Handling 4 Types of Customer Objections

“I’m sorry, but your price is just too high… my department can’t afford it right now.”

“We’d like to talk to some other suppliers and think about our options first.”

“I want to meet with our old account manager.  I don’t even know you.”

Customer objections, whatever their form, are many sales professionals’ Kryptonite.  It’s true that active resistance on the part of the customer – especially if it’s based on a real problem or issue – can be difficult to handle.

Why Customers Object

When we run into an objection, we should keep in mind that the customer is behaving quite normally for anyone about to take a risk and make a purchase.  They have a lot of internal questions that need answering.  Should they make a change?  What happens if they do?  What happens if they don’t?  Is there another option that works better, or is cheaper?  Will purchasing really help them?  Will the gains be worth the cost?

In a perfect world, we’ll be answering these questions throughout the sales call – so, ideally, the objections never even come up.  When they do, it usually means that we haven’t done an adequate job of demonstrating value to the customer earlier in the process.

 The Silver Lining

Many salespeople fear customer objections – and with good reason.  If we fail to address them, we’re very likely to lose the sale.

However, when we know how to handle them effectively, objections can actually help lead to a close.

Sound farfetched?  Think of it this way: objections tell us what the customer is really most concerned about.  We learn what our customer’s primary underlying interest is by listening to their objections.  Are they price-oriented?  Do they have quality concerns?  Are they worried that they can’t trust us?  Or are they just stalling for some reason?

In this regard, we should look at objections positively.  Depending on what the objection is and where it shows up in the sales process, it can tell us a lot about what the customer is thinking and feeling.  Our job then becomes addressing their specific concerns, adding value, and helping them to see the bigger picture.

The Four Types of Objections

Objections can be broken into four general categories.  Each type of objection tends to be associated with a different stage of the selling process.

1. Price (Risk): When the customer mentions cost issues in any way – whether they talk about the budget, the economy, the accounting department, or ROI – we’re basically looking at a price objection.  These pop up frequently when we’re discussing benefits, which makes sense when we realize that worrying about the price is really a question of risk in the mind of the customer.  They are simply worried that they may not be getting a good value for their money. The best way to head off this type of objection before it even happens is by thoroughly justifying the cost.  The customer has an easier time grasping the value of our offering if we have illustrated it through an effective presentation.  Some customers respond especially well to demonstrations or testimonials.  If we neglect to do a good job of lining up costs and benefits, though, we create a vacuum – which the buyer fills with the price issue.  Since no value has been demonstrated, they sense risk and cry “price!”

2. Quality: Sometimes the customer expresses concern about the quality of our product or service. This is actually often another manifestation of the risk concern – the flipside of the “price” coin – and as such may show up during the discussion of benefits. The buying process is an emotional and personal one for the customer; they don’t want to do something stupid or end up looking bad in the eyes of their colleagues or management.  Any purchase is an exchange, and in this case, they focus on the return rather than the price.  The risk is that the product or service will not produce the results they want after they invest in it.   That possibility makes prospects uncomfortable, so they start questioning the quality of our offering, or some other part of our service.  They may ask about our personnel, post-sales support, logistics, or another aspect of customer service.

3. Trust: If a good relationship has not been established successfully early in the engagement, the salesperson may see this objection from the client at some point. The Trust objection has some things in common with the Quality objection but has more to do with how they feel about us (and, by extension, our company) than about the specific product or service we’re offering. Customers who don’t have a relationship of trust with us will be suspicious of our motivations and our credibility.  The reputation (or lack thereof) of our organization, negative prior contacts with our personnel or products, or a perceived lack of evidence in support of our trustworthiness can lead to an attitude of skepticism and distrust.  If we have done a good job of establishing rapport, building a relationship, demonstrating value, and providing support for our claims, this issue is unlikely to come up.

4. Stall: This objection is almost always seen when the customer is trying to make a decision.  It’s often a reaction to pressure combined with uncertainty.  When the customer is at a decision point – especially when making the final purchasing decision – they feel considerable pressure.  A stall at this point signals an internal conflict, and usually reflects some level of uncertainty and anxiety about the purchase.  This means, again, that we may not have demonstrated sufficient value in the call’s earlier stages… but it also means that we’ve reached a critical decision point, which is a good sign. On the other hand, a stall might also mean that the prospect feels unmotivated to make a purchasing decision because we have failed to create a sense of urgency around the sale.  This is why a good questioning strategy is so important.  A customer who is not fully aware of their own needs or the potential risks and benefits associated with making – or failing to make – a purchasing decision will tend to prefer a state of status quo.  It is critical that we make them aware of what they are risking by not buying – because, without that sense of urgency, buying appears inherently riskier.

Reframing Objections

Most objections, whether they are about price or some other issue, can be managed if we get more information and then put it in perspective for the customer.  We can prepare for this by adopting a process called “reframing.”  This both reassures the customer and gets the selling process back on track.

The idea behind reframing an objection is essentially to move the customer away from their focus on the risk they’re taking and help them gain a perspective on the full context of the purchase – the big picture.  We need to make sure we address all those internal questions and doubts so that making a purchasing decision doesn’t seem so scary.

The process of reframing has four parts:

1. Question to understand the customer’s reasoning and determine their emotional state.
2. Minimize the objection to get the customer back on track.
3. Review risks and benefits previously agreed to, or provide evidence or missing information using a FAB statement.
4. Question the customer’s acceptance.

When we hear an objection, we immediately have some idea of what the customer’s focus is.  The first thing we need is more information about their reasoning.  We ask a few questions to better understand why this objection came up.  Why is it a problem?  Who are they comparing us to?  Do they have specifics?

Then we minimize the issue by refocusing on the bigger picture.  Are they considering the total cost of doing business, productivity gains, and bottom-line impact of their decision?  Are they comparing apples to apples?  Are they thinking short-term or long-term?  Where does this fit into their overall business strategy?

In the third step, we go over risks and benefits – whether by reviewing ones we’ve already talked about or bringing up additional risks or benefits we haven’t discussed yet. Are they aware of the benefits your offering will provide?  What will the effect on their business be, if they implement an incomplete or less efficient solution?  In illustrating benefits, targeted FABs are often useful here; we can address a specific concern they have cited and show how we can solve it.  (Depending on the objection, this step may also involve providing missing information or counter-evidence that supports our value claims.)

Finally, we question their acceptance – verify that the customer understands what’s in it for them.   Do they agree that our solution will benefit them?  Do they understand the risk of not buying, or of settling for a less effective solution?

Once the customer agrees with our reasoning, we have successfully reframed the objection and effectively nullified it.  We have overcome another hurdle on the track to a closed sale!

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