2 common B2B SaaS sales objections and how to handle them

Hey, this is Steli Efti with Close.io. In
today’s video, I’m going to talk about the two signs that show that your SaaS sales
team doesn’t understand the fundamentals of sales and are taking the easy way out and
how to fix that problem and empower your sales team to really crush it. Right, so here’s the scenario. This is something
that I see over and over and over again in many, many different SaaS sales teams. When
you sell a software product as a subscription, there is the opportunity as a salesperson
to blame two factors for a deal that’s lost or to be heavily pushing internally in the
company to get two things to make it easier for you to sell. Those two things are very
straightforward. Number one is a cheaper price and number two, more features. Think about it. Everybody that’s in sales,
and me as kind of “the” sales dude, we all want to have an easy job. Every human
being wants to have an easy time. Nobody likes to be challenged. Nobody likes to have to
work super hard to get something. So every deal that I talk to, I enjoy when deals come
through easy, although if it’s too easy, it makes me a little wary and a little afraid
that this might not be fundamentally a good deal if the prospect just says yes to everything.
But pushing that aside, I like to have easy money. I like deals to go through really,
really easily. Everybody does. But, I also understand the crucial fact that
if there isn’t friction, there’s no reason for my existence. If we talk completely transactional
selling, you call me or I call you, we exchange a little bit of information, and you buy,
that is not worth a lot in the world. That’s not an opportunity to create a ton of value.
If you think about transactional sales, that’s what you do when you go to Starbucks and you
go, “I’d like to have a latte, please,” and they go, “You know, would you like to
also have a bagel?” And you go, “Sure.” That’s totally transactional sales where
you give them some money; they give you the bagel, that’s that. That is obviously not
compensated insanely well because you don’t really create that much value, where selling
in sales really creates tremendous value where your reason for existence is important. It’s when the selling and the buying process
had real friction, when there’s a lot of decision-making that needs to be done, where
there’s a lot of complexity in the buying cycle. When there’s real money, a real challenge
on the table. That’s where you earn your keep and you truly make a difference in your
company’s life and success as a salesperson. So you need to embrace the challenge, and
you need to embrace having conversations with people and having to give and take and push
them back and really sell them on things. So, knowing that, you need to fight the urge
to just give in on the two biggest pushbacks and demands that people will have every single
day: Oh, your product is too expensive, oh, we could get something a little bit cheaper
over here, oh, we could build this internally for much cheaper. The cheaper thing, this
costs too much; we want to pay less. That is something we’ve written about and talked
about his before many, many times, and I’ll link to these really powerful articles on
how to sell based on value versus price, and how to manage the pricing objection. You need
to make sure that you understand that your job is to sell to people o the value, and
then your product needs to deliver that value. If you can’t do that, there’s no reason
for your existence. So, just giving into the prospect’s argument
that this is too expensive makes you redundant. It makes you a horrible salesperson. Honestly,
for one sales guy, one salesperson to another, your job is to change the conversation from
a cost perspective that the prospect will bring to a value prospective that is your
responsibility to shift and reframe the conversation and empower your prospect to see the value
that you create and the cost and what it will cost and see that that has a massively positive
array. It’s your responsibility to move the conversation to a value perspective versus
just a pure cost perspective. So that’s one. And then the second one is
more features. Obviously, people always want more features. But then if you do everything
everybody tells you, just like the famous Henry Ford quote, if he had listened to what
people told him, he would have given people faster horses. You need to hear what the things
are that your customers want or your prospect wants, but you also need to take the time
to understand why they want it, and you need to more importantly truly understand what
is the problem they’re trying to solve because people are great at explaining their problems.
They’re usually not great at finding solutions for them; otherwise everyone would be an amazing
product person. They’re not. Most people aren’t. I’m not. I know what my problems are, the things that
suck in life, but I don’t know necessarily the best solutions to those problems. So you
need to be careful to not just fall into saying yes to all feature requests, but spending
the time to truly understand why they want these features. What are the problems that
they have, and then understand are there workarounds to solve these problems today with the given
feature set, and are there better ways to solve these problems with other features that
you already have? That’s your responsibility. That’s the real work that needs to be done
versus just going to engineering every single day complaining that they need to build more
features and saying that all these customers want all these different features.
You’re not helping by constantly asking for more features because prospects are telling
you about these features. You’re actually just creating a lot of noise and polluting
the discussion and dragging down and slowing down the engineering team and the product
team versus speeding them up. Where you can really be empowering internally to your team
is by giving them real feedback about the problems that are being described and why
the current workarounds or the current features are not really addressing these problems,
and also telling them and understanding which of these problems have true priority. Which
of these problems display the biggest opportunities to create real, massive value in the marketplace
versus just aimlessly telling them everything that you’ve heard just like a parrot. You
just repeat single feature requests every time you hear something, and you tell the
customer or the prospect, “Yeah, I totally agree with you. We should do these 44 features,
and you know what?” Then bullshitting them. “You know what,
we’re really onto it, so I think most of these things will be done soon.” Please
don’t fucking do that, right? I’ve written about this before. Don’t make promises you
can’t keep. Make sure to truly qualify them. Make sure to ask the right questions and really
understand what it is, what the problems is they’re trying to solve with these features,
why they want these, and see if you can help them with workarounds today. Or if there’s
features that you already have that they’re not aware of, be realistic with them in prioritizing
which of these features are truly most important or problems that they have and communicating
with them realistic timelines and then see, are those deal breakers or not? But don’t just keep going back to your team
requesting more and more features to be built, because that’s going to just make the product
worse. There are always going to be more – there are always going to be things and more features
that the prospects need, always. You’re never going to get to a point where prospects
are not going to be asking you for a ton more features. You just need to learn to be comfortable
with it and learn that that’s part of the process that you’re going to listen, pay
attention, you’re going to obviously keep developing the product and making it better
and better and better. But you can’t just use, “They needed these three features.
That’s why they didn’t buy it,” as an easy way out. That’s what sales people do that don’t
understand the opportunity they have of truly creating value in the whole process. Don’t
just give in on the, “It’s too expensive,” objection. Don’t just give in on the, “We
need more features,” objection. Don’t take the easy way out and just say, “Let’s
just give them a discount and let’s just promise them all these features,” and don’t
internally create conflict by constantly in team meetings going, “We need to decrease
the price. We need to decrease the price. We need to decrease the price. We’re too
expensive,” because your prospects are still out there telling you they want to pay less
money, and don’t constantly bring up, “We need all these features, because a lot of
prospects are just telling you that. Don’t be a thoughtless transactional salesperson,
because in SaaS, that’s going to really, really destroy value and slow your team down
versus speeding it up. What you want to be is you want to be somebody
that creates value, that understands the context of selling a technology product, and that
understands that you need to listen and pay attention when people say that the price is
too high and you need to have a real value discussion with them, and you need to pay
attention, really listen when people tell you they need more features and you need to
have that problem discussion with them and see what other problems, what other workarounds
and workflows they have. What are they trying to accomplish and how can I help them get
there today and how can I take that knowledge and be useful, a useful resource to my engineering
and product team in telling them what the market really needs. If you’re thoughtful
in that way, you’re going to crush it in SaaS sales, and if you’re managing a SaaS
sales team, you want to coach and train and educate your team on these things, and you
want to demonstrate how to do these things really well by showing them how to do pricing
negotiation and how to take customer feedback with regards to features. This is a very important
part in training that too many SaaS sales teams don’t do. They’re never trained
on how to ask questions about features, how to get to the bottom of the problem, and how
to take that feedback and give it back to the product and engineering team in a productive
manner. Make sure that you have a process in place to make that happen. All right, I’m excite and I’m curious
to hear your thoughts on this subject, so just make sure to write some comments under
this video, make sure to subscribe to our YouTube channel. There’s lots more videos
about SaaS sales that are going to be valuable to you on our channel, and make sure to go
to blog.Close.io and subscribe to our blog. I’m Steli Efti with Close.Io, and I’m
looking forward to the next video that we’re going to share some ideas with you.

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