As a B2B sales rep, you already know objections are an unavoidable part of your job. Yet, as we explained in a recent blog post, there are many tips and tricks sales reps can use to bypass common objections during the sales cycle.
Research shows price objections are the number one objection sales rep face—but half of all price objections are phony (source). Most of the time, when a prospect says, “I can’t afford it,” they’re not usually talking about price at all. They’re really saying, “You haven’t demonstrated the value of your product and therefore, I’m not ready to spend my money on it.”
While our previous post contains some valuable information, we want to dive a little deeper in and explore some actionable ways to establish value in the face of price objections. Keep reading.
Four Ways to Establish Value in the Face of Price Objections
1. Schedule a product demo.
You can talk until you’re blue in the face, but until your prospect sees your product in action, they won’t truly understand its value. In fact, extensive research shows product demonstrations significantly increase same-day sales, long-term purchasing habits, brand franchise sales, and average deal size (source).
Here are a few ways to give a top-notch product demo:
- Personalize it. Your prospect doesn’t want to see a general demo; they want to see a demo tailored to their specific needs. Prior to the demo, do your research—think back to your initial calls and determine what industry, pain points, or features you should focus on. Your demo should walk your prospect through a workflow or scenario they would genuinely encounter in their day-to-day life.
- Put yourself on their team. Avoid talking about yourself during the demo. Instead of using the word ‘I’, adopt a ‘we/us’ mentality. This removes a huge barrier between the sales rep and the prospect and puts you on the same team. This will lead to more open and frank conversations, giving you the chance to further establish the value of your product.
- Ask questions. A demo shouldn’t be a one-way presentation; it should be a conversation. Open up the floor for questions and feedback so you can effectively guide the demo in the right direction. If your prospect seems hesitant, ask questions of your own to get them talking.
2. Offer a free trial.
Just as a product demo is better than a phone conversation, a free trial is even better than a demo. A free trial allows your prospect to take your product for a test drive and truly see its value.
When you offer a freemium version of your product or service, it drastically improves adoption rates—likely due to proof of value. In fact, best-in-class software companies report a 60% conversion rate following a free trial (source).
To have the most success with a free trial approach, you must offer features that allow users to see the benefits of your product without offering the entire set of features—pushing them to make a purchase.
3. Leverage customer testimonials or case studies.
Did you know most B2B marketers consider customer testimonials and case studies to be the most effective content marketing tactic (source)? That’s because positive words from customers are highly influential when it comes to securing new business. Here’s why:
- Testimonials and case studies build trust. Customers have little incentive to speak highly about a product they don’t truly like. For this reason, case studies and testimonials are naturally trustworthy.
- Testimonials and case studies aren’t inherently ‘salesy’. Customers don’t typically use the same sales or marketing speak that employees use. Instead, they speak in common industry terms making them much more relatable to prospects.
- Testimonials and case studies provide proof of value. Potential customers don’t want to hear or read about how a product will work for them— they want solid proof. Testimonials and case studies are a great way to provide examples of your product being used in real life scenarios.
As with any type of content marketing, it’s imperative to serve this type of content at the right time. If you present a case study too soon, the buyer will feel like they’re being pressured to make a purchase. If you wait until it’s too late, you may have already lost your customer for good.
Work with your marketing department to develop a library of testimonial-type content. This content should be easy to access and organized in a way that works best for your sales organization.
4. Showcase numbers and projections.
At the end of the day, a prospect doesn’t care about your product or service unless it will contribute to their bottom line in some way. If you receive a pricing objection, do your best to spell out exactly how much your product will bring to the table—don’t shy away from specific dollar amounts or projections.
The more specific you can get, the more effective your pitch will be. Think about it: if you can give your prospect an exact number, it will be easier to get their executives on board.
Key Takeaways about Price Objections
If you’re trying to establish the value of your product, you need to think like your prospect. Ask yourself, what is so valuable about my product? Does it simplify a difficult process? Does it save time? Will it increase revenue?
Shift your focus from making a sale and concentrate your effort on proving the worth of your product. You’ll never be able to avoid price objections completely, but with the proper emphasis on value you will become much more adept at handling them with ease.