{"id":45651,"date":"2021-08-12T04:14:42","date_gmt":"2021-08-12T08:14:42","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=45651"},"modified":"2021-08-20T04:11:45","modified_gmt":"2021-08-20T08:11:45","slug":"objections-in-sales","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/objections-in-sales\/","title":{"rendered":"Handling Objections in Sales: The Looping Technique"},"content":{"rendered":"\n

What are Jordan Belfort’s tips for handling objections in sales<\/a>? How does conversation looping<\/a> help you close a deal? How do Belfort’s methods compare to other sales advice?<\/p>\n\n\n\n

Objections in sales can be tricky to work around: you want to address all the prospect’s concerns but you don’t want to sound too pushy. There are tons of different methods for handling sales objections<\/a>. Today we’ll discuss Jordan Belfort’s advice from his book Way of the Wolf.<\/em><\/p>\n\n\n\n

Keep reading for Jordan Belfort’s advice on how to handle objections in sales<\/a>. <\/p>\n\n\n\n\n\n\n\n

Handling Objections and Closing <\/strong><\/h2>\n\n\n\n

When you ask for an order, you\u2019ll get a definitive yes, definitive no, or maybe. The first two are easily addressed: Either process the order or say goodbye.<\/p>\n\n\n\n

The third answer is more challenging because the prospect has objections to buying\u2014this is where the looping process introduced in Chapters 2-3 comes into play. In this chapter, Belfort discusses how looping works step-by-step. It\u2019s essentially backtracking to re-present your case each time he raises an objection, then moving forward with the sale again.<\/p>\n\n\n\n

Here\u2019s a big-picture view of Belfort\u2019s looping strategy for handling objections in sales:<\/p>\n\n\n\n

  1. When you ask for an order the first time and get the first objection, sidestep it and backtrack to uncover the prospect\u2019s underlying uncertainty.<\/li>
  2. Address the uncertainty by re-presenting your case logically and emotionally (looping).<\/li>
  3. When you moved the client to a 10 in all three key areas, ask for the order again.<\/li>
  4. If the client raises another objection, this time acknowledge it rather than deflecting it. Use your acknowledgment statement as a segue for re-presenting your case logically and emotionally. <\/li>
  5. Ask for the sale again.<\/li>
  6. If the client raises yet another objection, focus this time on his action threshold<\/a> (you\u2019ve already raised his certainty level (twice), but he\u2019s still not ready to buy, so you need to take a further step). Remember, the action threshold is the overall comfort level he must have for committing to a purchase.<\/li>
  7. Use one of four ways (detailed below) of lowering his action threshold. <\/li>
  8. Ask for the order a third time. At this point, most people are now likely to say yes.<\/li>
  9. However, if the prospect still isn\u2019t ready to commit, determine whether it\u2019s worth continuing the sale or whether you should walk away. If you decide to continue, lower his action threshold by increasing his pain threshold (the point at which his discomfort with the problem will drive him to alleviate it by buying your product).<\/li>
  10. Now transition to a final close.<\/li><\/ol>\n\n\n\n

    (Shortform note: Other sales trainers credit Belfort<\/a> with coming up with the looping idea, although some have developed variations<\/a>, for example a seven-stage loop. For more on how Belfort\u2019s looping strategy works, check out his free online training in The Basics of Looping<\/a>.)<\/p>\n\n\n\n

    An Alternative Approach: <\/strong>

    Low-Pressure Sales<\/strong> Subjecting a person to the same sales presentation<\/a> three or four times, as Belfort\u2019s system does, could come across as high pressure to some prospects, especially in B2B sales, and prompt resistance. A 1947 Harvard Business Review article<\/a> that\u2019s still frequently quoted today popularized low-pressure selling as a B2B alternative; this approach underlies customer-centric sales methodologies<\/a> today. Author Edward C. Bursk defined low-pressure sales as allowing people to make their own decisions rather than pressuring them into specific purchases.Similarly, To Sell is Human<\/em><\/a> contrasts traditional high-pressure selling with what the author calls a modern (no pressure) method of creating affinity with the buyer through a formula focused on providing a valuable service.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    A Looping Conversation<\/strong><\/h3>\n\n\n\n

    Here\u2019s how Belfort\u2019s looping process might play out in a sales conversation<\/a> with a marketing director about software to manage her print projects, such as direct mail pieces:<\/p>\n\n\n\n

    A typical first objection might be that the prospect thinks the price for the software system is too high. Respond by sidestepping:<\/strong> \u201cI understand what you\u2019re saying, but aside from the cost, do you see how well our software would work for you\u2014how much it could boost your efficiency and quality?\u201d<\/p>\n\n\n\n

    You can determine where the prospect is on the certainty scale<\/strong> at this point by how enthusiastically (or not) she responds. If she\u2019s at less than a 10<\/em> on the product, respond \u201cRight, it\u2019s a great deal! One of the biggest benefits is how much time it saves you by automating and tracking the entire printing process.\u201d <\/p>\n\n\n\n

    Then backtrack to the point where you\u2019d completed the pitch and re-present it<\/strong>, focusing on the strongest benefits and using tone, pacing, and leading to rebuild the emotional case as well. For example: \u201cWe talked about how time-consuming and overpriced many print projects are. So let me reiterate that by managing your process from bidding to final proofing, our software saves you 20% on the average project\u2014not to mention, the cost and embarrassment of typos, ordering the wrong quantity, and so on.\u201d<\/p>\n\n\n\n

    Pause and check in:<\/strong> \u201cDo you follow what I\u2019m saying?\u201d<\/p>\n\n\n\n

    If you get an enthusiastic response, you\u2019ll next check on her certainty level about you and your company.<\/strong> Shift your tone to mystery\/intrigue (\u201cLet me ask you something\u201d) and ask whether she\u2019d have jumped at the opportunity if she\u2019d previously worked successfully with you and your company in the past.<\/p>\n\n\n\n

    If she agrees (\u201cI probably would\u201d), she\u2019s indicating trust is an issue. Respond in a sympathetic tone with: \u201cI can understand your hesitation to commit immediately, since we haven\u2019t worked together before\u2014so let me tell you more about myself.\u201d Repeat your name, title, and years of experience. Similarly re-introduce your company, describing it as the best, most-respected, and so on.<\/strong><\/p>\n\n\n\n

    For example, \u201cI\u2019ve worked for over 25 years in the print industry, first as a vendor and now as a salesman for Print-It Software and Service. I can tell you that Print-It is the most print-savvy software provider in the industry. Our software is specifically designed for managing print projects\u2014in contrast to other companies\u2019 general procurement software, which doesn\u2019t get the job done.\u201d<\/p>\n\n\n\n

    Ask for the order a second time<\/strong>\u2014offering a slightly smaller purchase or trial if you can, as a way of letting the client test out your products before spending more. For instance, \u201cLet me offer you a discounted 60-day trial so you can see for yourself how much time and expense our software can save you.\u201d<\/p>\n\n\n\n

    Belfort says that about 20% of prospects with an initial objection will close after one loop. But others will need additional loops addressing uncertainty, or lowering their action threshold and increasing their pain threshold. For example, a client may want to speak to a colleague or receive additional information in the mail.<\/p>\n\n\n\n

    Acknowledge the new objection, using it as a transition to loop back.<\/strong> For example, you might say, \u201cWhen clients ask for more time, they often forget about following up. I wouldn\u2019t want you to miss out when I know how much you\u2019ll benefit from the software.\u201d Then loop back and re-present again: \u201cIt\u2019s really perfect for you because it eliminates the hassles and glitches of your current system.\u201d<\/p>\n\n\n\n

    Address the Action Threshold<\/strong><\/h3>\n\n\n\n

    After you make your case again, address the prospect\u2019s action threshold. People mentally run best-case and worst-case scenarios when thinking of buying: If it\u2019s a good purchase, their life will be better; if it doesn\u2019t work, they\u2019ll be out the money and look bad to their bosses and colleagues.<\/p>\n\n\n\n