Every few years, we do a survey on what are the top customer objections that our clients face in the Graphic Communications Industry. They are consistent with any industry. Regardless of the range of objections, we have found they always fit into one of five categories. The number one objection we always hear is the “price” objection. But there are more.
If you are launching a new product or service or entering a new market, it would be time well spent to ensure every salesperson can address objections in each category.
Handling customer objections is fundamental to success.
We have found most sales are lost on a consistent and small number of objections. Anticipating these objections and providing credible answers will improve the success rate of salespeople. Here are the five categories of objections:
1. Objections related to the need for the product or service
“We are not interested in changing”
These objections can occur at any time but often are heard at the beginning of the sales process. These will be centered on the general statement, “I do not see the need your offering….”
Some additional objections in this category include: We are happy with our current direct mail pieces”, “We do not see any financial benefit in changing our current method of printing”, “We do not see any advantage of unifying our digital and print communications.”
Salespeople should be able to quickly articulate a specific benefit to the customer’s business in framing an appropriate answer. The benefit to the customer should focus on providing details of how other companies have improved their operational, financial and technical efficiencies or how they have reduced costs or generated more business.
If a supplier is selling a new product or service, they can be assured that they will encounter “need” objections at various points in the sales call. Having case studies, customer testimonials and other proof sources will aid the salesperson in moving the sales forward.
2. Objections related to the specific product or service
“We have looked at personalized and cross-media printing and we do not think it will help our business”
Sometimes objections can be focused on a specific product or service. The goal for the salesperson is to find why there is an objection to the product or service.
These objections can arise when the product in new to the market, the customer views the product negatively or the customer afraid to take a risk on change. It is a common objection for customers to be concerned with the security of moving documents through the web to print and across networks due to security concerns.
These objections can be handled with solid evidence of how the product has helped other similar companies improve their performance. Additionally, examples, references, third party testimonials help build support for new products or services.
Much of the resistance to cross-media communication platforms, personalized printing or packaging, web integration, graphic services have been driven by customer’s lack of knowledge, fear of change or the supplier’s inability to establish an agreeable ROI.
3. Objections focused on the viability of the supplier
“We have not comfortable moving to web fulfillment with a small company such as you”
Here the customer challenges the capability of the supplier due to lack of experience, limited customer base or size.
The salesperson must specifically probe to determine exactly what is driving the objection and meet it head-on. Building a relationship with the client through initialing a small project or demonstrating through a “proof of concept” is an excellent way to demonstrate a company’s capability to a new or existing customer.
Perhaps the most common objection is “I am happy with my current supplier”. Here is where the salesperson must concede that virtually all new customers have an existing vendor but perhaps this is an opportunity for the customer to review and compare other solutions.
4. The price objection
“Your price is too high”
This is the most commonly cited objection from our clients. All sales will face a price at virtually every stage of the sales process. In more complex sales, suppliers can be sure that the price objection will be the strongest at the beginning of the sales cycle and again very strong at the close.
Here is where the salesperson must completely understand the value versus the cost of their services. The answer to the objection, “Your price is too high” must be internalized and well-rehearsed by the salesperson.
The price objections are the most challenging customer concern that new salespeople face. At our sales training workshops, we spend the most time practicing handling price objections. This takes practice and confidence.
Often many buyers will offer a price objection to disguise other concerns. The salesperson must probe to determine if the price is really the issue or is it a smokescreen for something else.
5. Bandwidth Objection
“We do not have the resources internally to make the change
With many new products, software, and services, the customer is often required to re-engineer their own internal work process. For instance, to move to web fulfillment, outsource graphic services, move from offset to digital, integrate digital and print invoices and statement on a single platform may require significant discussions and agreements among multiple departments within a customer.
The bandwidth objection must be taken very seriously. Many deals are lost due to constraints on the customer’s time and resources. An objection, “We do not want to move our files and data to another vendor” is a real issue for many customers. What makes these objections most challenging is that they are sometimes disguised in other objections such as “We are happy with our current program” or “Your price is too high” or “We do not have funding”.
The more complex the solutions and the larger the account the more challenging these objections can become.
Many salespeople view these objections as excuses or a stalling tactic. Top printing salespeople have learned to help the customer through internal blocks and politics to make substantial improvements to a company’s printing program.