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THE SCIENCE OF SELLING (P ART II): (PART HANDLING SALES OBJECTIONS Ilse Truter Drug Utilization Research Unit, Department of Pharmacy Nelson Mandela Metropolitan University “The sale starts when the customer says no.”1 Jeffrey Gitomer After you have just spent 10 minutes of your valuable time counselling a person about what will be the most appropriate vitamin and mineral supplement for him, the person tells you that he will think about it. He then tells you that they are selling the same supplement cheaper at the pharmacy close to his work. He stands in front of you, his arms now folded and he is looking at his watch as if you have just wasted 10 minutes of his time. His posture is more rigid and he does not make frequent eye contact. He tells you that his wife is waiting in the car and he says good bye to you. You think: “I am furious! How can a person waste my time like this with total disrespect for my professional knowledge and skills?” He thinks: “What a poor business person! He or she gave me all the advice that I needed, but did not even attempt to convince me to buy the product.” S ales objections are anything that stops a customer from buying. It is a reason given by a potential customer why they are not ready to buy your product or service, or a hindrance voiced by a prospect which prevents you from closing the sale. In an ideal world, you want your customers to be happy and secure in their decision to buy from you. This is the optimal scenario. This does not mean that you must use devious tactics to manipulate potential customers to buy from you – rather, you must use common sense to assist customers to buy from you. Each objection (or perceived “risk” to buy) has a way to overcome it built right in. It sometimes just needs creativity and flexibility in the offer, or sometimes just more explanation or information, but most of the time it is about proof and credibility. Do not be afraid of objections. Through potential customers’ objections, they are telling you exactly what their needs and wants are, what they object to, and where their fears lie. The only way to sell a person is by uncovering these objections and to deal with them. A good salesperson knows that he or she should not quit selling when the prospect is giving objections. If the body language becomes negative, it is not always a sign that the 60 person will not buy. In fact, objections begin to appear when you begin to sell or close the sale. They are manoeuvers customers use to postpone the buying decision. It has been said that people buy when the pain of the problem is greater than the cost of the solution. When a potential customer (or prospect) says “no”, you need to find out whether it is a true objection, just a way to stall the deal, or whether it is a lie. You need to find out what the real reason is why the person does not want to buy now. Buyers often hide the true reason why they have decided not to buy. They do this for several reasons – maybe they do not want to hurt your feelings, they are embarrassed or they are afraid to tell the truth. The customer is not necessarily saying “No, I do not want to buy”. He or she may be saying, “You have not sold me yet. Give me more information or more reassurance before I buy from you”. A master salesperson can get through the stall to the real objection. “If you can turn no into yes, you made the sale. Simple.”1 Jeffrey Gitomer SA Pharmaceutical Journal – April 2009 MANAGEMENT The top ten objections not to buy The real objections The most common sales objections can generally be classified as follows2: The real or true objection is seldom stated. Most of the time, when the customer says, “I want to think about it”, or stalls the sale, he or she is really saying something else. According to Gitomer, the real objections are usually one or a combination of the following1: • Does not have the money. • Has the money, but it is too cheap to spend it. • Cannot get the credit needed. • Cannot decide on his or her own. • Does not have authority to spend over budget, or without someone else’s financial approval. • Thinks (or knows) he or she can get a better deal elsewhere. • Has something else in mind, but will not tell you. • Has a friend, connection or satisfactory relationship in the business. • Does not want to change vendors (suppliers). • Wants to shop around. • Too busy with other more important things at this time. • Does not need (or think he or she does not need) your product now. • Thinks (or knows) that your price is too high. • Does not like or have confidence in your product. • Does not like, trust or have confidence in your business. • Does not like, or have confidence in you. Price, value or cost: The price is too high against the perceived value. What happens if I spend all the money and do not get value for my money? I can buy something else with the money. Why should the money be spent on this specific product? Time or logistics: How is the product/service delivered? When will it be delivered? Does it fit in with our planning? We need it sooner. It will take too long. This purchase is actually not a priority. Credibility or trust: The product/service seems right, but I just do not trust you to deliver. The product is unproven. Politics: What will my boss think? I do not have authority to approve this purchase. My boss will not authorise the sale. What happens to me if I buy the wrong product, what will people think? Knowledge: I do not have enough knowledge about the product. Just send me your literature anyway, I will come back to you. I wonder whether I can trust all this “sales talk?” Gitomer lists the following ten objections (stalls or white lies) that potential customers or prospects generally give1: • I want to think about it. • We have spent our budget. • I have to talk it over with my partner (my husband, wife, cat, mistress, broker, lawyer, accountant, psychologist or whoever). • I need to sleep on it. • I never buy on impulse – I always give it time to sink in. • I am not ready to buy yet. • Get back to me or I will get back to you in a week or two. We will be ready to buy then. • Quality is not important to me. • Business is slow right now (or in South Africa, we are entering a recession – I need to think carefully about every cent that I spend). • Our advertising agency handles that. Price, obviously, is the classic objection (“The pharmacy in the other suburb currently has a special offer. I am rather going to buy from them”). To overcome this objection, find out how much higher your price is, and what price they consider to be “too high”. Many times “too high” may be 15 or 20 cents higher which is a lot less than the cost of the petrol to drive to the other pharmacy. The best solution with price is to increase the perceived value rather than to lower the price, since price is also closely related to trust. Most objections come down to risk. Often it is financial risk, but also other risks such as the risk to look foolish, which may be a big risk for the decision maker. SA Pharmaceutical Journal – April 2009 If you want the sale (and you obviously want the sale, because you are in business!), you need to find the real objection. Solutions to objections Overcoming sales objections is the true test of a salesperson.1 The customer is not necessarily saying “no”, he or she may just be saying “not now yet”. An objection may actually indicate buyer interest.1 Objections occur because there are doubts or unwanted questions in the mind of the buyer (sometimes these doubts are created by the salesperson, so be careful of your use of words). If you say to a potential buyer that this new product really has miracle properties, and the buyer knows it is not true, you have created the doubt and the person will not buy. Objections can also occur because the prospect wants to buy or is interested in buying, but needs clarification, wants a better deal or make sure that this is a good deal, or want a third party to approve. Objections can obviously also occur because the prospect does not want to buy, but is forced into a situation to buy. How to identify and handle the true objection The literature on objection-handling is vast and many sources give “recipes” in the form of acronyms of how to handle sales objections. Some examples are1,2: • LAARC: Listen, Acknowledge, Assess, Respond, Confirm. • LACE: Listen, Accept, Commit, Explicit action. • LAIR: Listen, Acknowledge, Identify objection, Reverse it. 61 MANAGEMENT The following steps are a summary of what is recommended when faced with an objection1: Listen carefully to the objection being raised When someone trusts you enough to tell you what is bothering him or her, do them the courtesy of at least listening to them. Determine if it is a true objection or only a stall. It is said that a prospect will only repeat an objection if it is real. Give the prospect time to talk, and listen carefully. Agree with the prospect at first, because this will allow you to tactfully disagree without starting an argument later in the conversation. If you classify it as a definite stall, find out what the real objection is – without it you cannot progress. If you are convinced it is a stall you can try one of the following lead-in phrases to get to the real objections1: • “Don’t you actually mean …” • “You are telling me _______, but I think you might mean something else.” • “Usually when customers tell me that, experience has shown me that they actually really have a price objection. Is that true for you?” Find out if there is only one true objection You need to carefully question the objection. You need to know if there are other reasons as well why the person does not buy from you (for example, a rude sales assistant, a problem with a previous sale, or your bad image in the community). Confirm it again Rephrase your question to ask the same question again but differently, or affirm the objection by restating it in the form of a question to be answered. For example, ask, “In other words, if it was not for the colour of the product, you would have bought it?” or “What you are saying is that the delivery service is a concern for you. Is that what bothers you?” You may also “tip the bucket” at this stage, and ask if there are any other concerns (objections) that they have, and if you can resolve them, whether you might be able to close the sale.2 This may cause you more work now. Although it may seem that it is better to let sleeping dogs lie, if you do not do so, you may find that when you get to what you may think is closure these questions and concerns may be raised. other businesses, you will never close this sale (and many other sales!). You must give assurance, be sincere and show conviction to get the prospect to agree with you and mean it. The golden rule is not to focus on price – show cost, demonstrate value, list comparisons and prove benefits. Ask a closing question, or communicate to the prospect in an assumptive manner Ask a closing question in such a way that it will confirm the sale, that is communicate to the prospect in an assumptive manner (“I have the sale in hand”-manner), for example: • The classic question at this stage is, “If I could … would you …?” • “I am pretty sure we can do this for you. I have to check one fact with the person in charge, but it is definitely a go on my part. I am assuming we have a deal”? or “I could meet with all the decision makers to finalise our deal?” • Another technique is to quote similar situations when you close. People like to know about others in the same situation. • Ask, “Why is this/that important to you?” Then use, “If I could …, would you …?” Confirm the answer and the sale (and do it in writing if possible) Get the prospect to convert to a customer with a confirming question such as: • When do you want it delivered? • When is the best day for you to begin using the product? • Is there a better day to deliver than others? • Where do you want it delivered (or installed)? Techniques for handling sales objections There are a multitude of techniques that can be used to handle sales objections. Only a selected few are listed below2,3,4: Boomerang: Bounce back to them the objection that they give you. Take what they say and use it to get them closer to the objective. By using what they say, you are saying that they are right. And when you attach what you want to what they say, then by association, what you want is right. Qualify the objection to set up the close of the sale Ask a question in a way that incorporates the solution, for example “If I get the red-coloured product for you by next Wednesday, will you then buy it from me?” or “If I come to your house and demonstrate to you and your wife how to use the device, will that be enough for you to make a decision?” Objection chunking: You take a wider or narrower view than their objection (a higher or lower viewpoint). This helps the prospect to see the situation from a different perspective. Taking a different perspective has a dual effect, namely to firstly reframe to create a different attention and a new understanding, and secondly, of distracting from what might be a difficult issue to resolve. Answer an objection in a way that completely resolves the issue, and confirm that it has been resolved You want to close the sale – at this point therefore, you must use every tool in your toolbox. If you have trump cards to play, this is the time to use them. If, at this point, you cannot answer the prospect in a way that is different or that sets you apart from Conditional close: In this case you are accepting the objection and getting them to agree to purchase the product if you can resolve the objection. If they say they want a red one, you respond by saying that if you can get a red one whether they will buy the product today. In other words, you make closure a condition for resolving their objection. 62 SA Pharmaceutical Journal – April 2009 MANAGEMENT Curiosity: Do not ask them “why”, but act curious as to why the objection exists so that they have an opportunity to explain the reason. This gives you the information you need to resolve the objection and make the sale. You are therefore not threatening, just curious and exploring why and you do not look as being a “hard closer”. In other words, you do not seem to be sad for “losing the sale, just curious”. Deflection: Avoid responding to the objection by just letting it pass without comment. By accepting their objection, you are accepting them as a person, and the additional harmony and rapport created may be enough to overcome the objection. Feel, felt, found: This is a classic technique of moving them. Talk about how they feel and then mention how others have felt. This technique identifies the feelings of the prospect and then attaches those same feelings to others so that they feel part of the group. Then you show how others changed their mind and this allows them to change their minds too. For example, “I understand what you are saying. Another customer asked me the same question. Here is what we did to satisfy his concern …”. It is similar to reframing, where you try and change their cognitive frame. Humour: Respond with humour rather than frustration. This takes the pressure off the moment and allows them to relax so that you can continue the conversation. This also allows you to relax because objections can get frustrating. Justification: Confirm their objection by saying how reasonable the objection is. Then you can follow-up by saying that it may appear that way or it seems that way and then show them the value of the product or service that you are selling. You have now justified their concern and then showed why it really should not be a concern. Objection writing: As the prospect list their objections, write them down. Then, as you handle each objection, cross out the objection. This shows the prospect that you are listening and you want to cover all of their concerns. You can then show them that all of their concerns are not really concerns and they have no reason not to purchase. Pre-empting: After a few months in any business, salespeople have heard most of the objections they will hear over and over again for years.3 Handle the objections before they come up. If you know from experience that many people have the same objection, you can bring it up first and get it out of the way. The objection is then already handled so the person has to come up with something else. However, be careful because you may bring up objections that the person has not even considered and this may influence them not to buy. Pushback: Object to their objection. Give them the opportunity to “defend” their objection. Often the real objection will SA Pharmaceutical Journal – April 2009 become clearer in their explanation. Renaming: Change the words of the objection to change the meaning. Reprioritise: Assist the prospect to reprioritise so that the objections that you cannot handle are placed lower on the list and focus on the ones that you can resolve. Conclusion Sales objections are sales opportunities. Do not take no for an answer. The key for overcoming objections lies in1: • Your knowledge of selling skills. • Your knowledge of your product. • Your knowledge of your prospect. • The relationship you have with your prospect. • Your creativity. • Your attitude. • Your sincere desire to help your prospect. • Your persistence. Interestingly, none of these things have anything to do with price. Some may relate to cost, but not to price per se. All of these things have to do with value. Lastly, remember to apply these ideas to your own style and personality. Ideally a person will buy from you because they trust you, respect you and value the relationship that you have with each other. Sometimes, however, it is necessary to use selling tactics because although you are a professional person you are also a businessperson. Handle objections wisely – an objection may be the most important clue on how to get the sale. References: 1. Gitomer J. 2008. Sales Bible. New York: HarperCollins Publishers. 2. Objection-handling. 2009. Changing Minds.org. http://changingminds.org/ disciplines/sales/objection (date accessed: 7 March 2009). 3. Lontos P. 1998. Eliminating Sales Objections. Available on the web: http://www.bluinc.com/news/eliminating.html (date accessed: 2 March 2009). 4. Gavin Ingham. 2008. 10 Tips for Handling Sales Objections. Available on the web: http://www.salesobjection.com/2008/03/10-tips-for-han.html (date accessed: 3 March 2009). Free Fax2e-mail Fax2e-mail is a free service. Receive your faxes as e-mails in your inbox. Even when you experience power cuts, your clients can still fax you. Save on paper and toner, print only the necessary. Faxes can be saved as documents. Get your free 086... fax nr today! Visit www.magicfax.faxmachine.co.za 63