Chapter 8 Addressing Concerns and Earning Commitment Knowledge

Chapter 8 Addressing Concerns and Earning Commitment

Knowledge Checklist o In order to build prospect commitment, salespeople must understand: n n n 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 o In a testing situation would you be able to provide an example?

Objections defined! o Reasons as to why a prospect will not buy or make a commitment to your product, service or organization

Reasons Why Prospects Raise Objections o The prospect wants to avoid the sales interview. o The salesperson has failed to prospect and qualify properly. o Objecting is a matter of custom. o The prospect resists change. o The prospect fails to recognize a need. o Prospect lacks information.

Major Categories of Objections Category o Need o Product or Service Features o Company or Source o Price o Time Examples IYour time to think over. company is tooit small toor We can’t it. I need have don’t like allafford I the can design, use. color, meet my needs. style. Ask me againto next month IIcan’t spend that when don’tafford need any. you stop I’ve never heard of your should much rightby. now. Maintenance agreement The equipment I have is still company. be included. I’m not 30% ready to buy yet. your That’s higher than good. Your company too big; is I’ll get competitor’s comparable model. ofis product IPerformance haven’t made up my mind. I’m satisfied with the company lost in the shuffle. unsatisfactory. We have a better offer from usewant now. Iwe don’t to commit myself How do I know you’ll be your competitor. Packaging is atoo bulky. toaround until I’ve had chance talk to We have no of room forthe your line. to take care me in future? Iengineering. need something a lot cheaper. Specifications don’t match what Your company was recently in we have now. Your price is not different the newspaper. Are you having enough to change suppliers. The product is poor quality. problems?

Handling Objections o Effective salespeople are able to: n n 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 o Why do most salespeople say that they welcome objections? Don’t objections get in the way of the sales?

Objection-Handling Techniques o o o o Forestall the Objection Compensation Boomerang/translation Direct Denial Indirect Denial Postpone in presentation Third-party reference or support n Applying the URT, through disclosure and proof providers o LAARC is a method for handling resistance should be engaged.

LAARC Method for Handling Buyer Resistance 1. 2. 3. 4. 5. Listen Acknowledge Assess Respond Confirm

Ethical Dilemma (page 175 of text)

Buyer Commitment q The creation of an obligation between the seller and buyer. q The seller obtains the buyer’s obligation to a specific action. Examples of commitment include: n n An Appointment Agreement for next meeting Agreement for product demo A sale q The specific action is usually linked directly to one of the sales call objectives.

Guidelines for Earning Commitment o Look for Commitment Signals n n “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 o Ask Trial Commitment Questions n “What do you think about the what we’ve discussed? ” n “Do you see how this will help your organization? ”

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

Techniques to Earn Commitment q T-Account or Balance Sheet Commitment § Summary Close on Paper q 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 o Ask for the Order/Direct Commitment n Simply ask for the order o Legitimate Choice/Alternative Choice n Give the prospect a limited number of choices o Summary Commitment n Summarize all the confirmed benefits that have been agreed to.

Chapter 8 Case – page 187

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

Traditional Closing Techniques o Professional salespeople often use more than one technique during a presentation

Additional Closing Techniques o o o o 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 o Although traditional closing techniques can be effective under the right circumstances, salespeople should use them judiciously n Many prospects find it difficult to make decisions n Prospects want to make the right decisions, but complete certainty in buying never exists* n Many prospects will postpone decisions if salespeople let them n After a sales presentation, prospects often feel confused and hesitant *relates to the URT

Dealing with Yes! o Obtain the customer’s signature o Provide a plan of action (i. e. , answer the question “now what? ”) o Answer any remaining questions. o Assure the buyer you will follow-up o Thank the customer for the business o 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 o It is helpful for businesspeople to establish in advance at what point they will walk away o Disagreement during a particular negotiation does not necessarily mean that the partnership dissolves o Often such business relationships are reconciled and become very successful partnerships

Dealing with No! o o o 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 Discussion Questions 1. What types of objections did Mark raise? 2. What technique(s) did both Jim and Lisa use to handle the objections put forth by Mark? 3. What closing techniques are present in both video clips? 4. If you were Mark, who would you buy from and why?