We have so far read 2 articles on the Basics of Objection Handling – Basics of Objection Handling – 1 and Basics of Objection Handling – 2. We are approaching the subject of Objection Handling by first constructing the conceptual framework. The conceptual framework will give us the answers to all the objections we face. This conceptual framework draws on the work of Jack and Gary Kinder, two exceptional coaches in life insurance sales. (See their website: www.kinderbrothers.com)

In my previous post on the subject of Objection Handling I had introduced the topic of Insincere Objections and a technique to handle Insincere Objections was detailed. We shall now look at how Genuine Objections are to be handled.

What are Genuine Objections?

Genuine Objections are those that are raised by the prospect on a genuine doubt or clarification that he or she wants. Usually such objections are based on the facts and knowledge that the customer has, though the knowledge may or may not be complete in all respects. Since the objection is based on facts and knowledge, answering the objection should also be based on facts and data. The agent must possess documented data that can be shown to the customer. The data should be from a credible and trustworthy source. Genuine Objections should never be off-the-cuff responses. If the data is not readily available, permission should be sought from the customer to get the data required. An appointment for the next day should be taken.

How to communicate for Genuine Objections?

Unlike Insincere Objections (which should be ignored), Genuine Objections should be answered. While authentic information needs to be given to handle Genuine Objections, the question that arises is how is the data to be presented to the customer? Having the data and presenting to the customer are two different things. Jack and Gary Kinder have a very successful 6-step process to handle Genuine Objections. The 6 step technique is

1. Hear what the customer has to say. Look into the customer’s eyes and intently listen. Do not interrupt the customer in whatever he wants to express
2. Ask the customer to repeat what he said. This is a very important step that to a large extent ensures that you do not argue with the customer. When you ask the customer to repeat his statement, it gives you time to think of a suitable response
3. The third step is you repeat what the customer has said and ask for his or her confirmation whether you have understood exactly what the customer wanted to convey to you. This shows to customer that you respect him or her and take his or her views seriously
4. If you have the data or information to respond right away, show it to the customer after asking his permission to present the data. If not take an appointment for the next day by informing the customer that you will get all the relevant information so as to not take a wrong decision.
5. Explain with your data, the point under discussion and ask the customer whether he agrees. Getting a confirmation at this stage is a trial close. Do not push the customer to agree, have patience and give the customer ample time to ponder on the new information given by you, digest it and then come to an informed decision.
6. If the customer agrees, proceed to close the sale.

What if the customer is not convinced?

Even after your best efforts, many a time the customer may persist with his or her objections. There are two tips that Jack and Gary Kinder give.

First Tip: Ask the Question “why”

The first is to ask the question Why? e.g. Sir, Why do you think that mutual funds give higher returns? The question Why is a very powerful question in handling objections. No matter what the response is of the customer to the question Why, it opens a window to continue the sales interview and if you are sufficiently knowledgeable and have the data to back your views, the window could lead you to close.

Second Tip: Tell a Story

The second tip that the Kinder Brothers give is use a story. A story properly told and with sufficient emotional content can win more customers than with reason and logic. As the Kinder Brothers say: Logic may convince the customer to buy, but he will part with money only when emotionally stirred. This is the reason why we say that selling life insurance is an emotional process. A story told in the proper manner is more likely to lead to close than reason and logic.

Only Practice Can Make You Perfect

Practice the 6-step process of handling Genuine Objections. Spend 1 hour every week for 2 to 3 months along with a group of agents, and you will soon be a master of Objection Handling.

Also do not forget you need to read for 1 hour every day, in order that you carry the knowledge required for Objection Handling on your finger tips. If your knowledge levels are weak, you end up arguing with the customer and will most definitely not close the sale.

Look forward to more articles on Objection Handling