A Guide on How to Resolve These 5 Common SaaS Customer Objections
Within the context of the IoT’s massive growth in recent years, and the increasing necessity of internet of things app development, it is no surprise that SaaS is sought after. SaaS solutions can be beneficial to those working in different industries. It isn’t only good for people working in offices. It also helps those who are on the go with either a heavy and complex workload, or a freer flow of work. For example, if you were a CAD designer, task management tools could be invaluable in helping you to boost your CAD workflow.
However, this does not mean that there are no objections that pop up when providers or salespeople follow up on leads or seek to communicate with prospects. These types of objections are what we will be exploring in this article.
What do we mean by “objections”?
Simply put, objections are when a potential client refuses your service for a certain reason. When it comes to the SaaS sales process, just as with any business, there are common objections that are regularly cited.
Knowing how to generate leads, such as by running a successful SaaS email marketing campaign, is great. But what is even better is knowing how to handle objections to turn them into a positive outcome.
The first thing to understand is the importance of developing an effective way to deal with objections. A proper handling of a rejection, lowers the lead’s hesitation or resistance to trying out your service, by addressing their concerns and establishing a level of trust between you and them.
Secondly, it is vital to be able to distinguish between an objection and a dismissal. If a client makes it clear they don’t want to talk with you, it is probably not a good idea to start a pitch about how your service will erase all their troubles. They’re not at a point where they want to listen to anything that you have to say. A level of trust must first be established.
Generally, it is good to allow the flow of conversation between you and the prospect to take its course somewhat naturally. To foster a sense of trust, they need to see that you are genuinely listening to what they are saying and responding to them. Not just regurgitating a script or trying to close a sale as soon as possible.
You should also aim to be as clear as possible in order to avoid any misunderstanding and communicate the benefits of the service efficiently. This not only helps with trust, but leads prospective clients to feel as though they are talking with an expert, which results in an uncomplicated conversation.
You can even use resources at your disposal such as free data visualization tools to help your lead better absorb the important information you are looking to convey. Since we are visual creatures, this is a great way to engage them without overloading them with a ton of data.
It is also very important not to come on too strong. You want your lead to open up about their objection(s); the more information you have, the better you can respond. If they feel like you are not listening and only interested in selling, they will get increasingly defensive and cut you off. Instead, approach the conversation with empathy and interest, all while being supportive.
In the following section, we will be detailing some of the most common objections and giving you some pointers as to how to handle them.
The service is too expensive
No one likes to part with their hard-earned money if they do not feel that what they are buying is worth it. It is tempting to staunchly defend the price of the service you are pitching. However, this can further alienate the person you are talking to.
Instead, look at it from their perspective and explain to them why the service is worth it without focusing too much on the price point. You can then explain how implementing the software would benefit them financially in the long run, and help them see it as an investment rather than a simple cost.
For example, your service may include software packages that allow businesses to analyze their performance in areas such as their ASA speed (particularly relevant to call centers), an important factor in relation to customer experience and service.
As we know, these two are crucial for a successful business, since 70% of customers would abandon a purchase after a bad customer service experience. Being aware of their ASA speed can determine whether measures need to be taken to decrease it. A long ASA leads to more disgruntled customers and, in the long run, impacts revenue.
This can then open the floor for discussions on topics such as ROI. You can even run prospects through the relevant numbers to show them how much they would benefit in terms of value. This can be a very useful approach as it provides leads with tangible proof rather than just abstract scenarios.
Already with a competing provider
Though this may seem an impossible objection to surmount, it can actually act as a positive and provide insight into the prospect. In fact, just because they are currently with a competitor does not mean that they are 100% happy with the service, or that all of their needs are fulfilled.
For instance, while their overall experience with their existing provider may be positive, they may find that it is missing something to make it an excellent one. Something as simple as the inclusion of a meeting minutes app that transcribes what is being said in real time could be a game changer. Such a feature, though small, has the potential to take a lot of the headache out of meeting note-taking and save a lot of time. As the old adage goes, time is money.
Don’t shy away from asking relevant questions. For example, why did they choose that particular service? Are they 100% satisfied? Are there any areas which do not meet their expectations?
You can then take this information and show the lead how your service would be a better fit. However, you must resist the urge to disparage the competitor, as this tarnishes your own image and makes you look unprofessional.
Also, the efficient use of Google Analytics or Google Analytics alternatives for your SaaS service can provide you with insights into what drives revenue for your business. You can then use this information as an incentive to show your prospect how useful your SaaS can be to them and the growth of their business.
Not able to purchase the service at that moment (no budget, lack of resources, etc.)
You will likely encounter this type of objection when having conversations with smaller scale businesses. Show them how your solution can fit into their business, or how it may be beneficial for them once they have grown a little more. You can also frame your service as an investment. As we have discussed in a previous point, helping your lead see the financial benefits your product has to offer can change their mind.
For instance, you might explain to them that some features offered by your SaaS can take a lot of pressure off their staff. They may even encourage employees to take time off (let’s not forget about the importance of mental health and wellbeing) so that they can re-centre themselves and return with higher productivity levels.
Some of us are chronic worriers who cannot take a breather unless they feel things are being done just right. The features offered by your service could help stave off that worry and allow employees to take much deserved time off. This can mitigate costs brought about by employees quitting due to burn out, stunted productivity levels, and unexpected absences.
If they are adamant that this is not something they are interested in, you can also arrange with them a suitable time to contact them in the future to see whether their circumstances have changed.
They haven’t heard of you as a provider, and don’t trust you
In this case, it is imperative to take it slow and explain in a clear and simple manner who you are and what you do.
Share testimonials from other users of your service. People are more likely to purchase when they see positive reviews. Once you have established a rapport, identify their needs and base your subsequent topics of conversation around them.
If they confide that they are struggling to keep up with affiliate marketing, for instance, you could get a prospect excited about your service by mentioning how beneficial it can be when integrated with affiliate marketing platforms. Take them through the pros of this integration, while highlighting how your SaaS service could revolutionize their business.
They have previously had a negative experience with a similar provider
Here, the key thing is to listen to them. Make a conscientious effort to show the prospective client that you understand them and sympathize with them. Ask them what specifically were the problems that came up when using the previous service. If you are sure that your product is superior, you can then take them through the reasons why they would not encounter the same issues if they decided to use your service.
Give yourself a pat on the back if you’ve come this far! You may have finished reading this and come away feeling like it is a lot of effort to put into interactions with a prospect that might not even convert into a customer. Though yes, it is effort, when done right, it is rewarded by a higher conversion rate. After spending precious time formulating the best SaaS lead generation strategies, it would be soul-crushing not to implement these crucial steps to ensure your hard work comes to fruition.