1. COPYRIGHT Wachovia CONFIDENTIAL Overcoming Objections SALES ACADEMY Presented By: MARK BUTLER

2. Objectives WHAT IS AN OBJECTION? HOW TO HANDLE OBJECTIONS HOW TO AVOID OBJECTIONS LIST COMMON OBJECTIONS

3. A Definition A statement presented in opposition A ground, reason, or cause for not buying OR… An OPPORTUNITY in work clothes!

4. Objections occur when… The customer is uncertain The need (urgency) for your solution is not clear The benefits of your solution have not been identified The unique positioning of your solution is not clear

5. What if you encounter an objection? Be calm – Relax and welcome the objection Don’t over-react Don’t take it personally – it is not a personal attack Be empathetic in your tone

6. Besides That… Learn to accept objections as a challenge which when handled correctly, will benefit You and the Customer If you Fear, You will fumble. An objection is indicating a thought process Remember – people who buy have 58% more objections than people who don’t

7. A Thought… SEEK FIRST TO UNDERSTAND AND THEN TO BE UNDERSTOOD Habit #5… Stephen Covey

8. Dealing with Objections… There are 4 specific times when it is appropriate to deal with objections: 1.Immediately – As soon as the objection comes up 2.During your presentation – When it comes up naturally, or when you bring it up 3.Later – Always delay or defer an objection – especially a price objection – until the appropriate time 4.Never – Some objections are merely “knee-jerk” and don’t need to be answered or replied to

9. Dealing with Objections (cont.)… Use the “Pre-emptive Strike” method to deal with common objections. 1.Anticipate the objection - Know what the customer is going to bring up ahead of time 2.Bring up the most common objections before the customer has the chance to mention them 3.Answer the objection clearly and straight forward, so that it is out of the way. 4. Hear the objective out completely, and be patient

10. Keep in Mind… ASK QUESTIONS!!! NEVER ARGUE – LISTEN DON’T LISTEN TO RESPOND LISTEN TO UNDERSTAND

11. Some Examples… I just want to make sure I understand your concern. What exactly are you saying about…What exactly do you mean by… Can you explain it to me again… Ok, if you can help me understand your concern, I may be able to help you or offer you another option… Could you tell me again what you are concerned about… Could you explain it to me again, because I am not sure I am understanding you. I want to make sure I am covering all of your options. Can you explain to me exactly what you are concerned about? I want to make sure I understand exactly what is bothering you, can you please say it again because I am not sure I understand… I am not sure I am clear.

12. Other ways to answer… There are 4 situations that will lead a customer to object…  Misunderstanding – The customer doesn’t understand Answer by providing the correct information Clarify, explain  Doubt – Customer doesn’t believe Give proof sources Offer testimonials from satisfied customers  Drawback – Product doesn’t meet customer’s needs Probe, Listen and offer additional benefits Switch products or minimize  Insincere – Hidden objection Probe to uncover real objection

13. “PECA” Method…  PAUSE  ENCOURAGE  CLARIFY  ANSWER

14. Restate the objection and Pause… Why do we PAUSE?  Helps us to calm down  Allows our adrenaline/tension to dissipate  It says that we value what the customer is saying, and we are giving serious thought to their point of view

15. Restating Examples… Make sure you understand! If I understand you correctly, you are concerned about the upfront application fee… Let me make sure I understand exactly what you said… you are unsure of how the minimum payments would benefit you… I would like to understand what you are hesitant about. Is it that the payment cap does not make you comfortable… Maybe I was not clear about how the payment cap provides the stability you are looking for.

16. Encourage/Empathize… Why do we Encourage?  Shows Empathy for the customer  Defuses antagonism or resistance  Turns situation from a confrontation to mutual problem solving  Buys us time to think of the best way to resolve the objection

17. Encouraging Statements…  I can understand your concern.  I can understand how you feel.  That may be a perfectly natural concern.  I can understand why you feel like that.

18. Non-Encouraging Statements…  Don’t worry about that.  You’re WRONG about that.  That’s not true.  That’s not an issue.

19. Clarify… With this method we neutralize the objection by comparing it to a similar situation where a third party had a change of mind.  Many of my other customers have felt the same way as you do…  What my other customers have found is…

20. Clarify (cont)… Suggest another point of view:  What if we looked at it this way…  Another way to look at it is to see how the lower payments of an ARM would allow you to …

21. Answer… When do you answer an objection?  Before the objection is raised Anticipate the most common objections Carry a “Top 10 Objections” list Include information to handle these objections  As soon as it is raised If it’s obvious or simple to answer If the buyer is not willing to let you proceed without answering it

22. Trial Close… Move on – Assume it is ready to go.  Enables you to gain agreement after each phase of your phone conversation Does that answer your concern… Can you see how that will benefit you…  Helps you take the borrower temperature  Do they understand what you are saying?

23. Common Objections…  Rate Too High  Pre-pay Penalty  Costs  Application Fee

24. What would you include?  Your rate is too high What rate were you looking for? I can get you a rate as low as… would you be interested in hearing more? Are you interested in the lowest possible rate, or the lowest possible payment?

25. Then Recall the Benefits…  Remember that you will always have the opportunity to pay extra.  The low payments will offer you the flexibility in payments to match your flexible income.  Keep in mind that you can use the extra money to pay off your high interest credit cards.  You can always pay the extra once you return to work full time.

26. Pre-Pay Feature…  This product has a 3 year prepay feature which should not be an issue because you are not planning on selling within that time.  I just wanted to make you aware of a prepay feature on this product. Should anything happen with your plans and you decide to sell your home during the next 3 years, there will be a 2% fee added to the payout amount. You did say that you plan on keeping your home for longer for than that, so that should not affect this transaction.

27. Then Recall the Benefits…  Remember that your statement will contain monthly payment options designed to free up cash flow in the early years…  The very low monthly payments will give you the extra money you are looking for right now…  The payment options will work hand in hand with the way you are paid. The more you are receiving, the more you can pay…

28. EXERCISE…  Other objections? Yours… What would you say during your sales call to avoid the objection?

29. Closing Costs…  The closing costs on this transaction are only $____, but I have included them into the payments I quoted you so that you won’t have to bring anything to the closing.  The payments I quoted you include all of the closing costs so you won’t have any out of pocket costs for this loan.  The closing costs are only $____, which is not an out of pocket cost and the payment I quoted you already has that amount included.

30. Then Recall the Benefits…  This loan will give you that low payment we discussed of only $_____ in the first year and $____ in the second year…  This program ensures that very low payment in the early years that frees up cash flow you were looking for in order to…  The low payment of $____ for the first year will save you $____ over the payments you are making now.

31. Application Fee…  I will need to collect an application fee of $175. That will enable us to begin the process of getting you into this low payment on your new loan.  All I need to get the process started and order your appraisal is $175 that we can put on a credit card. We should have a preliminary decision for you in 3 days and the underwriter will be contacting you at that time to go over the conditions with you.  The only thing I need now is a credit card payment of $175 which will allow us to get the appraisal process started and begin the process of getting this extra money to you very quickly.

32. Summary… WHAT IS AN OBJECTION? HOW TO HANDLE THEM HOW TO AVOID THEM THOUGHTS/QUESTIONS?

33. COPYRIGHT Wachovia CONFIDENTIAL