OVERCOMING SALES OBJECTIONS & TOUGH RENEWALS By ACCE Staff & Membership Development Division Professionals
“NOW is the time for a chamber to shine. THIS is the time our members need us most. We should keep in contact with our members more, not less, in times like these. We need to provide hope to our businesses, and let them know that a better day is coming.” THIS
SENTIMENT, provided by Luann Feehan, director
of member development for the Greater Kansas City (MO) Chamber of Commerce, seems to be shared across the country, but current economic conditions are clearly making it difficult for chambers to grow or maintain their memberships. Chambers are, after all, small businesses, and they are not immune from the stresses facing most industries in the world economy. Chambers have found ways during this recession to appeal to new customers and investors. Objections from both prospects and renewing members are more frequent, but ironically less diverse, making the job of addressing obstacles more creatively challenging. Chamber Executive has compiled a number of responses to potential objections, focusing on the chamber investor’s revenue and cost structures, as well as their place in the community. 24
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A UNIVERSAL RESPONSE? One issue facing chambers is that there can be an assumption among employers in a tough economy that other businesses consider membership a luxury. A sentiment like this can become contagious, and being able to overcome it with real examples is critical. According to the article “Seeking Counsel in Chambers,” published recently in the New Jersey business journal NJBIZ, “As they seek shelter from the economic hurricane, increasing numbers of . . . businesses are pursuing membership in business associations, chambers of commerce and other industry groups.” Similar sentiments were expressed by the Wall Street Journal in its February 23, 2009, article “Filling the Gaps,” which states: “The assistance comes at a critical time: Hurt by the credit crunch and pullback in consumer spending, many busi-
ness owners are more focused on cutting costs and conserving resources than they are on finding technologies that might give them an edge.” At the San Diego (CA) Regional Chamber of Commerce, for instance, new sales are going well, but other areas have suffered. “We have not seen a decrease in new member revenue; in fact, for 2008, we had our best production in over a decade,” says Doug Holman, vice president, membership. “Where we are feeling the impact is in retention and sponsorship.” Even in organizations in which new membership is growing, the volume and nature of objections raised makes the work more... interesting. THE REVENUE LINE Reducing involvement in the chamber may appear to make short-term sense to some businesses because of an immediate need to pay other bills. Eliminating membership, however, is the kind of action that can put a company into a death spiral syndrome. By cutting the opportunity to stay connected to information, networks, and sales prospects, a company may actually hurt its ability to survive and turn its business around. “People need to try out new, novel and innovative things to weather the economic storm; everything else, including advertising, is going to cost a lot of money,” says Lou Bucelli, entrepreneur-in-residence at a Camden (NJ) business incubator, Applied Communication and Information Networking Program (NJBIZ 2/16/09). Tell your member firm or prospect, that they will need more connections in times like these, not fewer. History shows that those who hide out during recessions have the most trouble coming back. Sometimes, a firm’s market share lost during a recession is lost forever because they reduced visibility (presence, exposure, and advertising). You can also make the most of the marketing imperative in overcoming the “money’s too tight to mention” objection. Tell the member that compared to other things they could be doing to get name and brand recognition, chamber presence is extremely affordable. MAKE IT REAL WITH DATA Showing the company some type of graphic that quantifies where its money will go can be helpful. “It’s important to take the time to put a dollar value on the benefits of membership to further demonstrate ROI, whether the member shows up at events or not, and whether they call on you or not,” says Kyle Sexton, director of member services for the Salem Area (OR) Chamber of Commerce. Be sure to mention that your Chamber’s information resources will better equip a member than any other vehicle
to deal with the realities faced by business. In healthier and wealthier times, this information may be less important because there are opportunities everywhere. But in difficult times, the opportunities to learn about a potential deal, an undiscovered customer or a lower-cost supplier are critical. According to the Schapiro Group report, chamber membership matters to customers... and therefore to your members. Membership makes a difference in buying patterns, loyalty and repeat customer patterns for large and small businesses, whether in product or service industries. When a small business is a member of the chamber, the public is 44 percent more likely to think favorably of it and 63 percent more likely to purchase goods or services from that business in the future.1 Knowledge is not only power; it’s access to revenue, the lack thereof being among the primary objections being raised! THE EXPENSE LINE The member who is reluctant to renew ties with you will most likely insist that their expenses are overwhelming them right now. This opens the door for you to explain how their expense lines will only grow without guidance and, in some cases protection, provided by the local chamber. Information about regulatory compliance and other government issues is more important today because fines, penalties and compliance costs are harder to absorb. Many fees are also rising as government at all levels seeks new forms of revenue. The chamber offers some of the best ways to both fight and deal with such intrusions by regulators, but not enough membership sales professionals cite this strength of their organization in overcoming objections to membership. “WHO YA GONNA CALL?” The famous phrase in a popular ‘80s movie might be a question you ask in attempting to overcome objections. Sometimes, it can be effective to describe how some members think of their chamber membership as a kind of insurance policy. If something happens to a member’s business, what contacts and leverage can the company apply to fix it? What if a local hospital is about to stop accepting the health plan used by an employer, how will your member try to fight that decision? What if your member wants to bid on a government contract, but the purchasing office writes the RFP so they don’t qualify? Who can work in these arenas? The Chamber. LEARN AND SAVE. NETWORK AND SAVE. In response to objections, you will want to stress that whether it is through formal educational workshops, informal mentoring, or peer idea sharing, chambers offer ways
Cutting membership in the chamber is the kind of action that can put a company into a death spiral. Chamber Executive Spring 2009
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In harder times, the opportunities to learn about a potential deal, undiscovered customer or lower-cost supplier are critical. to learn how to reduce the cost of business, from affordable credit, to tips on sharing the cost of legal help. These and other learn-and-save issues are addressed in chamber venues ranging from classrooms to cocktail parties. Networks work, but the positioning of your networks as a message to overcome objections takes preparation. BROADER RATIONALES AND TACTICS When the member is deeply rooted in the community Stress how the community depends upon the chamber, and that without paying members, there is no chamber. From visitors looking for economical places to eat, sleep, and shop, to the developer examining property in your community, people look to the chamber for advice and ideas. Without the investment of members, the chamber won’t be able to its part in keeping the community from decline. When the member feels like no one else is joining In many regions, such as the Meadowlands (NJ), new membership sales are up. While there are retention problems, chambers are still adding members to the rolls. Assure your member that they won’t be out of step if they invest in you. When the member is truly suffering As a last resort, try to “trade” for sweat equity from the member. Ask, “If we reduce your dues for this year, could you
write a column for our magazine?” Or, you could “trade” the reduced rate for a good referral call to one of their suppliers with whom you’ve had trouble getting an appointment. When the member insists on negotiating dues Another tactic rather than actually dropping dues during a negotiation is to offer to stretch the membership—giving the member an extra six months. Some chambers also establish a reduced half-year rate. A few chambers even allow a pay-as-you-go monthly plan for members that truly desire to remain involved. When confronted with a large company that wants to reduce its dues Following a negative outcome from a conversation with a large, at-risk member, you are justified in ending the call with a well-scripted reference to a “higher authority.” Think about how you will refer to the next level of muscle (CEO, Board chair, or peer business leader) you plan to exert if you are unable to turn the person around. When confronted with, “You’re going to keep doing what you’re doing, whether I join or not.” With labor, environmental, consumer and other advocates clamoring for more protections and rules, the chamber is one of the few organizations advocating the employer side of the story. Likewise, with all cities and states getting more aggressive in luring your employers to their regions, a diminished chamber can’t fight back. As Dick Rush, chief executive officer of the Oklahoma State Chamber puts it: “Don’t ask me to fight a nuclear war with a BB gun.” CONCLUSION Sales coaches in every field recommend focusing on the “why” question when dealing with an objection from a lessthan-eager prospect or renewal. Tom Hopkins, in his timeless sales classic How to Master the Art of Selling, and Hal Becker, in his brand new book Can I Have Five Minutes of Your Time, both advise people making sales calls to seek, even crave, objections rather than avoiding them. Without the opportunity to deal with objections, a sale may never be made. Preparing for a call has always been important, but when more calls than ever entail the need to overcome multiple objections, research and anticipation are more critical than ever. 1
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Download the Schapiro Report at www.acce.org.
