What are the 4 P's of objection handling?

Sales people have a hard time managing clients all day.  A recent study shows that, on average, a salesperson generates roughly one appointment or referral from every 209 cold calls. In return to this daily delivery of hundreds of email, making calls, and meetings, your sales team face more rejections than you can imagine.

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Objection handling means responding to the buyer in a way that changes their mind or alleviate their concerns. Some reps argue with their prospects or try to pressure them into backing down but this isn't true objection handling. Prospects typically end up more convinced than ever of their position; worse, salespeople lose the trust and rapport they have built up. Instead of telling your prospect they are wrong, help them come to a different conclusion of their own accord. And if you can't persuade them, that is a good sign they are a poor fit.In this

In the field of marketing and sales, knowing your customers is good, but knowing about their behavior is not only good but great.

Regardless of the industry, product, or services, your customers are the most crucial element of your business. If you can understand the customer's behavior, it will be a sure yes, that your campaign will work out well, followed by increased sales and revenue.

But if you fail to understand, the whole process will fail. This article establishes the relation between customer behavior and the aspects involved in the sales process. In this article, we will look at common types of objections and how to handle the. These includes:

• Customer & Purchase Behaviour
• What is Objection Handling
• Why is Object Handling Important?
• 4 Ps of Objections
• Common Objections
• Types of Objections
• Strategies to overcome sales objections
• How can customer feedback helps to handle sales objections
• How can Deskera help with handling customer feedback

Concept of Customer Behaviour and Purchase Behaviour

The concept discussed in the overview is Customer behavior or Consumer Buying Behaviour. The process refers to the actions taken by the customers and potential customers involved in buying and using the products. In other words, it is a decision process to understand the purchasing behavior of the customers in terms of need and how much value they get after fulfilling those needs.

This concept is also known as buying behavior of the consumers that is the driving force behind any marketing and sales process.

What is Objection Handling?

There is no doubt that selling is a complex process. Sometimes, even high-profile companies find it challenging to close sales. Many factors drive sales, and when it comes to imparting sales techniques, there are numerous challenges for which companies aim to conquer. Still, one of the most underrated techniques is overcoming the objections to the sale. It's essential to know how to handle sales objections and address customer concerns through objection handling.

Through objection handling, salespeople can develop the confidence, insights, and ability to handle these sales objections that can help them understand the consumer's behavior and, as a result, separate them from the rest.

Why is Objection Handling Important?

Objections come in all shapes and sizes; whatever the type of objection, it's essential to prepare for all.

Every ignorance can cost you big, so it's better not to underestimate the key to objection handling.

Don't believe me?

The following three reasons can highlight the importance of objection handling and explain how proper the technique can be for your customers.

1. Whenever you get objections, you can note them down, and this will keep on revolving your thoughts about how you can respond to the same, and the next time, you will be ready with your solutions.
2. Listen to the objections as it might lead to realizing the wrong person, team, or technique. With this, you can find out what you need to know to push you to make constructive decisions.
3. Objections help to qualify prospects, such that you don't waste time reaching a non-targeted group of customers that decreases your closing rate. Instead, allow the targeted ones to increase your closing ratio and provide insights into the product's genuine interest.

1. NOTING THE OBJECTIONS ENHANCES THOUGHT PROCESS

2. LISTENING TO OBJECTIONS LEADS TO REALIZATION

3. OBJECTIONS HELP TO QUALIFY PROSPECTS

Remember,

An objection is not a NO; it's a speed bump that can accelerate leads only if you choose to consider the technique and move with a big YES.

What are the 4Ps of Handling Objections?

The 4 Ps of handling objections divides into the following:

1. Personalization
2. Perceived Value
3. Performance Value
4. Proof

This 4-P model fits into the place and is known as a good strategy and a more tactical approach in handling the objections.

Let's discuss the 4Ps in detail:

1. Personalization

Personalization means customizing the message based on the consumer's needs and style.

Let's understand the concept through the following example!

The sales representative listens to the customer regarding their requirements to include a thank you note while delivering the product. Still, at the time of delivery, the sales representative ignores this aspect, and as a result, the product gets returned to him.

Personalization is essential to reduce the psychological distance between the customer and the seller. The message reflects the buyer's need and can help in the customization of the message.

2. Perceived Value

Perceived value builds anticipation and raises the expectations of the buyer. In simpler terms, the sales representative provides the opportunity to the customer to put their step forward through sales objections.

It's simple!

If your package arrives cleanly and professionally, the customer will always be in awe of it. It makes the customer feel good about their decision.

3. Performance Value

Just as perceived value excites the customer, performance value satisfies the customer. In other words, it is the value that your product or services do to the customer.

Let's say,

If your products clean the house within 10 minutes, demonstrate and present the same to the customer. Please give them a trial run to understand the product and know about the quality too.

4. Proof

Could you show us the results?

Everything comes to a halt if you don't show the relevant proof. It would be best to show how you dealt with the sales objections through customer satisfaction surveys, research, and customer testimonials. You can also add evidence of feature benefits that can build the trust of the concerned.

Remember,

You have a much better chance of getting the business if you personalize your presentation, maximize your perceived value, demonstrate your performance value, and offer proof sources.

What are the Common Objections to Sales?

Till now, we have understood that handling and keeping track of objections is the most valuable and practical method that can help your sales go.

Accordingly, it is also essential to counter and pose a few of the common objections that the sales representative and the customer can encounter.

Let's dive into the 15 most common sales objections:

1. It's too expensive
2. I can get a cheaper version somewhere else.
3. I will talk to my team and get back to you.
4. I am satisfied with the competitor.
5. I don't have the requirement for this product, or the product doesn't work without the current setup. I don't want to lock myself with the contract.
6. Call me back next quarter
7. How did you get my information? I don't know you.
8. I am not authorized to make the decision.
9. We only work with the people we know.
10. I had a bad experience with the product before
11. I am not ready for the buyer conversation.
12. Your product is too complicated.
13. We can't invest in the product.
14. That's fine, but I have heard rumors about your company.
15. Does your product offer X, Y, or Z points?

What are the Types of Sales Objections?

Out of the 15 common sales objections, it is crucial to identify the five significant sales objections and overcome them.

The objections, from the consumer perspective, can be discussed below:

1. Genuine Sales Objections
2. Stalls and Put-Offs
3. Misconceptions
4. Biases & Prejudices
5. Unsolvable

Let's discuss the above objections in detail:

1. Genuine Sales Objections

This is the most common type of objection, which is the genuine one. If the sales objection laid by the customer is legitimate, then you need to consider them in the following presentation such that next time, you can take this forward.

For example, if a customer states that "Your overall services cost $400K, our budget spending is only $200K". The above example is a genuine objection because the customer is genuinely interested in your product/service but isn't ready to invest that much.

In this case, you can have the opportunity to shine by giving them the alternatives that can match the customer's budget and end up closing the deal.

2. Stalls and Put-Offs

A customer can use this type of objection where they feel that the series of events are going too fast and they find it challenging to handle altogether. Sometimes, customers don't have the authority to buy the product/ services, which delays the sales process.

For example, a sales representative explains the product description in detail, genuinely clears the customer's doubt, making it away towards a closed deal but just at the time of payment, the customer becomes reluctant. You call them for different processes, but they delay the conversation and the process every time.

It is a sign of put-offs where the customer deliberately stretches the process without even the intention to buy.

3. Misconceptions

This type of objection is related to the customer's hesitation to move forward with the product or service, just because it is new in the market and doesn't have a significant footfall. It can be due to uncertainty and doubt regarding the product, and the customer is reluctant to give it a try.

For example, suppose there is a new organic Shampoo in the market. In that case, the customers might have the misconception of not using every kind of organic product for their hair, or maybe they don't want to experiment with the new shampoo.

In this process, you need to educate the people and bust their myths and conceptions, explain the objections and then correct the misinformation.

4. Biases and Prejudices

In this objection, the customer is confirmed with the thought that you won't solve their problem. This objection directly means that you have missed something in the initial process that has led to your product's biases.

For example, if the customer purchased your product and contacted customer support for their issues after their purchase, then maybe your customer support didn't help the way it was supposed to be. This might have ended with customer's distress with your system, and they might declare that your product has the worst customer support system.

So it is essential to go back and diagnose the gaps between the customer and you. By doing so, you can build their trust again.

5. Unsolvable Objections

These are the kinds of objections that are practically impossible to solve. You put in a lot of time and effort, but still, you cannot solve the problem.

For example, you have a meeting with your customer to sell your equipment, and they say, "The kit looks very good to us, but unfortunately, we have recently purchased the same item, and we use a different set of models in our office.

Under these conditions, you won't be able to close the deal. So it is advisable to perform the discovery and identify these situations to save your time and energy in investing your sources.

What are the Strategies to Overcome Sales Objections?

Let us look at some of the strategies you can use to overcome sales objections:

1. Show Gratitude

If the customer objects, look at this positively. Try to empathize with the customer and then relate with their position. Acknowledge the customer's viewpoint and then provide the information to help you close the deal.

Like this,

"I didn't expect you to be not interested. But it’s ok if you feel the same way. I understand your concern for not buying the product immediately but, can you please give your two minutes to listen about the product”

2. Understand Your Customer

Here, connect with your customers on a personal level and listen to their objections carefully. This method shows that you value the customer's opinions before selling out.

Like this,

"That's right, Mr. A. I understand your interest. One of our clients Mr. Y told the exact same thing, and now he is using our solution to improve their closing rates. I understand that your suggestion will help us increase our metrics. Thank you for sharing your points with us”

3. Dig Deeper into the Conversation

It is essential to ask the customers an open-ended question to gain more insights into their objections. It is crucial to understand what's stopping them from being such that you can use the information to perform the sales well.

Like this,

"I'd be happy to email our information to you. I have a product feature eBook that I can email you, but do you mind if I ask you just a couple of quick questions so I can only send you that part that you'd be most interested in?"

4. Confirm the Objections

Always note the objections and restate them in your understanding of words and language. You can also crop-inspect with the customer regarding the protests.

Like this,

"I have noted down all the points, Mr. A. Our team will get back to you with all the updates soon, and thank you so much for making us understand the pain points. We will consider this in all our new products and services."

5. Explain Your Unique Value Proposition

Here, it would help if you showed what sets you apart from your competitors and what value addition you provide, among others. This method can help the customer know about your uniqueness that might interest them in buying your product.

Like this,

"I am not forcing you to buy the product immediately. I'll just demonstrate some of the reasons why thousands of customers are showing trust and using this product. After that, you can decide if it applies to you or not. You can decide yourself."

6. Offer Solutions

If the customer is not able to purchase, offer them the services equivalent to their price. Align with the benefits that can solve the customer's pain points.

Like this,

"Our app helps the customers to provide products that solve their problems. From cleaning to mopping, our product does it all. It's very convenient and easy to use. I can refer you to any number of customers we've helped make successful. But don't just take our word for it—sign up for our free trial now and see for yourself."

7. Share Your Customer Stories

Sharing testimonials, customer feedback, and updates from other customers enhance the sale process. This method helps to overcome objections and give customers confidence in your products and company.

Like this,

"I understand that you like features X and Y about our product. We have helped clients improve their key metrics by 20%. In the past. If you don’t mind, I can share our works with you so that you can make your decision well.”

8. Be Honest In Your Approach

Honesty attracts better than anything else. Skip the used sales pitch and make it fresh according to the customer's needs and converse accordingly. Also, ensuring the relevance and customer's objections can help build a good rapport with them.

Like this,

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"Ms. A, as per my knowledge, the industry has witnessed major changes. These shifts are the reason why our customers signed up with our application. If you want, I can demonstrate the same with you and provide a customised solution for you"

9. Be Proactive In Bringing In The Objections

During the sales preparation pitch, refer to the CRM to learn about the objections that have been encountered earlier. You can use this to answer them proactively, which can help win the customer's confidence.

Like this,

"Yes, last time we encountered the same question of yours by some other customer. We worked over the objections and came up with this solution to automate the whole process, which was earlier done manually."

10.  Offer an Incentive

Introduce and encourage your customers to take advantage of the incentive offered by you. Depending upon the type of business, you can customize it. This can give a chance for both parties to work together and build trust.

Like this,

"Not a problem, Mr. X. Just to share, we are giving a free trial of the product to the first 20 customers. Please take a look and experiment with our product to help you make the right decision."

Overcoming the sales objections can be tricky but is not impossible.

It's just important to understand the customer's behavior and perspectives and get prepared to handle the objections.

How can Deskera Help with Handling Customer Feedback?

Deskera CRM is an easy-to-use, all-in-one platform that will assist you in contact and deal management, sales pipeline, email marketing campaigns, customer support, and ticketing management, to mention the important ones.

Deskera can also help with customer relationship management, customer feedback management, HR, attendance, and payroll management software

With Deksera CRM, you can manage contact and deal management, sales pipelines, email campaigns, customer support, etc. You can manage both sales and support from one single platform. You can generate leads for your business by creating email campaigns and view performance with detailed analytics on open rates and click-through rates (CTR).

Deskera is an all-in-one software that can help your business bring in more leads, manage customers, and generate more revenue.

Deskera CRM is an easy-to-use, all-in-one platform that will assist you in contact and deal management, sales pipeline, email marketing campaigns, customer support, and ticketing management, to mention the important ones.

Deskera CRM will ensure proactive customer service with all the tickets stored in one place. These would be categorized based on their priority, assignee, and status.

Your business can also connect your customer support email in Deskera to receive and respond to customer issues and queries.

It will make digitizing customer service a smooth transition for you by giving you insights and analysis of working and not working. Deskera CRM will also make your support staff more efficient and productive by having all the data on one platform

Deskera Books is online accounting software that can help your company save time by automating the process of creating journal entries. For each sale and purchase business transaction in debit and credit terms, the double-entry record will be auto-populated. The transaction data is consolidated into each ledger account by Deskera. Their values will be instantly transferred to the corresponding financial reports.

You can have access to Deskera's ready-made Profit and Loss Statement, Balance Sheet, and other financial reports in an instant.

Key Takeaways

In this article, we can go through:

• Understanding of customer’s purchase behavior drives marketing and sales
• Objection handling is an underrated technique, but it’s a gold mine that separates the method from the rest
• The three reasons that highlight the importance of objection handling
• An objection is not a NO!
• Personalization, Perceived Value, Performance Value, and Proof are the 4 Ps of handling objections
• There are 15 common objections to sales that the sales representative goes through
• Major 5 types of sales objections include Genuine, Stalls, Misconceptions, Biases and Unsolvable Objections
• Ten strategies can help you to overcome sales objections along with the solutions

We hope this article got you familiar with the concept of customer behavior, sales objections, and the proven steps to overcome them.

Remember, as soon as you encounter the sales objections and process, the more you will handle objections well and keep your customers safe with you.

Related Articles

Dealing with sales objections on the spot can be one of the most challenging parts of the job, even for pros. If you don’t know how to address a customer’s objection in the heat of the moment, then your entire sales pitch can collapse instantly.

Sales objections are issues or concerns a customer has about a product or service that prevents them from making a purchase. It can be anything from the price being too high to not understanding how the service works.

With the right knowledge and toolkit, it’s possible to become a pro at effectively handling a sales objection.

Using the sales objection handling methods in this article, you’ll learn how to keep customers interested, reassure them that they are making the right decision, and ultimately close more sales.

Types of Sales Objections

During the sales pitch, sales objections are common, and they often mean that the value proposition hasn’t been communicated well. Common sales objections fall into four categories: need, urgency, trust, and budget. 

Examples of each type of objection include price, fit, interest, and time-related issues. A sales rep must be prepared to address these objections to move forward with the sale. Types of sales objections include:

Lack of Budget

Sales experts must be creative and flexible to close the deal when budget constraints come up. For example, breaking the price into small billing options can help make the cost more manageable for a client.

Focus on the value before discussing the price. This will help demonstrate why spending money on your product or service is worth it. Make your offer flexible and ask what part of the offer your client doesn’t need can also help reduce costs. 

Price objections are common, so it’s important to be ready with an effective response. Demonstrate the value of your product/service to showing clients the risk vs. reward of investing in your solution. 

Paint a picture of where your solution will take them and how it will benefit their business to justify the financial risk they may be taking. 

Lack of Trust

It’s important to create a genuine relationship with prospects by asking questions and showing interest in what they do. They will feel more at ease talking about their needs and desires due to the relationship-building process. 

Avoid seeming overly self-centered when discussing your offer. Instead, turn the conversation into a two-way street. Occasionally take it away from selling and talk about other topics.

When sales objections arise during the process, it’s important to get past them by jogging their memory or nurturing them through the sales cycle. By focusing on your company’s value in an elevator pitch, you show that you are a leader in the market. 

This will help build trust between you and the customer, which is key for successful sales conversations.

Lack of Need

If you don’t know what your prospect wants/meeds, you can’t give them a solution that will work. Take your time and look into different options to determine why your customers need what they do.

Another of these sales objection handling methods is to ask layered, open-ended questions to understand your customer and what they require. Have in-depth knowledge of their industry so that ideas and insights can be provided. 

Once you know the reason, use this chance to show how valuable the opportunity is by selling the result instead of the process. Again, this is a perfect opportunity to share knowledge with the client and gather feedback.

Lack of Urgency

Discuss the customer’s time-related hesitations (sales objections like these happen often). This can be done by telling them about the benefits and rewards of opting in immediately. Make a stronger argument for why the problem needs to be resolved urgently by including ROI, cash value, and profit margin figures.

Another way to deal with a lack of urgency is to ask the customer to share what other tasks have their attention. 

You can tell if their sales objections have merit if they respond with specific timing concerns or evasive explanations. If this is the case, it could be beneficial to make plans to meet with them later to discuss the problem in greater detail and to offer alternative remedies.

Methods Of Handling Customer Objections

There are four straightforward steps to overcoming sales objections. The problem of how to handle objections in sales is not a new one. The following sales tips have been tried and tested to overcome sales objections:

Listen Deeply

When buyers raise sales objections; listen carefully and without prejudice. This means avoiding the urge to act quickly and taking the time to understand what the buyer is saying. 

Show that you are paying attention through your body language if you are on a video call and what you say. Also, ask permission to learn more about the buyer’s sales objection. This will help you understand their problem better before you offer a solution.

Listen to these sales objections without reacting defensively; instead, stay focused on the business problem and listen with intent.

Once you’ve heard everything, restate the problem as you see it. It’s acceptable to ask, “What else?” if you want to know more. or “Why?” If you take the time to do this, you can better understand the buyer’s concern and respond appropriately.

By taking the time to listen carefully, you’ll be better able to handle any objections during negotiations and reach a solution that works for both sides. You’ll show that you genuinely pay attention to what they are concerned about.

Respond Accordingly (to the real issues)

When answering sales objections, begin with the most important one. This shows that you care about the customer’s problems and are willing to work with them to find a solution. Make sure your answers are clear and to the point so you don’t confuse or overwhelm them.

Try your best to address any issues right away (if you can). This is one of the sales objection handling methods that will show your commitment and help them trust you. Agree that the objections your prospect brings up are valid.

Empathy and understanding can go a long way when closing a deal. Suppose you don’t take their sales objections seriously. In that case, you probably won’t be able to persuade them of the value of your product or service. Lastly, if you have the power to handle an objection yourself, do so. If not, explain that you need to run it up the flagpole and set up a time to discuss it again.

Overcoming Sales Objections By Confirming Understanding

Confirming that you understand is a key part of the sales process. It’ll ensure that everyone is on the same page. Ask clarifying questions during your sales pitch to find objections that were not mentioned. 

Restate the objection in this process to demonstrate understanding and enhance credibility. When paraphrasing your customer’s concerns, be concise and accurate. 

Ask open-ended questions to get more information about their needs and wants, and then summarize and repeat their objections. This will help you confirm your understanding of their sales objections before moving on to the next step in the sales process. Finally, ensure you ask if your summary of their objection is correct, so there is no confusion or misunderstanding. 

Best Tips From Scaling With Systems Sales Experts On Ways To Handle Customer Objections 

Closing deals with clients objecting to work with a third party

If a client does not want to work with a third party, don’t ever play the game of “How are we different?” Instead, you should leverage the benefits of the third party and inform the prospect that this is just a small percentage of what Scaling With Systems can do for them.

Handling clients who wish to consult with family before closing the deal

When a client wants to consult with a spouse or family member, you need to ensure that the prospect understands that the service is specifically for them. Most of the time, they don’t even need to talk to their spouse; they need to take a little more time to assess and use that time to talk themselves out of something they want. 

You do not let them get off that call; you loop back around and ask them if their spouse would be happy with them doing this for themselves and use that as an opening to go a bit more in-depth.

Handling clients who wish for a lower pricing quote

If a client says, “that’s more than I thought,” and that they are willing to invest half of what is being asked, an initial reply could include saying, “I did not know that there was a ceiling on what you are able to invest in yourself.” Then work your way around to include an offer of a guarantee to give the prospect a feeling of security so that they will be willing to close.

Handling clients who reject offers after getting all details

If, after you have given them all the information, they say they do not have the time, ask them what’s happening in their day that they cannot eliminate. Point out that moving something around in their day would mean they could work on building something for their future.

You remind them that they want to grow and that if they look forward, they can achieve. Make it personal by throwing in my journey with Scaling With Systems as an example of working consistently toward something you want.

Pro Tip! When you are scaling your operations, hiring a sales team is going to help you take more prospects through the sales process. Learn more about how to hire a sales team in this article next.

Key Takeaways: Handling Objections In Sales 

Sales objections are not an absolute no. You can sway your customer’s mind by using the four steps outlined in this article. Some key takeaways from this article:

• Loop back to something the customer said to highlight how the good or service is beneficial and timely.
• Do not stick to objection scripts but tailor each call, video call, or sales meeting to each potential client. 
• If you do not have an immediate answer for a customer’s sales objection, buy time by asking the question they asked back to them to be able to reply effectively.
• If someone is saying they do not have time, remind them that scaling is what they want and that they must take steps to make it happen.

Common Sales Objections Questions: FAQs 

What is ‘sales objection?’

‘Sales objection’ is a term used to describe a customer’s resistance or hesitation when considering a purchase. It can be expressed in different ways, such as asking for more information, expressing doubts about the product or service, or simply refusing to buy. Objections are a normal part of the sales process and should not be taken as a negative or an absolute no.

What are the 4 P’s of objections in sales?

The 4 P’s of objections in sales are Personalization, Perceived Value, Performance Value, and Proof. These are the points where customers hesitate to purchase or buy in. These are also some key points that a sales rep must focus on to close a sale.

What are the types of objections in sales?

There are two main types of objections: those based on facts (substantive) and those based on feelings (psychological). Substantive objections are based on what the customer knows about the product or service, such as the price, quality, features, etc. Psychological objections are based on the customer’s feelings about the product or service, such as trust, comfort level, etc. 

What are the sales methods of handling objections?

Acknowledge the Objection: The first step in handling an objection is acknowledging it and showing that you understand the customer’s concern. 

Ask Questions: Asking questions can help you better understand the customer’s objection and provide an opportunity to address it.

Offer Solutions: Once you clearly understand the objection, you can offer solutions that address the customer’s concern and move the sale forward.

Reiterate Benefits: Reiterate the benefits of your product or service to help the customer understand why it is the best choice for them.

Final Thoughts On Overcoming Sales Objections

It can be hard to get past sales objections when working with a new prospect. Unfortunately, quite a few greener sales reps view sales objections as a call to battle, leading to poor handling. However, they can be good when broken down and approached correctly, as they help build a relationship with your client.

If you know the four sales objection handling methods, you’ll have the tools and knowledge to sell anything successfully while building relationships and ensuring your customers are happy.

We help businesses and individuals find the right customers to grow quickly and scale their operations. Scaling With Systems will work with you to develop a profitable client acquisition strategy.
Book a free consultation call with one of our experts if you’re serious about finding a successful solution for your company, and they’ll contact you.

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