Negotiation, by definition, is to deal or bargain with others in preparation for a contract or business deal. As a verb, negotiate also means to move through satisfactorily. In the world of financial services, both of these definitions are relevant and important.
Often, sales negotiation tactics seem to focus on price, seeking or offering the best rate or fees for a product or service. Here is what we know to be true about rate or price reduction requests. We call them the 3 Immutable Truths:
- It does not cost a prospect or client anything to ask for a better deal
- The advisor’s tone and response will set the tone for future negotiations
- If they don’t move the conversation away from rate toward value, they will always be negotiating rate
How to Respond to Price Objections in Financial Services Sales
To respond effectively to a rate or price request, financial services salespeople must be assertive, adept at asking questions, strong listeners, able to sell their value, and skilled negotiators.
Top-performing bankers and insurance producers know how to do this. With finely honed consultative skills, they can guide the negotiation toward the best possible outcome.
Why Consultative Selling Strengthens Financial Services Sales Strategies
We are often asked about training on financial services sales strategies, particularly around negotiating price, fees, and premiums. While important, the real strength of top producers lies in being inquisitive, curious, caring, and consultative.
While negotiating is about landing on an agreed-upon “fair deal” for both the prospect and service provider, consulting goes much further. A consultative seller comes prepared to a meeting, fully understanding potential issues a company may face, along with industry trends and challenges.
Top producers have their questions prepared, tailored for resonance, and have practiced answers to anticipated questions from prospects. These are foundational skills of a consultative seller and can be developed through a strong pre-call plan.
The Mindset of Top Financial Services Sales Professionals
Top financial services providers bring much more than preparation and sales negotiation tactics. Their questions stem from a genuine desire to understand, an open curiosity about the challenges a business owner may face, and a drive to learn more.
They aim to connect solutions with problems, even if the solution is not their own. These sales professionals are genuinely interested and, importantly, humble in their approach. They are confident in themselves and their organization, while remaining empathetic with their clients.
Through skillful questioning and listening, they help prospects and clients self-discover what needs to happen to solve their business problems.
Building Financial Services Sales Strategies Around Trust and Advisory Roles
A key component of developing a team’s financial services sales strategies is focusing on a consultative approach. This often leads to an advisory role, which is what producers and bankers strive to achieve with their clients.
When they become a trusted advisor, they can support clients on a much broader level than just products or services. They become part of the client’s inner circle, influencing decisions related to change and growth.
While sales negotiation tactics are important and often lead to satisfactory agreements, a truly consultative seller plays a critical role in business success, contributing to growth goals and improved profitability.
Negotiation vs. Consultative Selling Skills
Referencing data from our partner and the #1 sales assessment in the world, Objective Management Group, there are both similarities and differences in the skills required for strong negotiators and consultative sellers.
Here are the skills that strong negotiators have mastered:
Now let’s take a look at the skills of the consultative seller:
Final Thoughts on Financial Services Sales Strategies
In today’s environment, the ability to skillfully negotiate price while also maintaining a consultative approach is essential. These are core financial services sales strategies and true game changers for most sales organizations.
Discover more about the 21 Core Sales Competencies to continue strengthening your team’s performance.
Ready to develop stronger relationship-building skills across your sales team? Download our free eBook The Relationship Selling Guide for proven strategies and frameworks, or contact Anthony Cole Training Group to learn how our assessments and coaching can transform your team's ability to build rapport and close more business.
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