This article is part of the brand new Sales Secrets Uncovered series where we share key learnings from our analysis of 211k+ sales calls spread over 3.8 million minutes and 12 months. Why? To uncover the stats that will help you sell better in 2022 and beyond.
PS: Use this data responsibly. Correlation is ≠ as causation. 😇 Read more below.
Sales objections — can't sell with them, definitely can't sell without them.
But which ones are dead ends and which ones are early signals that a deal could be headed to closed won land?
We analyzed 211k+ sales calls spread over 3.8 million minutes and looked for the impact (correlation) of sales objections, among other factors, on deal outcomes.
To begin with, it's interesting to note that not all sales objections are bad — as any seasoned sales pro will tell you.
And our data backs them up. When any sales objection came up on a sales call, the deal won rate went up by a whopping 58 percent.
And now, to answer the question that we used to clickbait you into reading this article. :P
The sales objection that leads to a 75 percent increase in deal won rate is drumrolllll... status quo aka we good.
What does status quo mean?
In this context, status quo = customers saying things like “We’re already using”, “we are all set”, “we aren't looking for”.
And guess what, when this objection comes up, the deal lost rate also reduces by 25 percent. Booyah!
So the next time a customer says they're happy with what they're using, you can just quote this stat or send them a link to the article and tell them the story is not over yet. Just joking! Don't do that (or maybe try it and let us know how it went ;)).
PS: Wondering how often this objection came up on the deals we analyzed? The answer is it showed up on 6.4 percent of the deals we analyzed.
PPS: All the data crunching you see has been done on calls associated with deals. So if an objection came up early on, which led to the call not even moving to the deal stage in the CRM, it won’t show up here. Even so, if the objection came up later it definitely has an impact on the deal outcome.
So the next question is — what should you do when the customer brings up status quo/we good as an objection?
Here's what our experts have to say. Coach your team to understand what the real status is by asking questions such as:
- “How is your experience with your current solution?”
- “Has it solved what you wanted to?”
- “Would you say no to trying a better way with no strings attached?”
You could also try to sweeten the deal with all-access product trials and pilots helps to get prospects warmed up. But offer these as potential arsenal in your box of tricks, once you have some buy-in from the prospect.
What do you do when your prospect throws this objection at you?
And for the curious cats: here’s a behind-the-scenes look into how we analyzed all this data, straight from the master data tamer Akshaay, FAQ style.
- Did you enjoy working on this project: Yaa haa! Working on this series of Sales Secrets Uncovered has been super challenging and fun. It involved pushing the data to our cloud server, extracting and analyzing it, and then using lots of human understanding and logic to make sense of everything. So psyched it’s all done. OKR goals here we come! 🎯
- How much data are we talking here: We processed over 10M minutes of calls into two headers — number of deals and number of calls. We picked up the data from our CRMs to understand the deal stage (such as won, lost or open), deal amount and then linked those calls with a deal. Each call associated with a deal (running into 3.8M minutes) was then analyzed for the factors required (handling objections, rep using curse words, eating avo toast for breakfast, etc.) and their effect on the deal stage was observed.
- How much ATD went into this: I was super careful while searching for phrases corresponding to a particular factor. Eg, searching for 'a timeline' against searching just for 'timeline'. We understand that multiple factors affect a deal and seeing each factor in isolation is not the ideal way. But we can derive certain correlations between factors and deal outcomes — and then use human logic to apply them to our unique selling scenarios. 🔮