How to Handle Customer Objections in SaaS

Handle Customer Objections

Handling customer objections in SaaS like a pro is one of the best ways to ensure churn reduction. Customer objections may seem like a definite decline in your customer base, but you can put a positive spin on it.

Here is our detailed guide on the top methods for handling customer objections and increasing customer conversion rates.

What is Customer objection in SaaS

Customer objection refers to the refusal of your customer prospect to buy your product during the sales process. This could be due to a lack of time to discuss details, issues with your pricing, a preference for your competitor, or complaints that they don’t trust your product.

However, rather than seeing this as an end to your conversation, you should see this as a good thing because your prospect is still willing to at least engage with you. So, this is your opportunity to turn things around.

Importance of handling objections effectively

Your handling of objections determines how good you are at marketing your products without being discouraged by the tiniest bit of rejection. When you handle objections effectively, you have demonstrated that you truly understand your customer and are willing to listen. Here are other advantages:

  • Increase sales and revenue: When you convert customers despite objections, that’s an increase in the revenue generated for your company.
  • Competitive advantage: Stay several steps ahead of your competitors when you know how to handle customer objects like a pro.
  • Improve customer retention: The more customers you convert after objections, the higher your customer retention and customer success levels.
  • Enhance customer satisfaction: Handling objections makes you more aware of what your customers love about your product and areas you need to improve on.
  • Build trust and credibility with the customer: The more you engage with your customers and show that you’re ready to listen to their concerns, the more confidence they will have in your brand.

Common Customer Objections in SaaS and How to Handle it

Hearing a customer objection can seem like the end of your sales journey, but that’s far from the truth. The truth is that you have a high chance of customer success in SaaS as soon as you overcome their objections. So, what are some examples of common objections and how to handle them?

 Customer Success

Customer Objection #1: Your price is too high

Common objection: “Your product is too expensive.”

When someone on the other end of the phone says, “your product is too expensive,” it sounds like a definite rejection. However, what this means is that you’ve done nothing to convince them that your product is worth the value you place on it.

A mediocre salesperson will give up, but a great one will see this as an opportunity to help the target understand the benefits they’ll get from your product, and consequently, you’ll experience churn reduction.

How to handle pricing objection

  • Talk more about the value of the product: Let your target audience know the answer to the question “what’s in it for me?” by emphasizing more on the value of the product.
  • Inform them about the ROI and long-term cost savings: Explain more about how they can save a lot of money by buying your product now rather than later.
  • Show them how the product can help achieve their goals: Sometimes, all it takes is a simple question to change your customer’s perspective. Use simple statements to let them know how much difference the product will make.
  • Offer a free trial: Free trials are still effective in letting your customers visualize what they are about to buy before making that final commitment.

Customer Objection #2: Lack of Feature

Common objection: “Your product doesn’t have the specific feature we need.”

What happens when your customer complains that you don’t have a feature that they’ll find useful? Here is our objection handling script.

How to handle feature objection

  • Don’t dismiss the customer’s observation or make it seem like nothing. That can sound very offensive. When a customer points out that you don’t have the specific feature they need, confirm that this is true and know your customer well.
  • If you have another feature that you know your prospective customer will benefit from, feel free to upsell that category and explain how the product can still meet their needs.
  • Do you know another product with this solution that can be used alongside yours? Offer this as a workaround or solution to the problem. If you have this feature and the customer needs to be made aware of it, use this opportunity to give them a quick walkthrough.
  • No matter what, you must present the upside while ensuring that it dwarfs the negative aspects. So, explain how other features can compensate for the missing one, and this will reduce customer churn.

Customer Objection #3: Competitor objection

Common objections: “Your product is too similar to your competitors’,” or “We’re already working with [X competitor].”

Check out this objection-handling process to ensure your prospect understands that you’re better than competitors in the industry.

How to handle competitor objection

  • Rather than downplaying the fact that there are other options on the market, acknowledge this.
  • Explain how your product differs from your competitors and give details on how it stands out.
  • Offer a free trial to bring home the message that your product will satisfy their needs and meet their expectations.
  • Make a list of your products’ unique features or benefits, and explain this in an interesting way.

Customer Objection #4: Your product is too risky

Common objection: “I’m not sure about the risk of investing in a new product,” “We don’t trust your product.”

How to handle risk objection

  • Risk objections don’t necessarily mean that the conversation is over. Start by acknowledging the concern that your prospective customer has pointed out.
  • Allay their fears and give them something to look forward to by offering a money-back guarantee or a free trial. This is a great way to let them know that you have full confidence in your product.
  • Since they are worried that you may just be another salesperson with a sweet tongue and a lot of lies, let them find out about your products from real customers by providing testimonials and case studies of other successful customers.
  • Customers like to know that there will always be someone to respond to their concerns or issues if they ever come up. Explain how much you prioritize customer service and the level of support you’ll provide.

Customer Objection #5: Not a good fit

Common objection: “Your product isn’t compatible with our current systems.”

Despite this objection, you can still drive product adoption by letting them know why you believe your product is a good fit and then show them exactly what you mean.

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How to handle compatibility objection

  • Acknowledge their concerns by asking important questions. Find out the tools they are using now and how it’s helping them achieve their goals.
  • Use this information as a stepping stone to explain how your product can seamlessly integrate with their current systems.
  • Let them know you’re ready to prove it by giving them a free trial or demonstration. This will effectively show the compatibility and cancel out their objections.
  • Be more supportive by offering help with integration and support.

Customer Objection #6: The Direct No

Common objection: “I am not interested.”

This is an example of a generic “no,” and they are telling you that you have not convinced them that you’re worth their time and energy.

How to handle No objection

  • Anticipate the no as this is your chance to stand out. Give a response that differentiates you from other salespeople.
  • Be ready with a punchline that gets them curious, and then say they’ll only need one minute to decide if your product is worth exploring.
  • Don’t make them feel guilty for telling you no. Instead, exude just the right amount of clarity, confidence, and energy to turn that no into a resounding yes. This will help with churn reduction.

Objection Handling Techniques with Examples

    1. Stay calm and in control: No matter how provocative the prospect may sound, maintain a positive attitude and don’t let frustration creep into your voice. For example, when the prospect says, “I’m busy right now”, reply calmly that you won’t be taking much of their time and then arrange a follow-up if they still won’t talk.
    2. Focus on building rapport and trust: Pay more attention to how you can build rapport and trust with your prospect by using statistics, testimonials or other forms of proof to sell your product.
      Example: “Last week, we met with a new customer who had never heard of our product, but our demo exceeded his expectations. Here are some testimonials from our satisfied customers.”
    3. Practice active listening and ask open-ended questions: The best way to let your prospect know that you’ll place their needs first at all times is to practice active listening and ask questions that will require them to talk more about their expectations and desired features.
    4. Address the objection directly: To show that you actively listened and understood the customer’s concern, paraphrase their objection and say it out loud. Example: “So, I understand that you’re saying you’re not sure you want to make a purchase right now because you think it doesn’t have the features you need. Am I correct?”
    5. Following Up After the Sale: Don’t go silent after a sale. Instead, follow up with your customer to ensure that they are completely satisfied with the outcome and you have addressed all their concerns.
      Example: “I just wanted to follow up to see if you were completely satisfied with your purchase.”


Improve your SaaS customer journey by utilizing our Customer retention software that will help you stay prepared for various types of customer objections and ensure churn reduction.

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