Four Common Client Objections and How to Counter Them
There’s so much uncertainty surrounding investing that people postpone the decision. Clients and prospects can think of a multitude of reasons not to invest: Whether it’s tax time, retirement looks too far away or they want to buy a new car or kitchen.
However, when clients say they’ll ‘think it over’ it doesn’t mean they’ve found a good reason to delay investing; perhaps it means they don’t trust you enough yet, perhaps they don’t understand what you said or perhaps you simply haven’t convinced them to act. So how do you get them to do the right thing and start securing their financial futures?
Here are some common objections you’ll face – and how to answer them.
#1. “Now’s just not a good time to invest.”
Prospects may tell you they’re holding off investing because April 15 is on the horizon, or that the markets are uncertain. They probably have a hazy notion of the comfortable retirement that awaits them but haven’t yet thought about how it’s going to happen.
Counter their hesitation and get them enthused about their future by helping them to create a vision story. Get clients to picture in detail their retirement years.
What does retirement look like to them? Use open-ended questions (this can be harder than it sounds) to get them to share their vision with you. Where do they see themselves living at retirement age? In a condo in Florida? Taking a lengthy vacation somewhere exotic? Once prospects and clients have a firm image of what their ideal future holds – remind them they’ll need to amass a significant retirement income to fund this. Every year they don’t save for retirement means less money to fulfil their dreams.
#2. “There’s plenty of time before the kids start college.”
When you’re talking to a couple in their thirties with young children college education seems an age away. Right now, they’re taking the kids to kindergarten, so it’s difficult for them to imagine life 15 years down the line. Counter this complacency by giving them a reality check.
Ask them how many pay checks are left until their youngsters start college? Around 180? In any case it’s probably a lot fewer than they thought. Then ask them – what will they do if they don’t have the money available to pay for their children’s education. Will they have to borrow from the bank, or from friends and family? Or would they simply have to forgo further education for their kids?
If you can get prospects to feel how the reality of this situation would impact them, you’ve created a case for urgency.
#3. “I don’t have the funds to spare right now.”
As human beings, our desire for instant gratification often overrules our ability to act rationally. The appeal of having new things irresistibly draws us to spend money. So, it’s your job to convince clients and prospects to think otherwise.
You need to get clients to think long term rather than short term i.e. rationally rather than emotionally. Make them see that saving can start to be just as addictive as spending. Introduce the concept of compound interest –the earlier they start saving, the more dramatically it grows towards retirement.
Financial success depends on delayed gratification. It requires discipline and vision. Of course you need to tell people to be patient but remember that examples work better than directives. So, use stories and analogies to stir up emotions. Curb your clients’ impatience and be politely persistent. Be like a doctor – doctors know needles hurt but they give shots in any case. Why? Because they know that some discomfort up front leads to miracles down the line.
#4. “I can’t afford the fees.”
To inspire prospects to do business with you they must see the value in your product or service. Once you’ve uncovered their pain points, illustrate why you are the ideal person to solve their problems for them. Make them feel confident you have the answers when it comes to what to do next.
Tell clients that the value you can bring to the table will manifest itself not just in performance but in terms of service model, too. That’s what differentiates you. You will provide them with platinum service, making you worth your fee many times over. After all, the fee they will pay won’t change your life, it will change their life.
Managing objections requires practice. But with constant practice you’ll find that you can overcome common objections and present your solution in terms of value and benefits that will uniquely help your clients in the future. Work on your presentation so it’s convincing and inspiring. Use analogies, create a vision story, emphasize your worth and you are well on your way to overcoming any client objection.
Watch this one-minute video where Don tells you how the learning center will help you hone your presentation skills.
Dedicated to training Financial Professionals and helping them develop superb soft skills so much needed to succeed in our business
