Ah, those sub-primes, derivatives, and credit-default swaps. Like experiments gone bad, they were hatched by creative minds in dark rooms and grew to infect the mighty U.S. economy. Is there such a thing as “too smart” in the world of developmental high finance? Today’s customer might think so.
What does that mean to us as independent advisers? What we have seen over the last couple of years is a classic case of headline risk affecting our reputation in the eyes of our prospects. As we have covered in previous pieces on objection handling, one of the most difficult objections to overcome is the trust objection:
- Is the annuity FDIC insured?
- How long have you been in business?
- How many of these have you sold?
- What’s your commission on this?
- Can I talk to another one of your clients about this?
- Who is this investment/insurance company? I’ve never heard of them.
- Sounds good, but I don’t want to make any big decisions right now (the “immovable client”)
As with most objections, your prospect is saying one thing but means something significantly different. They are afraid of buying; but, as we know, most people will not simply declare “I don’t trust you, because I’ve lost money, and so have all of my friends. Who are you, anyway?” Rather, you will hear one of the statements above. To handle them effectively and have a productive interview, there are three simple rules to follow.
Rule #1: “Flash Card” methods don’t work
There is a time-honored belief that there is some sort of ideal answer to any number of customer concerns. Early in my career, I was trained this way. As part of my two-week training program, my sales manager gave us a series of objections to study, along with the answers. We were then quizzed with flash cards, and we role-played the conversation. What resulted from this type of training were sales interviews that sounded like this:
Prospect: How many of these have you sold?
Salesperson: Well, I’ve been in the business for 10 years. In fact, I’ve sold over 2 dozen this year, so I really understand this product. What questions about the product do you have?
The problem with this answer is it doesn’t address your prospect’s true concern: they are afraid to buy right now. Fundamentally, they don’t trust you. It will not be effective, therefore to answer the question on the surface, because the prospect will still doubt you; you have not attacked the real problem. Therefore, it does not help to tell them that no, your product is not FDIC insured, but insurance carriers are safe, or that while your commission is 7%, it does not come out of your customer’s pocket. Remember, this is first and foremost a trust issue.
Rule #2: Empathize, Give the Answer, Ask Open-ended Questions
So, what do you say? Remember that your prospect may not trust what you say initially, but the more they confide in you, the more credible you become. Proper listening and questioning is essential when dealing with a trust objection, so follow these three keys- empathize, give the answer, and get specific by asking one or more open-ended questions, so the trust issue surfaces in the interview:
Prospect: How long have you been in business?
Salesperson: I’m glad you asked. We have been in business for 11 years. What type of experience were you looking for in an advisory firm?
Prospect: Well, something like that. I want to be sure whoever we deal with has seen our situation before.
Salesperson: I understand. What is your situation, specifically? Everyone is unique.
The key here is this: by using this method, the conversation continues, with the prospect dominating the exchange. That is exactly what you and the customer want. Eventually the trust issue melts away with every word spoken by the prospect; as they vent and confide in you, listen carefully and continue to probe.
Rule #3: Remind Them of Their Original Interest
Remember, they’re meeting you for a reason. Something captured their attention. But customers today are busier than ever before. They may have forgotten why they were excited to meet with you in the first place. Help them to remind themselves through open-ended questioning:
Prospect: Who is this insurance company? I’ve never heard of them.
Salesperson: I’m glad you asked. This company…(point out ratings and financial strength.) Their products are well-suited for your goals. Remember, when we had the workshop, what issues did we raise that you wanted to talk about?
Prospect: I remember that thing about tax-deferred growth you mentioned—you showed that graph.
Salesperson: Yes, and there was one more thing…
Prospect: Yeah. I didn’t want to lose any more money.
Salesperson: Right. This company has good solutions for those objectives. What else would you like to know about them?
By probing and having this type of exchange, the customer is reminded of their contribution to the buying decision.
Conclusion
As you may have noticed, the consistent theme in handling trust objections, and for that matter all objections, is skillful questioning. What other questioning techniques have you found effective? What's not been as effective? How do your prospects respond to this approach?