Module 8

Addressing Concerns and Earning Commitment

Knowledge Checklist In order to build prospect commitment,

salespeople must understand: How customers/clients use products How salespeople can increase value to prospects How prospects measure success What might occur to change a prospect's use of a

product Their competitors' offerings How their own offerings compare to those of their

competitors

Objections defined! Reasons as to why a prospect will not buy or

make a commitment to your product, service or organization

Video Discussion Questions

1. How does a salesperson recognize a false or smokescreen objection? How would you uncover the real objection hidden beneath a smokescreen?

2. Why do most salespeople say that they welcome objections? Don’t objections get in the way of the sales?

Reasons Why Prospects Raise Objections

The prospect wants to avoid the sales interview.

The salesperson has failed to prospect and qualify properly.

Objecting is a matter of custom. The prospect resists change. The prospect fails to recognize a

need. Prospect lacks information.

ExamplesExamples

Major Categories of Objections

Need

Product or Service Features

Company or Source

Price

Time

I have all I can use.I have all I can use.

I don’t need any.I don’t need any.

The equipment I have is still The equipment I have is still good.good.

I’m satisfied with the company I’m satisfied with the company we use now.we use now.

We have no room for your line.We have no room for your line.

I don’t like the design, color, or I don’t like the design, color, or style.style.

Maintenance agreement should Maintenance agreement should be included.be included.

Performance of product is Performance of product is unsatisfactory.unsatisfactory.

Packaging is too bulky.Packaging is too bulky.

Specifications don’t match what Specifications don’t match what we have now.we have now.

The product is poor quality.The product is poor quality.

Your company is too small to Your company is too small to meet my needs.meet my needs.

I’ve never heard of your I’ve never heard of your company.company.

Your company is too big; I’ll Your company is too big; I’ll get lost in the shuffle.get lost in the shuffle.

How do I know you’ll be around How do I know you’ll be around to take care of me in the future?to take care of me in the future?

Your company was recently in Your company was recently in the newspaper. Are you having the newspaper. Are you having problems?problems?

We can’t afford it.We can’t afford it.

I can’t afford to spend that I can’t afford to spend that much right now.much right now.

That’s 30% higher than your That’s 30% higher than your competitor’s comparable competitor’s comparable model.model.

We have a better offer from We have a better offer from your competitor.your competitor.

I need something a lot cheaper.I need something a lot cheaper.

Your price is not different Your price is not different enough to change suppliers.enough to change suppliers.

I need time to think it over.I need time to think it over.

Ask me again next month when Ask me again next month when you stop by.you stop by.

I’m not ready to buy yet.I’m not ready to buy yet.

I haven’t made up my mind.I haven’t made up my mind.

I don’t want to commit myself I don’t want to commit myself until I’ve had a chance to talk to until I’ve had a chance to talk to engineering.engineering.

CategoryCategory

Handling Objections Effective salespeople are able to:

Anticipate objections Answer them with confidence Probe for more concerns Quickly get back to motivating the prospect/customer

to make a decision in favour of purchasing/trying the product

Objection-Handling Techniques

Forestall the Objection Compensation Boomerang/translation Direct Denial Indirect Denial Postpone in presentation Third-party reference or support

Applying the URT, through disclosure and proof providers

LAACR is a method for handling resistance should be engaged.

Case 8.1 – Thompson Engineering

Buyer Commitment The creation of an obligation between the seller The creation of an obligation between the seller

and buyer.and buyer.

The seller obtains the buyer’s obligation to a The seller obtains the buyer’s obligation to a specific action. Examples of commitment specific action. Examples of commitment include:include: An Appointment Agreement for next meeting Agreement for product demo A sale

The specific action is usually linked directly to The specific action is usually linked directly to one of the sales call objectives.one of the sales call objectives.

Guidelines for Earning Commitment

Look for Commitment Signals “That will get the job done” “I didn’t realize you delivered everyday.” “The price is lower than I thought it would be.” Also non-verbal messages

Ask Trial Commitment Questions “What do you think about the what we’ve

discussed?” “Do you see how this will help your

organization?”

Guidelines for Earning Commitment

Resolve “Red Light” statements made by the prospect I’m not sure that will work. The price is higher than I though it would be.” Your delivery schedule does not work for us. I don’t see the advantage of going with your

proposal.

Techniques to Earn Commitment

T-Account or Balance Sheet Commitment Summary Close on Paper

Success Story Commitment Salesperson tells a story of a Business that

successfully solved a problem by buying his or her product.

Techniques to Earn Commitment

Ask for the Order/Direct Commitment Simply ask for the order

Legitimate Choice/Alternative Choice Give the prospect a limited number of choices

Summary Commitment Summarize all the confirmed benefits that have

been agreed to.

Case 8.2 – Data Computers

Closing Mentality A completion mentality emphasizes the point

that all sales presentations must reach some type of conclusion, which may or may not result in a transaction

On average, it takes five sales calls on a business prospect to complete a transaction

Traditional Closing Techniques Professional salespeople often use more than

one technique during a presentation Salespeople should pick the techniques with

which they feel most comfortable (Example, Case 8.2 and the T-Account method)

Additional Closing Techniques No risk close (guarantee) Ask for help close Standing-room only close Impending event close Pretend-to-leave close Continuous yes close Price reduction close Trial/Puppy dog close

Employing Closing Techniques Although traditional closing techniques can be

effective under the right circumstances, salespeople should use them judiciously Many prospects find it difficult to make decisions Prospects want to make the right decisions, but complete

certainty in buying never exists* Many prospects will postpone decisions if salespeople let

them After a sales presentation, prospects often feel confused

and hesitant

*relates to the URT

Dealing with Yes!

Obtain the customer’s signature Provide a plan of action (i.e., answer the question

“now what?”) Answer any remaining questions. Assure the buyer you will follow-up Thank the customer for the business Partnering mentality - A partnering mentality changes

the salesperson's primary goal from one of just completing the transaction to one of beginning a partnership with the prospect

When to Walk Away It is helpful for businesspeople to establish in

advance at what point they will walk away

Disagreement during a particular negotiation does not necessarily mean that the partnership dissolves

Often such business relationships are reconciled and become very successful partnerships

Dealing with No!

Evaluate the customer’s explanation Maintain the relationship foundation Understand rejection is a fact of life Evaluate your performance Learn from the situation Make improvements

Video: Closing the Deal!