The first Thursday of each month features a “best of” X5 Management blog. The intent is to showcase and revisit some of our blogs from the past. We hope you enjoy them!
As you look to set and achieve big sales and revenue goals for 2015, one concern that may arise with your sales team is how to handle common sales objections. Typical sales objections include: “your services cost too much; I’m ok with the way things are working right now; it’s too risky to change the way we’ve been doing things for the last number of years; or we are too busy to take this on right now” and the list goes on.
Handling objections such as these can become the primary obstacle preventing your business from achieving new and ambitious sales targets. Understanding what is stopping your potential customer from purchasing your product or service and then having a plan to tackle the specific objection will help you close the next deal. Use the 4-step model to handling objections below to ensure you are on the right track in 2015.
1) Active Listening: the first and most important step to understand exactly what type of objection you are encountering. Is the issue on of price, complacency, timing, trust, or fear of change? Listen to first understand what the objection is before formulating a plan to overcome it.
2) Empathize: Suspend judgment during your conversation with your prospect. Ideally you want to get to the bottom of what their primary challenges are at this time. Ask clarifying questions (open-ended questions used to probe and gain further understanding) and don’t interrupt during their response.
3) Reflect: After you have listened carefully to your prospects challenges with proceeding and have asked the right questions, it is ok to tolerate silence as you reflect on what the next steps may be. You may paraphrase some of their responses to confirm you understand their situation and what their unique goals and challenges are.
4) Respond: Your response must focus on the unique value of your products and services that the customer will not be able to receive from any other provider. How is your product or service remarkable or superior to your competitors? Summarize the benefits and strongest need based on the challenges of the prospect and confidently propose a realistic next step.