Defining the needs of a prospect and clearly detailing the features or functions of your product or service that meet those needs are crucial to making the sale. Still, when making your sales pitch, you will most likely encounter a number of objections that you have to deal with before closing the sale.
When handling objections, the first thing you should do is listen carefully to the prospect and let them finish what they have to say. Don’t get too excited and respond to an objection before you hear the entire concern. First of all, interrupting the prospect can cause hard feelings. It indicates that you are not really concerned with what the prospect has to say.
You can handle objections in several ways. The easiest way to handle an objection is to ignore it. That may seem a little extreme, but if the objection is trivial, then just let it go. A prospect, for instance, may say that he likes the product but wishes it had a specific feature. Depending on the feature, you may be able to ignore the objection. If the prospect raises the objection again, then he does consider it of some importance and you will have to address it.
Another method of handling an objection is to avoid it momentarily. For instance, suppose the prospect objects to the price and payment terms before you ever mention them. You could avoid the objection by politely recognising the prospect’s concern and asking if you can discuss payment terms in depth after covering the benefits of the product.
The trick is to recognise the concerns behind the objection so you can address that concern properly.
Common customer objections
Here are some of the more common types of objections:
The delay: Probably the most common form of objection, the delay or stall allows the prospect to postpone the purchasing decision to a later date. When facing the delay, the first thing you need to determine is whether the stall is real or merely a way to get rid of you. Between the customer research and the needs analysis, you should be able to determine whether the stall is real. To overcome a stall, you have to be polite, positive, and turn the objection around so you address the needs and benefits of the prospect.
Don’t need it: When a prospect says he doesn’t need a product or service, he may either be reacting to a poor presentation, or he might truly feel he doesn’t have a need for the product. Again, be polite and positive when responding to this type of objection.
Don’t have the money: If a prospect really needs something, he will find the money to buy it. Usually, the prospect who makes this type of objection is concerned about price. If price is the major objection, the prospect may try to determine what the best price is before making a buying decision. If the prospect is genuinely concerned about the price, respond by suggesting a way he can afford to buy the product; doing so may overcome the objection. Your main concern is to determine if the prospect is trying to negotiate a lower price or better terms, or if you can justify the price with superior quality.
The product: Sometimes, a prospect will object to the product itself. He may like a competitor’s product, a competitor may have said bad things about your product, etc. Whatever the reason, when you respond, don’t denigrate the competition. Try selling the product on its benefits. If necessary, point out warranties and guarantees, or provide a product demonstration.
The company: The prospect may already be very loyal to a particular company, or he may have had a bad experience with your company in the past. Usually, when dealing with this type of objection, you will have to continually call on the prospect or send him relevant information over a period of time to break down his resistance to doing business with you.
Closing the deal
You have to earn the right to close a sale, and even once you have, you may not be able to do so successfully. Closing a sale can sometimes take a great deal of work. It means being patient, determining the prospect’s needs, and answering any objections. It also means being assertive when necessary.
Trying to close the sale before the customer is ready will result in no sale at all. Wait too long to close a sale and the prospect could lose their enthusiasm. The right time to close a sale is when the prospect starts showing signs they are ready to buy. You have to be able to recognise these signs and attempt the close when you see them.
If the prospect begins to ask more and more questions regarding the product, for instance, they are probably quite interested in it, and may only need a little prompting to close the sale.
When the prospect becomes less guarded and more relaxed, furthermore, they may be ready to close the sale. Usually, if the sale is still up in the air, the prospect is very guarded.
They watch what they say, the way they sit, etc. Once they decide whether or not to buy a product, they will usually try to wrap up the meeting either by announcing that they don’t need the product or by buying it.
Common closing methods
Depending on the type of prospect you are dealing with, you can use one of several methods to close the sale:
The competition close: This type of close works well for companies that service numerous competitors in a specific market. By letting the prospect know his competitors utilise the product or service being sold and how it has benefited them, you can encourage them to close the sale.
The alternate option close: With this type of close, you ask the prospect to choose between two conditions of the sale instead of deciding whether or not they want to buy the product. This technique is very useful if you are dealing with a prospect who seems eager to buy.
The summary-of-benefits close: Using this closing technique, you will recap all of the major benefits associated with the product that specifically meet the needs of the prospect. This is a good technique to use when the prospect has been participating in the presentation by constantly relating his needs and desires.
The indirect close: This is a very casual, low-pressure close that asks the prospect to decide whether to buy in a very indirect manner. You might ask, “Are you comfortable with the terms?” or “What do you think?” This is a good closing technique for prospects who are very passive and would rather avoid a high-pressure close.
The direct close: This is a very assertive closing technique in which you ask for the order with a direct question. You might ask, “Would you like to buy the product?” Be careful with this type of close. It isn’t the best for every prospect. It usually works best on prospects who are assertive themselves.
The assumption close: This close relies on the assumption that the prospect will buy; all they need is a little encouragement. Using this technique, you would bypass asking for the close and move directly into asking for the quantity of the order, delivery time, etc.
The customer close: This closing technique relies on your ability to involve the prospect and get them into the routine of making positive responses to relatively painless decisions such as “Do you like the color of the product?” or “Is the price generally what you were looking for?” The idea is to get the prospect to say yes to little decisions so that when you ask the big question, he is ready to say “Yes!”
Whichever closing technique you use, you should wait for a response after asking for the order. Don’t say a thing while the prospect is deciding whether to buy. Usually, if you say something, you take the pressure off the prospect to make a decision.
Not saying anything can be very nerve-racking, but while the prospect is deciding, be positive and think of ways to respond to the prospect once they have made a decision. Usually, a prospect won’t wait long to reply. Most will provide an answer within a minute. If the reply is positive and you have closed the sale, you should thank the new customer for their business, then leave.
Again, you should keep it simple when wrapping up the sale. Don’t say too much. If you are overly enthusiastic and keep talking about the sale, you may say something that will make the buyer change their mind.
Lastly, even if you don’t make a sale, ask for a referral. If you’ve done your job correctly and made a professional presentation, the buyer, even if they have no use for your product, may know someone else who does.
Deadly sales tactics
There are a number of ways in which you can alienate potential customers and these should be avoided at all costs.
Common offences include:
Arguing with your customer
Putting down your opposition
Being too aggressive
Making false claims
Not knowing your facts
Becoming too technical
Not listening to your customers.
Arguing With Your Customer. The old adage “the customer is always right” has not survived without good reason. If you want to keep your customer and make a sale and your customer is saying something you consider to be patently stupid or just plain wrong – do not argue.
In particular avoid heated arguments at all costs. It demeans both you and your customer.
Should you consider your customer is in the wrong about something offer to investigate further. Then politely present the correct information. If you feel the situation cannot be resolved amicably ask someone else to take over the sale or indeed walk away from the sale altogether.
A heated and messy altercation will damage both your own and the business’ reputation.
Putting Down Your Opposition. Always refer to both your opposition and their products and services politely. Your customer will not be impressed if you go out of your way to denigrate your competition.
They will instinctively feel that you are making a cheap sales pitch in favour of your own product.
On the other hand if you openly acknowledge the good points of your competitors and their products but go on to quietly emphasise the superior aspects of your own product you are more likely to come across as honest and reliable. A far superior selling strategy!
Being Too Aggressive. Don’t try too aggressively to close a sale.
Many people are frightened off by salespeople they feel are too pushy and would rather leave than go through with a purchase, even if it is something they really need.
It will be up to you to read the body language of your customers to determine when you should push just that little bit harder to close a sale or when you should back off to let the customer come to terms with making the purchase.
More deadly sales tactics
Making False Claims. Never, ever make a false claim about a product or service. If you do not know the precise facts, admit it and say you will find out and get back to your customer as soon as possible.
Making a false claim can undermine the integrity of your product, you as a salesperson and the business as a whole.
Belief and trust in you and the business has to be earned, but if ever lost, it is almost impossible to reinstate.
What is more, should you make a false claim you are laying both yourself and the business open to legal consequences, such as a claim of false advertising.
Not Knowing Your Facts. Not knowing your facts is a lesser offence than making a false claim. However not having the complete range of information available to you can reduce your ability to close a sale.
The average customers want to feel confident that they have made the correct choice of product as well as received the best deal for their money. A confident and knowledgeable sales presentation goes a long way towards creating this feeling of confidence.
Becoming Too Technical. Presenting your customers with too much technical information, on the other hand, may also scare off potential customers.
Providing a customer with too many facts, figures and statistics can be very confusing to someone who doesn’t have a good background knowledge of the product.
What is more this customer may feel you will think any question he or she asks is a stupid one. Customers who feel inferior are likely to leave and go elsewhere to find a sales person who can communicate at a more appropriate level.
Not Listening To Your Customers. If you do all the talking you cannot hear what your customers are asking you and cannot therefore provide them with exactly what they want.
On top of this you will not be able to identify the personality of your customer and be able to gear your whole sales strategy to suit.
Furthermore by not listening to what your customer is saying as well as what they are not saying you may very well miss important cues which could provide you with an opportunity to make a greater sale.
Remember your whole aim is to foster a feeling of confidence in your customers. Customers who are happy with the sales and service you provide will return and what is more recommend you to their friends and associates.
