Objection Handling-Determining and Meeting Objections

When asked about the objections raised Mr Anurag Chaudhary answered-

“Most of the times when customers actually visit ICICI they have already decided
that they wish to bank with ICICI. So most of their objections are based around
inquiring more about the products. The real objections are raised when they try
to acquire new customers through telemarketing or trying to cross sell the
customer another product.”

One very common objection given to sales people is, “I’m with my local
bank.” We had a chance to talk to who told us how he deals with such
objections
“Customers are saying they trust their bank but don’t trust you
when they give this objection. You must earn their trust. The bank also
offers integrated services. They offer to give a business loan, do the business
checking, bill pay, and merchant services. So, this is a compelling pitch.
> You should first express your understanding, “Mr Raj, I certainly
understand why you’re with your local bank. Many clients I have now used to be
with their local bank. Tell me if I’m right, sir – The main reason they were with
their local bank [bank] is because they already trusted them. They also enjoyed a
single point of contact, having business banking or business loan and merchant
services at the same place. Is that the main reason you are using your local
bank?” People love to be understood. Get prospects to agree to that
question. Then they know you understand.
> Next, offer explanation to them. “Okay, let me explain a couple things
just to help educate you about the industry in general. The local bank doesn’t
actually do credit card processing. They contract with people like me. They
basically sell their list of small business clients to another credit card processing
company. Call the phone number on your credit card statement. The answer will
not mention your bank name. You’ll hear a general response such as, ‘Thank you
for calling the merchant services department.’ The bank is outsourcing to
another processor like me who is making a cut of the profits. So, you are now
dealing with a middle man. In dealing with a middle man, are your rates
normally higher or lower?” [Every small business owner understands they are
higher.] “That’s exactly right! Now the bank and the processor have to make a
profit. So, you pay a higher rate.”
> Now address the issue of trust. “Mr Raj, in closing, let me ask a favor of
you. I’m not asking you to give me your business today. As I pointed out earlier,
we don’t know each other. I understand you don’t trust me yet. However, I
would like to come back with letters of recommendation from local business
people. Then would you at least be willing for me to give you a free cost
analysis?”
At this point you have answered the question of integrated services
– the bank is outsourcing. And you’ve addressed the issue of trust by offering to
bring letters of recommendation. This will keep you on target for making the
sale.”

Insincere Objections
How do we distinguish insincere objections from the genuine ones. ICICI bank
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. For example –If someone has come to take a loan and the
person accompanying the main customer raises a lot of objections early on.He is
trying to say that 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 RD or the long
term Fd, 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 RD 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
According to Mr anurag “Insincere objections therefore should never be
answered. They should be ignored.” He gave us some techniques to handle such a
situation. How do you ignore an objection? During their trainings: 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 RD

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.” Mr Anurag said.