Objections Are A Great Thing!

- By Ronald J. Reahard

Objections are inevitable in any selling situation.  A Financial Services Professional must be capable of capitalizing on customer objections.  The ability to welcome multiple objections and respond positively no matter how many objections the customer raises is the sign of an experienced professional.

Rarely do customers walk into the finance office asking to buy F&I products.  Instead, they typically object numerous times in a variety of ways by expressing concerns or offering reasons why they don’t want or need our products.  Most objections are not, “No’s.”  They’re simply an indication the customer does not yet perceive they want or need the product being discussed, or they do not yet feel the value exceeds the cost.

Often, an objection is simply a request for more information.  When a customer gives you an objection or concern, what they are really asking you to do is provide specific information that is of interest to them, or that relates to their particular situation.  Objections are a great thing, because the customer is providing you with detailed directions on how far you have yet to go and what exit you need to take on the road to a sale.

Overcoming an objection doesn’t mean winning the argument or proving to a customer that they are wrong.  Overcoming an objection requires finding a customer need, and helping them see how that product will provide them with a better, safer, or more secure future.  Most objections are the result of a customer’s own experiences, personality, or background, and are based upon:

• Failure to “see” why they need the product.
• Resistance to change.
• Reluctance to make a decision.
• Perceived inability to afford the product/payment.

Objections can also be caused by:

• Not listening to the customer.
• Failure to establish rapport.
• Failure to discover a need before presenting a product.
• Stressing benefits not applicable to the customer.
• SELLING the customer instead of HELPING the customer!

Whether or not you are able to overcome an objection is determined primarily by your ability to provide the customer with valid reasons why they need the product being discussed.   If you run out of reasons why they need the product before the customer runs out of objections, you are not going to make the sale.

Welcome Every Objection
The first key to overcoming any objection is to Welcome Every Objection!  This is where many product sales are made or lost in the F&I office.  Most successful F&I Managers have good-sized egos, are confident in their abilities, and are very competitive.  Unfortunately, it’s often after getting an objection that their ego and competitive nature becomes a negative rather than a positive.  The moment they get an objection, the natural urge is to “win,” so they shift into combat mode or become argumentative in an effort to prove the customer’s objections aren’t valid.

When a customer objects, “That’s why I’m buying a Honda, because they don’t break down,” a smart aleck response like, “Have you looked in our service department?  It’s not full of Toyotas!” is not going to sell anybody a vehicle service agreement.  Financial Services Professionals know it’s critical to never resent, ignore, or trivialize a customer objection.  Whether it’s the first objection or the fifteenth objection, every objection offers insight into the customer’s wants, needs, and concerns.

Keep in mind, you also communicate through your body language and tone of voice.  Often an F&I Manager will become frustrated or angry when a customer voices multiple objections to one or more products, and they allow the customer to see their frustration.  Suddenly, their friendly, helpful demeanor changes to “if you’re not going buy anything, then get the heck out of my office.”

Listen Carefully And Completely
The next key to overcoming an objection is to stop assuming that you understand it just because you’ve heard the same objection a hundred times before.  Before attempting to overcome any objection, it’s imperative that you Listen Carefully And Completely.  Listening requires you first shut up, so the customer can voice their objection, and you can concentrate on what they are really saying.  It also means listening with all the effort and energy you can muster, and focusing on their concerns, so the customer knows you fully understand their unique situation.  By letting the customer talk, you reduce sales resistance, and can gather the information you need to sell your products.

While you may have heard the exact same objection from the last ten customers, it is still the first time this customer has ever expressed their concern or voiced this objection.  A customer will tell you everything you need to know to sell them your product- if you just shut up and listen to their questions and concerns.  When you listen to the customer, you also develop trust and rapport because the customer realizes you’re not trying to sell them, you’re trying to help them make a good decision.

Qualify The Objection
It’s also critical that you Qualify The Objection and determine whether or not the objection is the real issue.  The first objection is rarely if ever the real objection.  It’s the automatic, pre-programmed response a customer uses when they are not yet ready to buy.  For example, when a store sales clerk approaches you and asks, “Can I help you?“ the automatic reply we all use is “No thanks, I’m just looking.”  That’s not an objection.  It’s an automatic response, just like “I don’t need that.  I have plenty of insurance.”

Often, the initial objection is stated in general terms, and it’s important to isolate the customer’s real objection.  “It’s too expensive,” “I can’t afford it,” or “I don’t need it” are too general, and are really just the customer’s automatic response.  They require getting beneath the surface to reveal the real objection.

The use of reflective probes such as “So you feel like it’s more than you can afford?” or “You’re not sure you need the protection?” is an excellent way to draw out more details and uncover the real objection.  Playing back or echoing the customer’s objection by using a few key words lets them know you heard their objection, and encourages the customer to provide additional information and elaborate on their initial response.

As an added benefit, while the customer is expounding on their objection, you have more time to decide what course to take to overcome it.  Once you have identified and qualified an objection, always attempt to isolate it by getting the customer to agree that it’s the only thing standing in the way of their purchasing the product.  An objection that stands alone is diminished simply because it is alone.

Acknowledge The Customer’s Concern And Demonstrate Empathy
The most important step in overcoming an objection is to Acknowledge The Customer’s Concern And Demonstrate Empathy.  The customer has to know that you truly understand their concern.  This requires more than telling the customer, “I know what you mean…” or “I understand…”  You have to rephrase the customer’s objection to let them know you really do understand, and then demonstrate that you know how they feel.  “I can certainly appreciate your concern, especially since your last payment was only $400.  I wouldn’t want a payment I wasn’t sure I could afford, either.”

Before you can overcome any objection, you must first come around to the customer’s side of the desk… not literally, but figuratively.  Put yourself in the customer’s shoes.  Demonstrate that you are seeing the customer’s concern from their perspective.  When a customer knows that you understand their situation, and can relate to how they feel, they are much more willing to listen to your recommendation.
 
Answer The Objection
Now it’s time to Answer The Objection.  This requires relating a feature and a benefit that apply to the customer’s situation.  Offer evidence and provide proof that what you’re saying is true.  Use visual aids to help make the intangible… tangible.  This is where you use the information you have learned about the customer as the reason why they need the product being discussed.

Paint a picture with words and put the customer in the picture.  The customer must be able to visualize a situation where the product would be of benefit to them.  Use an example of someone in a similar situation that benefited from having the product.   If they’re still undecided, provide an additional selling point that applies to their situation.

Check For Agreement
Once you’ve answered an objection in such a way that you feel you have overcome it, you must then confirm that you have addressed their concern.  You can’t leave it hanging.  Before going for the close, Check For Agreement by asking a trial-closing question.

Trial closing questions call for opinions.  Closing questions call for a decision.  If you don’t get a positive response from the customer before going for the close you have not earned the right to assume they want the product.  A trial closing question for GAP might be, “And when would you say a vehicle is more likely to be stolen, when it’s fairly new, or when it’s several years old?”

You must always get a positive response or indication that the customer agrees with your position before asking a closing question.  Otherwise, you’ll end up with an adamant “No” simply because you assumed a “Yes” before they gave you any indication they wanted the product.  To a customer, that feels like sales pressure.  And today’s customer doesn’t want to be pressured into buying anything.

Ask For A Decision
Finally, once you have confirmed the customer is in agreement, you can now Ask For A Decision.  Closing is nothing more than asking the customer to make the right decision at the right time.  The right time is only after you have received positive feedback from the customer.  The focus must always be on creating value for a customer before asking them to buy.  By this time you should feel good about asking a customer to make a decision to buy, because what you are asking them to do will create value for them.

You can ask for their decision three ways.  You can use an assumptive question: “What day of the month would you like the payment to fall on?”  You can also ask an either/or question: “Would you rather have your first payment due 30 days, or 45 days from today?”  Or, you can simply ask for the customer to take the next appropriate action: “Can I get your okay here?”

If you want to overcome any objection, remember you must first Welcome Every Objection through your response, tone of voice, and body language.  Listen Carefully  and Completely, then Qualify The Objection to determine the real issue.  Next, you must always Acknowledge Their Concern And Demonstrate Empathy.   Now you can Answer The Objection, and then Check For Agreement using a trial closing question.  Once you get a positive response you can Ask For A Decision.  If you follow these steps when you encounter an objection, you will quickly discover that when it comes to selling F&I products, objections really are a great thing!”