presentation You may politely forestall Tactfully used forestall can leave you in charge
of presentation
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Techniques for Meeting Objections
5. Send it back with the boomerang method. Be ready at any time to turn an objection into a
reason to buy Convince the prospect that her objection is in
fact a benefit Requires good timing and quick thinking
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Techniques for Meeting Objections
6. Ask questions to smoke out objections: Five-question sequence (Exhibit 11-10)
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Exhibit 11-10: Five-Question Sequence Method of Overcoming Objection
Back to 12-23
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Techniques for Meeting Objections This series of questions keeps the
conversation and gets the real objections out in the open – which helps increase sales
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Techniques for Meeting Objections
7. Use direct denial tactfully Incomplete or incorrect objections should be
acknowledged from the prospect’s viewpoint and then answered with complete and correct facts
Tact is critical Do not say, “You’re wrong.” Closes prospect’s
mind. Try, “You know, you’re right to be concerned
about this. Let me explain.”
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Techniques for Meeting Objections
8. Indirect denial works It initially appears as agreement with customer’s
objection, but moves into denial of the fundamental issue
Done in in natural, conventional way, salesperson will not offend prospect
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Techniques for Meeting Objections
9. Compensation or counterbalance method Sometimes a prospect’s objection is valid and
must be overcome Calls for compensation method Present advantages to counterbalance the
objection
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Techniques for Meeting Objections
10.Let a third party answer Answer it by referring to a third party and using
his experience as “proof or testimony” If source is reliable or reputable, can easily be
successful even with expert or skeptical prospect
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Technology Can Effectively Help Respond to Objections!
Data stored in handheld computers or laptops, or obtained using a telephone modem or satellite transmission, can provide information to overcome buyer’s objections.
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After Meeting the Objection–What to Do?
First, use a trial close – ask for opinion.
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Exhibit 11-12: The Procedure to Follow when a Prospect Raises an Objection
Prospect raises an objection
Prospect raises an objection
Response to the objection
Response to the objection Use a trial closeUse a trial close
Move into your presentation
Move into your presentation
Close the saleClose the sale
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What Does the Trial Close Do?
Does it ask for the order? Does it ask for an opinion?
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Yes, the Trial Close Asks For An: Opinion or feedback about what was just said
or shown
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The Trial Close Is a Powerful Communication Technique that Can Produce:
Two-way communication Participation from the other person
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A Challenge!
Use the trial close in normal conversation to: Improve your communicationStimulate others to participate in the conversation
Simply ask an occasional opinion-type question: “Is that a good place to eat?” “What did you think about the movie?” “How does that sound to you?”
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Let’s Review! When Is It Time to Use a Trial Close?
After making a strong selling point in the presentation
After the presentation but before the close After answering an objection Immediately before you move to close the
sale
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Let’s Review! What Does the Trial Close Allow You to Determine?
Whether the prospect likes your product’s FAB – the strong selling point
Whether you have successfully answered the objection
Whether any objections remain Whether the prospect is ready for you to
close the sale
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Why Do You Use a Trial Close After Answering an Objection?
To see if you have answered the objection!
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What is an Example of a Trial Close Used to Respond to an Objection?
“Does that answer your question?” “With that question out of the way, we can go
ahead – don’t you think?”
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Once You Have Satisfactorily Responded to the Objection, What Should You Do Next?
Make a smooth transition back into your presentation: “As we were discussing…”
Move to close the sale if you have completed your presentation.
Move to close again if objection was after a close.
If You Cannot Overcome the Objection, What Are Three Alternatives to Consider? (#1)
Return to presentation concentrating on new or previously discussed FABs of your product.
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If You Cannot Overcome the Objection, What Are Three Alternatives to Consider? (#2)
Admit it. Compensate for it by showing how your
product’s benefit(s) outweigh the disadvantage(s).
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If You Cannot Overcome the Objection, What Are Three Alternatives to Consider? (#3)
If 100% sure the customer will not buy:Go ahead and closeAlways ask for the orderAllow the buyer to say “no” – don’t say it yourselfYour competitor(s) may not be able to overcome
the objection(s) either A competitor may make the sale because he/she asked
for it
Be professional, not pushy. Leave the door open for a return visit.
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If After Your Presentation You Received a Positive Response to Your Trial Close, What Would You Do?
Approach
Presentation
Trial Close
Determine Objections
Meet Objections
Trial Close
Close
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If After Your Presentation You Received a Negative Response to Your Trial Close, What Would You Do?
Approach
Presentation
Trial Close
Determine Objections
Meet Objections
Trial Close
Close
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If After You Meet the Objection You Received a Positive Response to Your Trial Close, What Would You Do?
Approach
Presentation
Trial Close
Determine Objections
Meet Objections
Trial Close
CloseCloseCloseCloseCloseCloseCloseCloseCloseCloseCloseCloseCloseCloseCloseClose
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Approach
Presentation
Trial Close
Determine Objections
Meet Objections
Trial Close
Close
If After You Meet the Objection You Received a Negative Response to Your Trial Close, What Would You Do?
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Let’s Review By Taking a Closer Look at the Interactions Within the Sales Presentation
Presentation
Trial Close
Determine Objections
Meet Objections
Trial Close
Close
Approach
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In All Things Be Guided By the Golden Rule
The reason to use the many communication techniques in this chapter is to serve others from your heart, not from your pocketbook.
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Summary of Major Selling Issues
Be prepared to logically and clearly respond to your prospect’s objections.
Basic points to consider in meeting objections: Plan for them Anticipate and forestall them Handle them as they arise Listen to what is said Respond warmly and positively Make sure you understand Respond using an effective communication technique
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Summary of Major Selling Issues, cont…
Objections are classified as hidden, stalling, no-need, money, product, and source.
Objections help you determine if you are on the right track to uncover prospects’ needs and if they believe your product will fulfill those needs.
Objections show inadequacies in a salesperson’s presentation or product knowledge.
End of Chapter 11End of Chapter 11End of Chapter 11End of Chapter 11
Chapter
Chapter
11
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.