What are the 4 P's of objection handling?

Salespeople face numerous challenges when managing clients daily. A recent study shows that, on average, a salesperson generates roughly one appointment or referral from every 209 cold calls. In response to hundreds of emails, calls, and meetings, your sales team encounters more rejections than you might imagine.

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Objection handling means responding to the buyer in a way that changes their mind or alleviates 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. Instead of telling your prospect they are wrong, help them come to a different conclusion on their own. If you can't persuade them, it's a good sign they are a poor fit.

In the field of marketing and sales, knowing your customers is good, but understanding their behavior is even better.

Regardless of the industry, product, or services, your customers are the most crucial element of your business. If you can understand customer behavior, your campaign will likely succeed, leading to 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 them. These include:

• Customer & Purchase Behavior
• What is Objection Handling?
• Why is Objection Handling Important?
• The 4 P's of Objection Handling
• Common Objections
• Types of Objections
• Strategies to Overcome Sales Objections
• How Customer Feedback Helps to Handle Sales Objections
• How Deskera Can Help with Handling Customer Feedback

Concept of Customer Behavior and Purchase Behavior

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

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

What is Objection Handling?

Selling is a complex process. Even high-profile companies sometimes find it challenging to close sales. Many factors drive sales, and one of the underrated techniques is overcoming sales objections. It's essential to know how to handle sales objections and address customer concerns through effective objection handling.

Through objection handling, salespeople can develop the confidence, insights, and ability to address these sales objections, helping them understand consumer behavior and differentiate themselves from others.

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 highlight the importance of objection handling and explain how proper techniques can benefit your customers:

1. Whenever you get objections, you can note them down, keeping your thoughts revolving around how to respond. The next time, you will be ready with your solutions.
2. Listening to objections might help you realize the wrong person, team, or technique. This awareness pushes you to make constructive decisions.
3. Objections help to qualify prospects, ensuring you don't waste time on non-targeted customers, decreasing your closing rate. Instead, focus on targeted ones to increase your closing ratio and gain insights into genuine product interest.

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

What are the 4 P's of Handling Objections?

The 4 P's of handling objections are:

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

This 4-P model is a good strategy and a more tactical approach in handling objections.

Let's discuss the 4 P's in detail:

1. Personalization

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

For example, a sales representative listens to a customer regarding their requirement to include a thank you note while delivering the product. However, at the time of delivery, the representative ignores this aspect, resulting in the product being returned.

Personalization is essential to reduce the psychological distance between the customer and the seller. The message should reflect the buyer's need and help customize the communication.

2. Perceived Value

Perceived value builds anticipation and raises the expectations of the buyer. In simpler terms, the sales representative provides opportunities for the customer to move forward despite sales objections.

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

3. Performance Value

Performance value satisfies the customer just as perceived value excites them. It refers to the benefit your product or services provide to the customer.

For instance, if your product cleans a house within 10 minutes, demonstrate this to the customer. Offer them a trial run to understand the product and assess its quality.

4. Proof

Can you show the results?

Everything comes to a halt if you don't provide the relevant proof. Show how you addressed sales objections through customer satisfaction surveys, research, and testimonials. You can also add evidence of feature benefits to build trust.

Remember,

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

What are the Common Objections to Sales?

Handling and tracking objections is the most valuable and practical method to boost your sales.

Accordingly, it is also essential to counter and pose a few common objections encountered by sales representatives and customers.

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 need this product, or it doesn't work with my current setup.
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 people we know.
10. I had a bad experience with the product before.
11. I am not ready for a buyer conversation.
12. Your product is too complicated.
13. We can't invest in the product.
14. I've 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 and overcome the five significant ones.

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 these objections in detail:

1. Genuine Sales Objections

This is the most common type of objection and is legitimate. If the objection laid by the customer is genuine, you need to consider it in your next presentation.

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

In this case, you have the opportunity to shine by offering alternatives matching the customer's budget and closing the deal.

2. Stalls and Put-Offs

A customer may use this type of objection when they feel the process is moving too quickly and they find it challenging to keep up. Sometimes, customers don't have the authority to buy, which delays the process.

For example, a sales representative explains the product in detail, clears the customer's doubts, leading towards a closed deal. However, at the time of payment, the customer becomes reluctant. They delay the conversation and process every time you call them.

This is a sign of put-offs, where the customer deliberately stretches the process without intending to buy.

3. Misconceptions

This type of objection relates to the customer's hesitation to move forward with a new product or service due to uncertainty and doubt.

For example, if there is a new organic shampoo in the market, customers might hesitate to use it, doubting its effectiveness.

To address this, educate the people, bust myths, explain objections, and correct misinformation.

4. Biases and Prejudices

In this objection, the customer is convinced that your product won't solve their problem. This directly indicates that something went wrong in the initial process leading to biases against your product.

For example, if a customer had a bad experience with your product before and received poor customer support, they might declare your product has the worst customer support system.

Hence, it is essential to go back and diagnose the gaps to rebuild trust.

5. Unsolvable Objections

These objections are practically impossible to solve despite your efforts.

For example, if you have a meeting to sell your equipment but the customer states, "The kit looks good, but we've recently purchased the same item and use different models," you won't be able to close the deal.

It is advisable to identify such situations to save time and energy.

What are the Strategies to Overcome Sales Objections?

Let us look at some strategies to overcome sales objections:

1. Show Gratitude

If the customer objects, look at it positively. Empathize with the customer and relate to their position. Acknowledge their viewpoint and provide information to help close the deal.

"I didn't expect you to be uninterested. But it's okay if you feel that way. I understand your concern for not buying immediately, but can you please give me two minutes to explain the product?"

2. Understand Your Customer

Connect with your customers on a personal level and listen to their objections carefully. This approach shows you value their opinions before selling.

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

3. Dig Deeper into the Conversation

Ask open-ended questions to gain more insights into their objections. Understanding what's stopping them helps you perform better in sales.

"I'd be happy to email our information to you. I have a product feature eBook I can send, but can I ask a couple of quick questions to ensure I only send the parts you're most interested in?"

4. Confirm the Objections

Note the objections and restate them in your words. Cross-check with the customer.

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

5. Explain Your Unique Value Proposition

Show what sets you apart from competitors and what value you provide. This approach can interest the customer in buying your product.

"I am not forcing you to buy immediately. I'll demonstrate why thousands of customers trust and use this product. You can decide if it applies to you or not."

6. Offer Solutions

If the customer can't purchase, offer services equivalent to their price. Align with benefits that solve their pain points.

"Our app helps customers provide products that solve their problems. From cleaning to mopping, our product does it all. Sign up for our free trial now and see for yourself."

7. Share Your Customer Stories

Sharing testimonials and feedback enhances the sale process. This method helps overcome objections and build confidence.

"I understand you like features X and Y about our product. We have helped clients improve their key metrics by 20%. May I share our work with you to help make your decision?"

8. Be Honest In Your Approach

Honesty is attractive. Make your pitch fresh and relevant to the customer's needs. Ensuring relevance can build rapport.

"Ms. A, the industry has seen significant changes. These shifts are why our customers signed up for our application. If you want, I can demonstrate this and provide a customized solution for you."

9. Be Proactive In Bringing In The Objections

During the pitch, refer to CRM to learn about past objections. Proactively answering them can win confidence.

"Yes, another customer had the same question as you. We worked over the objections and created this solution to automate the manual process."

10. Offer an Incentive

Encourage customers to take advantage of offers. Customize the incentives based on your business.

"Not a problem, Mr. X. We're offering a free trial to the first 20 customers. Experiment with our product to help you make the right decision."

Overcoming sales objections can be tricky but is not impossible.

It's crucial to understand customer behavior and perspectives and prepare to handle objections.

How Can Deskera Help with Handling Customer Feedback?

Deskera CRM is an easy-to-use, all-in-one platform that assists in contact and deal management, sales pipeline, email marketing campaigns, customer support, and ticketing management.

Deskera helps with customer relationship management, feedback management, HR, attendance, and payroll management software.

With Deskera CRM, you can manage contacts, deals, sales pipelines, email campaigns, customer support, and more from one platform. Generate leads for your business, create email campaigns, and view performance analytics on open rates and click-through rates (CTR).

Deskera CRM will ensure proactive customer service with all tickets stored in one place, categorized by priority, assignee, and status.

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

Deskera CRM will make digitizing customer service a smooth transition by offering insights and analysis. It will make your support staff more efficient and productive by having all data on one platform.

Deskera Books is online accounting software that automates creating journal entries. For each sale and purchase transaction, the double-entry record is auto-populated. The transaction data is consolidated into each ledger account. Their values are instantly transferred to