Identifying customers’ objections in cold calling : B2B sales

Abstract

Cold calling is a common technique in business-to-business sales. However, our understanding of the objections raised by potential customers that could hinder salespeople’s efforts during cold calling is still limited. This thesis applies a qualitative approach to analyze data obtained from a confidential source within B2B markets. The data was interpreted using inductive content analysis. We identified four groups of objections: simple, moderate, major, and others. Simple objections can be resolved with minimal effort. Moderate objections are solvable but addressing them may or may not lead to positive outcomes. Major objections are unsolvable or require a maximum level of effort to yield positive results. Other objections are those that are not in any of the previous groups. In addition, this study provides several recommendations to address the identified objections. Key strategies include contracting at the right time, using clear language to communicate, preparing necessary information, emphasizing the value of offerings that meet the needs of potential customers, being open to negotiation over price, maintaining regular follow-up, and updating knowledge of the potential customers’ plans for the future. In addition, this study introduces a simple reporting system on how to categorize and report objections based on color codes. We recommend creating a shared database, such as an Excel file, with four color-coded sheets to categorise the objections.