Drew | Business Insights

Sales objections in service-based companies: How to handle them?

Written by Drew's editorial team | Mar 28, 2024 2:00:00 PM

The transition from sales to establishing a solid relationship with a client, whether new or existing, is a crucial moment. But before shaking hands and signing a contract, a negotiation focused on the client's needs takes place. This process involves evaluating if your proposal meets their objectives, expectations, and other requirements.

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During this period of idea exchange and conversation focused on the client's interests, various variables that influence sales objections in service-based companies can arise.

To reduce the chances of these objections occurring and to close the sale, this article will discuss the main objections to consider and how to handle them.

 

Smooth Sales Process

Sales objections in service-based companies typically revolve around three critical points:

  • Alignment with the client's needs.
  • Value of the proposal.
  • Budget.

 

Alignment with the client's needs

Clearly, during negotiations, clients will have doubts. If they didn't, it would be a closed deal. However, objections in service-based companies are common because these businesses don't offer tangible products but rather focus on the quality and value of their services.

  • Clarifying doubts:

    It's best to address doubts, questions, and uncertainties about potential strategies in the early stages. This allows you to see if they align with what the client is looking for and their budget, avoiding wasted time. These are essential aspects to consider to move forward in the negotiation with both parties on the same page. This prevents reaching the last moment, about to close the deal, only to face more objections due to misunderstandings or lack of conviction with the initial proposal. This mainly limits and delays the potential sale.
  • Step-by-step approach:

    Progress gradually, breaking down each stage so the client can understand the relationship between the offered value and its corresponding cost.

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Value of the proposal

Closing a sale goes beyond the initial transaction; it lies in building and strengthening a long-lasting relationship with the client.

Active and dynamic listening: Allowing objections is better than avoiding them.

This will make the prospect feel valued and perceive that your company dedicates time and attention to them, translating into "exclusive treatment" to achieve their goals.

If the competition offers a good proposal at a lower price, but your proposal aligns with their needs, and you provide personalized attention, making them feel unique, they're more likely to choose you.

Adding value to your proposal also involves how you manage relationships, as good relationships reflect successful cases.

With the vast competition in the market, where customers have countless options, it's essential to stand out, not only through your offer but also through your brand image and movement to avoid going unnoticed.

So, if prospects see that your existing customers trust you because of the positive results and effectiveness of your offers, and they also receive that added value in benefits and treatment, it could be considered significant progress. The more secure the prospect feels, the more likely they are to consider your offer.

Advantages of active listening.

Listening to objections doesn't necessarily have a negative connotation; rather, it gives you the opportunity to learn and better understand the client, allowing you to enrich yourself with the perspectives they present.

This listening will help you understand their objectives, motivations, challenges, and resources, allowing you to offer a value proposition that suits them and their specific needs. It also helps you detect recurring patterns in similar situations, allowing you to keep a record and follow a protocol that facilitates decision-making and solution offering. Knowing what objections to expect allows you to refine your responses and address concerns more effectively.

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Budget

It's common for most objections in service-based companies to be related to the budget. You can prevent this by having a solid sales process. From the initial contacts, ensure your proposal aligns with the client's needs and facilitates communication between both parties with questions and answers. This sets the foundation for addressing budget concerns proactively and building a strong relationship from the start of the process.

Handling this objection may involve openly asking the client what they think about it. Also, in some cases, when clients request a discount, it's useful to inquire about the reason behind this request. Before offering it, ask why they want it. Often, this discount request may be linked to the purchasing manager's search for savings, who may receive bonuses for cost reduction to the company. In this case, it's essential to consider that they will buy from whoever offers the highest discount. This approach allows you to address the objection more strategically and understand the client's motivations.

Budget stands out as one of the most challenging objections; however, understanding the solutions and adapting according to the client's specific needs is usually the key to effectively counteracting this difficulty.

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In conclusion, sales objections in service-based companies are inevitably part of the process. Therefore, it's better to know what you're facing to handle them and improve your chances of reaching an agreement.