Even if a sales rep delivers a flawless pitch about an innovative, unique product, they are still likely to encounter sales objections.
This is because humans are essentially creatures of habit. According to psychologists, people tend to be instinctively averse to the change, particularly within corporate environments. This adds up an additional obstacle to the sales process, which is already fraught with challenges and negotiations. However, with thoroughly prepared responses, sales reps can turn sales objections into opportunities. There are many techniques to counter these objections, depending on the nature of the sale. In this article, we discuss tactical responses to the most common B2B sales objections. These strategies not only counter the impulse towards inertia, but it also serve to demonstrate the value of a company’s product or service.
1. Budget: “This seems great, but it is too expensive. It is more than we are planning to spend.”
Objections around budget are possibly the most common obstacle that a rep will encounter. To overcome this objection, reps should ensure they can demonstrate the return on investment the product or service provides. The reps should discuss the prospect’s current margins and precisely demonstrate how the product will help them meet revenue targets and reduce overheads. Perhaps, the most useful point to underline is that in case if a prospect chooses to invest, the benefits coming with a product indicate that, eventually, it will pay off.
2. Competitor’s customer: “Thanks, but we’re already using someone else.”
Now, clients have access to more information than ever before. This has made potential customers savvier, which has intensified competition in every sector. In any given scenario, it is practically guaranteed that the prospect has had some interaction with a competitor. In order to attract a customer away from a competitor, use case studies, testimonials, and references. Similarly to the B2C market, testimonials are extremely useful sales tools, as prospects are naturally more inclined to trust product reviews.
3. Undercutting: “We’ve already negotiated the deal elsewhere, and they are offering a lower price.”
Sometimes, a prospect will use a competitor’s price point as a negotiation tool. This is especially the case in thesaturated markets where companies attempt to outdo each other by undercutting the competition. Unfortunately, in today’s crowded business landscape, price is a significant product differentiator. In order to overcome this ubiquitous sales objection, sales reps should devise a robust argument as to why their product is superior. The rep should demonstrate the value of their product’s unique features and how this will impact ROI. Frequently, a competitor will not actually have a lower price – they actually have an inferior offer.
4. Buy-in: “The product sounds good, but I need to sign off from C-levels.”
If a businesses product is high-end, complex, or far-reaching, it is likely that multiple stakeholders will be involved in the investment. Even if a rep is pitching directly to an executive, they may need to clear the purchase with other C-levels or investors. To overcome sales objections associated with organizational buy-in, it is important to identify which individual has the most influence. This could be the most senior person present, or the main point of contact. Equally, it could be the individual that asks the most questions.
5. Timing: “How about we start this conversation again later in the year?”
It is fairly common that a prospect will ask to follow up in the future. However, time is money, and, frequently, a business’s sales goals will not be compatible with the client’s timeline. Therefore, sales reps should schedule a follow-up call as soon as possible. During this brief period, they can research whether or not the client is a reliable lead. However, if the prospect is merely procrastinating, the rep should demonstrate how they are losing money by wasting time. For example, present research shows how their industry is evolving, with emphasis on why urgent changes are necessary to remain competitive.
Sales objections are not rejections
When approaching a pitch, it is important that sales reps are enthusiastic, motivated, and tenacious. After all, it is important to bear in mind that an objection is not a rejection. More often than not, a sales objection is simply a client signaling that they want more information. Therefore, sales reps should arrive at every pitch with a concise, compelling presentation together with plenty of ancillary information. After all, many people can close a straightforward deal, but a truly talented sales person will transform objections into opportunities.