Three Types of Prospects Most Likely to Object and How to Win Them Over
During your career, you will meet with prospects who are ready with a reason not to invest. It’s up to you to recognize what camp they fall into objection-wise, so you can counter with the right response. Make it your aim to deal with their objections before you give your presentation.
Here are three types of prospects – and objections – to look out for.
1. Prospects who are not ready to commit
Prospects may tell you that now’s not the ‘right time’ for them to invest. They may argue that they don’t have enough money, or that their desire to buy a new kitchen or car has to take precedence for whatever reason.
Any or all of the following could be behind this type of prospect’s objection:
- They don’t want to sacrifice present gratification for future benefit.
- They don’t see investing as a priority because they don’t understand the reality of the situation.
- Their reluctance could stem from the fact they don’t know you yet, and don’t know whether they should trust you.
Here are a couple of ways you can overcome this type of prospect’s objection.
Firstly, take their statement and turn it into a question. Ask prospects if they pay their bills on time – do they meet their financial commitments without going into the red? If they answer ‘yes’ then say that they are ideal candidates for investment. They need to see themselves as just another bill to pay – a bill that will eventually mean a comfortable retirement. If they have the discipline to pay their bills on time, they should have no problem saving, and even a modest amount a month can go a long way.
Give prospects a reality check. Would it surprise them to learn that they have just 180 paychecks left if they want to retire in 15 years? If they want to retire in comfort, they’ll have to start paying for it now. If they postpone it any longer, they won’t be able to make up for lost time.
You can’t talk people into trusting you. However, to convert prospects into clients you need to create rapport quickly. Tell stories, be yourself, let people know your story and your ethics. Be likeable and they’ll want to do business with you.
If, however, you find that a prospect is stubbornly refusing to understand the inherent value of investing and simply isn’t ready to commit, maybe it’s better to move on. Your time will be better spent on people who see the great value you could add to their lives.
2. Prospects who fear losing control
You will encounter prospects who are fearful about losing control of their money.
What these people are illustrating is that they don’t know you or trust you, which is hardly surprising since they just met you. Some prospects will be more suspicious than others that you will take your fees – and their money – without adding value.
To overcome their objection, try the following:
Make clients understand that when they hand over their money to you to invest, they are not losing control. They will still be in control – their assets are simply being re-purposed. When someone rearranges the living room, they don’t throw away their furniture, they simply move it into a more preferable arrangement. In the same way all their money will stay where it is, and they will retain control – it will just be better placed.
Get across the message that, in fact, by investing they are ensuring that they retain control over their future lives. If they don’t have the necessary funds in retirement, a single medical emergency could wipe out the family fortune. If they don’t have healthcare insurance, they could see themselves just a step away from bankruptcy. When they plan ahead and invest, not only will they not lose control, but they will ensure to not lose their independence by running out of money or becoming a burden on family.
3. Prospects already have an advisor
When prospects say they are happy with their current advisor, they may still be open to suggestion, if you broach the subject in the right way.
While it’s unprofessional to disrespect competitors, tell prospects that you have a really great idea for their investments. Of course, their current advisor is perfectly competent, but would they consider giving your ‘fresh eyes’ a try?
Learning to overcome objections is the cornerstone to securing new business, and requires top-notch soft skills.
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