Facing objections is part and parcel of every financial advisor’s journey. Even if you’re equipped with the perfect solution for your client’s problem, that does not always guarantee a successful sale. Ultimately, objections stem from a misalignment between your clients’ perceived needs versus what they think you are offering them.  

Remember that while receiving a few objections is perfectly normal, it is what you choose to do next that matters more. You can’t control exactly how your prospect thinks, but you can choose how you go about assuaging their objections to not lose the sale.  

The first thing to do when faced with an objection is listen. Oftentimes, your prospect objects for a reason. They might have unaddressed concerns or are unsure about something that you have communicated. This means that to meet their needs, you need to first uncover them. Avoid dismissing objections quickly; instead, acknowledge them and offer follow-up questions. This is a useful opportunity to demonstrate your confidence and credibility, and delve deeper into what matters most to your clients.  

Turning objections into questions 

Focus on questioning and painting a clearer picture of the objection. A useful technique is the “Feel. Felt. Found” (FFF) formula. 

Wilfred Wong, a three-year MDRT member from Singapore with one Court of the Table qualification, shared, “When a client gives an objection such as how this financial plan is something he has to ‘deliberate over,’, I will use FFF to convert it into a question. For example, I would say ‘Dear Mr Prospect, I understand how you feel. Many of my clients, like you, felt that they had to bring this back to consider as well, after all it is your first proper financial plan that you are implementing. But what they found is that the best time to make the preliminary decision is now, where I am right in front of you to address any questions you have before we move ahead with the plan, instead of going home to think about it amidst your lack of information. So, what are some questions you have right now?’” 

Start conversations and communicate effectively to your prospects that you have their best interest at heart. This will help to set yourself apart and serve as the cornerstone of a successful practice. 

Conveying a strong value proposition 

Additionally, objections may also arise due to the lack of perceived value of what you are offering. If you find yourself experiencing a string of objections one after another, this might mean that the way you communicate the value of your product might need to be improved. 

Analyze the objections you face and use that knowledge to frame your value proposition to address current and prospective client’s needs better. This will also help you better anticipate and prepare for future objections.  

Identify a strong value proposition for the products you are offering, and place emphasis on selling the concept or idea, rather the product itself. Court of the Table qualifier Chi Teng Han from Singapore said, “For more well-to-do prospects, I understand there are possibly a lot of people pitching to them. I’m competing against bankers, property agents, car salesmen; anybody who is asking them for money. So, the question is what makes me different from the rest.” By putting himself in the shoes of his clients and understanding their perspective, he identifies and communicates a potential gap in his prospect’s financial plan, then goes on to demonstrate how his solution can fill that gap. 

It is also important to note that building credibility and trust in your practice is also a vital step. Objections may occasionally arise due to a lack of trust. This shouldn’t be written off as a failure, but instead, look into how you can improve and communicate more effectively to solidify your reputation as a financial advisor that they can trust. One way would be through showcasing client testimonials and qualifications. Build up a robust reputation for your practice that speaks for itself.  

Facing objections is something that you will undeniably encounter along the way. But understanding your prospect’s mind when they object is how you can overcome these objections. It will take time to hone the right skills needed to tackle objections effectively. But embracing objections and turning them into learning opportunities will be beneficial to your practice in the long run.  

Contact: MDRTeditorial@teamlewis.com