Getting objections from perspective leads is expected, but also a frustrating part of selling insurance. However, objections present an opportunity to convince perspective leads of your product. Furthermore, rejections will also help find bad matches for your product.
There are four most common objections to a sales pitch, and they include issues with budget, authority, need and time. Knowing how to handle these types of objections is a sure way to selling your product.
Budget
The budget objection is often framed as, “I do not have the money for your product.” Initially, this objection may seem as problematic to respond to. However, it is important to uncover what is the reason for this response. There are two possible explanations to this type of response. First, the potential client is shocked or surprised by the price of your product. Or, they do not see the value of the product you are selling.
If the reason for the rejection is the price, then it is important for you to explain the components of the product you are selling, so that potential clients understand what they are paying for. If the reason for the objection is that the client does not see the value of your product, you need to explain how much they would save using your product.
Authority
Prospective clients will often try to put the final decision onto someone else like their boss, coworker or family member. The first step to tackling this objection is to offer understanding to the objection itself. This allows you to connect with the potential client, learn what are the needs and objections of the third party responsible for the final decision, and address these objections. Knowing the problem will allow you to set up a time to speak with the third party in the future.
Need
The most common objection is: “We really do not need your product or service.” These types of responses can vary depending on the product being sold. First, find out why the lead is rejecting your sales. Is it because the product overwhelming to them? Or is it because they are afraid to make the purchase?
One solution is to offer blogs or case studies of customers who were similar to this particular lead. Another solution is to offer data and statistics to convince the client that the need for your product exists.
Time
Finally, many prospective leads will say things like, “No, not right now,” or “No, not at this time.” A response to this type of objection is to remind the lead that buying your product now will result in a long-term payout.
If you get a flat out “No” then you know that that particular prospective client was not the right fit. But knowing how to address the most common objections to a sales pitch helps, ultimately, to close sales.
