Overcoming Objections in Financial Sales

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handling objections

Handle Objections Correctly

How many times have you taken the best proposals from top rated companies and put together a killer presentation only to have your clients throw a series of jabs and hook punches (a.k.a. objections) at you? Did you frown, run your finger around the inside of your collar, or squirm in your chair? Those signals may have told your clients that you were unsure of yourself and confirmed their concerns as they ran out the door saying, “We’ll get back to you.”

Overcoming Client/Prospect objections are a necessity of sales life. But how you give your presentations, respond to those “buying signals” and overcome objections can make the sales process all the more productive.

What Are Sales Objections?
     Before you can overcome sales objections, you need to understand what they are. The best thing you can do is the next time you think "objection," think instead "concern."

• Clients want to make the right buying decision.  A sales objection is their way of getting a different opinion of the situation, airing a concern. Your reply could give them the view that they want.  My brother often asks my advice and then has 10 objections why it’s no good.  It’s his way of flushing out all of the important aspects so he can make a good decision.
• Their questions show that they have an interest in your product or service but need further clarification. They’re asking for your help in bridging the gap.
• Sales objections may point to a client’s primary need or area of interest. They could be telling you that this feature is actually a benefit for them.
• Many clients, particularly drivers and expressives, want to get to the bottom line. Their sales objections might be telling you that they want to move forward with the buying process but first need questions answered.

Stay in Charge

      You want to avoid being bombarded with a laundry list of sales objections, so try to isolate any potential problems. To overcome objections before they arise, constantly ask feedback questions throughout your presentation. “Does that make sense?” or “Do you agree?” will allow you to handle any objection before moving to the next segment.

Don’t try to handle every concern. Sometimes clients say things for no apparent reason, just whatever pops in their minds. So you might be able to ignore some sales objections. For example, if the client mumbles “I think my sister had this type of investment and I don’t think she liked it,” just ignore it.  If this is an issue, it will come up later and then address it.  But do not feel you need to address every apparent “negative” that the prospect voices.

Don't Respond to Quickly or Aggressively

And don’t let clients put you on the defensive. If you do, you will lose your influence, power, and confidence.  To pace yourself, you can always address any sales objection with “that’s a good point.”  Such a response will also allay any defensiveness in your prospect.  And be sure you understand a concern before you reply to it. Hear your clients out. Let them voice their concerns without interruption. You might want to rephrase the sales objection in your own words or ask your clients to explain the objection in detail. They may even answer it for themselves.  A good idea is to ask “why do you say that?”

Don’t criticize. Show your clients that you welcome a discussion of their concerns. Collect your thoughts. Try phrases such as:
• That’s a good question
• You bring up a good point
• I was going to cover that next
• I understand why you feel that way
• Many of my other clients have had the same concern
Make sure that you pinpoint their concern. Ask:
• What was your experience with this product?
• Why did you buy it?
• What do you mean?
• Why do you say that?
• How much money is too much?
• Oh?
Once you have clarified the sales objection, address it directly and honestly. Don’t bluff your way through. It’ll come back and bite you. Remember that every client has a definite idea of what is acceptable and what is not. Your recommendations must fit in with your client’s value system. For example, if your client does not want to own stocks in companies that have holdings in countries that violate human rights, be sensitive to that request.     After you believe that you have overcome their sales objection, confirm this with your clients. Don’t move on if this issue is not resolved to their satisfaction.  Ask them “Does that adequately address that concern?”

Keep a log of sales objections as they come up and ask other advisors in your office to do the same. Schedule a time when you all can get together and role-play your latest discoveries.

From pour Log Book of Overcoming Sales Objections

Annuities 
Client: I don’t want to tie up my money.
Me: What’s that mean?
Client: I need my money available if anything happens?
Me: Like what?
Client: Like what If I get sick?
Me: Don’t you have good heath insurance?
Client: Yes, but what if I have a long-term illness?
Me: Oh. That’s a very valid issue. Is that your major concern?
Client: Yeah.
Me: With this annuity, you can take all of your money out if you need it for long-term illness. Would that be okay?

Long Term Care
Client: I don’t need it.
Me: I certainly hope you never do. But what are your plans when your health changes?
Client: I don’t know. But it’s too expensive.
Me: Many people feel that way. Which insurance do you have that’s not too expensive?
Client: (Shrugs his shoulders)
Me: That’s right, they’re all too expensive except for one time. Do you know when that is? When you collect on it. If you had this insurance and ten years from now collected $250,000, would you think it was too expensive?

Mutual funds
Client: I don’t want to pay a load.
Me: I don’t blame you. Have you ever lost money in a fund?
Client: Well, uh, yes.
Me: I know people don’t like to talk about it, but what percent did you lose?”
Client: 40 percent.
Me: I see. Well, the load is about 1 percent each year. Do you think having me and a team of professional managers at the fund, watching your money on a daily basis, might be worth 1 percent and keep you from making a mistake that could lose you another 40 percent?

Life Insurance
Client: I don’t need any.
Me: I respect your opinion. Why do you say that?
Client: Because I don’t have any money for it.
Me: If you could get it free, would you want that protection for your family?
Client: Of course.
Me: Why?
Client: Well my family would have a hard time if I dropped dead.
Me: Like how?
Client: (Let the client feel the pain for herself by allowing her to explain the ramification of her own death).
Me: So I guess you don’t want that to happen?
Client: No.

Managed Money/Wrap Accounts
Client: I never heard of that money manager.
Me: Why do you think that is?
Client: I guess they are not well known.
Me: There are over 30,000 money managers in the US. Have you heard of many?
Client: No, not really.
Me: Do you find it surprising that out of 30,000, you don’t know this one?
Client: No, not really.

As you can see, by asking open-ended questions I was able to uncover the real reason for the client’s objections. Keep a positive attitude. Note your body signals. Learn to take the emotional edge off objections. Soon you will be able to bob and weave around the best jabs and hooks that clients can throw at you.

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