In my previous article I had mentioned the basic reasons why customers raise objections (https://www.helpindiainsure.iistpune.in/2019/04/24/basics-of-objection-handling-1/ ). In this article we will study some more basics. The reason we are going through the basics is that it gives a framework in which we approach the subject of objection handling. It is like first trying to learn the basics of driving a car before actually driving it.

Jack and Gary kinder (who I consider to be the best sales coaches in life insurance selling, you might want to check out their training content at
(http://kinderbrothers.com/ ) classify objections into two categories. Those that are raised with the intention of not allowing the agent to continue with the sales process and those that are raised with a genuine reason to know more or with a genuine doubt that is based on facts as they understand.

The Kinder brothers call the first category as insincere objections and the second category as genuine objections. This is a brilliant categorization. It allows you to learn how to handle objections. The Kinder brothers suggest that insincere objections should never be replied to while genuine objections should always be replied to.

Insincere Objections

How do we distinguish insincere objections from the genuine ones. The Kinder brothers give a thumb rule. They suggest that if an objection is raised early in the sales process, (say before the product or the solution is presented to the customer), it is an insincere objection. Consider this: Suppose you have just met the customer and even before you start the customer says that he does not believe in life insurance, or he does not have the money to buy a policy, or life insurance returns are very low, the customer is really speaking just trying to tell you Please do not attempt selling to me.

In your sales interview if you have not discussed the merits of life insurance or the long term financial needs or the premium required to be paid, the customer is changing the track on which your engine is running, it is an insincere objection. With no such discussion having taken place in the sales interview so far, if the customer gives you an opinion on these issues, he is trying to stall the sales process. If supposing you stopped your selling to respond to point made by him or her, the customer has changed your track and you are only going to get into an argument. Early in the sales process if the customer expresses the objection, for example, that life insurance returns are low, any response from your side will end up in argument and debate, which is not desirable in a selling situation.

The Technique of Handling Insincere Objections

Insincere objections therefore should never be answered. They should be ignored. Now that is some technique. How do you ignore an objection? The experts Jack and Gary Kinder give the solution: Appreciate the objection, Ignore the objection and Proceed with your presentation.

Let us take up an example: Objection: I would not like to invest in life insurance endowment since the returns are very low

Step 1: Appreciate the Objection: It is such a pleasure to deal with a person like you who is rightly focused on returns on investments made.

Step 2: Ignore the Objection: Return on investment is a very important point that you have raised and we shall definitely consider that at the appropriate stage in this presentation.

Step 3: Proceed with your Presentation: As I was saying the solution that I am offering …….

This technique works. It is tried and tested. Customers are satisfied that you have acknowledged their point and have accepted that it shall be discussed and not ignored. Instead of ignoring the objection suppose you try to answer the objection by telling the customer that returns on your product is very good, or that there are risks in higher return products, such as mutual funds, etc. you will end up arguing with the customer and make him or her feel that you know better, which is like insulting a customer.

In addition to the thumb rule that insincere objections are raised early in the sales process, you can carry with you another thumb rule to identify an insincere objection. If you do not know the reason why an objection has been raised, treat it as an insincere objection. Because, if do not know the reason, usually you will go off on a tangent and get into an argument.

In our selling experience, over 75 % of the objections we face are insincere ones. And 75 % of the time we end up arguing with the customers. If instead we learn and practice the 3-step technique of Jack and Gary Kinder, we will close more sales.

For your practice write down the 3 steps for each of the following insincere objections

1. I will talk to my chartered accountant and get back to you
2. My friend had invested in a mutual fund and has got good returns
3. I do not have money to invest in life insurance right now
4. I already have 2 insurance policies
5. My father has advised me to place my money in banks or PPF as there is better liquidity there

Write your answers to the 5 objections above, using the 3-step technique mentioned above and send them to me if you want to have my ideas on how to respond. Practice handling insincere objections, in a group of agents for at least one hour every week. You will become a master in a couple of months. Write to me at iist@iistpune.in or call me on my mobile 9860059397 during normal working hours for any doubts you may have.

My next article on the Basics of Objection Handling will be on Genuine Objections/. Keep visiting the Blog to get the latest from me.

Happy Selling! Happy Objection Handling