Are your appointment books not filling up because you don’t know how to overcome objections from prospects? This can be a significant problem for financial advisors, but it doesn’t have to be. Learning how to handle objections in advising is a hurdle you have to be prepared to overcome. Objection handling is an art, but it can be learned.
Understanding the most common objections.
First of all, you have to understand what the three most common financial advisor objections are:
- “I really don’t have any money to invest.”
- “Thanks, but I am already with a financial advisor.”
- “At this time I am not interested.”
When prospects reach out to a financial advisor to, for example, start a retirement fund, they may delay taking any action. Why? Because it is a new venture in their lives and they are just not sure about it. It could sound daunting and intimidating. They may even fear taking the next logical step.
Next, financial advisors may create their own objections by giving away too much information. The financial world can be confusing to people. When prospects are inundated with too much information, their attention is lost. All they see is numbers, numbers, numbers, and their ability to fully comprehend the information presented to them wanes.
And believe it or not, sometimes people just might not like you. You can’t please everyone. People are not out for more information. They want the services of someone they can trust. So, instead of bombarding them with all of your knowledge and insight, give prospects a chance to talk and truly listen to them.
How do you overcome these common objections, then?
- Understand what the prospect’s true objection really is. Discover what it is to which they are actually objecting. This requires active listening on your part, asking questions, and creating a level of trust.
- Let the objection they present become a question. If they indicate they are already working with an advisor, repeat what they said to you and then add, “And you are happy with your advisor, right?” This creates a situation wherein the prospect has to answer you.
- Focus on the prospect’s main concern. After you have posed the objection to a question, continue by indicating you understand the firm with whom their current financial advisor works is a great firm. However, emphasize that not every advisor nor every firm has all of the great investment ideas. Ask the prospect if you can offer them one solution that may increase their income and/or reduce their tax liability if they would be interested in letting you vie for their business.
Put what you know into action.
Learn the objection. Phrase it into a question. Position yourself to respond to that question in a likable and trustworthy manner. Ensure that your financial business is focused on customer satisfaction. Make yourself available, answer questions, and allow people to feel they can come to you for guidance. This establishes trust and also allows you to present as intelligent and educated on the topic.
Without the ability to overcome objections as a financial advisor, you lose the opportunity to assuage prospects’ fears and concerns. It’s all about being trustworthy, knowledgeable, approachable, and credible. Granted, objection handling does take time, but once you learn how to handle objections in your advising practice, you will soon discover you are opening more accounts.
When you’re ready to take your financial business to the next level, trust LeadingResponse to help you overcome objections, reach more qualified consumers, and increase your bottom line.