Addressing Concerns and Earning Commitment

1. Addressing Concernsand Earning Commitment Module Eight

2. Learning Objectives • Explain why it is important to anticipate and overcome buyer concerns and resistance. • Understand why prospects raise objections. • Describe the five major types of sales resistance.

3. Learning Objectives • Explain how the LAARC method can be used to overcome buyer objections. • Describe the traditional methods for responding to buyer objections. • List and explain the earning commitment techniques that enhance relationship building.

4. Setting the Stage Addressing Concerns • What did the Merril Lynch salesperson quickly discover was his real job? • In the vingette , the Merrill Lynch sales representative describes an opportunity to develop a relationship with a very important client. Ultimately, the secret to gaining the customer’s commitment was to do what?

5. Anything the buyer says or does that slows down or stops the buying process. Objection (Sales Resistance)

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

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

8. L A A R C LAARC Method for Handling Buyer Resistance isten cknowledge ssess espond onfirm

9. What you do: Other Methods for Handling Buyer Resistance • Forestall • Direct Denial • Indirect Denial • Translation or Boomerang Respond to the objection by providing evidence that helps the prospect realize s/he is mistaken. Introduce the source of the objection before the prospect brings it up. Respond to the objection by telling the prospect s/he is wrong. Turn a reason not to buy (the source of the objection) into a reason to buy.

10. Other Methods for Handling Buyer Resistance • Compensation • Question • Third Party Reinforcement What you do: Ask the buyer assessment questions to gain a better understanding of the source of the objection. Use the opinion or data from a third party source to help overcome the objection and reinforce the salesperson’s points. Counterbalance the objection with an offsetting benefit.

11. Commitment The creation of an obligation between the seller and buyer. The seller obtains the buyer’s obligation to a specific action. The specific action is usually linked directly to one of the sales call objectives.

12. What Constitutes Commitment • An Appointment • Agreement for next meeting • Agreement for product demo • A sale

13. Guidelines for Earning Commitment • Resolve “Red Light” Statements Made by the Prospect • I’m not sure that will work. • The price is higher than I though it would be.” • Your delivery schedule does not work for us. • I don’t see the advantage of going with your proposal.

14. Guidelines for Earning Commitment • Look for Commitment Signals • “That will get the job done” • “I didn’t realize you delivered everyday.” • “The price is lower than I thought it would be.” • Ask Trial Commitment Questions • “What do you think about the what we’ve discussed?” • “Do you see how this will help your organization?”

15. Techniques to Earn Commitment • Ask for the Order/Direct Commitment • Simply Ask for the Order • Legitimate Choice/Alternative Choice • Give the Prospect a Limited Number of Choices • Summary Commitment • Summarize All the Confirmed Benefits That Have Been Agreed To

16. Techniques to Earn Commitment • T-Account or Balance Sheet Commitment • Summary Close on Paper • Success Story Commitment • Salesperson Tells a Story of a Business That Successfully Solved a Problem by Buying His or Her Product.

17. Dealing with Yes! • Obtain the customer’s signature • Provide a plan of action (i.e., answer the question “now what?”) • Answer any remaining questions. • Assure the buyer you will follow-up • Thank the customer for the business Yes!

18. Dealing with No! • 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 No!