Handling Customer Objections Step 5 of the Sellling Process

What is an Objection A point of difference between the customer and the sales person that may prevent an agreement to purchase Objections are a natural part of the sales process Objections show that the customer is interested and considering purchasing the product Objections should be expected and welcomed by the sales person Objections lead the sale toward closing Objections are merely customer doubts and questions

Objection vs. Excuse An objection is a sincere concern on the part of the customer An excuse is an insincere reason given by a customer to cover up a valid concern Example: “This product looks too complicated.” What they really mean is “this product is too expensive” or “I don’t understand how to use this product”.

Types of Objections PRICE – customer thinks that the product is too expensive or is not worth the price Most common objection Often the customer does not understand the price Handle the objection by Stress quality, durability, & performance Show product features & benefits Promise prestige

Types of Objections (continued) PRODUCT – customer has concerns with some aspect of the product, such as Quality Features Brand Color, size, style, or model Required service

Types of Objections (continued) COMPANY – customer has concerns about the product manufacturer or the store selling a product/service, such as Store location Store sales people Store policies Store image Store services Previous experience with store or product manufacturer

Types of Objections (continued) NEED – customer is not sure that they really need the product Need vs. want conflict Conflict of needs – customer is not sure which need is most important or which feature/benefit is most important Example – “Should I spend more to get a better quality product, or save money and buy the less expensive item?”

Types of Objections (continued) TIME – customer is not sure when they would like to purchase the product. Product might be out of season Customer wants to wait for a sale Customer may not have resources to purchase the item Customer may have a fear of buying decisions (buyers remorse)

Types of Objections (continued) QUANTITY – customer may not want to buy because of required accessories or supplies needed for the product Required complementary or accessory products are necessary to use the item Bindings for skis or snowboard Stereo receiver for DVD player Supplies for printer or copier

Name that Objection “If I buy a season pass, I’ll have to pay to rent skis every time I want to go skiing”. “I’m not sure I should buy a new car; my old car still runs well”. “I hate waiting in line at Carl’s Junior”. “Are you sure that these shoes are as good as Nike?” “I know that that jacket is on sale, but it’s August”. “Why is Under Armour so expensive?”

Methods of Handling Objections Yes, but . . . – agree with the customer and then provide information to overcome the objection. Objection: Gosh, this seems expensive! Response: Yes it is expensive, but that’s because it is made with quality materials that are made to last for years to come.

Methods of Handling Objections Toss It Back (Boomerang) – use the objection as a selling point. Objection: This ski binding seems very light weight. Is it durable? Response: That’s exactly what you want in a ski binding. The materials used to make the binding are light weight but also very durable, which makes it a great binding for moguls and quick turns.

Methods of Handling Objections Deny It (Direct Denial) – provide correct information to the customer when they are mistaken about a product feature. Objection: I’ve heard running is bad for your knees. Why would I buy running shoes? Response: Actually, an exercise program that includes running can strengthen your legs and knees, as long as you gradually increase the amount of running you do.

Methods of Handling Objections Point-Counterpoint (Superior Point) – agree with a valid point made by the customer and then offer an equal or superior point. Objection: This smaller laptop computer does not do as much as a full sized one. Response: You’re right, it does not have as many functions as a full sized laptop. However, the smaller laptop is great for students that only need a computer for typing papers, answering email, and using the internet. Its compact size is ideal for carrying it around a college campus in a backpack.

Methods of Handling Objections Inquiry (Question) – by asking the customer a question, the sales person encourages the customer to answer their own objection. Objection: This snow thrower is very expensive. Response: How much snow do you typically receive where you live? Customer: We live out east of town and often have 2 foot deep drifts. Sales Person: A smaller, less expensive snow thrower won’t be able to handle 2 foot drifts in a single pass, which means it will take you longer to clear your driveway. Additionally, by overloading a smaller machine it won’t last as long and you’ll have to replace it sooner, which will be more expensive in the long run.

Methods of Handling Objections Show ‘Em (Demonstration) – answer the objection by showing the customer the product or feature. Objection: This Blackberry cell phone looks way too complicated for me to use. Response: Once you use it a few times, you’ll wonder how you got along for so long without your Blackberry. Here, let me show you how simple it is to answer an email. Example

Methods of Handling Objections Testimonial (3rd Party) – answer the objection by using a neutral third party as an example. Objection: I’m not sure if I want to buy a snow board. It looks too difficult. Response: My Dad felt the same way before he learned to board. However, after only one day of trying, he was able to make it down a green run without falling. Now he boards all the time and loves it!

Methods of Handling Objections Try It – allow the customer to try the product as a means of answering their objection. Objection: These cowboy boots don’t look very comfortable. Response: The high quality leather used in these cowboy boots make them very comfortable. Would you like to try them on to see how comfortable they really are?

Procedures for Handling Objections Listen carefully and don’t interrupt Pause before responding, rather than immediately firing back a response Empathize with the customer Restate their objection to check understanding, if necessary Avoid arguing and remain calm, courteous Turn objections into selling points, if possible Answer honestly

Assignment For each product, write 2 objections and 1 response. Use each type of objection and each method for handling objections at least once. For each objection and response, identify the type or method used. Snow board Camping tent Necklace Laptop computer Pick up truck Washing machine