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HOME » NEWSLETTER & ARTICLES » NEWSLETTERS & ARTICLES ARCHIVE » Handling Objections, part 1, May 2007
Handling Objections, Part 1
Bill McCormick
"The obstacles you face are mental barriers which can be broken by adopting a more positive approach."
-Charles Blasier
The Best Sales Professionals Respond Skillfully to Objections
What are the most common sales objections? How can you improve your ability to respond to these objections?
This month's newsletter is the first of a 3-part series on handling objections. All salespeople encounter objections, but the best salespeople are more creative and confident in their ability to respond to objections. This newsletter series will share some creative ways to deal with common objections such as "I'm happy with my current provider" and "Your price is too high".
What Do You Do?
We want to hear from you! Please send us an email at wm@salestrainingandresults.com with your answers to the following two questions:
1. What is the most difficult objection that you encounter from customers?
2. What is your best response to that objection?
The final newsletter in this series will consolidate and share the responses received. Please send us your thoughts because it would be great to share "best practices" from the best audience that we know, namely our readers.
Common Objection: "I'm happy with my current provider"
STAR has surveyed thousands of salespeople in our workshops and found that the two objections listed above tend to surface frequently. This newsletter will address the first objection mentioned: "I'm happy with my current provider."
Think about how you or your sales team currently responds to that objection. Average sales professionals tend to give up when the customer says that he or she is happy with the current situation. The best salespeople, by contrast, have learned some effective ways to respond.
Depending on the industry that you are in, and the type of selling that you do (product or service sales), listed below are four effective ways to respond to "I'm happy with my current provider." .
1. Highlight a differentiator about your company, product, or service. The customer may indeed be happy with their current situation, but isn't aware that your company could offer some additional benefits or services that their current provider doesn't have. Simple example: When working with new clients, STAR has found that many training providers do not offer reinforcement services, whereas STAR does. When we mention these services (such as 1-on-1 coaching), it often encourages a new customer to try one of our workshops and reinforcement services.
2. Ask more questions to probe further about the level of satisfaction with the current provider or supplier. We recommend two questions in particular. First ask "what do you (the customer) like about the current situation?" This would be critical information to learn, because eventually you will have to meet or exceed those criteria. Second, ask "If you could change one thing about your current situation, what would it be?" The best salespeople have learned to dig a little deeper because a new customer will not readily disclose areas for improvement unless you persist.
3. Use the "Swiss Cheese" approach. Ask for a small share of the customer's business as a way to demonstrate the value of your company and product/service. This allows the customer to test how well your company does without displacing their current provider. This doesn't work in all industries but can be quite effective because it doesn't feel aggressive or greedy to the customer.
4. Don't give up because the situation may change. The best salespeople are persistent about calling on prospective customers. A comprehensive study on business-to-business selling documented that average sellers gave up after making fewer than two sales calls on new customers, whereas successful sellers made five or more sales calls. If a customer says, "I'm satisfied" tell him or her that you would still like to stay in touch, especially since things may change in the future. This allows you to build a relationship with the customer and to demonstrate firsthand to the customer that you are reliable.
Where Do You Go From Here?
There are many responses to the objection "I'm happy with my current provider," and we would love to hear from you with examples of how you've personally handled this objection. Stay tuned in June for part 2 of this Handling Objections series. Please visit our Newsletters Webpage for archived newsletters.
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