5 powerful ideas to handle objections successfully

5 Powerful Ideas to Handle Objections Successfully

In continuation of our earlier blog on "Toughest Part of Selling Made Easy – Objection Handling," I am sharing with you 5 powerful ideas to handle any objection successfully. You might be using some of these ideas unconsciously, but learning them all and applying them consciously every time you get an objection from your clients will definitely help you increase your productivity and close sales effectively.

1. Do Not Interrupt

   This advice may sound simple, but it is the most useful when handling objections. As mentioned earlier, at any given time, there will be 4 to 5 main objections for a particular product or asset class. We hear the same objections repeatedly from different clients, and as a result, we often understand the client's objection before they finish speaking. In such situations, unknowingly, we might interrupt and start addressing the objection prematurely.

   This creates a very negative impact on the client's subconscious mind. Remember, nobody likes to be interrupted while talking. Even if you have already understood the objection based on your experience and gut feeling, it is better to let the client finish speaking. Interrupting them may create the impression that you don't care about what the client has to say and might hurt their respect or ego.

   Listening to the client completely and openly will make them feel valued. They will feel that you care about their concerns. A true guerrilla advisor listens to the client's objection fully, takes a 2-second pause (in case the client wants to add something), smiles slightly, and then starts talking.

2. Reconfirm the Objection

   Even if you understand the objection well, reconfirm it by asking questions like, "As I understand it, your main concern regarding this product/asset class is...," then summarize the objection given by the client. Doing so increases the likelihood that the client will listen with an open mind to what you have to say.

   When a client hears their own objection from the advisor, it creates a sense of mental comfort. The client feels that the advisor truly understands their main concern. This helps reduce psychological resistance before addressing the real objection with facts and figures.

3. Give a Compliment on the Objection

   Compliment the client on each objection. This makes them feel important and valued. When you agree with their concern and give a compliment, they will feel respected and not attacked.

   Everyone appreciates compliments, and so do clients. Complimenting the client's question/objection/concern builds trust as they see you as a well-wisher. Many times, instead of giving compliments, advisors discredit the objection by saying things like, "Let me show you how your question is wrong." This creates a mental block in the client's mind.

   No one likes to be told they are wrong. It awakens a powerful emotion in the client's mind: ego. Awakening the client's ego is detrimental to closing the sale successfully.

   Even if you want to disagree, do so in a way that avoids ego issues. Whenever I disagree, I say something like, "Your concern seems very valid and logical, but I see it a little differently. Let me share my point of view..." and then share my opinion with supporting data and facts.

4. Be Objection-Centric

   Once you know the real objection, stick to it. The main objection or concern of the client is the hot button, which, if addressed effectively, increases the chance of closing the sale.

   You may have many positive aspects of the product or asset class to discuss, but when you know the client's real objection, focus all your energy on addressing that objection. Use relevant data and facts. Sometimes, you might feel the objection is not relevant, and other aspects of the product are more important to discuss. However, you need to focus on solving the client's main objection.

   I've seen many advisors who, instead of handling the objection, start discussing other benefits of the product they think are more important. For example, if a client says, "Equity is very risky, I want safety first," most advisors start talking about past performance with various charts. Remember, the client's main concern is safety, not returns. Discuss how equity can be a safe investment in the long run instead of talking about past returns. Explain the risk of not beating inflation and the power of equity to combat inflation with real-life examples.

   As an advisor, you have a lot of good data, knowledge, and charts about the product. It doesn't mean you should share everything with everyone. Understand the main concern and use relevant data and information. Do not overload the client with unrelated information.

5. Don't Try to Win the Argument

   Some clients, whom I categorize as "show-off clients," try to showcase their knowledge by using financial jargon they might have read somewhere. These clients often have limited knowledge but try to appear very knowledgeable. Not every client using jargon is a show-off, but you will know when you encounter one.

   In such situations, we might feel the urge to counter them by showing off even more knowledge. When we know we have more knowledge than the client, we might start discussing complex terms like alpha, beta, and gamma. Unconsciously, the discussion can turn into a contest of who knows more.

   Remember, a show-off client might be highly egoistic, and trying to prove them wrong might not be effective. Never get into an argument with such a client. In trying to win the argument, you might lose the sale.

   Instead of arguing, boost their ego by saying, "Wow, you seem to know a lot about finance and investing." Then, be agreeable and put forth your point of view. Every time I present my point of view, I ask the client for their opinion on it. They will appreciate being asked for their opinion and may even explain why your data makes sense.

Happy Selling!