25 Common Sales Objections And How To Handle Them?
Oct 26, 2021
The word 'no' or uncertainties can demotivate and scare off sales reps. It is easier to dismiss these objections and move on to other clients than address them. Dodging sales objections is an impossible task as it is a natural part of the sales process. However, when we dive into it, sales objections can benefit your sales team. It is essential that sales reps can identify and respond to sales objections rather than quit. In this blog, you will learn about what a sales objection is, sales objection examples, sales objection handling examples, and why it is important to have a plan.
What Is A Sales Objection?
A sales objection is an indication that a specific reason is preventing a buyer from purchasing a product or service from you. Sales objections are rarely communicated to tell sales reps “no”. Some sales reps make the mistake of interpreting a sales objection as a nicer form of rejection. However, a sales expert will perceive any sales objection as a positive. It means the prospective client is open-minded and is interested in hearing more rather than conceding the relationship. Sales reps can take the opportunity to learn more about their prospect and find specific methods to address their reservations.
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Most Common Sales Objections:
Seasoned sales reps often hear the same sales objections frequently, and have certain responses to those they hear most often. Here are some of the most common sales objections and answers to them:
“I do not see how this product/service benefits me.” This is the go-to phrase for prospective buyers when they are in need of more information. How To Solve? Ask the buyer what problems their organization is currently facing. Suggest that the specific problems they mention will be solved by your product/service.
“This is not our company’s priority right now.” Buyers often use this sales objection when they need a vague but simple reason not to buy your product. Some buyers even use it as a cover-up because it is rare the buyer does not have time if they are communicating with sales reps. How To Solve? Sell the prospect on time. Convince them that certain components of your product/service will save them time rather than waste it. Additionally, simplify your product so the prospect believes it will consume less of their time.
“I have never heard of your company.” Start-up companies and various other small businesses are often faced with this type of sales objection. This is another common objection that is used when the customer has not yet established trust in the brand due to an inadequate amount of information. How To Solve? Do not take offense. Take the opportunity to provide the prospect with more information about your company. To take it a step even further, make suggestions to the prospect about what aspects of your business can improve on the prospect’s business problems.
“This looks complicated.” This sales objection is one of the most difficult ones to address, especially if your product/service is in fact complicated. It should serve as a wake-up call to your business as complexity can strip customers of their time and funds as well as leave them frustrated. How To Solve? Start a root cause analysis. Determine if the prospect is confused about specific features or if the product is too advanced for them. If it is too advanced for them, you may have to disqualify them. If they are just confused about specific features, determine where improvements can be made and confirm with them your CSR team will assist them.
“I do not want to have to sign a contract.” Most prospects who use this sales objection are already convinced about the product/service but are concerned about contract terms, cash flows, or the company budget. How To Solve? Re-open negotiations of the contract agreement. If your contract is an annual commitment, determine if you can offer a quarterly or monthly payment plan. Also Read: How To Conduct Sales QBRs?
“This is too expensive.” Price is the most common sales objection because it is the most crucial consideration of any purchase. This objection can be difficult to overcome because it is relative to that specific prospect. How To Solve? Avoid making the price a selling point. By attempting to defend price you minimize your effect on the buying process from a sales rep to a middleman. Instead, refocus the call on the product/service value and the ROI.
“We do not have the budget for this product/service right now.” This sales objection is similar but not identical to “This is too expensive.” Overcoming this sales objection is challenging due to the fact that organizations typically have a set budget before making a sales call. How To Solve? This sales objection can be resolved in two ways. One option is to request to reach out to someone higher up in the prospect’s business that makes decisions on the budget. Attempt to convince this person to reorganize the budget. Another option is to arrange a follow-up meeting with the prospect when they expect an opening in their budget.
“We do not have the budget for this product/service right now due to COVID-19.” With the COVID-19 pandemic, businesses are more hesitant to make purchasing decisions. This situational objection is used when companies are implying they would be able to afford your product/service under normal circumstances. How To Solve? Ask the prospect what needs to occur for the company to return to regular business processes. Explain to the prospect how your business can expedite their business’s recovery process. Determine when is the right time for them and propose a follow-up call at that time.
“We need to use our budget for another product/service.” Companies will often designate resources and funds for other purposes when settling on a budget. By using this sales objection the buyer does not yet believe your product/service currently deserves budget allocation. How To Solve? Mention similar cases in which previous/current clients ran into this issue. Explain how their decision to purchase improved the company’s finances, efficiency, or ROI.
“We do not have the business capacity for this product/service” This sales objection is used for one of two reasons. The prospect either believes they lack the necessary resources to effectively use your product/service or is uncomfortable with the integration process. How To Solve? If the prospect’s company truly lacks resources you may have to disqualify them, but as a sales rep, you can study their day-to-day routine to better integrate your product/service. If they don’t understand, explain the process and the expected results. Also Read: Best Revenue Forecasting Techniques
“Our company is transitioning to remote work and does not currently have the bandwidth for another product/service.” Similar to the budget objection due to COVID-19, this objection is circumstantial. The prospect is concerned about purchasing while making the gradual transition to a work-from-home environment. How To Solve? Keep communication with the prospect. Ask them what challenges they face and offer advice to handle their concerns. Furthermore, explain how your product/service will assist their transition rather than prolong it.
“I did not like [a similar product from a competitor].” A prospect is less likely to purchase a product/service if they have been previously disappointed by a similar product/service. However, this type of sales objection does not necessarily mean they are less likely to purchase from your company. How To Solve? Ask the prospect what they did not like about their previous experience. Listen to what most concerns them and explain why your product/service will be an improvement.
“I need to check with my team first.” Many prospects use this sales objection when they do not have decision-making power. In the case they do, they may want a second opinion or are not prioritizing the deal. How To Solve? Regardless of the reason, handling this sales objection is best done by requesting a call with the prospect’s team. Your buyer will more likely feel more confident when their boss or coworkers are involved.
“I need to check with my boss first.” This sales objection more clearly states the prospect does not have decision-making authority, and that may mean you are not speaking to the correct person. Or, they may just not be prioritizing the deal and do not want to make a decision. How To Solve? Confirm the correct person in the company to communicate with. Once you have contact with that individual, ask them questions more and explain features less.
“I don’t have the authority to sign off on this.” Like delegating to their boss, prospects will use this sales objection when they do not have the authority or are not motivated to close a deal. This sales objection could also indicate they are concerned with the terms of the contract. How To Solve? Ask the prospect for the correct person to speak with. Determine if this person is satisfied with contractual terms.
“We’re using [competitor] right now.” Hearing your prospect is already working with a rival can be unsettling. However, this sales objection provides the opportunity for sales reps to assess how they match up against competitors and even lure prospects away from them. How To Solve? Ask the prospect why they chose the competitor. Listen to what they like and don’t like. Express what your product/service can do better than who they currently work with.
“I am happy with [competitor] right now.” Closing a deal with a prospect who uses this sales objection may be the most difficult feat. Buyers most likely will not choose another product if they are currently satisfied. How To Solve? Ask the prospect what components they are most impressed with their current product. Try to discuss with the prospect how you can still offer a lower price or higher value with your product/service.
“[competitor] says [false negative statement about your product/service].” When contacts choose to use this sales objection, they are signaling that their perception of your company/product has been affected by a rival’s testament. The prospect is interested but is also concerned your rival’s comments are true. How To Solve? Respond with a simple “That’s not true.” Prospects will typically move on. If that is not enough to change their mind, provide background information that refutes the false claim. Avoid responding by making negative claims about the competitor.
“I am signed to a contract with [competitor].” When using this sales objection the prospect believes their hands are tied. This warrants the opportunity for your company to be of their assistance. How To Solve? Ask the prospect about the status of their relationship with the competitor and how they feel about their current contractual terms. Determine if you can offer them a discount for exiting their contract. Illustrate how their ROI can alleviate the setback from the sunk cost.
“[competitor] is offering a similar product/service for a smaller price.” Prospects that lack background knowledge of the product/service may use this sales objection because they are unaware of how lower pricing can mean lower value. On the contrary, seasoned prospects may use this sales objection in a more competitive situation. How To Solve? If the prospect does not have enough intel, shift the focus of the product/service’s price over to work. If they do, consider offering a discount but continue to sell value.
“I do not see an ROI.” If your prospect cannot visualize the results from purchasing, they may choose to use this sales objection. The prospect wants to see your pitch align with hard statistics. How To Solve? Prepare a formal pitch to the prospect or their manager. In this pitch, provide forecasts that illustrate the ROI the prospect should anticipate. Also Read: How To Forecast Sales?
“This is a scam.” Small businesses and startup companies who propose new ideas are likely to hear this sales objection. A prospect is less likely to make a purchase in your product/service unless they have evidence of ROI. How To Solve? Take the time to explain with the prospect how your product/service works. Use any testimonials from clients or case studies to prove your product/service is not a scam.
“Call me back next quarter.” Prospects will often use this sales objection if purchasing your product/service does not align with their current quarter goals. However, this objection at the very least gives you a specific time to respond. How To Solve? Ask the prospect what will change in their company’s next quarter. Highlight specific components of your product/service that best help accomplishes their next quarter objectives.
“I’m too busy right now.” Sales reps have to accept that their leads are always busy. When prospects use this sales objection they are either not prioritizing your product/service or are not interested in a full conversation. How To Solve? Reassure the prospect that you are respectful of their time. Determine what is causing them to be busy and show them how your product/service can make their schedule less busy.
“I’m not interested.” Many sales reps may choose to end the relationship when they hear this sales objection. However, a prospecting call is too far in the early stages for a prospect to decide if they are interested or not. They may not believe your product/service is relevant or vital to their business. How To Solve? Avoid immediately trying to change the prospect’s opinion. Let the prospect know you understand and offer to send information that can address business concerns.
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Types Of Objections In Sales
Lack of Need: Businesses must be selective in making purchases, so prospects will not buy your product/service if they don’t believe they need it. This type of sales objection grants the opportunity for sales reps to learn about what current issues their business needs to address. By knowing this, sales reps can provide information on what components of their product/service will resolve their problems.
Lack of Budget: Almost every sales call includes this type of sales objection. Prospects must be confident with the price they are paying because every purchase assumes potential financial burdens. Instead of selling the product/service’s price or lowering it, sales reps can respond to these types of sales objections by selling the product/service’s value.
Lack of Priority: This type of sales objection is either used because the prospect does not have time or does not see buying your product/service as a primary concern. Sales reps should use this sales objection to gain information about where their priorities currently lie and determine if they can fit in their product/service. If the issue appears to be solely time-related, the best option is to schedule a follow-up call when they are available.
Lack of Trust: Buyers will usually prefer doing business with those they are already familiar with. This means sales reps must take sales calls as an opportunity to familiarize their prospect with both the company and product. Additionally, this type of sales objection calls for sales reps to sell the company’s positioning in the market.
Competition Interference: Competition can sway a buyer’s opinion before sales reps make the call. If a prospect makes a sales objection that mentions a competitor, it is because they are likely deciding between your company and rivals. This should alert sales reps to shift their focus of the prospecting call on how your product/service is superior to its competitors.
Also Read: How To Create A Go-To-Market Strategy?
Steps To Handling Sales Objections
Regardless of the type of sales objection, all of them can be resolved with a similar framework. Here is a step-by-step plan for sales reps to refer to when faced with a sales objection:
Prepare for sales objections. As mentioned before, virtually no sales calls are made without sales objections. Come to the prospecting call anticipating certain sales objections and answers.
Listen to full objection(s). Focus on the concerns that the prospect details. Do so with the intention of empathizing with the prospect. Make sure your body language and facial expressions communicate that you take their objections seriously.
Ask for additional information. Request clarification on objections that may not be clear. Continue to ask “What else?” and “Why?” questions to get explanations and final information.
Validate the objection(s). Refrain from rejecting or minimizing the objection. Express to the prospect that their concerns are important to you.
Act on objection(s) appropriately. Attend to the objections quickly. Start with the most important objection and move on to smaller ones.
Discuss solutions to the objection(s). Propose a follow-up call with the prospect. In this call, repeat the objection and how you plan to overcome it.
Confirm the objection has been satisfied. Ask if they are happy with your solution. Inform them of any follow-up meetings or information that may be necessary.
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Why Is Objection Handling Important?
Many sales reps can attest to the fact that a vast majority of sales calls made are met with at least one sales objection. By overcoming sales objections your sales team can sway the opinions of prospective buyers who are on the fence about your product/service. A majority of the most common sales objections can be solved with common sales objective responses. With no sales objections, prospective customers will feel they have no reason not to invest in your product/service. Handling sales objections comes with a certain degree of urgency. Failing to address sales objections is one of the biggest threats to closing deals. If buyers continue to hold on to their objection through the final stages that objection will increase in its concern, which makes it more difficult to solve.
Also Read: Benefits Of Sales CRM Automation
Conclusion:
Aviso has the AI tools to help sales reps and managers in overcoming objections in sales. Our Activity and Relationship Intelligence monitors engagement with prospects through both interactions and email chains and alerts you with insights that improve win rates and deals that are at risk of being lost. Our Conversational Intelligence allows you to understand sales objections and what prospects are saying through NLP meeting transcripts, sentiment analysis, and more. Learn more about how Aviso’s AI can help your sales team with sales objections and answers.
