Frequent Objections from Consumers Any Company Entering a New Market Will Encounter

In another of my recent posts, I discussed various principles that any organization must implement into their international strategy to adequately leverage the growth in a sustainable and most importantly, profitable way. What happens when you enter that market, but face objection from your potential customers?

It’s bound to happen, and any company, regardless of size, industry, products, or the market, is bound to encounter objections from consumers. Overcoming these objections can help your business compete in the new market, but you must first prepare for them with strategies to handle them at every turn.

Every business will be different, but in my experience you’ll find that objections regarding Viability, Existing Competitors’ Prices, and Purchasing Risk are the most common. Here are examples of situations related to each along with steps that businesses can take to overcome them.

Example 1: When Others Question the Viability of the Entry

What is the viability of this new market opportunity? With other market factors are at play, a company might find that their potential customers, competitors, and internal staff will question whether the move is viable.

So many companies seek penetration in a new market yet fail to make any actual positive movement because they were either not ready, but more times than not, their potential consumers and others had suspicions about the viability.

A possible way to overcome this is through a series of documents prepared by the marketing team.

First, you’ll need a document detailing all of the company’s strengths along with the number of customers who have already made purchases and the names of prominent customers and investors. This document will establish credibility for the business.

Second, you need a document that shows critical milestones in the company's development. Show how your company is on the upward swing and the plans that you have for the future and how this new market will help you achieve your goals.

Finally, you need a document that provides background for the direct contact in your company along with information about your installation and support team. Your potential customers want to connect with your company on a personal level, and if they're going to do business with you, they need to know who they are working with. List the achievements of the staff and direct contacts and anything else that will make them seem more credible as it could be a key point in their decision-making process.

Example 2: When Existing Competitors Undercut Prices

The simple fact is, many people will make purchases based on price alone no matter how much better your products or services are. The key to overcoming this is to shift the conversation away from purely price to cost/benefit. A company might also find that customers will be resistant to new brands entering the marketplace while existing local competition tries to force them out by undercutting their prices.

Again, you should create a comparative document showing the proven benefits that your product or service has while showing that your competitors don't provide the same. A key point to mention that you should write this document from an objective perspective and don't fluff up any numbers. Your customers want the cold hard truth.

Second, you need a sheet displaying the total cost of ownership which shows the sale price along with other expenses associated including installation, training, usage, and anything that is relevant.

Finally, produce an ROI analysis which is a calculation that presents the return on investment compared to the return on investment of your competitors. The difference should be clear, and if easy to understand, then your customers will make the correct decision. Remember - Price is not the basis for any applicable strategy but yet, clear monetization is crucial for your added value supporting continues sales and growth.

Example 3: When Customers See The Purchasing Risk as Too High

The final example relates to the way your potential customers see the risk of purchasing. They might have made bad choices in their providers in the past and don’t want to make the same mistake again. It’s an understandable objection, but if you have the data and expertise to back it up, with some messaging work and the right communication, you can ease their fears.

The primary goal in overcoming this objection is to boost their confidence in your product or service. To do this, you should reduce any fear that they’ll have to sign on the dotted line immediately before seeing how your product can benefit them.

Commonly, software service companies will offer trial programs. This is exactly as it sounds — a trial period where they can try the product out in its full capability. This test drive will let your product speak for itself rather than your marketing or anything else that can cost you money.

Another idea is a "freemium" version of your product. If you don't have a fully-functional version of your platform that they can try for free, then you can go this route. If you have a big first customer in this new market that you want to impress, pulling some strings in the development team and creating an exclusive license for them might be worth the effort.

Whatever the case may be, allowing your customer to try the product for themselves rather than taking your sales rep’s word for it can go a long way in making waves in this new market.

Summary

Every customer is bound to have objections when a new company enters their market, but with the right strategies and communication material on-hand, you can overcome these objections.