Table of contents

5 Common SaaS Sales Objections + Solutions

Customer ExperienceNovember 2024

Here’s how to handle the top 5 SaaS sales objections:

  1. "It’s too expensive"

    • Show value before discussing price
    • Calculate ROI
    • Compare to market prices
  2. "Looks complicated to set up"

    • Provide clear setup guide
    • Offer staff training support
    • Explain integration options
  3. "Is our data safe?"

    • Explain cloud security realities
    • Highlight compliance measures
    • Detail data protection practices
  4. "Moving our stuff over seems hard"

    • Address change costs
    • Outline safe data migration process
    • Show how to work with legacy systems
  5. "I need to check with my team"

    • Work with multiple teams
    • Get management approval
    • Use team agreement tips

Key stats:

  • 60% of customers say "no" 4 times before saying "yes"
  • Top sellers pause 5 times longer after objections
  • Handling objections well can lead to 64% close rates

Price and Budget Issues

"It’s too expensive" – every SaaS sales rep has heard this before. But the real challenge? Showing true value. Here’s the kicker: SaaS startups spend just six hours on pricing strategy. Yet, it’s make-or-break for closing deals.

Showing Product Value

Want to handle price objections? Show value first, talk price later. Stanley Deepak puts it this way:

"The primary keyword for handling price objections is value. You need to put value first and not drop your price so low that it is problematic."

Here’s how:

  1. Find pain points that hit the wallet
  2. If your product saves time, do the math
  3. Hours saved x hourly wage = concrete benefit

This helps prospects see real, dollars-and-cents benefits.

Calculating Return on Investment

SaaS products? They’re ROI goldmines. Why? Higher profit margins than service industries. Aim for >10% ROI year-over-year, but remember, it varies by industry.

Want to show ROI? Here’s how:

  1. Add up known costs (CAC, salaries, setup)
  2. Estimate returns (time saved, productivity boost, more revenue)
  3. Don’t forget long-term perks (scaling up, less maintenance)

As EBQ says:

"ROI is a universally accepted KPI for success."

Market Price Comparison

For SaaS, value-based pricing wins. Don’t just match competitors. Show why you’re worth more.

Got budget-conscious prospects? Offer flexible payment plans. But first, ask this:

"If price weren’t an issue, would you choose us?"

This sets you up as the top choice, making price talks smoother.

Setup and Usage Concerns

SaaS buyers often worry about technical complexity. The SaaS market is growing fast, but setup issues can still scare off potential customers.

Technical Setup Process

Want to know the #1 reason people quit using software? Bad onboarding. Most customers give up before they even see results. The fix? A super clear setup guide.

"The majority of your customer churn is going to take place between two pivotal milestones: Your customer signing-up for your product and Your customer achieving their first ‘success’ with your product."

Take a page from DealCloud‘s book. When they got swamped with new customers, they created a step-by-step setup process:

  1. Figure out what systems and data you already have
  2. Make a list of exactly what needs to be connected
  3. Set up ways to check how it’s going

Staff Training Support

Good training can make or break whether people actually use your SaaS. Microsoft found that mixing online and in-person learning works best. Here’s a trick that gets results:

The "Learn-Do-Teach" method:

  1. Learn: Get some formal training
  2. Do: Practice in a safe environment
  3. Teach: Work on real stuff with someone to help you

"Adequate yet efficient onboarding and training are essential for scaling a SaaS implementation team." – Monarch

System Integration Options

Worried about getting everything to work together? It’s a common problem, but there are solutions. New integration platforms (iPaaS) can connect different systems, often without any coding.

To make integration smoother:

  • Check what you’re already using
  • Use APIs if you need custom connections
  • Test like crazy before you go all-in

"Proper training ensures that everyone can make the most out of the integrated solutions." – Matt, BorkWood Blog

Data Safety and Privacy

Cloud security worries? Let’s tackle them head-on.

Cloud Security: Myth vs. Reality

Think the cloud is less secure? Think again.

94% of businesses say cloud solutions offer better security than their old on-premises tech. That’s right – the cloud often beats in-house security.

"While some IT people worry about security outside of the enterprise walls, the likely truth is that the vendor has a much higher level of security than the enterprise itself would provide." – Handshake

Big cloud providers pour massive resources into security. It’s tough for individual companies to match that.

But here’s the kicker: Gartner says that by 2025, 99% of cloud security fails will be on the customer, not the provider. So, it’s crucial to know your role in keeping things secure.

Playing by the Rules

SaaS platforms have to follow strict rules to keep your data safe. Let’s break it down:

Rule Book What It Demands If You Mess Up
GDPR Lock that data, control who sees it Up to €20M or 4% of what you make
CCPA Tell users about their data rights $7,500 per oops
HIPAA Keep health data under wraps Up to $1.5M yearly

"Compliance is not just a legal obligation but is also about demonstrating their commitment to safeguarding customer data and upholding industry benchmarks." – Industry Expert

Keeping Data Safe

Remember Morgan Stanley’s $60 million fine for exposing data? Yeah, that’s why this stuff matters. Here’s what good SaaS security looks like:

1. Who Are You?

Use strong ways to check who’s who.

2. Lock It Up

Encrypt data when it’s moving and when it’s sitting still.

3. You Can’t See That

Only let people see what they need to see.

4. Check, Check, and Recheck

Keep testing your security.

"A data breach that sees public exposure of a company’s sensitive information often results in devastating consequences." – DoControl, SaaS Data Protection Expert

The secret sauce? Use a solid SaaS Security Posture Management (SSPM) system. And don’t keep your security measures a secret – tell your customers about them. It builds trust and helps you sell.

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Current Software Changes

Switching software is like moving houses – it costs money and comes with risks. Let’s look at these issues head-on.

Change Costs

Software migration isn’t cheap. Small switches can cost $30,000-$70,000, while bigger moves might hit $150,000. But here’s the good news: smart migration often pays off.

Evolve Media cut their infrastructure costs by 30% after moving to the cloud. mPulse Mobile did even better, reducing their monthly AWS bill by 20% while improving their ability to scale.

"A well-planned migration can unlock significant long-term advantages, including reduced operational costs, improved productivity, and enhanced business agility." – Mission Cloud

Moving Data Safely

Data migration needs a solid plan. Successful companies focus on these steps:

1. Pre-Migration

Back up everything and classify your data. This helps prevent data loss.

2. During Move

Keep a close eye on things in real-time. This helps minimize downtime.

3. Post-Migration

Run checks to make sure all your data made it safely and works correctly.

Microsearch, a legal tech company, shows how this works. They teamed up with cloud experts for their move and cut infrastructure costs in half while boosting performance.

Working with Old Systems

Old systems don’t have to hold you back. About 47% of companies need to connect legacy systems with new cloud apps. VMware Private Cloud helps businesses modernize without starting from scratch.

The trick? Integration, not replacement. Many companies run hybrid setups, keeping valuable old functions while adding new features. Enterprise automation platforms can help bridge old and new systems, keeping data in sync.

"It’s OK to continue to rely on a legacy IT infrastructure, as long as it can integrate the newer systems and applications that your business demands." – Cleo Integration Cloud

Those 2015 government database hacks? They showed why updating old systems matters. But you don’t need to do everything at once. Start with your most important systems, test carefully, and grow from there.

Getting Team Approval

Buying SaaS for your company? Brace yourself. You’ll need to convince 6-10 decision-makers, and it could take up to 90 days. But don’t worry, we’ve got some tricks to speed things up.

Working with Multiple Teams

Here’s the deal: different teams care about different things. IT’s all about security. Finance is counting pennies. And legal? They’re combing through the fine print.

Your mission? Get four key approvals:

  1. Department head
  2. Finance
  3. Security
  4. Legal

"Procurement is really the glue in the company that brings all the other departments together. Making sure there’s clarity from the overall company strategy across these departments and getting those involved that need to be involved." – Karen Hodson, Chief Procurement & Real Estate Officer at Marigold

Want to make your life easier? Create a central document that tracks what each team needs. And keep everyone in the loop with one communication thread. Email, Slack – whatever works.

Getting Management Approval

Management wants to see the big picture. Don’t just focus on how it helps your team. Show them how it benefits the whole business.

Here’s what they’re looking for:

Focus Area What to Show
Current Issues Specific problems you’re facing
Financial Impact Potential savings and ROI
Implementation Timeline and how to avoid disruption
Success Stories Examples from similar companies

"You need to make a strong case to get the team to not only listen, but to act." – OneAdvanced Author

Pro tip: Set up face-to-face meetings with the big decision-makers. It shows you’re serious and lets you address concerns on the spot.

Team Agreement Tips

First things first: spot the potential roadblocks. Legal teams often cause the biggest delays. Start talking to stakeholders 90-120 days before you want to buy. Build that momentum early.

Keep it simple. Too many approvers? That’s a recipe for delays. Pick one or two key people from each department. Set clear deadlines for each stage and use automated reminders to keep things moving.

Document everything. It helps you see where things get stuck and makes future purchases smoother. For big decisions, consider using approval workflow tools. They can automate the whole process and keep track of everything for you.

"My advice is to understand which stakeholders you’ll have maximum friction with and then adjust and lean in. Try to align the legal roadmap with their goals. In case of conflicts, make sure you’re both seeing it as a partnership." – Ryan Nier, General Counsel, Pinwheel

Conclusion

Handling SaaS sales objections can turn potential deal-breakers into opportunities. HubSpot’s data shows that sellers who tackle objections well can hit close rates of 64%. That’s huge.

So, how do the pros do it? They slow down. Top sellers speak at about 176 words per minute when addressing concerns. They also pause five times longer after objections compared to normal chat. This approach builds trust and shows they’re really listening.

Steli Efti, Co-founder and CEO of Close, puts it this way:

"Objections can feel like a hard stop in what you were hoping was a smooth sales process, but you should actually view them as useful feedback."

Here’s something wild: Invesp found that 60% of customers say "no" four times before saying "yes." But get this – 48% of sales agents give up without making even one follow-up call. Talk about missed opportunities!

Want to up your objection-handling game? Try these:

  1. Listen first: Get to the root of the objection before you respond.
  2. Practice: Role-play sessions can make you more confident and effective.
  3. Track patterns: Use your CRM to log common objections and prep better responses.
  4. Keep following up: Remember, 80% of sales need five follow-up calls to close.

The Avoma Team nails it:

"The idea of handling objections is to transform a conflicting situation into a joint problem-solution exercise."

Tools like SaaS Playbooks can give you frameworks and strategies for handling common objections. They offer tested templates and best practices to help you navigate tricky conversations and close more deals.

FAQs

How to handle objections in sales script?

Top sales teams handle objections differently. Invesp’s research shows elite salespeople respond to objections with questions 54.3% of the time, while average reps do so only 31% of the time. Here’s how successful SaaS sales teams do it:

1. Listen and validate

Hear your prospect’s concerns. The Mixmax Sales Team says active listening is key. When prospects feel heard, they’re more open to solutions.

2. Ask smart follow-ups

Don’t rush to respond. HireDNA’s research shows that asking clarifying questions works better. If a prospect says "it’s too expensive", ask "What parts of the pricing worry you?"

3. Use social proof wisely

Warren Buffet says: "Price is what you pay. Value is what you get." The Sales Growth Company adds:

"Stop giving the farm away. Stand your ground. Understand that you’re not selling the product you are selling on the outcome."

81% of customers won’t buy from brands they don’t trust. Share case studies and success stories that address specific objections. When prospects see others solving similar problems, they’re more likely to buy.

Set clear next steps with follow-up dates to keep things moving. This approach has helped companies close deals 64% of the time when handling objections well.