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Best Techniques for Objection Handling

By Angus McDonald - 16/11/2020 8:51:00 AM

When a potential customer gives an objection to your product or service, you have to know how to handle it. Objection handling is the way you alleviate these concerns to hopefully come to an agreement and close the deal.

Objections may be based around anything, but most often revolve around price, the product or service’s fit, or a customer’s loyalty to competitors. No matter what the objection is, there are ways to handle it and come out of the conversation victorious.

LAER: Listen, Acknowledge, Explore, Respond

Carew International notes an objection handling process known as LAER, an acronym for:

  • Listen. Show the customer you care about what they’re saying by attentively listening to their objection.
  • Acknowledge. Let them know you were listening by restating the problem. This lets the customer know you care about more than just making a sale - you care about their feelings, too!
  • Explore. A customer’s first objection is usually not the real problem. Ask questions to understand the underlying reasons. Once you do, you can appropriately respond and avoid further objections.
  • Respond. Now that you’ve gotten to the root of the problem, you can begin to address it. Offer the customer a feasible recommendation or solution to their problem.

 

Techniques for Objection Handling

 

LACE: Listen, Accept, Commit, Explicit Action

Another objection handling technique is the LACE method. LACE stands for:

  • Listen. Work to understand the customer’s objection, as well as the thought process and emotions behind it. Ask probing questions to find other objections they may counter your response with.
  • Accept. Acknowledge their feelings and their right to object, and be sure to not react negatively! This will build trust between the two of you.
  • Commit. Now, it’s time to address the objection. Offer solutions to the problem you can realistically deliver. Don’t make any promises you cannot keep, and walk away from the deal if you need to!
  • Explicit Action. Follow through with the commitments you’ve made. If you promised the customer a lower price, for example, make sure they get it!

The LACE method recognizes two types of objections - accidental and real. Accidental objections are typically due to a misunderstanding and easy to clarify. Real objections take time and effort to resolve, but this extra work is worth it in the end if you’re able to close the deal!

Persuading vs. Conceding

When handling objections, you have two options to get through to the customer: persuasion or concession.

Persuasive methods work to either change the customer’s viewpoint or “wear them down.” You’ll work until they see your point, or until they decide that their objection isn’t a dealbreaker after all!

One example of a concession includes promising to lower the price. While this is a useful way to handle objections, it can also come back to bite you if you’re not careful! Be sure not to get in over your head, and know when to walk away from a sale.

While there are several ways you can handle customer objections, using one of these methods is your best bet in easing their concerns and making a mutually beneficial sale.

 

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Tags: Sales, Selling, Negotiation, Objection Handling