Chapter 6
Handling Objections
If I were to create an ideal scenario, you'd be reading this chapter for fun, not purpose.
You have completed the trial close, and:
- You know how to go directly from showtime to add-on time.
- Your trial close keeps you in control.
- You Show, Show, Show, Until They Say No!
Many salespeople still interpret a customer's objection as a no sale. We think that an unwillingness to buy now means that the customer has rejected the merchandise and spurned us. In fact, customers started objecting as soon as the first salesperson ever started selling, and for as many reasons as there are stars in the sky.
Objections are a big part of the retail game, but they don't have to mean you've lost the sale.
Customer objections, unless they are handled perceptively, with tact and finesse, will keep you from doing what you want to do: make the sale. This book is devoted entirely to teaching the process for successful retail selling. Each and every step in the process is vital, but this chapter should be the least significant of them all if you have opened, probed, and demonstrated well. But if you haven't, this chapter may be the most significant of them all. If you paid close attention to the previous chapters, it's time to get out your magnifying glass for this one.
Retail selling has a long history; people have been engaged in it since the first marketplace opened thousands of years ago. All salespeople have somehow personalized the process of selling by adapting their individual skills and personalities to relate to the customer. Through trial and error, some figure out what works. Some never do. The cost of trial and error, however, is way too expensive today.
Suppose there are 500 people on an island, completely cut off from civilization. One person becomes ill, and suddenly there's a need for someone to assume the role of doctor. Someone volunteers to take on this assignment. The patient leans over and says, “I've got a terrible pain in my side.” The doctor-person smacks the patient on his side, and the patient dies. The “doctor” makes a note in his book not to do that anymore when a patient complains of a side pain (good move!).
Over the years, the “doctor” sees many more patients with many different illnesses, and tries many different methods to cure them. As he attempts to unravel the mysteries of medicine through trial and error, many of his patients die. Each time, he makes a note in his book.
One day, someone comes in with similar pain in the side, and the “doctor” operates to remove a little inflamed object from inside the patient. Wonder of wonders, the patient lives, and the “doctor” writes this in his book.
Eventually, the “doctor” dies, and someone else offers to assume the role of “doctor.” The new “doctor” then has two choices: start from scratch using trial-and-error experiments on everyone who comes in with a complaint, or read the other “doctor's” book.
To save time, I am going to lay out a precise formula that will get you past objections and to the cash register with more regularity. Never mind that you'll be following someone else's book. You want economic results, not intellectual property rights. It's not necessary to reinvent the wheel every time you need something that's round. If humans had to learn everything in life by trial and error, we wouldn't learn much.
Some people nevertheless refuse to read “the book.” If they do read it, they resist using what they learn from it, or they allow themselves to fall back into familiar, albeit unproductive routines. The techniques presented in this book, and in this chapter in particular, are the result of an intensive study of what great salespeople in our society have done, from retailers to wholesalers, from sellers of religious ideas to sellers of philosophy.
All of these sales leaders have something to contribute to the way we conduct ourselves in our retail stores. Their accomplishments and experience have been distilled here into the precise formula that will work in handling customer objections. Study this chapter and learn to use the formula. In some cases, use it verbatim, as it is written. Then, surely, there will be no need to reinvent the wheel.
There are few aspects of selling that are more steeped in myth than the process of handling objections. This is also the area where most salespeople fall down. Remember, the bottom line is that most of the time, people buy for two reasons: trust and value. If those are the reasons your customers do buy, it follows that the reasons they don't buy are a lack of trust or value.
It's a bonus if the customer trusts you as a salesperson, but, as discussed in the demonstration, it won't help you with the sale if the value of the merchandise has not been established. Similarly, it is difficult to close the sale if the customer feels no trust in you. Either way, you're going to get an objection, although it's easier to surmount the problem of the product's perceived value than it is to overcome lack of trust in you.
You Didn't Do Enough
If the customer isn't buying because she thinks the item lacks value, she's letting you know that she hasn't had her needs or desires met. She hasn't been persuaded or been offered enough reasons to make a positive decision about the merchandise today. If the customer isn't buying because she doesn't like you, then you probably have not done a good job of establishing empathy and trust, or even moving past resistance.
“I'll be back.”
“I want to shop around.”
“Can you hold this for me?”
“I'm not sure; I really should bring my wife (or husband) in with me.”
These kinds of objections are called stalls, and they're used when the customer feels uncomfortable or embarrassed about telling you the real reasons for her objection.
Many customers may have difficulty stating their true feelings, no matter how well or how poorly you have done your job. Ironically, the better you are at building trust with customers, particularly during the probing process, the more difficult it may be for them to state their actual objections. They may feel almost guilty about saying no to the purchase, because you have established empathy and they don't want to disappoint a new friend.
Conversely, if you have done a poor job of building trust, the customer's objection is likely to be more strongly felt, and the customer will find any excuse to leave the store. When the customer lacks trust in the salesperson, even if it's possible to uncover her real objections, it is usually more difficult to overcome her buying hesitation. A customer who doesn't trust you will resent your trying to handle her objections in any way.
Better Shop Around
Have Mr. and Mrs. “Be-Back” been to your store? You remember them. They liked the crystal you demonstrated to them, and they'll “be back.” They're going to return (it's a sure thing) with “Mr. Look-Around.” He thinks you have a terrific selection of fine-quality briefcases, but he needs to “look around.”
Sometimes, the customer's hesitation to purchase the item is a defense mechanism to delay making a decision. It's not easy for any of us to part with our money, so why should it be any easier for our customers? I can remember falling in love with a very expensive watch when I was working with a jewelry client. Now, watches happen to be a bit of an obsession of mine. I just like them. At the time, I think I had about 16 watches in my collection, but this particular watch was the pièce de résistance. I wanted it in a big way, and I knew I could rationalize its purchase. But I still had to try it on every time I visited the client for three consecutive months before finally making the decision. As I was fondling it again and expressing how much I wanted that watch, the owner of the store said, “You don't really want it.” I said, “What do you mean? Of course I do.” He said, “Well, if you really wanted it, it would be yours already.” That did it. I had the jeweler size it immediately and wore it home.
There are also a large number of people in this world who just can't make a decision. The husband of one of my employees is a perfect example. He's always the last one to place his order at a restaurant because he can never decide what to have. We've all met this type: can't decide what movie to go see, can't decide where to eat, what to eat, what to drink, what to wear in the morning, what to buy someone as a gift, and so on. Nevertheless, the vast majority of customer objections exist because of what the salesperson has done, or not done, in the sales process.
Many customers do want to shop around before making a decision. When you hear, “I want to shop around,” though, you have no way of knowing whether they mean it or whether they have already shopped everywhere else. They may be accustomed to using the stock phrase to get out of the stores they visit, and they may be doing to you what they did to other salespeople before they saw you.
Alternatively, the customer may fib a little bit by saying, “I want to shop around,” or “I want to think it over,” when it could have been that the item is too expensive. In that case, you can spend all day trying to overcome “I want to shop around,” but because it's not the real problem, you'll never close the sale. That's why it's vital for you to work toward uncovering the real objection, and not simply taking the customer's statement at face value.
Everybody Fibs
We all have fibbed a little and said we'd be back when we had no intention of coming back. We've all said it was the wrong color when it really was price. Some of us have gone to extremes to make sure the salesperson wasn't disappointed, by saying things like, “What time do you close?” or “Do you work tomorrow?”—all methods of keeping the salesperson's hopes alive, even though there was no intention of returning. And some of us even promised we'd come back with our spouse when we didn't have one. These are things that happen every day on the selling floor. Yet, when a customer does them to us, our tendency is to believe them. If we do it to salespeople when we go shopping, there's a 100 percent chance that customers will do it to us.
Assuming you're past probing, the demonstration, and the trial close, some of the real reasons customers may object to buying are that they feel that the item:
- May be obsolete as soon as technology progresses.
- Can't be justified because it's more than they need.
- Isn't worth the price, even though they like it.
- Costs more than they can spend.
- Doesn't have all of the features they need or want.
Maybe They Don't Know
Frequently, the customer isn't sure what she wants, and she can't clearly communicate to you what she doesn't know herself. If the customer says the china isn't elegant enough, find a more elegant pattern. You may have to do this several times during the presentation until you hit on something that catches the customer's eye. It's your job to satisfy the customer's wants, even when the customer doesn't know for sure what she wants. Remember to keep your enthusiasm level high throughout the process, and avoid showing frustration at the customer's inability to explain what she wants.
Whether the customer is unable to state the real reason for not buying, or whether she just doesn't know what she wants, there's no way to handle her objections unless we can define them. We have to be diligent, but not pushy, about getting the customer to tell us why she is hesitating about the purchase. Until we know how she actually feels about the merchandise, we are showing that we cannot complete the sale.
It seems like some aggressive salespeople think that overcoming customer objections means arguing with customers or wearing them down until they buy. Some sales trainers even suggest you ignore objections and continue closing. However, many salespeople are so concerned about sounding pushy that it is out of the question to try to uncover objections, much less to deal with them.
Successfully overcoming objections depends almost entirely on the salesperson's ability to work with the customer. It means having complete empathy with the customer's feelings, and the ability to put yourself in the customer's shoes. It also means you should not create an “us versus them” situation by setting the store against the customer. On the contrary, you have put yourself on the customer's side by being sensitive to his concerns.
It's a rare customer who spends $5,000 with ease the first time he walks into a store. It has happened, but you can understand that most people actually want to think about a major purchase before they make a commitment to it. In some cases, spending $50 or even $25 causes concern.
I'll never forget one of the most humbling experiences of my life. I was ringing up the final payment on a gold chain a woman had put on layaway. It was undoubtedly the thinnest gold chain on the planet. I mean, if you blew on it, it might break. It was 14-karat gold and retailed at $24! But this woman was so excited about picking it up that it might as well have cost $10,000. She said it was the most expensive present she had ever bought for her husband. Whoa! Here I am, thinking it's the cheapest hunk of junk ever made, and she's going to proudly present it to her husband. It's a good thing that I wasn't the original person to sell it to her, or I would have been likely to try to sell her a much more masculine, heavy chain, whose price would have blown her out of the store and into the underwear department at Sears.
If you can appreciate your customer's position on price, say so. If she says the price is too high, give some understanding to her feelings. Let your customer know that you care about her concerns.
After years in development, this chapter is devoted to teaching the precise method for properly handling customer objections. Unlike the approaches for dealing with other parts of the sales process, this prescription needs to be followed as closely as possible. This six-step procedure can be used to deal with virtually any customer objection, and do so in a way that lets the customer feel your support and appreciate your concern.
- Step 1: Listen to the Entire Objection
Don't interrupt the customer in midsentence, as that implies what he has to say is not important enough to hear. If you let him finish voicing his concerns, you may discover he was just moaning a little before making a commitment to the purchase.
Customer: Boy, it really is expensive.
(Salesperson waits a couple of seconds before saying anything.)
Customer: Oh. . .I'm going to go ahead and take it.
Who knows? It's possible!
- Step 2: Acknowledge the Objection
Can you understand or appreciate that the customer may want to look around, or that he feels the price is too high, or that he wants to talk to his spouse? Your customer will be absolutely delighted to know that you can share his concern. By restating the objection verbatim, preceded by “I can understand . . .” or “I can appreciate. . .” you put yourself on the customer's side. To further confirm your understanding and empathy, pose a grabber after the acknowledgment.
Objection: I'll be back.
Acknowledgment: I can understand that you'd like to come back later. It's an important decision, and you want to make the right choice, don't you?
Objection: I need to talk to my wife (or husband) first.
Acknowledgment: I can appreciate that you want to talk to your wife first. You want to make sure that both of you are happy with your selection, right?
Objection: I really should go home and measure first.
Acknowledgment: I can understand you feel you need to measure first. You certainly want to make sure it will fit perfectly, don't you?
- Step 3: Getting Permission to Continue
Prior to asking the customer any further questions, I find it most polite to seek permission by asking, “May I ask you a question?” In a sense, you're getting his permission to continue the dialogue.
- Step 4: Do You Like It?
You may need to ask several questions to uncover the true objection, but the first question is always, “Do you like the item?” Such a direct question often encourages the customer to open up and tell you exactly what's on his mind.
- Step 5: The Smoke-Out
During the demo, you presented features, advantages, and benefits of the product. In this step, reconfirm your selling points to see if the customer is still in agreement that it's what he wanted.
- Step 6: Ask the Customer about Price
Always ask this question last, after nothing else has turned up, and phrase it in a nonthreatening way: “How do you feel about the price?”
The following example will give you an idea of how steps 2, 3, and 4 sound in a conversation. Note how the flow of the process puts you in sync with what's going on for the customer. Keep in mind the importance of appearing empathetic to the customer while speaking from this script; a little rehearsal will make your performance Academy Award quality.
Objection: I'd like to talk it over with my wife.
Acknowledgment and Grabber: I certainly can appreciate that. It's important that both of you like what you're getting. You both want to be delighted with this purchase, don't you?
Response: Oh, yes.
Permission to ask a question: But before you go, may I ask you a question?
Broad-based question: Do you like it?
When hearing any number of objections, many salespeople just fold up and hand over their business card. Then, they'll say, “Ask for me. I'm here every day but Wednesday.” If you just give out your card and let that potential customer go, he's unlikely to come back. Or, if he does come back, it will probably be on Wednesday, the one day you're not there.
Some salespeople may feel angry and become argumentative when customers say they have to consult their husband or wife, or shop around, or go home and measure. They want to say, “Don't you ever decide on anything by yourself?” Instead, they say, “Our prices are the most competitive in town. Why don't I just write it up for you, and you can take it home to your wife?” The salesperson who displays anger or frustration will simply stimulate the same feelings in the customer.
Acknowledging the customer's feelings encourages the customer to appreciate that you are an empathetic person. However, you want to be cautious not to cross the fine line between acknowledging the customer's objections and agreeing with the customer's reason for not buying. You don't want to find yourself saying, “You're right, you should shop around first,” or “I agree, this one is too expensive.”
You want to understand your customer's feelings, but you don't want to endorse them.
So far, we have acknowledged the objection, asked permission to ask a question, and then asked, “Do you like it?” The customer who replies, “Yes, I like it,” is performing a self-reinforcing task that is another step toward the purchase. If the customer says he does not like the item, or says he does but is not very convincing, find out what he doesn't like and fix it.
Suppose in answer to the question, “Do you like the strand?” the customer says, “Oh, it's all right.” This is a real danger signal, a red flag to warn you that what's happening is hazardous to your sale.
If the customer is giving a “just okay” or even a casual “yes” response, either you missed something important during probing or the customer doesn't know what she wants. If you want to salvage the sale, you have to probe again to discover what you missed, or to help the customer clarify her needs through the process of trial and error.
You've got two choices: proceed to the smoke-out or take advantage of a great opportunity to shorten the whole process. When I hear, “It's all right,” or “It's OK,” I counter immediately with, “Now, wait a minute. I don't sell ‘just OK’ merchandise. Tell me what the problem is.” Said with a lot of love and a twinkle in your eye, it works for me 9 out of 10 times, and the customer spills the beans with no further questions. But if it doesn't work, the smoke-out is the best strategy.
During probing, you determined the personal reasons your customer wanted the item: it's to be given as a gift, he's always wanted one, his neighbor has one, and so on. You've used all this information when you presented Feature-Advantage-Benefit-Grabbers (FABGs), and you were careful to match the merchandise to the customer's needs.
We have already noted that customers who object to the merchandise often find it difficult to say what's on their mind, and the reasons they give are almost always excuses. Now, we have to detect what's bothering them. We have to find out if the benefits we demonstrated, the ones they said they wanted, were really what they were after. To do this, we have to review the FABGs.
The first was that the style was traditional and would look good with everything in her house. The second was that the cushions are filled with goose down, which makes it incredibly comfortable.
Trial Close
Salesperson: How about this perfectly matched ottoman to put your feet on while you relax in your new chair?
Objection
Customer: You know, I really think I should think about it for a while.
Agreement and Grabber
Salesperson: I can really understand your wanting to think about it. When you select a beautiful piece of furniture for your home, you want to make sure you're making the right decision, don't you?
Response
Customer: Yes, I sure do.
Permission to Ask a Question
Salesperson: May I ask you a question?
Customer: Sure.
Smoke-Out Question
Salesperson: Do you like the chair?
Answer
Customer: It's lovely.
Support
Salesperson: Yes, it's gorgeous, isn't it? Finding a chair that's as comfortable as you said it was is very special.
Smoke-Out Question
Salesperson: Let me ask you this, how did you feel about the traditional style?
Answer
Customer: Oh, I think it'll fit right in.
Support
Salesperson: Based on what you told me about the other furniture in your home, I thought this would be a perfect match.
Smoke-Out Question
Salesperson: How did you feel about the down cushions?
Answer
Customer: Well, actually, I was a little concerned about my son's allergies.
There it is at last! The objection never was that she wanted to “think it over,” and as we reexamined the benefits, we found out what was really bothering her. This is a typical customer reaction; for some reason, she couldn't speak truthfully about the real issue on her mind until you sought it out. However, once you identify the down filling as the source of the customer's objection, you can ask follow-up questions to learn what the problem is, or, as we say, “fix it.” Then, you can demonstrate other cushion fillings that will work for her.
Resist offering layaway and credit plans during this stage of overcoming objections because you don't yet know whether the problem is budget. If your customer isn't happy with the item, it won't matter that you're competitive, or that it's the last one in stock, or that it can be paid for in installments. Let's see how things could have gone wrong on the last example:
Trial Close: How about this perfectly matched ottoman to put your feet on while you relax in your new chair?
Objection: You know, I really think I should think about it for a while.
Salesperson: Well, why don't you go ahead and put it on layaway, so you can make sure you get it. This floor model is the last one we have in stock.
Customer: Oh, I don't think so. I'll be able to make a decision by tomorrow morning. I really just have to sleep on it.
And off she goes to another store, to find a chair without down cushions.
If a customer ever objects to a particular feature of the article you are demonstrating, it is often the result of poor communication during the probing process. For example, your customer's specific objection might be that she doesn't like the shape of the stone in the ring or that the carpet isn't the right color or that the shoes aren't formal enough for what she had in mind. If you can get accurate information from probing, you won't have to waste energy showing merchandise your customer doesn't like.
If you're ever going to find out what's going on in the customer's mind, the time is now. Unless you can expose the real objection and overcome it, the method of payment is never going to be a solution.
It's important to smoke out any potential obstacles that might exist prior to raising the issue of price. If your customer's only concern is how a particular feature may benefit him, you can fix those problems and never have to ask about price. The cost of the item is best raised last, after you are sure there is no other issue.
Smoke out each FABG you gave in the demo, and then bring up price. Because the customer may be reluctant or even embarrassed to talk freely about money, your question needs to be phrased in a nonthreatening way: “How did you feel about the price?”
The response will either be that it's too high or that it's fine; no one ever complains that the price is too low. If the price is fine, and you have a trusting relationship with the customer, then it has to be that the value is lacking. Acknowledge the customer's feelings by stating that you appreciate her concern about the price. Explain that your merchandise is a great value and that it's important to you that all your customers understand that. Then, it's time to pull out your cannon.
Salesperson: How do you feel about the price?
Customer: Oh, it's fine.
Salesperson: I'm glad you said that. We really take a lot of pride in our pricing. We make sure that customers get terrific value for their hard-earned money.
Salesperson: You know, I'm sorry, but I forgot to tell you something about these pearls that makes them unique. If you look closely, you'll see they have a thick nacre. When they put the nucleus in the oyster to make the cultured pearl, the oyster releases a secretion around it. In time, this becomes nacre, the coating that lends luster to the pearl. These pearls are almost translucent. Isn't the color lovely? That doesn't happen all the time, because we can't control the development of the nacre, even when we give the pearl its start.
The salesperson has given the customer additional information and has also shown expertise about the merchandise. The salesperson probably didn't use a lot of product knowledge earlier because he didn't need it. He was just trying to get the customer to fall in love with the pearls and didn't overuse technical words to accomplish that. Later, in dealing with an objection, it's perfectly all right to show how much you know about the merchandise. In this way, you can give the customer additional reasons to trust you and add additional value to the product.
As we saw in Chapter 4, saving information for use later in the sale is an important concept. If you tell your customer everything you know at the beginning of the process, what will you do later if you have to add value? Remember to keep some material in reserve for later use as ammunition. Don't use all your cannons early on; it will be anticlimactic if you have to use a BB gun to overcome objections later.
Is It Value or Budget?
If the customer tells you that the price is too high, you need to figure out whether he is talking about budget or value. You may remember in the last chapter, when I was in the hardware store, I was upset about the $15 cost of a hammer. The question was whether I was saying I couldn't afford the hammer or whether I thought it wasn't worth spending $15 for a hammer. If I couldn't afford it, the salesperson was dealing with a budget consideration; if I thought the hammer wasn't worth it, the salesperson had to overcome a concern about value.
If the customer buying the pearls objects to their high price, acknowledge her feelings this way: “I can certainly understand your concerns about the price. Things are expensive today, aren't they?” Notice the use of the word things and that you do not name any item specifically, especially not the merchandise under consideration. Also note another grabber, reminding her once again that you are on her side. Then, you continue: “Is the price of this particular item too high, or is it just more than you wanted to spend today?”
If the customer's problem is that the price of the article is too high, acknowledge again that you can appreciate the customer's concern, and then add Big Bertha, the biggest cannon of all time:
An interesting thing about pearls is that Mother Nature controls them, even though we put in the nucleus ourselves. So we can't be sure of getting enough quality pearls for a matched strand of this size and color. It takes a great deal of time to create a strand that looks as great as these do on you; that's why they seem to be so expensive. But that's a small price to pay for something that you'll have and love for so many years to come. I think that's an important consideration, don't you?
Observe that we offer another FABG every time we uncover an objection for which lack of value is the underlying reason.
If your customer's objection is that the item costs more than she wanted to spend today, acknowledge again that you understand how the customer feels, and ask: “How much did you want to spend today?”
Note the use of the word today, which reinforces that you are talking about now, rather than later.
Notice also that, until this part of the process, you have not asked the dreaded “How much” question: “How much did you want to spend?” You certainly avoided asking that question when the customer first came in because you didn't want to be bound by an unrealistic price the customer may have had in mind. After all, each one of us has spent more in retail stores than we originally planned to spend, so it's not unreasonable to expect the same behavior of our customer. In addition, we know that as salespeople, we would never say “no” on behalf of a customer, so we want to give the customer every opportunity to speak for herself.
In answer to the salesperson's question, “How much did you want to spend today,” the customer tells you, “About $500 less.” If you can, find an alternative item that's in your customer's price range and show it. The question now is, do you give FABs to the lower-priced item or not? The answer lies in deciding which item you would really like to sell at this point. Well, unless you're a whimpering, simpering sack of Jell-O, you still want to sell the more expensive one. I know I do! Don't give up hope. Remember, all shoppers at one time or another have spent more than they planned on or more than their budgets allowed. How you choose to demonstrate the alternative can make or break your chance of maximizing the sale.
Keep the more expensive item with you when you show the customer the lower-priced article, if you can. Without doing anything to embellish the lower-priced article, just ask the customer, “How about this one?” It's likely that your customer will see the lower-priced item as a poor second to the first item. After all, you have created excitement and enthusiasm and added a lot of value to the more expensive item. However, you have done nothing to enhance the second article:
Salesperson: What do you think of this bicycle? (showing the alternative)
Customer: It's really not as nice. I think I'm losing some speed with that one, aren't I?
Salesperson: Yes, this is more of a touring bike.
Customer: Well, I don't think I like it as well.
Salesperson: I understand. This one (returning to the first bike) is a lot faster. One of the things I forgot to tell you about this one is . . .
You have made a smart move in not saying anything to enhance the lower-priced article because you have just given yourself another opportunity to add value to, and close the sale on, the higher-priced item.
If, by chance, the customer likes the less expensive item, go ahead and give an FABG on it. Certainly, you want to make the sale, whether it's for the higher-priced item or the lower-priced one. Watch the customer for clues before you decide which route to take.
If the customer shows any hesitation, either verbally or physically, go for making the sale on the more expensive item. Responses like, “I don't like this one as well,” or, “It's OK,” or, “This one's not bad,” indicate a lack of enthusiasm from the customer for considering the alternative. Even the way the customer touches, holds, or looks at the item can be a signal. Think of how you react when you open presents on your birthday. If you love something, your expressions and actions are completely different than when you're forced to act politely excited over a gift you could definitely live without.
However, the customer may show interest in the alternative by immediately picking it up or touching it, without hesitation or prompting by the salesperson. Or, he may say, “Oh, this one's not bad.” Even the emphasis on a particular word in his response may give you a clue as to how to proceed.
If the customer's final objection is his inability to afford either the expensive item or the less costly article, and you are reasonably certain that budget is the problem, this is the time to talk about alternative ways to pay.
Customer: The more expensive strand is beautiful, but it's still just so much money.
Salesperson: Well, I have an idea. We have a financing plan here that will make it pretty easy on you with monthly payments, and you can take the piece home with you now. Would you like to get started on the paperwork? I just know you're going to be happy with this one.
Use financing plans, layaway plans, anything that will make it easier on the customer, as the last resort in overcoming objections. These are terrific closes when the customer wants the item but doesn't have the cash today, or finds it less threatening to look at a higher price in terms of monthly payments, rather than a total price.
Closing the sale by offering to hold the merchandise for the customer should also be a last resort. Apparel salespeople are the most famous for using this strategy too early in the objection-handling process, right out of the gate. The lack of success in doing so can be proven by tracking the number of articles put on hold that never get picked up.
In fact, with one chain of over 200 women's apparel stores, I asked managers to estimate the dollar amount of articles on hold in the back rooms on any particular day. They came up with a range from $500 to as much as $3,500 per store. When added up, it came to a whopping $360,000 worth of merchandise on hold across the chain. And, naturally, out of that $360,000, over 95 percent of the merchandise on hold was hot new merchandise that would have been even more likely to sell if it had been on the floor for an extra day or two. Instead, it was being hidden in the hold section of the back room, waiting for a customer never again to return.
The salespeople don't even have to be the ones to suggest holding merchandise. Most customers have figured out that by asking for an item to be put on hold, they are free to leave. So, “Can you hold this for me?” can be a stall, just like, “I want to shop around.”
The Eleventh Commandment
All of us occasionally make the mistake of judging others by outward appearances. Sometimes, we decide that the way people dress or the kind of job they have determines what their price range is. This is just another form of negatively qualifying customers, instead of giving them the opportunity to make decisions for themselves.
Avoid deciding for the customer. Furthermore, remember the Eleventh Commandment (in the Salesperson's Bible). Keep it and its corollaries as a sacred trust:
It is easier to cometh down in price than it is to pusheth up
Thou shalt never decide for the customer what the customer wisheth to spend.
Thou shalt show some spirit and starteth by demonstrating superior-quality merchandise.
The flowchart in Figure 6.1 will help you see the process of handling objections in its entirety. Use it as you would a road map. Study it thoroughly so that you can use it when your customer voices objections. When you do, you will find that “Mr. and Mrs. Be-Back” can easily become “Mr. and Mrs. Buy Now.”
Hot Tips and Key Insights
- Handling objections is an essential part of the sales process because you can't get to the close if there are obstacles in the way. You need to be able to identify the customer's objections if you want to overcome them.
- Usually, when customers object, they are giving you an incomplete or false reason for not buying. Sometimes, they do not know what they want. Mostly, it's because they don't trust you and/or find value in the merchandise.
- To uncover the customer's real objections, you have to be empathetic, put yourself “on the customer's side,” and take a caring approach to what is happening in the customer's mind.
- Use the six-step technique verbatim to smoke out the real objection. Listen to the customer's entire objection without interruption; acknowledge the objection by repeating it word for word, preceded by “I can understand . . .” or “ I can appreciate . . .” and seek permission to ask a question by saying, “May I ask you a question,” to which the answer will invariably be, “Yes.”
- Then, ask broad-based questions, the first one of which is always “Do you like the item,” followed by as many other questions as you need to uncover the true objection.
- Smoke out the true objection with a series of specific questions based on the FABGs you used during the demonstration, to make sure that the benefits you emphasized were the benefits that are important to the customer.
- Ask the customer about price always as a last resort, and always phrase it as the nonthreatening “How do you feel about the price?”
- To overcome additional objections, present other benefits of the merchandise. This can be done only if you saved some ammunition for later use.
- If price is the real inhibiting factor, determine whether the customer thinks the merchandise is not worth the cost or costs more than the customer wanted to spend.
- If the objection is about value, add more value to the merchandise by providing more FABGs. If the objection is about budget, ask the dreaded question, “How much did you want to spend today?” When the customer tells you, show merchandise in that price range, without enhancing it. The customer may return to the original merchandise because it is clearly of better quality.
- If the customer wants the merchandise and price is still a factor, you can suggest whatever layaway, installment, or other credit plans your store has to offer.