ENT4122 Ch8 Addressing Concerns PDF

ENT4122: Go to Market Strategies Ch. 8 – Addressing Concerns & Earning Commitment Discussion Activity Sales resistance Buyer’s objections to a product or service during a sales presentation. - Viewed as opportunities to sell - Normal part of a sales conversation - Salesperson will have to:...

ENT4122: Go to Market Strategies Ch. 8 – Addressing Concerns & Earning Commitment Discussion Activity Sales resistance Buyer’s objections to a product or service during a sales presentation. - Viewed as opportunities to sell - Normal part of a sales conversation - Salesperson will have to: Determine customer interest. Measure the buyer’s understanding of the problem. - Correct handling of resistance can lead to customer acceptance 8-1 Anticipate and Negotiate Concerns and Resistance Can you think of a time when you resisted a salesperson’s pitch or presentation? - What were your reasons? - What did the salesperson do correctly? - If you finally agreed to the sale, what did they do that worked? Strategies for Dealing with Objections Buyer wants to avoid the sales interview. - Set appointments to become part of the buyer’s daily routine. Salesperson has failed to prospect and qualify properly. - Ask questions to verify prospect’s interest. Buyer will not buy on the first sales call. - A regular call on the prospect lets the prospect know the salesperson is serious about the relationship. Strategies for Dealing with Objections Prospect does not want to change the current way of doing business. - Salesperson must help the prospect understand there is a better solution than the one the prospect is currently using. Prospect has failed to recognize a need. - Salesperson must show evidence that sparks the prospect’s interest. Prospect lacks information on a new product or on the salesperson’s company. - Salesperson must continually work to add value by providing useful information. 8-2 Types of Objections Need Objection - Resistance to a product/service in which a buyer says that they do not need the product/service. Buyer has recently purchased or does not feel a need for the product category. “I am not interested at this time.” Product or Service Objection - Resistance to a product/service in which a buyer does not like the way the product/service looks or feels. Buyer might be afraid of product reliability. “I am not sure the quality of your product meets our needs.” 8-2 Types of Objections Company or Source Objection - Resistance to a product/service that results when a buyer has never heard of or is not familiar with the product’s company. Buyer is intensely loyal to the current supplier. “I am happy with my present supplier.” Price Objection - Resistance to a product/service based on the price of the product being too high for the buyer. Buyer has a limited budget. “We have been buying from another supplier that meets our budget constraints.” Time Objection - Resistance to a product/service in which a buyer puts off the decision to buy until a later date. Buyer needs time to think it over. “Get back with me in a couple of weeks.” 8-4 Negotiating Buyer Resistance LAARC: An effective process for salespeople to follow to overcome sales resistance. - Listen: Salespeople should listen to what their buyers are saying. - Acknowledge: Salespeople should acknowledge that they received the message and that they appreciate and can understand the concern. - Assess: Salespeople should ask assessment questions to gain a better understanding of exactly what their buyers are saying and why they are saying it. - Respond: Based on their understanding of what and why the buyer is resisting, the salesperson can respond to the buyer’s resistance. - Confirm: Salesperson should ask confirmatory questions—response checks to make sure that the buyer’s concerns have been adequately met. Techniques to Answer Sales Resistance Forestalling - Take care of the objection before the prospect brings it up. “I’ve talked to several customers that were concerned about our return policy. Let me put this to rest that we do have some return options that our similar to our competitors. I hope this answers your concern.” Techniques to Answer Sales Resistance Direct Denial - You have heard incorrectly. We are not raising prices. “You have heard incorrectly. We are not raising prices.” Techniques to Answer Sales Resistance Indirect Denial - Soften the blow when correcting a prospect’s information. “We have heard that rumor, too—even some of our best customers asked us about it. Our senior management team has guaranteed us our prices will hold firm through the rest of the year.” Techniques to Answer Sales Resistance Translation or Boomerang - Soften the blow when correcting a prospect’s information. Buyer: “Your company is too small to meet our needs.” - Bill Middleton from Dial Electronics had the same concern going in. Let me tell you why he is comfortable with our proposal Salesperson: “That is just the reason you want to do business with us. Because we are smaller, you will get the individual attention you said you wanted.” Techniques to Answer Sales Resistance Compensation - Counterbalance the objection with an offsetting benefit. “Yes, our price is higher, but you are going to get the quality you said you were looking for and a money-back guarantee if you’re not satisfied.” Techniques to Answer Sales Resistance Question or Assess - Counterbalance the objection with aAsk the buyer assessment questions to gain a better understanding of what they are objecting to. “Your concern is price. Can you please tell me who you are comparing us with, and does their quote include any service agreement?” Techniques to Answer Sales Resistance Third-Party Reinforcement - Turn a reason not to buy into a reason to buy. “I had a client in last week with the same concern. Let me tell you why she is comfortable with our product.” Techniques to Answer Sales Resistance Feel–Felt–Found - Salesperson relates that others actually found their initial opinions to be unfounded. Buyer: “I do not think my customers will want to buy jackets are that expensive. We generally sell lower-priced outerwear.” Seller: “I can certainly understand how you feel. Lisa Richardson down the road in Thomasville felt the same way when I first proposed that she go with these jackets. However, after she agreed to display them in the front of her store, she found that her customers started buying them—and that, in turn, provided her with larger margins. In fact, she called me less than a week later to order more!” Techniques to Answer Sales Resistance Coming-to-That - The salesperson tells the buyer that they will be covering the objection later in their presentation. Buyer: “I have some concerns about your delivery dates.” Salesperson: “I am glad you brought that up. Before fully discussing our delivery, I want to go over the features that you said were important to you that will help you better understand our product. Is that okay?” 8-6 Securing Commitment and Closing A salesperson should allow the prospect to make a rational choice by giving them enough mental space. Commitment signals: Favorable statements a buyer makes during a sales presentation that signal buyer commitment. - Allow the salesperson to move the process forward Salespeople should make sure that the buyer has the right information to make an intelligent decision. Favorable Buying Signals When the prospect: Makes a positive statement about the product Asks who else has bought the product Asks about price, delivery, installation, dates, or service Asks about methods of payment Begins to study and handle the product Appears more relaxed Begins to interact more intently with the salesperson 8-6 Securing Commitment and Closing Commitments may be determined through the use of trial commitments. A prospect’s readiness to buy can be tested by asking open-ended questions. Red light statements - Commitment caution signals - Must be resolved to the buyer’s satisfaction before asking for a commitment Exhibit 8.12: Techniques to Earn Commitment Direct commitment*: Simply ask for the order. Alternative/legitimate choice*: Give the prospect a limited number of choices. Summary commitment*: Summarize all the confirmed benefits to which there has been agreement. T-account or balance sheet commitment*: Summary close on paper. Success story commitment*: Salesperson tells a story of a business that success fully solved a problem by buying their products. 8-13 Traditional Commitment Methods Standing-room-only close - This close puts a time limit on the client in an attempt to hurry the decision to close. “These prices are good only until tomorrow.” Assumptive close - The salesperson assumes that an agreement has been reached. The salesperson places the order form in front of the buyer and hands them a pen. 8-13 Traditional Commitment Methods Fear or emotional close - The salesperson tells a story of something bad happening if the purchase is not made. “If you do not purchase this insurance and you die, your wife will have to sell the house and live on the street.” Continuous close - The salesperson assumes that an agreement has been reached. The salesperson places the order form in front of the buyer and hands them a pen. Minor-points close - Seeks agreement on relatively minor (trivial) issues associated with the full order. “Do you prefer cash or charge?” Conclusion Professor Roberts Email: [email protected] Office: 144 RSB