Managing Customer Objections

March 3, 2009

 

Keepin' The Customer Satisfied: Success At Work

Keepin' The Customer Satisfied: Success At Work

If you’ve built a career in sales you know all about customer objections. Objections are the reasons prospective customers give for NOT buying a product or service. It’s too expensive. It’s too complicated. I don’t really need it. These are common customer objections whether we’re talking about buying a new car or whatever it is you sell on your web site.

 

 Even if you sell the best products or provide A-1 services, and even if you have the lowest prices on the entire web, you’ll encounter objections. Problem is, you won’t encounter them face to face in the world of e-commerce, which means you won’t have the opportunity to address objections face to face. Therefore, controlling objections must take place in the content of your website.

Additionally, in the real world, managing objections is reactive. The customer objects. The salesperson reacts with a counter to the objection. In the impersonal marketplace of the W3, managing customer objections must be proactive. Assume you will encounter objections and address them before the visitor clicks off to another site.

What Objections Will You Get?

Depending on what you’re selling, objections will differ. For example, most customers won’t be concerned with a long-term warranty on a $15 calculator. If it dies, buy a new one. On the other hand, if you’re selling $2,000 laptops, your customers are going to be looking at your warranties, guaranties, return policies – anything and everything that protects them from being ripped off.

And as a good citizen of the web community, you should have no problem posting warranties and return policies where they can be easily found and easily read! (Wouldn’t you like to get your hands on the guy who invented fine print?)

So what objections are you likely to encounter?

It costs too much money.

I saw it for a lower price.

I don’t have the money right now.

My old one is good enough.

It looks confusing.

I don’t understand how it works.

I don’t understand the guaranty.

I don’t (really) need it.

My (insert relation’s name here) would kill me.

Maybe another time.

There are plenty more. I’ve already got one; I want something with more features or fewer features (usually not the same consumer, btw); I don’t like the color, shape, size, design, feng shui or some other aspect of the product. The list is as varied as the customers who visit your web site.

And you better know what objections visitors will raise and proactively address them in your site’s content.

How To Address A Customer Objection?

Once you’ve determined which objections you’ll most likely encounter from site visitors you develop a strategy to address the objection before it even becomes an objection.

 Example #1: It’s too complicated.

 Okay, take a look at this 3-minute Flash demo that’ll show you how to assemble the (whatever it is you sell). You’re not addressing the objection with a long body of text explaining how to assemble your gizmo. You’re providing a clip that actually shows each step of assembly with text burns identifying key steps and just where Tab A is.

 Example #2: It’s too expensive.

How will the product improve productivity or quality of life? Let’s say you’re selling hot tubs. You point out the benefits to the consumer. Forget product features. The “too-expensive” buyer must see personal benefit(s) in order for you to manage the objection.

 “You come home from a stressful day, hop into the heated, soothing water, turn on the relaxing massage jets and feel the cares of the day melt away.” The buyer who believes “it’s” too expensive doesn’t care about the 15hp motor, the 18 water jets and the automated chlor-tab release. S/he needs to see personal benefit. Once that’s established, move on to features in you sales copy.

 Example #3: I saw it for less at www.thecheapestsiteintheworld.com.

If you can’t beat the competition on price – and many times you won’t be able to compete with big box store prices – time to highlight the quality of your service, your easy return policy and the fact that there’s no re-stocking fee. (Wouldn’t you like to get your hands on the guy who invented the restocking fee?)

 Some sites offer a “Beat any legitimate price” guarantee. You can, too. Even if your price is a bit higher, most visitors won’t take the time to find the lowest of the low and if they do, you’ve lost a few bucks but have a happy customer – one who’ll be back to buy the accessories.

 Example #4: I don’t want to buy a (fill in the blank) on the web.

Would you buy a $4,000 diamond engagement ring online? From a site you never heard of? Not many people would. Too many risks. For all the buyer knows, you’re selling “diamacroids” as real diamonds. And if you’re half way around the world, the buyer has no recourse.

 Establish trust be establishing verifiable credentials. Member of the online BBB, certified by the Diamond Sellers Association of the World, graduate of the School of Gemology, 140 years in business, etc. You’d buy a diamond online from Tiffany’s because the trust factor is built in. Not so for www.billscutratediamondbazaar.com – no matter how low Bill’s prices.

 You get the idea. To successfully convert a visitor into a buyer requires that all objections be addressed in site content using a variety of media to get the job done. A Flash demo,  an audio clip and picture of you, a picture of your factory, a virtual 360° tour, a step-by-step, idiot-proof assembly guide, 24-hour tech support – whatever works best to counter the objection.

 All kinds of people will stop by your web site and each will come with his or her own expectations and objections. Meet those expectations and counter those objections right from the start. It’ll do wonders for your conversion ratio.

 It’ll also keep your repeat buyer list growing. Why? No objections. 


User Reviews: Let Buyers Sell Your Goods and Services

February 20, 2009

 

User testimonials keep it real

User testimonials keep it real

Mom always said don’t accept candy from strangers, but what about advice? How reliable is it? Well, when it comes to product reviews, advice from previous buyers helps a lot – assuming the product (and services you provide) live up to expectations.

 

Amazon has been encouraging reviews from buyers for years and it’s apparently been working fine for them – even if the product is trashed, which it often is. But, consider what Amazon gets. Happier buyers (even if they grumble, they aren’t grumbling about Amazon, they’re trashing the product), fewer returns from buyers warned off one product over another, invaluable marketing data straight from buyers who bought the product and, the cherry on top – it’s user generated content, meaning it doesn’t cost anything to produce. That’s a big plus.

Stats and Facts
Site owners eat stats and facts for breakfast. We want that empirical proof that numbers provide so here are a few to catch your attention from the nice folks over at emarketer.com

Question: Do you use customer reviews before making a purchase?

Always: 22%
Most of the time: 43%
Some of the time: 24%
Occasionally: 9%
Never: 2%

Get that? 65% of online buyers use consumer-generated reviews in making a buying decision. That should get you to sit up and take notice. It’s some pretty powerful evidence that consumer reviews are useful in (1) making the right sale and (2) identifying products the buyer doesn’t want. Either way, as a site owner, you’re ahead – ahead on sales motivated by user reviews and ahead with fewer returns from dissatisfied consumers who bought a different product or brand based on customer reviews. Either way, you win.

How many reviews do you read before making a purchase?
Just 1% relied on a single review. It took two or three reviews for 28% of buyers to make a decision, four to seven reviews for 46% of buyers to make a buying decisions and eight to 15 reviews to convince exceedingly cautious buyers to make a purchase.

The number of reviews required to make a purchase is correlated to the price of the item. A buyer will purchase a $49 off-brand MP3 player after reading a single review but it’ll probably take five to 10 positive reviews to convince that same buyer to purchase his or her next car. The cost factor plays a big role.

Now, how do user reviews stack up against other promotional efforts. Quite well, according to emarketer. In fact, user reviews influence the buying decisions of a whopping 64% of online shoppers. That’s two-thirds of all buyers – all buying based on the reviews of previous buyers.

Compare that to other promos:

• Special offers and coupons: 61%

• Product and price comparison tools: 59%

• Consumer testimonials: 49% (these testimonials have lost any credibility since many are fabrications of some copywriter’s not-so-vivid imagination)

• Product videos: 44% (usually demonstrating the benefits of the product)

• RSS alerts: 39%

• Blogs and forums: 39%

• Questionnaires: 29%

Web Research
More and more web users turn to product reviews to find the perfect fit – but not all reviews are given equal credence. User reviews are believed by 55% of comparison shoppers. And, when skimming through consumer reviews, it’s easy to tell the psychopathic malcontent from the thoughtful reviewer who’s actually trying to help.

Comparison charts are another useful sales tool. 21% of online window shoppers use these list-formatted tools to compare apples to apples, features to features. This format is a terrific means of delivering a lot of useful information in a simple-to-evaluate format.

Expert reviews – the kind you often see in specialty periodicals – carry less weight than reviews written by actual buyers of a product. Why? The consumer-reviewer doesn’t have an axe to grind, making the opinion more reliable. A review by a professional may have an ulterior motive behind it – like the product manufacturer is a big advertiser, or the review is a cut-and-paste job from the manufacturer’s promotional literature.

The reason customer reviews work is they have validity. “I bought it and I love it,” when unsolicited, is as good as a recommendation from a friend. Same with “I bought it and it blew out every circuit in my house.” Now that’s a product you shy away from.

The Ethics of User Reviews
As a site owner, you have god-like powers. Post anything. It’s your site. But what about the ethicacy of user reviews? How do you handle this kind of input?

Consider the site owner who writes his or her own buyer reviews to move more junk out the door. After a while, this tactic is going to come back and bite you in your assets as more and more dissatisfied buyers return products, taking up more of your time and costing money.

And how do you handle the disgruntled buyer who slams one of your best selling products? Is it unethical to remove negative product posts? You bet it is. An occasional slam increases the credibility of all of those positive reviews. If every review sings the praises of the product, well, the reviews become less credible.

Also, if you receive numerous slams on a product or brand, consider dropping the item. Let the buyers tell you what they want – then give it to them.

The tools you use to promote products are often expensive and time consuming to create. A Google AdWords campaign can bust the bank in six months – and you have to write the little blocks of text.

User-generated product reviews have credibility and the nut jobs are easy to spot and ignore. So, give your buyers a place to tell you and other site visitors what they think about their purchases.

Then, watch sales increase as “friend” recommends to “friend.” It’s powerful promotion and, even better, it’s free.