Pitching and tendering – Manage objections

August 12, 2024|Accountants, Kim's Blog, Lawyers, Marketing, Selling|

How to manage objections was a key topic which emerged from the full day workshop on ”Pitch Perfect – How to Prepare & Present Winning Pitches & Tenders”. Further details of MBL training courses: Kim Tasso – MBL Seminars. Delegates included trainees to partners as well as junior and senior marketing and business development professionals. Their practice areas spanned corporate finance, family law and outsourcing accountancy services. Pitching and tendering – Manage objections

How to manage objections

During the session we covered: tender planning process and systems, research, scoping calls, pitch documents, preparing pitch presentations, talking to clients and actions after the pitch. A key theme during the discussions about selling was how to manage objections.

Anticipate objections

During the research and preparation stage of a tender, the team will spend time anticipating questions that the client is likely to ask. You extend this exercise to anticipate what objections are likely to be raised.

We considered how to conduct a competitor analysis Pitching, differentiation and competitor analysis (kimtasso.com). Knowing your competitors at a pitch will help anticipate the likely objections the client may raise.

There are likely to be some common objections such as:

Your firm is too big/small
The other firm are specialists/generalists
Your prices are too high/too low
You do not have an office in our location(s)
We prefer to hire “horses for courses” or ”a one-stop-shop”
Our systems are integrated with the incumbent’s systems
We are concerned at the time/cost of switching

As well as anticipating possible objections, you need to think how you about the best responses you can make and who on the team will make them.

Rehearse responses to objections

Use the anticipated objections and best practice responses during rehearsals.

Encourage those who are pretending to be the client to pose as many objections as possible to put the team through their paces. This way they will build confidence and be ready for anything that the client throws at them.

Build a knowledge base of objections

Most firms will debrief their teams and clients after pitches. Marketing and Business Development (MBD) can capture all objections that have been heard. And the best practice responses. This database of common and new objections can then be used in training and rehearsals to improve performance in the future.

Change your mindset – Lose the fear

Many people fear objections. They worry that the client has identified a weak spot and intends to reject your solution. As a result, when hearing an objection they may become flustered and defensive. The client will pick up on such a reaction and be wary.

So welcome objections. They are a natural part of most sales processes. Often they demonstrate a misunderstanding or are a request for further information – so they present an opportunity for you to clarify your offer.

Sometimes objections are a buying signal. In these situations, the client is working through how they will “sell” your pitch or tender to others in the organisation. They are looking to you to help them respond to what internal objections they will face.

Sometimes, they are an indication that you haven’t properly identified or understood the client’s real needs and requirements. Or you haven’t outlined sufficiently compelling benefits and value. When the client raises an objection in this situation, you have the opportunity to delve deeper to find out what is really on their minds.

What is a value proposition or USP – and how do I create one? (kimtasso.com)

Malcolm McDonald on value propositions – How to develop them (kimtasso.com)

Listen intently

While the client outlines their objection you should listen intently. Don’t interrupt. Let them speak. Repeat back key words or summarise to demonstrate that you have heard them. By paraphrasing and reflecting back their words you allow them the chance to expand on or elaborate on their concerns.

Active Listening (Video) (kimtasso.com)

You’re not listening – What you’re missing (kimtasso.com)

Validate emotions and concerns

When you hear an objection, you must validate the person’s emotions and concerns. Repeat back the objection to confirm you have understood correctly. That shows you have listened.

Then indicate that it is a good question and that they are right to ask the question or raise the point. This acknowledges and validates them.

If you fail to acknowledge or dismiss an objection the client is likely to feel ignored or overlooked. Their concern will not go away and may increase in strength.

Emotional Regulation – A key element of Emotional Intelligence (EQ) (kimtasso.com)

Ask questions for clarification

Having heard the objection, you should seek clarification and elaboration.

Thank the client for the question. Ask further questions to ensure that you fully understand their concern. Ask them how it impacts their decision. Request further information so that they elaborate. Explore their views so that you really get to the heart of the matter. Otherwise, you may make wrong assumptions when you respond.

Another approach is to rephrase their objection as a question. Or pose the question to another member of the client team,

By listening to further information, you and the team have a few more moments to consider their point and formulate a suitable response.

Why are questions so important? (Questioning skills) (kimtasso.com)

What is Socratic questioning? (Questioning skills) (kimtasso.com)

Classify the objection

Some objections may be real. For example, the client simply may not have the budget for your solution. Or they may be genuinely constrained by other issues. In this situation, you may be able to alter your proposed work to fit within their constraints. Or identify someone else in the decision-making unit that you need to talk to. Selling Basics – Detectives and DMUs (Video) (kimtasso.com)

But sometimes you may hear a false objection. For example, the client may say that they are unable to proceed with your proposal because there are cost constraints. But in reality there are no cost constraints. Perhaps they are assessing how resolute you are in your pricing, trying to prompt a negotiation.

Similarly, you may hear a hidden objection. They are concerned about something else which they may not want to reveal to you. For example, they may lack chemistry with a member of your proposed team or they may have insufficient authority to make the decision. Careful and delicate questioning should help you get to the heart of the matter.

Understand attack strategies

In “Buy In: Saving your good idea from getting shot down” authors John P Kotter and Lorne Whitehead offered some illustrative responses to common attack strategies which can be adapted for objections:

“We’ve been successful, why change?”

Surely holding onto the past and not adapting is more dangerous than looking at a new idea?

“There’s no money (or some other problem)”

Most great organisations were not built on money (think of Steve Jobs in a garage creating Apple)

“It’s a good idea but it goes too far (or not far enough)”

Glad you agree it’s a good proposal, let’s get started and we’ll figure the rest out along the way

“No one else does this, why should we?”

Maybe someone else does do it and we just don’t know. Someone always has to be the first – it’s a great opportunity. You think we don’t have the capability to lead the way?

Consider a trial close

In traditional selling situations, you might consider a trial close when managing objections.

For example, if the client says “We can’t proceed as we lack the resources to manage the transition”. Whilst it would be wise to explore this further, you could attempt a trial close. For example “So if we could resolve your resourcing issue for the transition, you would be happy to proceed with our proposals?”. In this case, the client might answer “Yes” or the client may raise other points that need to be addressed.

Offer social proof

Naturally, your proposition or offer and credentials will be backed up with data and evidence to support your claims.

But you may also use social proof as part of your persuasion in the face of objections. Social proof (informational social influence) is a psychological phenomenon where people copy the actions of others in choosing how to behave in a given situation. The term was coined by Robert Cialdini in his 1984 book “Influence: Science and Practice”.

For example, “You raise a good point. Research shows that over x% of organisations in your situation are concerned about Y. The data also shows that when organisations like yours are satisfied with the answers on this point, 95% proceed with the offered solution and are happy with the results”. Client case studies and testimonials are also valuable.

Influence – Cialdini’s six principles of the psychology of persuasion (kimtasso.com)

Use a process to manage objections

You will need to prepare the team to manage objections when they arise in client meetings.

Some sales training will provide a framework to follow. For example, this is the process I learned on my very first sales training course in the technology sector:

Pause and think
Clarify
- Confirm your understanding
- Convert into a question
Classify
- Real, hidden, false, misunderstanding?
Counter, answer or agree
Confirm
Always end on a positive note

Another process:

Agree
Explore
Challenge

In her book Book review: Sales Mind – 48 tools to help you sell (kimtasso.com), the author Helen Kensett said that you should be thinking about how you will close the sale from the first encounter with the client. She suggests the sales journey as shaped like a shark’s teeth with highs and lows along the process (i.e. success, setback, recover, learn, proceed). Objections may occur at any time during the sales process.

PS Before you reduce your price

There were several discussions about pricing including:

the purpose of brand is to differentiate and support premium prices
price resistance could indicate you have failed to either identify the real client needs or show a persuasive value proposition
inertia due to perceived switching costs being higher than potential benefits
value of rare Subject Matter Experts (SME) and unrivalled sector experience
innovative methodologies and ways to add additional value
differences between “bet the company” and routine services
‘pick and mix’ service menu options
quantified value propositions

I saw a LinkedIn post shared by Richard W Smith in Australia which I thought was relevant. He quoted Rob Baker and Ed Kless on their 19^th July edition of “The Soul of Enterprise” podcast discussing Daniel Langer’s (luxury, pricing and disruption) 4 E framework. He offers it to evaluate whether your pricing is too low!

Emotion
Experience
Engagement
Exclusivity

Is your firm’s pricing too low? | LinkedIn

Delegate views and poll results

These are provided for delegates to supplement their learning resources from the workshop

Delegate aims/challenges

Appreciate the differences in professional services pitches compared to other sectors
Learn more about client needs during early conversations
Understand client expectations better
Balance expertise with how much the client is prepared to pay
Adapting pricing from smaller to larger enterprises
Tailoring pitches to meet client needs
Presentations when time restricted
Dealing with “race to the bottom” on pricing in a particular sector
Making my skills appealing to others
Learn about pitching to clients (early in career)

Remember when introducing yourself

Be personable and confident (smile)
Tailor to interests and needs to the people you’re talking to (what’s in it for them?)
Convey credibility and relevant expertise and experience (credentials)
Keep it brief and informal
Focus on a few key messages
Make it interactive – Provide a hook to allow the conversation to flow

Delegate takeaways: key images, ideas and actions

Image	Idea	Action
Red fish (competitor analysis)	More ‘you’ and less ‘we’	Research techniques
People buy people	Adapting to personalities	Seek more feedback
Power poses	Pitching strategies	Future proof our bids
Branding in design	Power poses	Tailoring documents
Finished proposals	Client first – firm last	Continue learning
	Tailoring content	Read one of the sales books
	Pitch structure	Read strategic tendering book
	Conversation at meetings	Different structure on pitches

Delegate poll results

On a scale of 1-10 (1=low) how much pitching and tendering experience do you have

1 22%
3 33%
8 11%
9 22%
10 11%

On a scale of 1-10 how much training/experience do you have in selling?

1 78%
4 11%
8 11%

Which topic is of most interest to you today:

11% Preparation, early client contact and sales strategy
22% Creating the pitch or tender document
56% Delivering pitch presentations
11% Something else (everything!)

About your pitch processes – stages/policies (composite response from all delegates)

Review of opportunity
Initial call with BD
Initial call with client
Call/note to specialist with relevant expertise
Meeting/discuss proposal
Create document
Approvals/sign offs
Negotiation/Engagement letter
Follow up if unsuccessful

About your pitch processes – systems (composite response from all delegates)

SalesForce
Internal CRM
HubSpot
ActionStep
Financial systems
Knowledge hub
Web

About your pitch processes – resources (composite response from all delegates)

Marketing and business development professionals
Databases
Standard templates
Designers
Automated pitch system

About your pitch processes – metrics (composite response from all delegates)

Volume of pitches
Values of pitches
Profitability
M&BD time on pitches
Client ranking of pitch submissions
Pipeline within CRM
Monitor conversion rates
Realisation rate – income versus discounted rates versus standard rates

What is the main role of your MBD team in pitches/tenders?

25% Strategic support
38% Content development
38% Something else

Qualification criteria (Go/No go decisions)

Existing relationships
Potential pipeline of work
Client size
Client needs
Ability to pay
Location
Length of engagement
Availability of relevant people
Relevant skills and expertise
Brand
Personalities
Conflicts
Opportunity cost
Capacity
Strategic alignment

To what extent does your sales strategy/value proposition reflect the competition?

75% We consider the competition carefully
25% We hardly think about the competition

Pitch/tender document headings

About you (the client)
Your needs and tailored service
Scope and approach
Sector credentials
Relevant expertise and experience
Proposed team
Things we have in common
Added value/innovation
Pricing and terms
Firm profile
Firm’s CSR

Do you have specialist writing/editing resources?

75% Yes, some M&BD people have specialist writing skills
25% No, we manage with our fee-earners’ writing skills

Best speakers – and why were they memorable?

Relaxed
Engaging
Eloquent
Succinct
Complimentary of others
Real life experience
Overcoming adversity with humour
Approach to questions
Spoke for two hours without prompts

Do you contact the client to ask about their expectations before pitch presentations?

100% If there is a particular reason for doing so

Pros, Cons and alternatives to PowerPoint:

Pros
- Quick
- Easy to use
- Flexible
- Visual
- Easy to edit
- Everyone has it – easy to share
- Can create templates and styles
Cons
- Limited formatting
- Manual
- Limited functionality
- Distraction from content
- Can be seen as outdated
- Time consuming to look attractive
- Clunky
Alternatives
- Canva
- AI plug-ins for PowerPoint
- Incorporate drone footage
- GoProposal
- Upslide
- Outsource to designers

What types of rehearsals do you arrange?

86% Individual rehearsals if requested
43% Technology checks
43% Full rehearsals with all team members

Which personality style do you think you are?

100% Dog

Delegate feedback included:

“Quite long but enjoyed the breakout sessions”

“Thanks so much Kim (and Claire), a great session “

“Very enjoyable and a useful session. There is a lot of content (which is great) but might be good to cover over two days”

“Very informative – learnt a lot”

“Thank you! Really informative day”

“Thank you – a really interesting day”

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