Selling and Sales management - Chapter 11: Closing the deal

The steps to handling objections

1. Use the Socratic method to uncover concern

2. Restate

3. Thank the customer

4. Resolve the objection

Using the socratic method

Finding the root of the customer’s concern by asking questions that provoke critical thinking

Restating

Explaining the problem as you understand it and repeating it back to the customer to see if you were correct

Restating (con’t)

Ensures the customer knows what the problem truly is as people sometimes have trouble fully conveying their feelings

Thanking the customer

Shows empathy and creates a safe environment where the customer will feel comfortable

i.e. Say: “Thank you for expressing your concern. I can understand your point of view

Handling price-related objections

Offer:

• Case studies/social proofs

• Discuss beneficial outcomes

• Compromise on cost

• Find out the true reason for the objection

Handling offering-related objections (category 1)

• Focuses on social proof to show value

• Know how you’re different from the competition

Handling offering-related objections (category 2)

• Use ponder questions to show the importance of fixing the problem

Handling offering-related objections (category 3)

• Offer case studies as proof

• Offer a reference from one of your best customers

Noncommittal customers

• Be upfront and ask the customer if they think the product is right for them

• Give them as much time as they need to make an informed decision

• Use the socratic method to get to the bottom of underlying issues

Handling general concerns (Strategy 1)

Respond with a question to get more time to think of an answer, and better respond with the info gained from the customer

e.g. If a customer asks “What makes you better than our current vendor?” answer with “They’re a great company, why did you choose them?”

Handling general concerns (Strategy 2)

Use if/then statements

e.g. If I could demonstrate the superiority of our product in our next meeting, would you be willing to buy?

The benefits of using stories

Retention goes up by 65%-70%, and increases emotional connection; make the customer the hero of the story

Best negotiation practices 

• Listen more than you talk

• Know what’s most important to you

• Use customer-oriented framing

• Consider the stage being set

• Be confident in the value being offered

• Be willing to walk away

• Play for the long-term relationship

Buyer anticipated regret

When a buyer anticipates the regret they’ll feel for buying a product

What can be done to lower the emotional barriers prior to buying

• Offer a free trial

• Offer a free money-back guarantee

What can be done to handle the fear of missing out

Instill a sense of urgency

e.g. A customer who has been dragging his feet wants to meet tomorrow, say something like "I actually have meetings most of the day tomorrow with potential customers. People are really excited about our product, and we are really busy right now. But I can open up some time the following day. Would that work for you?"

What can be done to handle scarcity

Convey ideas that customers will miss out great deals if they don’t

Micro-commitments

Smaller commitments or agreements the prospect makes leading up to the final decisions 

e.g. Prospecting, demos, proposal reviews

The sales process

1. Prospecting

2. Deep discussions

3. Demo

4. Proposal review

5. Closing

Uncomfortable questions to ask to ensure you have the full picture

1. We understand that the decision to invest in a solution like this requires the involvement of a committee. Besides yourself, who else would you like to be a part of the demonstration next week?

2. What is your internal process when it comes to selecting a vendor?

3. Is this a budgeted project? If so, what is your budgetary range?

4. After we offer a demonstration, what will be the next step?

5. What may be some of the issues that could potentially hinder you from partnering with