Objection Handling: Steps, Tips, and Sales Examples

Imagine you’re this close to closing a deal. Everything’s going smoothly and the prospect seems engaged — but then they hesitate. They bring up budget concerns or another objection, throwing up a roadblock in the middle of what felt like a sure thing. 

These situations are frustrating, but they can also be turning points. Sales objections aren’t rejections — they’re a sign the buyer is still considering, which means you can persuade them to move forward. Knowing how to respond to objections makes all the difference between a stalled deal and a signed contract.

Here are some tips to help you master objection handling. We’ll also show you how Otter Sales Agent empowers salespeople to close deals more effectively by offering live guidance on objection handling and other sales challenges.

What is objection handling in sales?

Handling objections in sales means addressing concerns and doubts a potential buyer raises during the sales conversation. Buyers raise these objections not because they want to decline, but because they want confidence that they’re making the right decision. If they’re uncertain about the value of your solution, it’s up to you to give them clarity.

Rather than seeing objections as rejections, skilled sales professionals recognize them as opportunities. Each objection provides insight into the buyer’s priorities, concerns, and decision-making process. You can use this information to reinforce the offer’s value in a way that speaks directly to their needs.

Effectively handling objections builds trust and credibility with prospects. When you listen to the potential buyer’s concerns and respond with empathy, you demonstrate that you’re not just trying to sell — you’re trying to help. This positions you as a trusted advisor, which often deepens the prospect’s engagement. Then, you can help them move forward with confidence.

7 effective steps for objection handling

Objection handling is an essential skill for sales reps, but it’s not an easy one to master. Every objection is unique, and responding effectively requires not only knowledge but also finesse. 

The good news is that with the right tools and objection handling techniques, you can transform objections into successful deals. Here’s how to overcome objections in seven simple steps:

1. Use Otter Sales Agent

Before you join a sales call, sign up for Otter to unlock a new level of performance. Otter Sales Agent is a powerful ally for any sales team. It provides real-time sales coaching during customer calls, offering instant, tailored guidance to help reps confidently navigate objections. 

For example, if a prospect hesitates due to pricing concerns, Otter Sales Agent can suggest a well-crafted response that emphasizes the long-term value of your solution or offers alternatives to adjust budget constraints.

By offering live prompts, Otter Sales Agent gives reps the power to address objections effectively without missing a beat — leading to more productive conversations and higher conversion rates.

2. Prepare

Preparation is key to handling objections. Before a sales call, anticipate potential objections based on what you know about the prospect’s needs and pain points. Then prepare clear, concise responses that address these concerns. This forethought helps you stay composed and confident when objections arise and respond promptly and persuasively.

To make pre-call prep easier, get help from Otter Sales Agent. The agent pulls data from your CRM and previous meetings to provide a tailored list of talking points. Address any roadblocks before they even come up.

3. Listen actively

When a prospect voices an objection during your call, it’s crucial that you listen actively. Don’t rush to respond because you’re eager to ease their concerns — this makes it seem like you’re not truly hearing them, which can create a disconnect. 

Instead, take a moment to fully absorb what they’re saying. Pay attention not only to their words but to their tone and body language. This gives you more information about the core of their objection so you can respond thoughtfully. It also demonstrates that you value their opinion, which helps you foster the trust and rapport that makes prospects more open to your solutions.

4. Ask open-ended questions

Asking open-ended questions helps you understand the prospect’s objections better. Instead of asking yes-or-no questions, encourage them to elaborate.

For example, ask “What would make this solution more valuable for you?” or, “Can you share more about your hesitation around this part of the offer?” These types of questions allow you to uncover the root cause of the objection and tailor your response more effectively.

If you struggle to come up with open-ended questions on the fly, Otter Sales Agent can help with that. Otter’s live sales coaching prompts you with suggested questions to guide the conversation toward a resolution.

5. Solve the objection

Once you understand the prospect’s concern, don’t dance around the objection — address it directly, whether it’s about price, timing, or product fit. Tailor your response to show how your solution can resolve their specific issue. Be clear and concise with a clear focus on value.

6. Move forward

Guide the conversation toward the next step. In some cases, this might be a follow-up. But the prospect may need more time to consider your offer, and that’s perfectly fine. Just make sure you set a clear timeline for when you’ll check in to maintain forward momentum.

If the prospect is ready to move ahead once you handle their objection, steer the conversation toward closing the deal. Offer a simple, clear next step, such as setting up a demo or sending over the contract for review.

7. Learn and adapt

Every sales call offers a learning opportunity. Take time to reflect on how you handled objections and what to improve for next time. Use Otter Sales Agent’s post-call summaries and analytics to gain better insights, refine your sales playbook, and, over time, build better relationships with prospects.

6 main types of sales objections

Understanding the different types of sales objections can help you respond more effectively. Here are six common kinds of objections you may encounter:

1. Price objections

Price objections happen when prospects feel your solution is too expensive or doesn’t fit their budget. To address this, focus on the long-term value and return on investment (ROI) your product provides. You can also suggest alternative payment plans or demonstrate how the investment saves them money in the long run.

2. Timing objections

When a prospect says the timing isn’t right, it’s often about competing priorities or budget cycles. To handle this, ask open-ended questions to get a better sense of their timeline. If they need more time, reassure them of your flexibility and offer to follow up when the timing aligns better. Or, present your solution as a way to help them achieve their goals sooner.

3. Competitor objections

If a prospect mentions a competitor, it’s a sign they’re evaluating other options. This is a great opportunity to differentiate your product by emphasizing its unique value. 

Focus on how your product aligns more closely with their specific needs and goals, and highlight the things that set your product apart — whether that’s better features, superior customer service, or more competitive pricing.

Sometimes, it’s helpful to use data and testimonials to support your case. For example, show the prospect how customers who switched from competitors saw success with your solution. The key is to shift the conversation from comparisons to how your product adds value to their business.

4. Product fit objections

When prospects aren’t sure if your product is the right fit, they might question its suitability for their business. In these cases, highlight the flexibility of your solution and offer examples of similar clients who’ve benefited from your offering. Be ready to customize or tailor your pitch to demonstrate how your product meets their specific needs.

5. “Not my decision” objections

Sometimes, you’ll hear a prospect say they’re not the decision-maker or that they need to gather input from other stakeholders. Don’t treat this as a dead end — instead, use it as a chance to build internal champions. 

Ask the prospect thoughtful questions to learn who’s involved in the decision and what matters most to them. Then, offer to provide materials or join a call with stakeholders. The goal is to make it as easy as possible for your contact to advocate for your solution internally.

6. Need objections

If a prospect says they don’t need your product, it often means they don’t fully understand the problem it solves. Use this moment to dig deeper — ask about their current processes and pain points to uncover gaps they may have overlooked. Then, reframe your solution in a way that directly addresses those issues.

In other cases, the prospect might say they don’t need your solution because it’s redundant and they already have a good enough solution in place. It’s up to you to demonstrate what they’re missing. Ask clarifying questions about their current setup and gently point out areas where it may fall short. Then, show how your solution can overcome those limitations.

When you connect your product to a real need — especially one the prospect hasn’t fully considered — they’re much more likely to stay engaged.

Turn every “no” into a “yes” with Otter Sales Agent

Objection handling doesn’t have to be awkward or stressful. Otter Sales Agent delivers smart, tailored prompts that keep your conversations on track and your deals moving forward. 

Otter streamlines your sales strategy and saves your whole team time and energy. Real-time meeting notes, automated summaries, and insights can help teams serve customers better and continuously improve. Otter Sales Agent can also automatically sync insights to a CRM including Salesforce or HubSpot. Whether you need to automate routine tasks, analyze customer sentiment, or improve the overall customer experience, Otter’s ready to join the team. 

It’s like having your best sales coach in your ear on every call. Start closing with confidence. Try Otter today!