NINE COMMUNICATION STRATEGIES

…For dealing with stakeholder concerns…

First, why do stakeholders tell you “no”?

Stakeholders = anyone who may have a vested interested in your brand. To name a few:

Customers Prospects Partners Vendors Investors Media Prospective/

current employees

They…

1. don’t trust you.

2. don’t know you.

3. are loyal to someone else.

4. need more time.

5. don’t see the value in your offer.

Common reasons they say “no”…

1. Question

• Turn the concern into a question and refocus on one or more strengths of your value proposition.

• Get the stakeholder thinking in a new way and contrast his/her concern against an advantage.

Focus on yourAsk a

Example…

Buyer – “Your product is 10% more than your competitor’s. That’s too much.”

Seller – “Yes it is slightly more expensive. However, do you agree that the higher quality of the product means higher customer satisfaction and lower costs for your company (due to less product defects and returns)?”

Note: The examples that follow each strategy pertain to responding to customer objections but could very well be applied to the concerns of other stakeholders too.

2. Direct Denial

• Use this strategy when the stakeholder states a clearly false and damaging statement about you or the company.

• Confrontational strategy for dealing with objections.

• Stakeholder may react negatively.• Avoid being offensive, insulting, or

condescending.

Example…

Buyer – “I was told that your products contain chemicals that are harmful to children.”

Seller – “I am not sure where you heard that and it’s certainly not true. Our products are approved by the FDA. They are specifically approved for children and I can provide you with the data for that.”

3. Indirect Denial

• Express appreciation for the stakeholder’s concern, validate the concern, then explain why it is untrue or misdirected.

• Less threatening than direct denial.

Example…

Buyer – “Demand for your products is strong. I’m not convinced you will be able to meet my order in time.”

Seller – “You are correct. My company has enjoyed tremendous success and we are thankful…However, we pride ourselves on not missing order deadlines, and our customers will verify that.”

4. Compensating for Deficiencies

• Move the stakeholder from focusing on a negative aspect of your company to a favorable one.

• The new aspect must be important to the stakeholder.

Example…

Buyer – “The response time on your product is too slow. Your competition’s response time is two-tenths of a second faster.”

Seller – “I agree with you. My product is two-tenths of a second slower. However, please note that it also costs 25% less per unit…and has 10% fewer returns.”

5. Feel-Felt-Found

• Acknowledge the stakeholder’s feelings.• Extend the same feelings to a larger

audience.• Counter with a legitimate argument.

Example…Buyer – “In my opinion, your products are overpriced and not worth the extra cost.”

Seller – “Our products are slightly more than the competitor’s and I can certainly see why you feel that way. Other customers have felt that way at first. However, when they take the time to examine the product quality, they have found the overall value to be worth the investment.”

6. Third-Party Endorsements

• Use of outside parties to bolster your arguments and increase persuasiveness.

• Adds credibility.

Example…Buyer – “Your customer service has been questionable, and it is important that I have tech support 24/7.”

Seller – “I agree with you that our customer service was not what it should be several years ago. However, we made the investment to improve customer service and now it is among the best in the industry. Gracie Electronics felt as you did but was willing to try us and is now one of our best customers.”

7. Bounce-Back

• More aggressive than some other strategies; gives a sense of urgency

• Turns a concern into a reason for action.• Often very effective with objections about

needing more time or a better deal.

Example…

Buyer – “I’ve listened to your presentation but need more time to consider your proposal.”

Seller – “I can appreciate that this is a big decision for your company. However, delaying this commitment only costs your company money. As we agreed earlier, my products will save nearly 40%.”

8. Defer

• Most common when the stakeholder raises a concern about (price/compensation/benefits) early in the discussion, before the value proposition has been defined.

Example…Buyer - (Before the full value of the product has been explained): “What is the cost of your product? I just need to know the cost.”

Seller – “I can appreciate your interest in knowing the price of the product, and the answer is ‘it depends’…I would ask you to hold off just a minute until I know a little more about your product requirements so that my estimate will be tailored more to your needs.”

Important! The best course of action for persistent buyers who insist on a price right now is to provide the price (or a price range) immediately. Don’t make them mad or skeptical. Give them the information.

9. Trial Offer

• Clearly define the terms of the trial offer beforehand.

• Potentially costly – Last resort strategy– Make sure the stakeholder will not budge on their

position before offering a trial.

Example…Buyer – “I’m definitely not willing to make a commitment to your copier today. It seems complicated and hard to use.”

Seller – “I can appreciate your concerns. How about I have our service department install one for you and let you try it for one week. I will come by and demonstrate it.”

Remember, this can be a costly negotiation strategy (use it sparingly if it is).

Final thoughts…

Practice these so they don’t sound mechanical.

For your particular stakeholders:– Write down a few anticipated objections.– Write out a script for how you might respond using

one of the nine negotiation strategies.– Practice!

Negotiate for win-win solutions!

Thanks for reading!

What I do: Full time marketing and sales professor; marketing and sales training/development for

small businesses and personal branding coaching for individuals.