The 7 Stages of the Sales Cycle (Part-2)

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5. Address the Prospect's Objections

Here's where you get to deal with your prospect's concerns. The one you'll hear most often? ?I have to think about it.?

Most salespeople think of objections as a bad thing... but they're missing the big picture. If your prospect raises an objection, that's actually a good sign. The fact that they're talking out their concern means that they're giving you a chance to answer it. If someone is completely uninterested in buying your product, they won't bother to object ? generally they'll just sit through your presentation in silence (with arms folded) and then send you away. Here's a simple process to help resolve your prospect's objections.
Difficulty: Easy
Time Required: Five to fifteen minutes
Here's How:

    Listen to the Objection. Don't jump all over the prospect as soon as he says ?But what about-.? Give him a chance to explain exactly what's bothering him. Don't just tune him out, either ? listen. You can pick up some really valuable clues from the way a prospect phrases his objection.
    Say it Back to the Prospect. When you're absolutely sure the prospect is done talking, look thoughtful for a moment and then repeat back the gist of what he's said. Something like ?I see, you're concerned about maintenance costs? is fine. This both shows that you were listening and gives him a chance to clarify. ?Well, it's not so much the cost I'm worried about as the downtime.?
    Explore the Reasoning. Sometimes the first objections aren't the prospect's real concern. For example, many prospect don't want to admit that they don't have enough money to buy your product, so they'll raise a host of other objections instead. Before you launch into answering an objection, ask a few exploratory questions, like ?Is product downtime a particular issue? Have you had trouble with it before?? Draw the prospect out a bit.
    Answer the Objection. Once you understand the objection completely, you can answer it. When a customer raises an objection, they're actually expressing fear. Your task at this point is to relieve their fears. If you have specific examples, such as a story from an existing customer or a few statistics, by all means present them ? hard facts make your response stronger.
    Check Back with the Prospect. Take a moment to confirm that you've answered the prospect's objection fully. Usually this is as simple as saying, ?Does that make sense?? or ?Have I answered your concern??
    Redirect the Conversation. Bring the prospect back into the flow of the appointment. If you're in the middle of your presentation when the prospect raises his objection, then once you've answered it quickly summarize what you'd been talking about before you move on. If you've finished your pitch, check if the prospect has any other objections, and then start closing the sale.

6. Close the Sale

Once you've made your presentation and answered your prospect's questions and objections, it's time to ask for the sale. This is the second-most neglected stage of the sales cycle... which is especially sad given that it's probably the most critical one.

One of the hardest lessons for new salespeople is the importance of closing every sale. The close doesn't have to be as difficult as it seems. If you presented the product well and responded to the prospect's objections, the close follows naturally. Here are a few specific options.

The Assumptive Close

The assumptive close is the most generic, and is the one you'd use if you haven't been able to fit the prospect to a more customized close. After you've made your presentation and answered the prospect's questions, you ask a question that assumes your prospect is about to buy the product. Here are a few examples:

    Would you prefer red or blue?
    Our standard delivery can have this to you by Tuesday, or will you need our rush delivery option?
    Will ten units do for a start?
    I can get you a 10% discount if you pay for a year in advance, would that work for you?
    Will you be having fries or onion rings with your meal?

OK, you probably won't use that last one very often. It shouldn't be too difficult to come up with a handful of similar assumptive questions that fit your product(s) or service(s).

The Time-Limit Close

This is a good one to use if your prospect utters the fatal phrase ?I'd like to think it over first.? Pause for a beat, then nod thoughtfully and say something like this:

    ?I can certainly understand your wanting to think about this, but I want to let you know now that the model you'd like is a popular one and we're usually understocked. I'd hate for you to be stuck with a model that's not as good a fit just because this one's not available tomorrow!?

Or you can mention a discount that will expire in two days, or a promotion such as a gift with purchase that's about to end. Of course, this only works if such a limitation exists ? don't ever lie to a prospect!

The Custom Close

If you've qualified the customer well, you've probably gathered a lot of information about their preferences (color, size, features, quality level, amount they're ready to spend, etc.). When you're ready to close, look at your notes and say something like this:

    ?So, you need an LCD TV that's big enough for everyone in the living room to see clearly, that costs not more than $500, and you'd prefer it in silver. Are there any other features you'd like??

Wait for the prospect to answer, then assuming they say 'no' smile and say...

    ?Luckily our XCL 5560 is a perfect fit for you! It has all those features plus it comes with our advanced sound system, and it's yours for just $399. All I need is your signature and I'll have it delivered right to your home by the end of the week.?

Still smiling, hand over the contract and point out the signature line. Since you've already accounted for everything the prospect says they want in a TV, it's unlikely they'll back out now.

7. Ask for Referrals

This is hands down the most commonly neglected step. Too many salespeople are so relieved to get a sale that they grab their things and race out the door the second they get the chance, for fear the prospect will change their mind!

Referrals ? otherwise known as getting someone to give you warm leads to new prospects ? are valuable for salespeople in all industries. Yet it's incredible how few salespeople actively canvass for referrals.

Studies show that a salesperson is six times more likely to close a sale to a referred lead as opposed to a cold lead. That means you can generate six times as many sales if you focus on getting referrals than if you spent that time cold calling! A huge increase in sales and, as a bonus, less cold calling to do ? what more can you ask for? And if you open your eyes, you'll see opportunities for referrals all around you.

Existing Customers

The easiest and friendliest referral source. In fact, if you treat them right, they may well go out and do some selling for you! That's when you get those wonderful windfall calls from someone's co-worker or uncle saying, ?I hear you sell the best widgets in town. I'd like to buy 40 of them.?

But don't wait for your customers to do all the work for you ? pick up the phone and ask for the referral. It's a good idea anyway to check in with your customers a few weeks or months after the sale. You can ask them how they're enjoying the product, find out if they have any questions, and then pop the question: ?Who else do you know who can benefit from this product, as you have??

New Customers

Just after you've closed someone is the best time to get referrals from them, because they're excited about their new purchase. Some salespeople are nervous about asking for referrals at this point because they just want to get out of there in case the prospect changes their mind! Well, don't worry about this. Unless you've used high pressure tactics to intimidate someone into buying (don't do this) your new customer is probably thrilled and enthusiastic. Hit them up now, while their energy is at its peak!

Prospects You Couldn't Close

If you pitch a prospect and they turn you down, don't just bolt out the door. Get a referral or two, and you'll have changed a loss into a win.

You're probably shaking your head and thinking, ?That's crazy-talk. Why would a person who wouldn't even buy from me give me referrals?? A lot of sales fall through not because the prospect hates you or your product, but because they just aren't a good fit. In that case, it's the perfect opportunity to find out if they know someone who is a good fit.

Everyone Else

Literally anyone you meet under any circumstances can give you a referral. After all, the average person knows in excess of 250 other people. Do you really think that none of those hundreds of people are a good fit for your products? Of course not. Ask everyone ? your dry-cleaner, your accountant, your neighbor, even the person standing behind you in the supermarket checkout. You'll be amazed how many leads will drop into your lap as a result of a brief conversation.